Agenda for Regular Common Council Meeting

1 Regular Council Meeting September 1, 2026 AGENDA FOR REGULAR COMMON COUNCIL MEETING CITY OF SUPERIOR, WISCONSIN September 1, 2026 at 6:30 p.m. Government Center, Board Room 201, 1316 N 14th Street, Superior, WI 54880 1. PLEDGE OF ALLEGIANCE 2. ROLL CALL 3. PRESENTATIONS AND PUBLIC HEARINGS 3.1. Public Hearing to approve R26-13886, a resolution submitting question to referendum and specifying the method of payment for a water utility. 3.1.1. Recommendation introduced by Councilor Hering, to amend the referendum question within R26-13886 by striking “Should the City transition to a community-owned water utility in the event that the value of the utility, as determined by the Public Service Commission, falls within the City's financial means?” and replacing with “Should the City of Superior purchase the water utility assets currently owned by Superior Water, Light & Power, at a price to be determined by the Public Service Commission of Wisconsin, to create a city-owned water utility?” 4. APPROVAL OF MINUTES 4.1. August 18, 2026 – Regular Common Council Meeting 5. CORRESPONDENCE TO BE FILED 5.1. City of Superior Audited Financial Statement and Results for 2025 6. MAYOR’S REPORT 6.1. Report from Mayor Paine 6.2. Committee, Board, and Commission Appointments 7. STANDING COMMITTEE REPORTS 7.1. Human Resources Committee (Meeting held August 17, 2026) Report from the Chair. RECOMMENDATIONS: [20260901R 1] 2 Regular Council Meeting September 1, 2026 7.1.1. Approve reclassification of current Assistant Building Permit Technician to Building Permit Technician. 7.1.2. Approve extension of the current GIS Intern position through May 31, 2027. 7.2. Public Works Committee (No meeting to report) 7.3. Finance Committee (Meeting held August 25, 2026) Report from the Chair. 7.4. Licenses and Fees Committee (No meeting to report) 7.5. Public Safety Committee (Meeting held August 20, 2026) Report from the Chair. RECOMMENDATIONS: 7.5.1. Approve O26-4435, an ordinance introduced by the Public Safety Committee amending City Code, Chapter 112 – Traffic Code, Schedule A – Stops, Section 3 – One- and Two-Way Stops, to add East 7th Street at 10th Avenue East as a Two-Way Stop. 8. SPECIAL COMMITTEE REPORTS 8.1. REPORTS WITH RECOMMENDATIONS 8.2.1. Plan Commission (Meeting held August 24, 2026) Report from the Chair. RECOMMENDATIONS: 8.2.1.1. Award a Small Business Grant to Flow Studio, LLC located at 1317 Tower Avenue in the amount of $6,471.54. 8.2.1.2. Award a Small Business Grant to Superior Tavern located at 1224 Tower Avenue in the amount of $9,500.00. 8.2.1.3. Approve R26-13889, a resolution determining it to be in the public interest to set a public hearing for consideration of amending City Code, Chapter 122 – Zoning, Article VIII – Floodplains. 8.3. REPORTS SANS RECOMMENDATIONS 8.3.1. Wisconsin Point Committee (Meeting held August 11, 2026) Report from the Chair. 9. OLD BUSINESS [20260901R 2] 3 Regular Council Meeting September 1, 2026 10. NEW BUSINESS 10.1. Miscellaneous licenses. 10.2. R26-13887, a resolution Referring Proposed Amendment to Project Plan for Tax Incremental District Number Fourteen to the Plan Commission and Appointing City Representative to Joint Review Board. 10.3. R26-13888, a resolution Referring Proposed Amendment to Project Plan for Tax Incremental District Number Eighteen to the Plan Commission and Appointing City Representative to Joint Review Board. 11. BUSINESS BY PUBLIC Due to the requirements of the Wisconsin Open Meetings laws, only matters placed on this agenda may be approved by the Council at this meeting. Citizens who wish to address the council may do so during Business by Public by signing up with the city clerk and indicating the agenda item they wish to address. All comments by members of the public shall be limited to three minutes in length. Electioneering or personal attacks are not allowed. The City of Superior complies with the Americans with Disabilities Act of 1990. If you need an accommodation to participate in the public meeting process, please contact the City Clerk’s Office at (715) 395 -7200 (OR dial 711 for Telecommunications Relay Se rvice) prior to the scheduled meeting. The city will attempt to accommodate any reasonable request depending on the amount of notice received. In compliance with Wisconsin Open Meetings Law, this agenda was posted on 08/28/2026 at the following locations: Superior Government Center, Douglas County Courthouse, and online at https://www.superiorwi.gov/agendacenter. It was also emailed to the Superior Telegram and the Superior Public Library. [20260901R 3] R26-13886 A RESOLUTION SUBMITTING QUESTION TO REFERENDUM AND SPECIFYING THE METHOD OF PAYMENT FOR A WATER UTILITY WHEREAS, Superior Water, Light & Power, Company ("SWL&P"), a wholly owned subsidiary of ALLETE, Inc., operates a public water utility serving the City of Superior; and WHEREAS, the City of Superior has undertaken a study of the potential municipalization of the water utility and an appraisal of the cost, and deems it prudent to pursue its acquisition; and WHEREAS Wisconsin law requires that acquisition of the water utility be approved by a majority vote of the City of Superior residents at a referendum election; and, WHEREAS Wisconsin law requires the common council to specify the method of payment for the utility; and WHEREAS, the City’s Public Works Committee voted unanimously on August 6, 2026 to recommend that the question of the acquisition of the water utility be submitted to voters at the April 6, 2027, Spring Election; and WHEREAS, Wis. Stat. § 66.0803(1)(b) requires that a resolution be adopted by a majority of all of the members of the City Council at a regular meeting after publication at least one week previous in the official newspaper; and, WHEREAS, this resolution was published in the Superior Telegram at least one week prior to the regular meeting of the Superior City Council on September 1, 2026; and, NOW, THEREFORE, the Common Council of the City of Superior, Douglas County, Wisconsin, does hereby resolve that: 1. The following question shall be submitted to a referendum at the Spring Election to be held on April 6, 2027: “Should the City transition to a community -owned water utility in the event that the value of the utility, as determined by the Public Service Commission, falls within the City’s financial means?" 2. Upon receipt of the final cost to acquire the utility from the Public Service Commission, the City Council shall solicit the advice of the Mayor, City Finance Director, and any other financial and legal advice they deem necessary to determine whether the cost is within the City’s financial means. [20260901R 4] R26-13886 Water Utility Referendum Page 2 of 2 3. The City will issue municipal general obligation bonds, municipal revenue bonds, or a combination of the two to pay for the acquisition of the utility. The debt service for these bonds shall be paid exclusively by future water utility rates and shall not be paid by the property tax levy. 4. The City Clerk shall issue a notice of referendum, which shall include a general statement of the plant and equipment that the City proposes to acquire from the Superior Water, Light & Power, Company, and a description of the manner of payment. Passed and adopted this 1st day of September, 2026. Approved this 1st day of September, 2026. ________________________________________ Mayor Attest: ____________________________________ City Clerk [20260901R 5] 1 Regular Council Meeting August 18, 2026 PROCEEDINGS OF THE REGULAR COMMON COUNCIL MEETING CITY OF SUPERIOR, WISCONSIN August 18, 2026 at 6:30 p.m. Government Center, Board Room 201, 1316 N 14th Street, Superior, WI 54880 1. PLEDGE OF ALLEGIANCE 2. ROLL CALL Present: Nick Ledin, Sarah Anderson, Garner Moffat, Jack Sweeney, Joe Radtke, Tylor Elm, Karly Caven, Mike Herrick, Rob Hering, Lindsey Graskey – 10 Virtual: Absent: Also Present: Mayor Paine, City Attorney Prell, Chief of Staff Bernacki, Deputy City Clerk Bacon, City Clerk Technician Lang 3. PRESENTATIONS AND PUBLIC HEARINGS 4. APPROVAL OF MINUTES 4.1. August 4, 2026 – Regular Common Council Meeting MOTION TO APPROVE, by Councilor Elm, was seconded by Councilor Anderson, and carried. 5. CORRESPONDENCE TO BE FILED 6. MAYOR’S REPORT 6.1. Report from Mayor Paine 6.2. Priorities Based Budgeting No action taken. 7. STANDING COMMITTEE REPORTS 7.1. Human Resources Committee (No meeting to report) 7.2. Public Works Committee (Meeting held August 6, 2026) Report from Councilor Ledin. RECOMMENDATIONS: 7.2.1. Waive the bidding requirements for the repair of the SS Meteor’s cracked hull and award the work to Fraser Shipyards in the amount of $29,900.00. MOTION TO APPROVE, by Councilor Ledin, was seconded by Councilor [20260901R 6] 2 Regular Council Meeting August 18, 2026 Elm, and carried. 7.2.2. Approve the 2026 Hot Mix Asphalt Proposals. MOTION TO APPROVE, by Councilor Ledin, was seconded by Councilor Elm, and carried. 7.2.3. Award the Engineering Design Contract for the North 28th Street Grade Separation Project to SRF Consulting Group in an amount not to exceed $2,464,037.00. MOTION TO APPROVE, by Councilor Ledin, was seconded by Vice President Moffat, and carried. 7.2.4. Publish a resolution relating to water utility acquisition. MOTION TO APPROVE, by Councilor Ledin, was seconded by Vice President Moffat. THERE WAS NO OBJECTION to opening public comment. Cory Strem – spoke against the water utility acquisition and resolution. Joe Stensland – spoke in appreciation of the discussion. Bill Fennessey – (Superior Community Coalition) spoke against the water utility acquisition and resolution. Dan McCall – spoke against the water utility acquisition and resolution. Kristin Renskers – (Business Manager of IBEW Local 31) spoke against the utility acquisition and resolution. Dan Olson – spoke to amend the resolution. Jim Dahlberg – (former SWL&P) spoke against the water utility acquisition and resolution. MAYOR PAINE REQUESTED UNANIMOUS CONSENT to strike the 3rd paragraph reading, “WHEREAS, Superior Water, Light & Power is not open to a negotiation of a voluntary sale of the utility.” THERE WAS NO OBJECTION and the amendment was adopted and passed by unanimous consent. MAYOR PAINE REQUESTED UNANIMOUS CONSENT to make a grammatical change to the question and reorder it to strike and amend to read, “Should the City transition to a community-owned water utility in the event that the value of the utility, as determined by the Public Service Commission, falls within the City’s financial means?” THERE WAS NO OBJECTION and the amendment was adopted and passed by unanimous consent. MOTION TO PUBLISH resolution as amended for at least 1 week prior to [20260901R 7] 3 Regular Council Meeting August 18, 2026 the September 1st City Council meeting passed 8 – 2 by voice vote: Councilor Radtke – Yes Councilor Elm – Yes Councilor Caven – Yes President Herrick – Yes Councilor Hering – Yes Councilor Graskey – Yes Councilor Ledin – Yes Councilor Anderson – No Vice President Moffat – Yes Councilor Sweeney – No 7.3. Finance Committee (No meeting to report) 7.4. Licenses and Fees Committee (No meeting to report) 7.5. Public Safety Committee (No meeting to report) 8. SPECIAL COMMITTEE REPORTS 8.1. REPORTS WITH RECOMMENDATIONS 8.1.1 Public Art Commission (Meeting held July 30, 2026) Report from Councilor Graskey. RECOMMENDATIONS: 8.1.1.1 Award sponsorship to Superior Council for the Arts for the 2026 Regional Creative Industries Summit Event in the amount of $5,965.00. MOTION TO APPROVE, by Councilor Elm, was seconded by Councilor Graskey, and carried. 8.2. REPORTS SANS RECOMMENDATIONS 9. OLD BUSINESS 10. NEW BUSINESS 10.1. Miscellaneous licenses. MOTION TO APPROVE, by Councilor Ledin, was seconded by President Herrick, and carried. 10.2. Amend the Premise for a special event license application for Atypical Enterprises, Inc., dba Main Club, located at 1217 Tower Avenue (Agent: Shawn Roos), for Pride Weekend September 4 through September 7, 2026. MOTION TO APPROVE, by Councilor Graskey, was seconded by Councilor [20260901R 8] 4 Regular Council Meeting August 18, 2026 Anderson, and carried. 10.3. Amend the Premise for a special event license application for The Superior Flame, LLC, dba, The Superior Flame Night Club, located at 1612 Tower Avenue (Agent: Russ Melanson), for Superior Pride Block Party September 5, 2026. MOTION TO APPROVE, by Councilor Anderson, was seconded by Councilor Hering, and carried. 10.4. Original Class “B” Beer and “Class B” Liquor license application for Solomon Witherspoon Group, LLC, doing business as Solomon Witherspoon, located at 1108 Tower Avenue (Agent: Amanda Anderson) for current license period through June 30, 2027, pending fire, police, and health department approvals, and proposed lease condition. MOTION TO APPROVE the Class “B” Beer and “Class B” Liquor license for Solomon Witherspoon at 1108 Tower Avenue, subject to receipt of recommendations for approval from the Police, Fire, and Health Departments and proof of lease agreement for the premises by Vice President Moffat, was seconded by Councilor Graskey, and carried. 10.5. File a cross appeal with the Wisconsin State Board of Assessors to the objected valuation of property located at 153 Main Street (Property Owners: Exodus Real Estate Holdings, LLC). MOTION TO APPROVE, by Councilor Caven, was seconded by Vice President Moffat, and carried. 11. BUSINESS BY PUBLIC Meeting adjourned at 8:12 p.m. Respectfully submitted, Heidi Blunt, City Clerk Superior, Wisconsin Approved this 1st day of September, 2026. Attest: ____________________________________ Mayor ____________________________________ City Clerk [20260901R 9] City of Superior Financial Statements and Supplementary Information December 31, 2025 [20260901R 10] City of Superior Table of Contents December 31, 2025 Page Independent Auditors' Report i Required Supplementary Information Management's Discussion and Analysis (Unaudited) iv Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position 1 Statement of Activities 2 Fund Financial Statements: Balance Sheet - Governmental Funds 4 Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities 5 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 6 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 7 Statement of Net Position - Proprietary Funds 8 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 10 Statement of Cash Flows - Proprietary Funds 11 Statement of Fiduciary Net Position - Custodial Funds 12 Statement of Changes in Fiduciary Net Position - Custodial Funds 13 Index to Notes to Financial Statements 14 Notes to Financial Statements 15 [20260901R 11] City of Superior Table of Contents December 31, 2025 Page Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 62 Schedule of Employer's Proportionate Share of Net Pension Liability (Asset) - Wisconsin Retirement System (WRS) 63 Schedule of Employer Contributions - Wisconsin Retirement System 63 Schedule of Employer's Proportionate Share of the Net OPEB Liability - Local Retiree Life Insurance Fund (LRLIF) 64 Schedule of Employer Contributions - Local Retiree Life Insurance Fund (LRLIF) 64 Schedule of Changes in the Total OPEB Liability and Related Ratios - City OPEB Plan 65 Notes to the Required Supplementary Information 66 Supplementary Information Detailed Schedule of Revenues and Other Financing Sources - Budget and Actual - General Fund 68 Detailed Schedule of Expenditures and Other Financing Uses - Budget and Actual - General Fund 70 Combining Balance Sheet - Nonmajor Governmental Funds 71 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 72 Combining Balance Sheet - Nonmajor Special Revenue Funds 73 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds 78 Combining Balance Sheet - Nonmajor Capital Projects Funds 83 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Capital Projects Funds 85 Other Reports Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance7 With Government Auditing Standards 87 Schedule of Findings and Responses 89 [20260901R 12] Independent Auditors' Report To the City Council of City of Superior Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Superior, Wisconsin (the City), as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above 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 the City as of December 31, 2025 and the respective changes in financial position and, where applicable, cash flows thereof 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 (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City 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. Emphasis of Matter As discussed in Note 3 to the financial statements, changes in the presentation of funds within the financial statements had occurred and adjustments were made to the reporting period's beginning fund balance. Our opinions are not modified with respect to this matter. Responsibilities of Management for the Financial Statements 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'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. i Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. [20260901R 13] Auditors' 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 auditors' 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 the City'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 the City'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 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 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. ii [20260901R 14] Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The supplementary information as listed 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 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 July 30, 2026 on our consideration of the City'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 the City's 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's internal control over financial reporting and compliance. Eau Claire, Wisconsin July 30, 2026 iii [20260901R 15] City of Superior, Wisconsin Management's Discussion and Analysis December 31, 2025 (Unaudited) iv As management of the City of Superior, Wisconsin (the City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2025. All amounts within tables are expressed in thousands of dollars. Financial Highlights The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $166,426,133 (net position). Of this amount, $42,464,483 (unrestricted net position) may be used to meet the government's ongoing obligations to citizens and creditors.  The government's total net position increased by $11,280,442.  As of the close of the current fiscal year, the City's governmental activities reported combined ending net position of $90,208,262, an increase of $1,330,083 in comparison with the prior year. Approximately 24% of this total amount, $21,827,773 is available for spending at the government's discretion (unrestricted net position).  At the end of the current fiscal year, unassigned fund balance for the general fund was $12,400,942, or 40% of total general fund expenditures.  The City's total debt balance decreased by $573,264, or 2%, during the current fiscal year. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements comprise three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City's assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in the future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, protection of persons and property, highway and transportation, library, conservation and development, and parks and recreation. The business-type activities of the City include a wastewater utility, a landfill utility, a stormwater utility, broadband utility and a golf course. The government-wide financial statements can be found on pages 1 - 3 of this report. [20260901R 16] City of Superior, Wisconsin Management's Discussion and Analysis December 31, 2025 (Unaudited) v Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental Funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 75 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund and capital improvement program fund, which are considered to be major funds. 32 debt service funds are consolidated and presented as one major governmental fund. Data from the other 41 governmental funds are combined into a single, aggregated presentation. The City adopts an annual appropriated budget for funds as required by state statute. Budgetary comparison statements have been provided for the general fund to demonstrate compliance with the adopted budget. The basic governmental fund financial statements can be found on pages 4 - 7 of this report. Proprietary Funds - The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Sewerage System, Landfill Utility, Stormwater Utility, Broadband Utility and Golf Course Fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for insurance activities. Because this service predominantly benefits governmental rather than business-type functions, the majority has been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statement, only in more detail. The proprietary fund financial statements provide separate information for the Sewerage System, Landfill Utility, Stormwater Utility, Broadband Utility and Golf Course Fund. The basic proprietary fund financial statements can be found on pages 8 - 11 of this report. Fiduciary Funds - The fiduciary fund is used to account for resources held for the benefit of parties outside the government. The fiduciary fund is not reflected in the government-wide financial statement because the resources of this fund are not available to support the City's own programs. The fiduciary fund maintained by the City is a custodial fund, which records the tax roll and tax collections for other taxing jurisdictions within the City and assets held as police evidence. The accounting used for the fiduciary fund is much like that used for governmental funds. [20260901R 17] City of Superior, Wisconsin Management's Discussion and Analysis December 31, 2025 (Unaudited) vi The basic fiduciary fund financial statement can be found on pages 12 - 13 of this report. Notes to the Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 15 - 61 of this report. Government-Wide Financial Analysis - As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $166,426,133 at the close of the most recent fiscal year. By far, the largest portion of the City's net position reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, and infrastructure), less any related debt used to acquire those assets that are still outstanding. The City used these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its governmental activities. 2025 2024 2025 2024 2025 2024 Current and other assets 55,772 $ 61,348 $ 37,057 $ 31,351$ 92,829 $ 92,699 $ Capital assets 87,981 84,959 64,946 58,370 152,927 143,329 Total assets 143,753 146,307 102,003 89,721 245,756 236,028 Deferred outflows of resources 14,926 20,266 2,619 3,328 17,545 23,594 Other Liabilities 8,089 10,172 1,577 1,558 9,666 11,730 Long-term liabilities outstanding 35,329 38,517 25,272 23,109 60,601 61,626 Total liabilities 43,418 48,689 26,849 24,667 70,267 73,356 Deferred inflows of resources 25,053 29,006 1,555 2,115 26,608 31,121 Net position: Net investment in capital assets 61,569 56,901 54,070 49,449 115,639 106,350 Restricted 6,811 10,968 1,511 1,511 8,322 12,479 Unrestricted 21,828 21,009 20,637 15,307 42,465 36,316 Total net position 90,208$ 88,878 $ 76,218 $ 66,267 $ 166,426 $ 155,145$ Total City of Superior Net Position (Amounts expressed in $000s) Governmental Activities Business-Type Activities [20260901R 18] City of Superior, Wisconsin Management's Discussion and Analysis December 31, 2025 (Unaudited) vii Governmental and Business-Type Activities - Governmental Activities increased the City's net position by $1,330,083. Business-type activities increased the City's net position by $9,950,359. 2025 2024 2025 2024 2025 2024 Revenues: Program Revenues: Charges for serv ices 3,589$ 2,869 $ 20,436 $ 20,042 $ 24,025 $ 22,911 $ Operating grants and contributions 975 4,173 471 194 1,446 4,367 Capital grants and contributions - - 1,241 496 1,241 496 General Revenues: Property taxes 14,111 13,877 14,111 13,877 Other taxes 1,921 1,702 1,921 1,702 Intergovernmental revenues not restricted to specific programs 32,055 35,505 32,055 35,505 Inv estment income/(loss) 1,413 2,143 1,445 1,155 2,858 3,298 Miscellaneous 1,421 7,782 26 839 1,447 8,621 Total Revenues 55,485$ 68,051 $ 23,619 $ 22,726 $ 79,104 $ 90,777 $ Expenses General Government 3,052 4,160 - - 3,052 4,160 Public Safety 19,907 16,760 - - 19,907 16,760 Public Works 13,965 13,536 - - 13,965 13,536 Health and Human Services 95 205 - - 95 205 Culture, Recreation, and Education 5,894 5,097 - - 5,894 5,097 Economic Development 5,087 17,905 - - 5,087 17,905 Interest and fiscal charges 825 874 - - 825 874 Sewerage System - - 8,082 7,032 8,082 7,032 Landfill Utility - - 5,393 5,558 5,393 5,558 Stormwater Utility - - 1,987 1,631 1,987 1,631 Broadband Utility - - 790 2 790 2 Golf Course - - 2,746 2,718 2,746 2,718 Total Expenses 48,825$ 58,537$ 18,998$ 16,941$ 67,823$ 75,478$ Increase (decrease) in net position 6,660 9,514 4,621 5,785 11,281 15,299 before transfers Transfers (5,330) (1,615) 5,330 1,615 - - Increase (decrease) in net position 1,330 7,899 9,951 7,400 11,281 15,299 Net position - January 1 88,878 80,979 66,267 58,867 155,145 139,846 Net position - December 31 90,208$ 88,878$ 76,218$ 66,267$ 166,426$ 155,145$ Governmental Activities Business-type Activities Total Activities City of Superior Changes in Net Position (Amounts expressed in $000s) [20260901R 19] City of Superior, Wisconsin Management's Discussion and Analysis December 31, 2025 (Unaudited) viii Public charges for services 6.5% Operating grants and contributions 1.8% Capital grants and contributions 0.0% Taxes 28.9% Intergovernmental revenues not restricted to specific programs 57.7% Investment income/(loss) 2.5%Miscellaneous 2.6% 2025 Revenues by Source Governmental Activities [20260901R 20] City of Superior, Wisconsin Management's Discussion and Analysis December 31, 2025 (Unaudited) ix 2025 2024 2025 2024 2025 2024 Expenses General Government 3,052$ 4,160 $ - $ - $ 3,052$ 4,160 $ Public Safety 19,907 16,760 - - 19,907 16,760 Public Works 13,965 13,536 - - 13,965 13,536 Health and Human Services 95 205 - - 95 205 Culture, Recreation, and Education 5,894 5,097 - - 5,894 5,097 Economic Development 5,087 17,905 - - 5,087 17,905 Interest and fiscal charges 825 874 - - 825 874 Sewerage System - - 8,082 7,032 8,082 7,032 Landfill Utility - - 5,393 5,558 5,393 5,558 Stormwater Utility - - 1,987 1,631 1,987 1,631 Broadband Utility - - 790 2 790 2 Golf Course - - 2,746 2,718 2,746 2,718 Total Expenses 48,825$ 58,537 $ 18,998 $ 16,941 $ 67,823 $ 75,478 $ Program Revenues: General Government 1,827$ 1,860$ -$ -$ 1,827$ 1,860$ Public Safety 1,048 1,239 - - 1,048 1,239 Public Works 383 307 - - 383 307 Culture, Recreation, and Education 526 406 - 526 406 Economic Development 780 3,230 - 780 3,230 Sewerage System - - 8,996 8,068 8,996 8,068 Landfill Utility - - 6,877 7,240 6,877 7,240 Stormwater Utility - - 3,526 2,665 3,526 2,665 Broadband Utility - - 14 - 14 - Golf Course - - 2,735 2,759 2,735 2,759 Total Program Revenues 4,564$ 7,042$ 22,148$ 20,732$ 26,712$ 27,774$ Net Cost of Service General Government 1,225$ 2,300$ -$ -$ 1,225$ 2,300$ Public Safety 18,859 15,521 - - 18,859 15,521 Public Works 13,582 13,229 - - 13,582 13,229 Health and Human Services 95 205 - - 95 205 Culture, Recreation, and Education 5,368 4,691 - - 5,368 4,691 Economic Development 4,307 14,675 - - 4,307 14,675 Interest and fiscal charges 825 874 - - 825 874 Sewerage System - - (914) (1,036) (914) (1,036) Landfill Utility - - (1,484) (1,682) (1,484) (1,682) Stormwater Utility - - (1,539) (1,034) (1,539) (1,034) Broadband Utility - - 776 2 776 2 Golf Course - - 11 (41) 11 (41) Total Net Cost of Service 44,261$ 51,495$ (3,150)$ (3,791)$ 41,111$ 47,704$ City of Superior Expenses and Program Revenues Governmental Activities Business-type Activities Total Activities (Amounts expressed in $000s) [20260901R 21] City of Superior, Wisconsin Management's Discussion and Analysis December 31, 2025 (Unaudited) x Financial Analysis of the Government's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental Funds - The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, an unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The general fund is the chief operation fund of the City. At the end of the current fiscal year, unassigned fund balance of the general fund was $12,400,942, while total fund balance reached $14,070,293. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Total unassigned fund balance represents 40% of total general fund expenditures, while total fund balance represents 45% of that same amount. The fund balance of the City's general fund increased by $444,228. Expenditures in the general fund were $1,782,931 less than budgeted due primarily to debt service being under budget although all other functions were over and under budget as well. The City amended the original budget. Proprietary Funds - The City's proprietary funds provide the same type of information found in the government- wide financial statements, but in more detail. Unrestricted net position of the Sewerage System Fund at the end of the year amounted to $8,105,355, for the Landfill Utility Fund $2,188,224, the Stormwater Utility Fund $6,857,117, the Golf Course Fund $1,757,153, and the Broadband Utility $1,586,310. The total increase (decrease) in net position for the funds was $(8,891), $1,995,675, $1,006,485, $368,560, and $6,645,046, respectively. Capital Assets and Debt Administration Capital Assets. The City's investment in capital assets for its governmental and business-type activities as of December 31, 2025, amounts to $152,926,627 (net of accumulated depreciation/amortization). This investment in capital assets includes land, land improvements, buildings, machinery and equipment, park facilities, roads, highways, and sidewalks. Additional information on the City's capital assets can be found in Note 3 on pages 31 - 35 of this report. 2025 2024 2025 2024 2025 2024 Land and land improvements 26,624$ 24,258$ 24,187$ 18,363$ 50,812$ 42,621$ Buildings and improvements 16,820 17,375 3,752 4,115 20,572 21,490 Machinery and equipment 6,141 6,682 5,103 5,332 11,243 12,013 Leased assets 167 243 202 228 369 472 Infrastructure - - 27,655 23,323 27,655 23,323 Construction in progress 11,848 7,485 4,047 7,009 15,895 14,495 Roads 20,506 22,903 - - 20,506 22,903 Sidewalks/Bikepaths 5,875 6,013 - - 5,875 6,013 Total 87,981$ 84,959$ 64,946$ 58,370$ 152,927$ 143,330$ City of Superior Bay Capital Assets (net of accumulated depreciation) Total ActivitiesGovernmental Activities Business-type Activities (Amounts expressed in $000s) [20260901R 22] City of Superior, Wisconsin Management's Discussion and Analysis December 31, 2025 (Unaudited) xi Long-Term Debt. At the end of the current fiscal year, the City had total bonds and notes outstanding of $25,510,600. The debt is backed by the full faith and credit of the government. The remainder, $10,694,853, represents the City's bonds secured solely by specified revenue sources (i.e., revenue bonds). The City's total bond and note payable debt decreased by $573,264 or 2% during the current fiscal year. The City's bond rating has been maintained at AA from Standard & Poor's for its general obligation debt. State statutes limit the amount of general obligation debt a governmental entity may issue to 5% of its total equalized valuation. The current debt limitation for the City is $138,401,445, which is significantly in excess of the City's actual outstanding general obligation debt. Additional information on the City's long-term debt can be found on pages 38 - 43 of this report. Economic Factors  The unemployment rate for Douglas County is current ly 4.2%. This compares to the state's average unemployment rate of 3.2% and the national average rate of 4.4%.  The equalized value has increased an average of 8. 29% per year over the last five years. Equalized value decreased 3.23% between 2024 and 2025. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director. [20260901R 23] Business- Governmental Type Activities Activities Total Assets Cash and investments 35,327,562 $ 18,959,114 $ 54,286,676 $ Taxes receivable, net 15,415,206 - 15,415,206 Accounts receivable, net - 3,622,030 3,622,030 Special assessments receivable 508,699 171,770 680,469 Loans receivable, net 1,460,781 - 1,460,781 Leases receivable 2,222,471 - 2,222,471 Other receivables 898,483 6,299 904,782 Due from other governments 251,267 - 251,267 Internal balances (956,327) 956,327 - Inventories and prepaid items 71,555 203,376 274,931 Restricted assets: Cash and investments 90,069 13,138,330 13,228,399 Property held for resale 482,138 - 482,138 Capital assets: Construction in progress 11,847,727 4,047,114 15,894,841 Land 14,875,995 1,630,722 16,506,717 Other capital assets, net of depreciation/amortization 61,257,207 59,267,86 2 120,525,06 9 Total assets 143,752,833 102,002,944 245,755,777 Deferred Outflows of Resources OPEB related amounts, City plan 2,296,833 365,583 2,662,416 OPEB related amounts, LRLIF 264,712 64,819 329,531 Pension related amounts 12,364,433 2,188,27 6 14,552,70 9 Total deferred outflows of resources 14,925,978 2,618,678 17,544,656 Liabilities Accounts payable 5,172,906 1,166,138 6,339,044 Accrued and other current liabilities 1,960,885 328,927 2,289,812 Due to other governments 119,707 - 119,707 Unearned revenues 835,732 81,723 917,455 Noncurrent liabilities: OPEB liability, City plan 5,231,923 832,758 6,064,681 OPEB liability, LRLIF 845,493 240,804 1,086,297 Net pension liability 2,186,090 298,767 2,484,857 Due within one year 2,229,217 1,060,802 3,290,019 Due in more than one year 24,835,811 22,839,27 6 47,675,08 7 Total liabilities 43,417,764 26,849,195 70,266,959 Deferred Inflows of Resources Property taxes levied for subsequent year 14,812,494 - 14,812,494 Unearned lease revenue 2,222,471 - 2,222,471 OPEB related amounts, City plan 1,301,640 207,180 1,508,820 OPEB related amounts, LRLIF 621,239 170,553 791,792 Pension related amounts 6,094,941 1,176,82 3 7,271,76 4 Total deferred inflows of resources 25,052,785 1,554,556 26,607,341 Net Position Net investment in capital assets 61,569,055 54,070,194 115,639,249 Restricted for: Capital projects 841,668 - 841,668 Debt service 802,849 1,510,967 2,313,816 Library 176,663 - 176,663 Narcotics task force 29,510 - 29,510 Community improvement, development and tourism 1,657,115 - 1,657,115 Affordable housing 1,469,023 - 1,469,023 Hazardous materials grant 48,752 - 48,752 Housing loans 1,426,745 - 1,426,745 Opioid remediation 359,109 - 359,109 Unrestricted 21,827,773 20,636,71 0 42,464,48 3 Total net position 90,208,26 2$ 76,217,871 $ 166,426,13 3$ City of Superior Statement of Net Position December 31, 2025 See notes to financial statements 1 [20260901R 24] City of Superior Statement of Activities Year Ended December 31, 2025 Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental Activities General government 3,051,802 $ 994,601 $ 832,640 $ - $ Public safety 19,906,643 919,999 127,758 - Public works 13,965,272 382,942 - - Health and human services 94,936 - - - Culture and recreation 5,894,054 526,520 - - Conservation and development 5,087,054 765,080 14,916 - Interest and fiscal charges 825,234 - - - Total governmental activities 48,824,995 3,589,142 975,314 - Business-Type Activities Sewerage System 8,081,629 8,296,715 - 699,857 Landfill Utility 5,392,572 6,776,591 100,407 - Stormwater Utility 1,987,116 2,614,366 370,667 540,849 Broadband Utility 790,238 13,885 - - Golf Course 2,746,42 5 2,734,670 - - Total business-type activities 18,997,980 20,436,227 471,074 1,240,706 Total primary government 67,822,975 $ 24,025,369 $ 1,446,388 $ 1,240,706 $ General Revenues Taxes: Property taxes, levied for general purposes Property taxes, levied for debt service Room taxes Other taxes Intergovernmental revenues not restricted to specific programs Investment income Miscellaneous Total general revenues Transfers Change in net position Net Position, Beginning Net Position, Ending Program Revenue s See notes to financial statements 2 [20260901R 25] Governmental Business-Type Activities Activities Total (1,224,561)$ - $ (1,224,561)$ (18,858,886) - (18,858,886) (13,582,330) - (13,582,330) (94,936) - (94,936) (5,367,534) - (5,367,534) (4,307,058) - (4,307,058) (825,234) - (825,234) (44,260,539) - (44,260,539) - 914,943 914,943 - 1,484,426 1,484,426 - 1,538,766 1,538,766 - (776,353) (776,353) - (11,755) (11,755) - 3,150,027 3,150,027 (44,260,539) 3,150,027 (41,110,512) 10,278,369 - 10,278,369 3,832,674 - 3,832,674 1,452,942 - 1,452,942 468,311 - 468,311 32,055,198 - 32,055,198 1,412,747 1,444,907 2,857,654 1,420,391 25,415 1,445,806 50,920,632 1,470,322 52,390,954 (5,330,010) 5,330,010 - 1,330,083 9,950,359 11,280,442 88,878,179 66,267,512 155,145,691 90,208,262$ 76,217,871 $ 166,426,13 3$ Net (Expenses) Revenues and Changes in Net Position Primary Government See notes to financial statements 3 [20260901R 26] Balance Sheet - Governmental Funds December 31, 2025 Capital Nonmajor Total General Improvement Debt Governmental Governmental Fund Program Service Funds Funds Assets Cash and investments 13,709,662$ - $ 1,038,062$ 9,834,410 $ 24,582,134 $ Restricted cash and investments - - - 90,069 90,069 Receivables, net: Taxes 11,369,795 - 4,000,268 - 15,370,063 Delinquent personal property taxes 45,143 - - - 45,143 Special assessments 44,071 - - 464,628 508,699 Loans - - - 1,460,781 1,460,781 Leases 2,222,471 - - - 2,222,471 Other 434,318 750 - 429,274 864,342 Due from other governments 11,441 - - 227,929 239,370 Due from other funds 100,730 - - - 100,730 Inventories and prepaid items 65,157 - - - 65,157 Property held for resale - - - 482,138 482,138 Advances to other funds 1,473,681 - - 864,348 2,338,029 Total assets 29,476,469$ 750 $ 5,038,330$ 13,853,577 $ 48,369,126 $ Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable 447,958 $ 3,831,278 $ - $ 470,051$ 4,749,287 $ Accrued liabilities 1,166,785 - - 99,141 1,265,926 Due to other funds 813,776 - - 100,730 914,506 Due to other governments 119,707 - - - 119,707 Deposits 35,624 - - 393,103 428,727 Unearned revenues - - - 835,732 835,732 Advances from other funds - 269,344 - 2,068,685 2,338,029 Total liabilities 2,583,850 4,100,622 - 3,967,442 10,651,914 Deferred Inflows of Resources Property taxes levied for subsequent year 10,556,019 - 4,000,268 256,207 14,812,494 Unearned lease revenue 2,222,471 - - - 2,222,471 Unavailable revenues 43,836 - - 1,455,647 1,499,483 Total deferred inflows of resources 12,822,326 - 4,000,268 1,711,854 18,534,448 Fund Balances Nonspendable 1,538,838 - - 100,000 1,638,838 Restricted 130,513 - 1,038,062 5,708,254 6,876,829 Committed - - - 30,718 30,718 Assigned - - - 3,597,477 3,597,477 Unassigned (deficit) 12,400,942 (4,099,872) - (1,262,168) 7,038,902 Total fund balances (deficit) 14,070,293 (4,099,872) 1,038,062 8,174,281 19,182,764 Total liabilities, deferred inflows of resources and fund balances 29,476,469 $ 750 $ 5,038,330$ 13,853,577 $ 48,369,126 $ City of Superior See notes to financial statements 4 [20260901R 27] Total Fund Balance, Governmental Funds 19,182,764$ Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in government activities are not financial resources and therefore are not reported in the fund statements. See Note 3. 87,980,929 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. These amounts are the net effect of these differences: Premium on debt (770,995) Special assessments, loans receivable, and various other receivables are reported as unavailable revenue in the fund financial statements and are recognized as revenue when earned in the government-wide financial statements. See Note 3. 1,499,483 Some deferred outflows of resources do not relate to current financial resources and are not reported in the governmental funds. Deferred outflows, OPEB related amounts, City plan 898,419 Deferred outflows, OPEB related amounts, LRLIF 263,459 Deferred outflows, pension related amounts 12,199,950 Some deferred inflows of resources do not relate to current financial resources and are not reported in the governmental funds. Deferred inflows, OPEB related amounts, City plan (509,143) Deferred inflows, OPEB related amounts, LRLIF (595,906) Deferred inflows, pension related amounts (6,030,623) Internal service funds are used by management to charge the cost of self- insurance to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position. 7,602,188 Long-term liabilities, including bonds and notes payable, are not due in the current period and therefore are not reported in the fund statements. Long-term liabilities at year-end consist of: General obligation debt (25,510,600) $ Financed purchases (540,597) Lease liabilities (167,090) Compensated absences (75,712) Net pension liability (2,145,767) OPEB liabilities, City plan (2,046,494) OPEB liabilities, LRLIF (790,790) Accrued interest (235,213) (31,512,263 ) Total Net Position, Governmental Activities 90,208,262$ City of Superior Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities December 31, 2025 See notes to financial statements 5 [20260901R 28] (Previous Year (Previous Year Major Fund) Major Fund) Capital Nonmajor Total General ARPA PIDP Improvement Debt Governmental Governmental Fund Grant Grant Program Service Funds Funds Revenues Taxes 10,658,881$ -$ - $ - $ 3,832,674$ 1,457,206 $ 15,948,761 $ Special assessments 5,074 - - - - 318,385 323,459 Intergovernmental 19,595,047 - - 5,148,242 - 8,038,437 32,781,726 Licenses and permits 692,118 - - 90,850 - - 782,968 Fines, forfeitures and penalties 155,542 - - - - 14,256 169,798 Public charges for services 122,363 - - 27,707 - 1,006,542 1,156,612 Intergovernmental charges for services 104,032 - - 23,745 - - 127,777 Investment income (loss) 547,631 - - - 54,583 306,783 908,997 Miscellaneous 624,712 - - 126,626 93,038 1,202,300 2,046,676 Total revenues 32,505,400 - - 5,417,170 3,980,295 12,343,909 54,246,774 Expenditures Current: General government 4,060,705 - - - - 106,716 4,167,421 Public safety 16,656,858 - - 3,559 - 788,788 17,449,205 Public works 7,708,155 - - - - - 7,708,155 Health and human services 94,936 - - - - - 94,936 Culture and recreation 2,279,495 - - 912 - 2,079,018 4,359,425 Conservation and development 255,786 - - 23,302 - 5,712,065 5,991,153 Capital outlay - - - 11,311,219 - 4,362,272 15,673,491 Debt service: Principal retirement - - - 249,712 2,421,851 150,619 2,822,182 Interest and fiscal charges - - - 38,825 839,621 51,199 929,645 Total expenditures 31,055,935 - - 11,627,529 3,261,472 13,250,677 59,195,613 Excess (deficiency) of revenues over expenditures 1,449,465 - - (6,210,359) 718,823 (906,768) (4,948,839) Other Financing Sources (Uses) Proceeds from sale of capital assets 60,100 - - 65,863 - 5,200 131,163 Transfers in 538,332 - - 2,304,716 170,000 4,192,975 7,206,023 Transfers out (1,603,669) - - (2,845,000) (2,387,974) (1,109,868) (7,946,511) Total other financing sources (uses) (1,005,237) - - (474,421) (2,217,974) 3,088,307 (609,325) Net change in fund balances 444,228 - - (6,684,780) (1,499,151) 2,181,539 (5,558,164) Fund Balances (Deficit), Beginning, as Previously Reported 13,626,065 487,657 (1,165,433) 2,584,908 2,537,213 6,670,518 24,740,928 Accounting changes (see note disclosure) - (487,657) 1,165,433 - - (677,776) - Fund Balances, Beginning, as Adjusted 13,626,065 - - 2,584,908 2,537,213 5,992,742 24,740,928 Fund Balances (Deficit), Ending 14,070,293$ - $ - $ (4,099,872)$ 1,038,062 $ 8,174,281 $ 19,182,764 $ City of Superior Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Year Ended December 31, 2025 See notes to financial statements 6 [20260901R 29] Net Change in Fund Balances, Total Governmental Funds (5,558,164)$ Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital outlay is capitalized in the government-wide statements 15,673,491 Some capital outlay is not capitalized in the government-wide statements (1,861,025) Some functional expenditures are capitalized 957,327 Depreciation/amortization is reported in the government-wide statements (6,277,100) Capital assets transferred to business-type activities (5,364,522) In the Statement of Activities, the gain or loss on the disposal of capital assets is reported. In the fund financial statements, proceeds from the sale of capital assets are reported because the proceeds increase financial resources. This is the amount of net book value of capital asset disposals. (106,083) Receivables not currently available are reported as unavailable revenue in the fund financial statements but are recognized as revenue when earned in the government-wide financial statements. This amount is the change in the following unavailable revenue categories: Accounts receivable (702,044) Special assessments receivable 75,232 Loans receivable 442,686 Grants receivable (613,390) Miscellaneous receivable 228,596 Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. This is the amount of principal payments paid in the following categories: Principal repaid 2,572,470 Financed purchases paid 249,712 Leases paid 75,131 Some expenses in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. This amount is the change in the following assets and liabilities: Compensated absences (8,587) OPEB liability and related deferred outflows/inflows of resources - City plan (192,436) OPEB liability and related deferred outflows/inflows of resources - LRLIF (26,894) Net pension liability and related deferred outflows/inflows of resources (892,309) Interest on long-term debt in the Statement of Activities differs from the amount reported in the fund financial statements because interest is recorded as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the Statement of Activities interest expense is recognized as the interest accrues regardless of when it is due. 11,033 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. These amounts are the net effect of these differences: Amortization of premium and deferred charge on refunding 93,378 Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue (expense) of certain activities of internal service funds is reported with governmental activities. 2,553,581 Change in Net Position of Governmental Activities 1,330,083$ City of Superior Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended December 31, 2025 See notes to financial statements 7 [20260901R 30] Sewerage Landfill Stormwater Golf Broadband Internal System Utility Utility Course Utility Total Service Funds Assets and Deferred Outflows of Resources Current Assets Cash and investments 6,400,989$ 3,150,286 $ 6,110,381 $ 1,717,258 $ 1,580,200 $ 18,959,114 $ 10,745,428$ Receivables: Customer accounts 2,163,286 754,192 704,552 - - 3,622,030 - Special assessments 104,823 37,455 29,492 - - 171,770 - Other 1,634 - - - 4,665 6,299 34,141 Due from other funds 540,468 170,634 102,674 - - 813,776 - Due from other governments - - - - - - 11,897 Inventories and prepaid items 3,700 - - 199,676 - 203,376 6,398 Total current assets 9,214,900 4,112,567 6,947,099 1,916,934 1,584,865 23,776,365 10,797,864 Noncurrent Assets Restricted assets: Cash and investments 1,510,967 11,627,363 - - - 13,138,330 - Capital assets: Construction in progress 3,830,021 - 41,293 175,800 - 4,047,114 - Land 28,860 61,240 246,622 1,294,000 - 1,630,722 - Capital assets 65,936,442 23,759,000 18,632,674 4,199,306 6,052,137 118,579,559 - Less accumulated depreciation/amortization (33,407,366) (17,639,204) (5,024,682) (3,170,155) (70,290) (59,311,697) - Total capital assets (net of accumulated depreciation/amortization) 36,387,957 6,181,036 13,895,907 2,498,951 5,981,847 64,945,698 - Total noncurrent assets 37,898,924 17,808,399 13,895,907 2,498,951 5,981,847 78,084,028 - Total assets 47,113,824 21,920,966 20,843,006 4,415,885 7,566,712 101,860,393 10,797,864 Deferred Outflows of Resources OPEB related amounts, City plan 222,190 76,236 67,157 - - 365,583 1,398,414 OPEB related amounts, LRLIF 33,308 31,488 - - 23 64,819 1,253 Pension related amounts 1,266,065 513,512 397,609 - 11,090 2,188,276 164,483 Total deferred outflows of resources 1,521,563 621,236 464,766 - 11,113 2,618,678 1,564,150 City of Superior Statement of Net Position - Proprietary Funds December 31, 2025 Business-Type Activities - Enterprise Funds See notes to financial statements 8 [20260901R 31] City of Superior Statement of Net Position - Proprietary Funds December 31, 2025 Sewerage Landfill Stormwater Golf Broadband Internal System Utility Utility Course Utility Total Service Funds Liabilities, Deferred Inflows of Resources and Net Position Current Liabilities Accounts payable 706,144 $ 365,663 $ 21,861 $ 72,072 $ 398 $ 1,166,138$ 423,619 $ Accrued liabilities 187,498 62,438 63,735 5,986 9,270 328,927 31,019 Unearned revenue - - - 81,723 - 81,723 - Current portion of compensated absences 585 335 346 - - 1,266 6 Current portion of revenue bonds 737,631 - 273,256 - - 1,010,887 - Current portion of leases - - - 48,649 - 48,649 - Total current liabilities 1,631,858 428,436 359,198 208,430 9,668 2,637,590 454,644 Noncurrent Liabilities Compensated absences 2,854 1,635 1,691 - - 6,180 28 Revenue bonds 7,776,691 - 1,907,275 - - 9,683,966 - Leases - - - 132,002 - 132,002 - OPEB liability, City plan 506,123 173,658 152,977 - - 832,758 3,185,429 OPEB liability, LRLIF 155,053 85,751 - - - 240,804 54,703 Net pension liability 177,441 64,120 57,206 - - 298,767 40,323 Landfill closure and postclosure liability - 13,017,128 - - - 13,017,128 - Total noncurrent liabilities 8,618,162 13,342,292 2,119,149 132,002 - 24,211,605 3,280,483 Total liabilities 10,250,020 13,770,728 2,478,347 340,432 9,668 26,849,195 3,735,127 Deferred Inflows of Resources OPEB related amounts, City plan 125,917 43,204 38,059 - - 207,180 792,497 OPEB related amounts, LRLIF 95,333 75,220 - - - 170,553 25,333 Pension related amounts 674,160 283,790 218,873 - - 1,176,823 64,318 Total deferred inflows of resources 895,410 402,214 256,932 - - 1,554,556 882,148 Net Position Net investment in capital assets 27,873,635 6,181,036 11,715,376 2,318,300 5,981,847 54,070,194 - Restricted for: Debt service 1,510,967 - - - - 1,510,967 - Unrestricted 8,105,355 2,188,224 6,857,117 1,757,153 1,586,310 20,494,159 7,744,739 Total net position 37,489,957$ 8,369,260 $ 18,572,493 $ 4,075,453 $ 7,568,157 $ 76,075,320 7,744,739$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 142,551 Net position of business-type activities 76,217,871$ Business-Type Activities - Enterprise Funds See notes to financial statements 9 [20260901R 32] Sewerage Landfill Stormwater Gol f Broadband Internal System Utility Utility Course Utility Total Service Funds Operating Revenues Charges for services 8,189,761$ 6,731,566$ 2,614,366$ 2,733,700$ 11,760$ 20,281,153$ 9,166,578$ Other 106,954 45,025 - 970 2,125 155,074 1,594,521 Total operating revenues 8,296,715 6,776,591 2,614,366 2,734,670 13,885 20,436,227 10,761,099 Operating Expenses Operation and maintenance 6,380,148 4,736,420 1,506,788 2,455,323 719,408 15,798,087 3,673,300 Depreciation and amortization 1,498,586 632,853 423,291 272,634 70,290 2,897,654 - Insurance claims and premiums - - - - - - 5,918,412 Total operating expenses 7,878,734 5,369,273 1,930,079 2,727,957 789,698 18,695,741 9,591,712 Operating income (loss) 417,981 1,407,318 684,287 6,713 (775,813) 1,740,486 1,169,387 Nonoperating Revenues (Expenses) Noncapital grants - 100,407 370,667 - - 471,074 - Investment income 366,054 694,561 259,727 30,296 94,269 1,444,907 503,749 Insurance recoveries - - - - - - 48,929 Net gain on disposal of capital assets 2,034 - - - - 2,034 - Interest and fiscal charges (172,836) - (54,438) (18,449) - (245,723) - Other miscellaneous revenue - - 23,381 - - 23,381 - Total nonoperating revenues (expenses) 195,252 794,968 599,337 11,847 94,269 1,695,673 552,678 Income (loss) before contributions and transfers 613,233 2,202,286 1,283,624 18,560 (681,544) 3,436,159 1,722,065 Capital Contributions 699,857 - 540,849 - 5,364,522 6,605,228 - Transfers In - - - 350,000 1,962,068 2,312,068 775,000 Transfers Out (1,321,981) (206,611) (817,988) - - (2,346,580) - Change in net position (8,891) 1,995,675 1,006,485 368,560 6,645,046 10,006,875 2,497,065 Net Position, Beginning 37,498,848 6,373,585 17,566,008 3,706,893 923,111 5,247,674 Net Position, Ending 37,489,957$ 8,369,260 $ 18,572,493 $ 4,075,453 $ 7,568,157 $ 7,744,739 $ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (56,516) Change in net position of business-type activities 9,950,359$ Business-Type Activities - Enterprise Funds City of Superior Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds Year Ended December 31, 2025 See notes to financial statements 10 [20260901R 33] Sewerage Landfill Stormwater Golf Broadband Internal System Utility Utility Course Utility Total Service Funds Cash Flows From Operating Activities Cash received from services provided 8,128,905$ 6,915,095 $ 2,999,709 $ 2,750,521 $ 9,220 $ 20,803,450$ 10,805,952 $ Cash paid to suppliers for goods and services (4,126,851) (3,599,380) (680,343) (1,438,543) (557,435) (10,402,552) (8,853,171) Cash paid to employees for services (2,446,661) (888,529 ) (800,150 ) (1,008,034 ) (163,418 ) (5,306,792 ) (479,997 ) Net cash flows from operating activities 1,555,393 2,427,186 1,519,216 303,944 (711,633) 5,094,106 1,472,784 Cash Flows From Noncapital Financing Activities Transfers from other funds - - - 350,000 462,068 812,068 775,000 Transfers to other funds (1,321,981) (206,611 ) (817,988 ) - - (2,346,580 ) - Net cash flows from noncapital financing activities (1,321,981 ) (206,611 ) (817,988 ) 350,00 0 462,06 8 (1,534,512 ) 775,00 0 Cash Flows From Investing Activities Investment income 366,054 694,561 259,72 7 30,29 6 94,26 9 1,444,90 7 503,74 9 Net cash flows from investing activities 366,054 694,561 259,727 30,296 94,269 1,444,907 503,749 Cash Flows From Capital and Related Financing Activities Debt issued 1,629,469 - 1,262,091 - - 2,891,560 - Debt retired (680,019) - (212,335) (44,479) - (936,833) - Special assessments received (18,221) (3,195) 13,400 - - (8,016) - Interest and fiscal charges paid (172,836) - (54,438) (18,449) - (245,723) - Acquisition and construction of capital assets (2,686,378) (50,164) (126,142) (286,920) (3,123,461) (6,273,065) - Capital contributions received 699,857 - 540,84 9 - 2,435,84 6 3,676,552 - Capital transfers in - - - - 1,500,00 0 1,500,00 0 - Net cash flows from capital and related financing activities (1,228,128) (53,359) 1,423,425 (349,848) 812,385 604,475 - Net change in cash and cash equivalents (628,662) 2,861,777 2,384,380 334,392 657,089 5,608,976 2,751,533 Cash and Cash Equivalents, Beginning 8,540,618 11,915,872 3,726,001 1,382,866 923,111 26,488,468 7,993,895 Cash and Cash Equivalents, Ending 7,911,956$ 14,777,64 9$ 6,110,381 $ 1,717,25 8$ 1,580,20 0$ 32,097,44 4$ 10,745,42 8$ Reconciliation of Cash and Cash Equivalents Cash and investments per Statement of Net Position 6,400,989 $ 3,150,286 $ 6,110,381 $ 1,717,258 $ 1,580,200 $ 18,959,114 $ 10,745,428 $ Restricted cash and investments 1,510,967 11,627,363 - - - 13,138,330 - Cash and Cash Equivalents per Statement of Cash Flows 7,911,956$ 14,777,64 9$ 6,110,381 $ 1,717,25 8$ 1,580,20 0$ 32,097,44 4$ 10,745,42 8$ Reconciliation of Operating Income (Loss) to Net Cash Flows From Operating Activities Operating income (loss) 417,981 $ 1,407,318$ 684,287 $ 6,713 $ (775,813)$ 1,740,486 $ 1,169,387 $ Adjustments to reconcile operating income to net cash flows from operating activities: Nonoperating Income - 100,407 394,048 - - 494,455 48,929 Noncash items included in income: Depreciation and amortization 1,498,586 632,853 423,291 272,634 70,290 2,897,654 - Change in assets, deferred outflows, liabilities and deferred inflows: Accounts receivable (125,750) 34,374 (14,057) 9,958 (4,665) (100,140) (4,076) Due from other funds (42,060) 3,723 5,352 - - (32,985) - Inventories and prepaid items - - - (12,562) - (12,562) 380,504 Accounts payable (309,146) 15,701 (6,347) 58,038 398 (241,356) 211,542 Due to other funds - - - - - - (46,040) Other current liabilities 7,207 215,463 4,698 (36,730) 9,270 199,908 (16,915) Compensated absences 1,920 1,254 1,796 - - 4,970 (76) OPEB related deferrals and liability 41,352 (2,195) 10,018 5,893 (23) 55,045 (297,002) Pension related deferrals and asset/liability 65,30 3 18,28 8 16,13 0 - (11,090 ) 88,631 26,531 Net cash flows from operating activities 1,555,39 3$ 2,427,18 6$ 1,519,21 6$ 303,94 4$ (711,633 )$ 5,094,10 6$ 1,472,78 4$ Noncash Capital, Investing and Financing Activities Capital related accounts payable 458,568$ - $ 6,763$ - $ - $ - $ Capital assets contributed by municipality -$ - $ - $ - $ 2,928,676$ - $ City of Superior Statement of Cash Flows - Proprietary Funds Year Ended December 31, 2025 Business-Type Activities - Enterprise Fund s See notes to financial statements 11 [20260901R 34] Custodial Funds Assets Cash and investments 1,422,722$ Taxes receivable 28,224,787 Total assets 29,647,509 Liabilities Due to other governments 29,107,319 Total liabilities 29,107,319 Net Position Total net position restricted for police evidence 540,190 $ City of Superior Statement of Fiduciary Net Position - Custodial Funds December 31, 2025 See notes to financial statements 12 [20260901R 35] Custodial Funds Additions Taxes collected for other governments 17,044,996 $ Deposits received 21,535 Total additions 17,066,531 Deductions Taxes distributed to other governments 17,044,996 Refund of deposits 14,690 Total deductions 17,059,686 Change in fiduciary net position 6,845 Net Position, Beginning 533,345 Net Position, Ending 540,190$ City of Superior Statement of Changes in Fiduciary Net Position - Custodial Funds Year Ended December 31, 2025 See notes to financial statements 13 [20260901R 36] City of Superior Index to Notes to Financial Statements December 31, 2025 Page 1. Summary of Significant Accounting Policies 15 Reporting Entity 15 Government-Wide and Fund Financial Statements 16 Measurement Focus, Basis of Accounting and Financial Statement Presentation 18 Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity 20 Deposits and Investments 20 Receivables 21 Inventories and Prepaid Items 21 Restricted Assets 22 Capital Assets 22 Other Assets 22 Deferred Outflows of Resources 23 Compensated Absences 23 Long-Term Obligations 23 Leases 23 Deferred Inflows of Resources 23 Equity Classifications 24 Pension 25 Postemployment Benefits Other Than Pensions (OPEB) 25 2. Stewardship, Compliance and Accountability 25 Budgetary Information 25 Deficit Balances 26 Limitations on the City's Tax Levy 26 3. Detailed Notes on All Funds 27 Deposits and Investments 27 Receivables 29 Restricted Assets 30 Capital Assets 31 Interfund Receivables/Payables, Advances and Transfers 36 Long-Term Obligations 39 Lease Disclosures 44 Closure and Postclosure Care Cost 45 Net Position/Fund Balances 45 Accounting Changes 47 4. Other Information 47 Employees' Retirement System 47 Risk Management 52 Commitments and Contingencies 53 Other Postemployment Benefits 54 Subsequent Event 61 Tax Abatement 61 Effect of New Accounting Standards on Current-Period Financial Statements 61 14 [20260901R 37] City of Superior Notes to Financial Statements December 31, 2025 1. Summary of Significant Accounting Policies The accounting policies of the City of Superior, Wisconsin (the City) conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The accepted standard-setting body for establishing governmental accounting and financial reporting principles is the Governmental Accounting Standards Board (GASB). Reporting Entity This report includes all of the funds of the City. The reporting entity for the City consists of the primary government and its component units. Component units are legally separate organizations for which the primary government is financially accountable or other organizations for which the nature and significance of their relationship with the primary government are such that their exclusion would cause the reporting entity's financial statements to be misleading. The primary government is financially accountable if (1) it appoints a voting majority of the organization's governing body and it is able to impose its will on that organization, (2) it appoints a voting majority of the organization's governing body and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government, (3) the organization is fiscally dependent on and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. Certain legally separate, tax exempt organizations should also be reported as a component unit if all of the following criteria are met: (1) the economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component units or its constituents; (2) the primary government or its component units, is entitled to, or has the ability to access, a majority of the economic resources received or held by the separate organization; and (3) the economic resources received or held by an individual organization that the primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to the primary government. Component units are reported using one of three methods, discrete presentation, blended or fiduciary. Generally, component units should be discretely presented in a separate column in the financial statements. A component unit should be reported as part of the primary government using the blending method if it meets any one of the following criteria: (1) the primary government and the component unit have substantively the same governing body and a financial benefit or burden relationship exists, (2) the primary government and the component unit have substantively the same governing body and management of the primary government has operational responsibility for the component unit, (3) the component unit serves or benefits, exclusively or almost exclusively, the primary government rather than its citizens or (4) the total debt of the component unit will be paid entirely or almost entirely from resources of the primary government. Blended Component Unit The Redevelopment Authority (the Authority) of the City of Superior is an authority organized by the City under the laws of the state of Wisconsin. The Authority promotes urban renewal projects and the alleviation of the conditions of urban blight. It is governed by a seven-member Board appointed by the City. Because the funds of the Authority are spent on urban development for the benefit of the City, the Authority is reported as if it were a part of the primary government. The Authority does not prepare separate financial statements. 15 [20260901R 38] City of Superior Notes to Financial Statements December 31, 2025 Government-Wide and Fund Financial Statements Government-Wide Financial Statements The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The City does not allocate indirect expenses to functions 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 included among program revenues are reported as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Fund Financial Statements Financial statements of the City are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts, which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position/fund balance, revenues and expenditures/expenses. Funds are organized as major funds or nonmajor funds within the governmental and proprietary statements. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10% of the corresponding total for all funds of that category or type, and b. The same element of the individual governmental or enterprise fund that met the 10% test is at least 5% of the corresponding total for all governmental and enterprise funds combined. c. In addition, any other governmental or enterprise fund that the City believes is particularly important to financial statement users may be reported as a major fund. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The City reports the following major governmental funds: General Fund General Fund accounts for the City's primary operating activities. It is used to account for and report all financial resources except those accounted for and reported in another fund. 16 [20260901R 39] City of Superior Notes to Financial Statements December 31, 2025 Debt Service Fund Debt Service Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditure for the payment of general long-term debt principal, interest and related costs, other than enterprise debt. Capital Projects Fund Capital Improvement Program Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets for the City's Capital Improvement Program. Enterprise Funds The City reports the following major enterprise funds: Sewerage System accounts for operations of the sewer system. Landfill utility accounts for operations of the waste collection operations. Stormwater utility accounts for operations of the stormwater system. Golf Course Fund accounts for operations of the golf course. Broadband utility accounts for operations of the broadband system. The City reports the following nonmajor governmental funds: Special Revenue Funds Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes (other than debt service or capital projects). Crime Prevention Police Grant & Liaison Fire Department Grant Loan Urban Tree Parks and Recreation Boat Ramp Fees ARPA Grant Haz Mat Grant Library HUD CDBG Home SF Grant 2006-2008 Neighborhood Improvement Affordable Housing Fire Department PPP Public Museum Special Events Economic Development CDBG Revolving Loan Superior Business Center Municipal Forest Special Assessment Illegal Tax Business Improvement District Narcotics Hotel/Motel Tax Tourism Commission Revolving Grant 2020 17 [20260901R 40] City of Superior Notes to Financial Statements December 31, 2025 Capital Projects Funds Capital Projects Funds are used to account for and report financial resources that are restricted, committed or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Hallet Dock Rehabilitation Project July 2016 Rain Event Project HAP Grant Project PIDP Grant Project Tax Increment District No. 9 Tax Increment District No. 12 Tax Increment District No. 13 Tax Increment District No. 14 Tax Increment District No. 15 Tax Increment District No. 16 Tax Increment District No. 17 Tax Increment District No. 18 Tax Increment District No. 19 Redevelopment Authority In addition, the City reports the following fund types: Internal Service Funds Internal Service Funds are used to account for and report the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governmental units, on a cost-reimbursement basis. Custodial Funds Custodial Funds are used to account for and report assets controlled by the City and the assets are for the benefit of individuals, private organizations and/or other governmental units. Measurement Focus, Basis of Accounting and Financial Statement Presentation Government-Wide Financial Statements The government-wide statement of net position and statement of activities are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Property taxes are recognized as revenues in the year for which they are levied. Taxes receivable for the following year are recorded as receivables and deferred inflows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Special assessments are recorded as revenue when earned. Unbilled receivables are recorded as revenues when services are provided. 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 sewer and stormwater utilities and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 18 [20260901R 41] City of Superior Notes to Financial Statements December 31, 2025 Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recorded when they are both measurable and available. Available means collectible within the current period or soon enough thereafter to be used 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 fiscal period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on long-term debt, claims, judgments, compensated absences and pension expenditures, which are recorded as a fund liability when expected to be paid with expendable available financial resources. Property taxes are recorded in the year levied as receivables and deferred inflows. They are recognized as revenues in the succeeding year when services financed by the levy are being provided. Intergovernmental aids and grants are recognized as revenues in the period the City is entitled to the resources and the amounts are available. Amounts owed to the City which are not available are recorded as receivables and unavailable revenues. Amounts received before eligibility requirements (excluding time requirements) are met are recorded as liabilities. Amounts received in advance of meeting time requirements are recorded as deferred inflows. Special assessments are recorded as revenues when they become measurable and available as current assets. Annual installments due in future years are reflected as receivables and unavailable revenues. Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for services, special assessments and interest. Other general revenues such as fines and forfeitures, inspection fees, recreation fees and miscellaneous revenues are recognized when received in cash or when measurable and available under the criteria described above. Proprietary and Fiduciary Funds Proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as described previously in this note. The 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 Sewerage System, Landfill Utility, Stormwater Utility, Golf Course and Broadband Utility funds are charges to customers for sales and services. Special assessments are recorded as receivables and contribution revenue when levied. Operating expenses for proprietary 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. All Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 19 [20260901R 42] City of Superior Notes to Financial Statements December 31, 2025 Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity Deposits and Investments For purposes of the statement of cash flows, the City considers all highly liquid investments with an initial maturity of three months or less when acquired to be cash equivalents. Investment of City funds is restricted by Wisconsin state statutes. Available investments are limited to: a. Time deposits in any credit union, bank, savings bank or trust company. b. Bonds or securities of any county, city, drainage district, technical college district, village, town or school district of the state. Also, bonds issued by a local exposition district, a local professional baseball park district, a local professional football stadium district, a local cultural arts district, the University of Wisconsin Hospitals and Clinics Authority or the Wisconsin Aerospace Authority. c. Bonds or securities issued or guaranteed by the federal government. d. The local government investment pool. e. Any security maturing in seven years or less and having the highest or second highest rating category of a nationally recognized rating agency. f. Securities of an open-end management investment company or investment trust, subject to various conditions and investment options. g. Repurchase agreements with public depositories, with certain conditions. Investment of most trust funds including cemetery perpetual care funds, is regulated by Chapter 881 of the Wisconsin Statutes. Investment of library trust funds is regulated by Chapter 112. Those sections give broad authority to use such funds to acquire various kinds of investments including stocks, bonds and debentures. The City has adopted an investment policy. That policy follows the state statute for allowable investments. Investments are stated at fair value, which is the amount at which an investment could be exchanged in a current transaction between willing parties. Fair values are based on methods and inputs as outlined in Note 3. No investments are reported at amortized cost. Adjustments necessary to record investments at fair value are recorded in the operating statement as increases or decreases in investment income. Investment income on commingled investments of municipal accounting funds is allocated based on average balances. The difference between the bank statement balance and carrying value is due to outstanding checks and/or deposits in transit. The Wisconsin Local Government Investment Pool (LGIP) is part of the State Investment Fund (SIF) and is managed by the State of Wisconsin Investment Board. The SIF is not registered with the Securities and Exchange Commission, but operates under the statutory authority of Wisconsin Chapter 25. The SIF reports the fair value of its underlying assets annually. Participants in the LGIP have the right to withdraw their funds in total on one day's notice. At December 31, 2025, the fair value of the City's share of the LGIP's assets was substantially equal to the amount as reported in these statements. See Note 3 for further information. 20 [20260901R 43] City of Superior Notes to Financial Statements December 31, 2025 Receivables Property taxes are levied in December on the assessed value as of the prior January 1. In addition to property taxes for the City, taxes are collected for and remitted to the county government as well as the local school district and technical college district. Taxes for all state and local governmental units billed in the current year for the succeeding year are reflected as receivables and due to other taxing units on the accompanying statement of fiduciary net position. Property tax calendar - 2025 tax roll: Lien date and levy date December 2025 Tax bills mailed December 2025 Payment in full, or January 31, 2026 First installment due January 31, 2026 Second installment due July 31, 2026 Tax sale - 2025 delinquent real estate taxes October 2028 Accounts receivable have been shown net of an allowance for uncollectible accounts. Delinquent real estate taxes as of July 31 are paid in full by the County, which assumes the collection thereof. No provision for uncollectible accounts receivable has been made for the sewerage system because they have the right by law to place substantially all delinquent bills on the tax roll and other delinquent bills are generally not significant. During the course of operations, transactions occur between individual funds that may result in amounts owed between funds. Short-term interfund loans are reported as "due to and from other funds." Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund receivables and payables between funds within governmental activities are eliminated in the statement of net position. Any residual balances outstanding between the governmental activities and business-type activities are reported in the governmental-wide financial statements as internal balances. In the governmental fund financial statements, advances to other funds are offset equally by a nonspendable fund balance account which indicates that they do not constitute expendable available financial resources and, therefore, are not available for appropriation or by a restricted fund balance account, if the funds will ultimately be restricted when the advance is repaid. The City has received federal and state grant funds for economic development and housing rehabilitation loan programs to various businesses and individuals. The City records a loan receivable when the loan has been made and funds have been disbursed. The amount recorded as economic development and housing rehabilitation loans receivable has been reduced by an allowance for uncollectible accounts of $574,500. It is the City's policy to record unavailable revenue for the net amount of the receivable balance. As loans are repaid, revenue is recognized. When new loans are made from the repayments, expenditures are recorded. Interest received from loan repayments is recognized as revenue when received in cash. Any unspent loan repayments at year end are presented as restricted fund balance in the fund financial statements. Inventories and Prepaid Items Governmental fund inventory items are charged to expenditure accounts when purchased. Year- end inventory was not significant. Proprietary fund inventories are generally used for construction and/or for operation and maintenance work. They are not for resale. They are valued at cost based on weighted average and charged to construction and/or operation and maintenance expense when used. 21 [20260901R 44] City of Superior Notes to Financial Statements December 31, 2025 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. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. Restricted Assets Mandatory segregations of assets are presented as restricted assets. Such segregations are required by bond agreements and other external parties. Current liabilities payable from these restricted assets are so classified. The excess of restricted assets over current liabilities payable from restricted assets will be used first for retirement of related long-term debt. The remainder, if generated from earnings, is shown as restricted net position. Capital Assets Government-Wide Financial Statements Capital assets, which include property, plant and equipment (including right-to-use lease assets), are reported in the government-wide financial statements. Capital assets are defined by the government as assets with an initial cost of more than $5,000 for general and infrastructure assets and an estimated useful life in excess of one year. All capital assets are valued at historical cost or estimated historical cost if actual amounts are unavailable. Donated capital assets are recorded at their estimated acquisition value at the date of donation. Additions to and replacements of capital assets of business-type activities are recorded at original cost, which includes material, labor and overhead. The cost of renewals and betterments relating to retirement units is added to plant accounts. The cost of property replaced, retired or otherwise disposed of, is deducted from plant accounts and, generally, together with removal costs less salvage, is charged to accumulated depreciation. Depreciation and amortization of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation and amortization reflected in the statement of net position. Depreciation and amortization is provided over the assets' estimated useful lives using the straight-line method. The range of estimated useful lives by type of asset is as follows: Buildings 20-50 Years Land improvements 20-50 Years Machinery and equipment 5-15 Years Infrastructure 20-50 Years Lease assets are typically amortized over the lease term. Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government-wide statements. Other Assets Property held for resale consists of buildings and improvements and is valued at cost of acquisition and improvements. 22 [20260901R 45] City of Superior Notes to Financial Statements December 31, 2025 Deferred Outflows of Resources A deferred outflow of resources represents a consumption of net assets that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that future time. Compensated Absences Under terms of employment, employees are granted sick leave and vacation in varying amounts. Vacation and sick leave pay is accrued in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements, and are payable with expendable resources. Payments for vacation and sick leave will be made at rates in effect when the benefits are used. Accumulated vacation and sick leave liabilities at December 31, 2025, are determined on the basis of current salary rates and include salary related payments. Long-Term Obligations All long-term obligations to be repaid from governmental and business-type resources are reported as liabilities in the government-wide statements. The long-term obligations consist primarily of notes and bonds payable, financed purchases and accrued compensated absences. Long-term obligations for governmental funds are not reported as liabilities in the fund financial statements. The face value of debts (plus any premiums) are reported as other financing sources and payments of principal and interest are reported as expenditures. The accounting in proprietary funds is the same as it is in the government-wide statements. For the government-wide statements and proprietary fund statements, bond premiums and discounts are amortized over the life of the issue using the straight-line method. The balance at year end is shown as an increase or decrease in the liability section of the statement of net position. Leases The City is a lessor because it leases capital assets to other entities. As a lessor, the City reports a lease receivable and corresponding deferred inflow of resources in both the fund financial statements and government-wide financial statements. The City continues to report and depreciate the capital assets being leased as capital assets of the primary government. The City is a lessee because it leases capital assets from other entities. As a lessee, the City reports a lease liability and an intangible right-to-use capital asset (known as the lease asset) on the government-wide financial statements and proprietary fund statements. In the governmental fund financial statements, the City recognizes lease proceeds and capital outlay at initiation of the lease, and the outflow of resources for the lease liability as a debt service payment. Deferred Inflows of Resources A deferred inflow of resources represents an acquisition of net assets that applies to a future period and therefore will not be recognized as an inflow of resources (revenue) until that future time. 23 [20260901R 46] City of Superior Notes to Financial Statements December 31, 2025 Equity Classifications Government-Wide Statements Equity is classified as net position and displayed in three components: a. Net Investment in Capital Assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation/amortization and reduced by the outstanding balances (excluding unspent debt proceeds) of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets. b. Restricted Net Position - Consists of net position with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors or laws or regulations of other governments or, 2) law through constitutional provisions or enabling legislation. c. Unrestricted Net Position - All other net positions that do not meet the definitions of "restricted" or "net investment in capital assets." 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. Fund Statements Governmental fund balances are displayed as follows: a. Nonspendable - Includes fund balance amounts that cannot be spent either because they are not in spendable form or because legal or contractual requirements require them to be maintained intact. b. Restricted - Consists of fund balances with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors or laws or regulations of other governments or 2) law through constitutional provisions or enabling legislation. c. Committed - Includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority. Fund balance amounts are committed through a formal action (resolution) of the City Council. This formal action must occur prior to the end of the reporting period, but the amount of the commitment, which will be subject to the constraints, may be determined in the subsequent period. Any changes to the constraints imposed require the same formal action of the City Council that originally created the commitment. d. Assigned - Includes spendable fund balance amounts that are intended to be used for specific purposes that do not meet the criteria to be classified as restricted or committed. The Council may take official action to assign amounts. Assignments may take place after the end of the reporting period. e. Unassigned - Includes residual positive fund balance within the general fund which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed or assigned for those purposes. Proprietary fund equity is classified the same as in the government-wide statements. 24 [20260901R 47] City of Superior Notes to Financial Statements December 31, 2025 The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents / contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the City would first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made. See Note 3 for further information. Pension The fiduciary net position of the Wisconsin Retirement System (WRS) has been determined using the flow of economic resources measurement focus and accrual basis of accounting. This includes for purposes of measuring the following:  Net Pension Liability (Asset);  Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions; and  Pension Expense (Revenue). Information about the fiduciary net position of the WRS and additions to/deductions from WRS' fiduciary net position have been determined on the same basis as they are reported by the WRS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Postemployment Benefits Other Than Pensions (OPEB) The fiduciary net position of the Local Retiree Life Insurance Fund (LRLIF) has been determined using the flow of economic resources measurement focus and the accrual basis of accounting. This includes for purposes of measuring following:  Net OPEB Liability (Asset);  Deferred Outflows of Resources and Deferred Inflows of Resources Related to Other Postemployment Benefits; and  OPEB Expense (Revenue). Information about the fiduciary net position of the LRLIF and additions to/deductions from LRLIF's fiduciary net position have been determined on the same basis as they are reported by LRLIF. For this purpose, benefit payments (including refunds of member contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. For purposes of measuring the total OPEB liability and OPEB expense, the City's single-employer defined benefit retiree healthcare plan recognizes benefit payments when due and payable in accordance with the benefit terms. 2. Stewardship, Compliance and Accountability Budgetary Information A budget has been adopted for the all funds except the ARPA grant fund. A budget has not been formally adopted for the ARPA grant fund. Wisconsin Statute 65.90 requires that an annual budget be adopted for all funds. 25 [20260901R 48] City of Superior Notes to Financial Statements December 31, 2025 Deficit Balances Generally accepted accounting principles require disclosure of individual funds that have deficit balances at year end. As of December 31, 2025, the following individual funds held a deficit balance: Fund Amount Reason Capital Improvement Program $ 4,099,872 Insufficient revenues to cover expenditures Tax Increment District No. 13 4,525 Insufficient tax increment generated Tax Increment District No. 16 115,698 Insufficient tax increment generated Tax Increment District No. 17 864,348 Insufficient tax increment generated Tax Increment District No. 18 69,362 Insufficient tax increment generated Tax Increment District No. 19 18,686 Insufficient tax increment generated Crime Prevention 94,565 Insufficient revenues to cover expenditures Fire Department PPP 14,494 Insufficient revenues to cover expenditures Public Museum 26,789 Insufficient revenues to cover expenditures Special Events 31,954 Insufficient revenues to cover expenditures Illegal Tax 21,747 Insufficient revenues to cover expenditures TIF district deficits are anticipated to be funded with future incremental taxes levied over the life of the districts, which is 27 years for the districts created before October 1, 1995, and 23 years for districts created thereafter through September 30, 2004. Beginning October 1, 2004, the life of new districts varies by type of district (20-27 years) and may be extended in some cases. Other deficits will be funded with future contributions, general tax revenues or long-term borrowing. Limitations on the City's Tax Levy Wisconsin law limits the City's future tax levies. Generally the City is limited to its prior tax levy dollar amount (excluding TIF Districts), increased by the greater of the percentage change in the City's equalized value due to net new construction or zero percent. Changes in debt service from one year to the next are generally exempt from this limit with certain exceptions. The City is required to reduce its allowable levy by the estimated amount of fee revenue it collects for certain services, if those services were funded in 2013 by the property tax levy. Levies can be increased above the allowable limits if the amount is approved by referendum. 26 [20260901R 49] City of Superior Notes to Financial Statements December 31, 2025 3. Detailed Notes on All Funds Deposits and Investments The City's deposits and investments at year end were comprised of the following: Carrying Value Statement Balances Associated Risks Deposits $ 7,522,251 $ 8,108,567 Custodial credit U.S. agencies, implicitly guaranteed 8,440,031 8,440,031 Custodial credit, credit, concentration of credit, interest rate U.S. treasuries 11,448,139 11,448,139 Custodial credit, interest rate Negotiable CDs 30,411,364 30,411,364 Custodial credit, credit, concentration of credit, interest rate LGIP 11,072,060 11,072,060 Credit Petty cash 43,952 - N/A Total deposits and investments $ 68,937,797 $ 69,480,161 Reconciliation to financial statements Per statement of net position: Unrestricted cash and investments $ 54,286,676 Restricted cash and investments 13,228,399 Per statement of net position, fiduciary funds: Custodial fund 1,422,722 Total deposits and investments $ 68,937,797 Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and savings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest-bearing and non-interest-bearing). In addition, if deposits are held in an institution outside of the state in which the government is located, insured amounts are further limited to a total of $250,000 for the combined amount of all deposit accounts. Bank accounts are also insured by the State Deposit Guarantee Fund in the amount of $1,000,000. However, due to the nature of this fund, recovery of material principal losses may not be significant to individual municipalities. This coverage has been considered in computing custodial credit risk. The Securities Investor Protection Corporation (SIPC), created by the Securities Investor Protection Act of 1970, is an independent government-sponsored corporation (not an agency of the U.S. government). SIPC membership provides account protection up to a maximum of $500,000 per customer, of which $250,000 may be in cash. $41,599,232 of the City's investments are covered by SIPC. Additionally, through RBC Capital Markets, LLC, accounts have additional securities coverage of $99.5 million per customer, subject to a $400 million aggregate firm limit. The City maintains collateral agreements with its banks. At December 31, 2025, the banks had pledged various government securities in the amount of $22,922,313 to secure the City's deposits. 27 [20260901R 50] City of Superior Notes to Financial Statements December 31, 2025 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. The valuation methods for recurring fair value measurements are as follows:  Matrix pricing model December 31, 2025 Investment Type Level 1 Level 2 Level 3 Total U.S. agencies, implicitly guaranteed $ - $ 8,440,031 $ - $ 8,440,031 U.S. treasuries - 11,448,139 - 11,448,139 Negotiable CDs - 30,411,364 - 30,411,364 Total $ - $ 50,299,534 $ - $ 50,299,534 Custodial Credit Risk Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the City's deposits may not be returned to the City. The City does not have any deposits exposed to custodial credit risk. Investments For an investment, custodial credit risk 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 does not have any investments exposed to custodial credit risk. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. As of December 31, 2025, the City's investments were rated as follows: Investment Type Standard & Poors Moody's Investors Services U.S. agencies, implicitly guaranteed AA+ AA1 The City's negotiable CDs are not rated. The City also held investments in the following external pool which is not rated: LGIP 28 [20260901R 51] City of Superior Notes to Financial Statements December 31, 2025 Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. At December 31, 2025, the City's investment portfolio was concentrated as follows: Issuer Investment Type Percentage of Net Position Federal Home Loan Bank U.S. agencies, implicitly guaranteed %6.80 Federal Farm Credit Bank U.S. agencies, implicitly guaranteed 6.20 Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment. As of December 31, 2025, the City's investments were as follows: Maturity (in Months) Investment Type Fair Value Less Than 1 Year 1-5 Years 6-10 Years U.S. agencies, implicitly guaranteed $ 8,440,031 $ 1,820,490 $ 4,776,783 $ 1,842,758 U.S. treasuries 11,448,139 290,093 10,897,821 260,225 Certificates of deposit, negotiable 30,411,364 8,258,231 21,908,696 244,437 Total $ 50,299,534 $ 10,368,814 $ 37,583,300 $ 2,347,420 See Note 1 for further information on deposit and investment policies. Receivables All of the receivables on the balance sheet are expected to be collected within one year except delinquent personal property taxes of $45,143 and leases receivable of $2,043,789 in the general fund and loans of $1,439,534 and opioid settlement funds of $204,778 in the nonmajor governmental funds. 29 [20260901R 52] City of Superior Notes to Financial Statements December 31, 2025 Governmental funds report unavailable or unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Property taxes levied for the subsequent year are not earned and cannot be used to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of unavailable revenue and unearned revenue reported in the governmental funds were as follows: Unearned Unavailable Property taxes receivable for subsequent year $ 14,556,287 $ - Special assessments not yet due 256,207 252,257 Loans receivable - 1,018,630 Grants received in advance of incurring allowable expenditures 835,732 - Grants receivable - 228,596 Leases receivable 2,222,471 - Total unearned/unavailable revenue for governmental funds $ 17,870,697 $ 1,499,483 Unearned revenue included in liabilities $ 835,732 Unearned revenue included in deferred inflows 17,034,965 Total unearned revenue for governmental funds $ 17,870,697 Restricted Assets The following represent the balances of the restricted assets: Long-Term Debt Accounts Redemption - Used to segregate resources accumulated for debt service payments over the next twelve months. Depreciation - Used to report resources set aside to fund plant renewals and replacement or make up potential future deficiencies in the redemption account. The City also makes annual contributions to a trust to finance closure and post-closure care of the City landfill. See Note 3. Following is a list of restricted assets at December 31, 2025: Restricted Assets Bond redemption and depreciation account $ 1,510,967 Closure and postclosure care 11,627,363 Library endowments 90,069 Total $ 13,228,399 30 [20260901R 53] City of Superior Notes to Financial Statements December 31, 2025 Capital Assets Capital asset activity for the year ended December 31, 2025, was as follows: Beginning Balance Adjustments* Additions Deletions Ending Balance Governmental Activities Capital assets not being depreciated / amortized: Land $ 14,875,995 $ - $ - $ - $ 14,875,995 Construction in progress 7,485,350 (2,551,940) 10,203,498 3,289,181 11,847,727 Total capital assets not being depreciated / amortized 22,361,345 (2,551,940) 10,203,498 3,289,181 26,723,722 Capital assets being depreciated / amortized: Land improvements 17,724,045 - 3,246,062 50,680 20,919,427 Buildings and improvements 29,936,817 - 509,323 - 30,446,140 Machinery and equipment 24,905,737 - 1,083,276 775,213 25,213,800 Roads 58,292,326 (376,736) 267,185 - 58,182,775 Sidewalks/bikepaths 15,902,537 - 313,784 126,983 16,089,338 Leased assets, buildings 375,654 - - - 375,654 Total capital assets being depreciated / amortized 147,137,116 (376,736) 5,419,630 952,876 151,227,134 Total capital assets 169,498,461 (2,928,676) 15,623,128 4,242,057 177,950,856 Less accumulated depreciation / amortization for: Land improvements $ (8,341,587) $ - $ (876,775) $ 47,436 $ (9,170,926) Buildings and improvements (12,562,198) - (1,064,037) - (13,626,235) Machinery and equipment (18,224,133) - (1,521,449) 672,374 (19,073,208) Roads (35,389,058) - (2,287,262) - (37,676,320) Sidewalks/bikepaths (9,889,211) - (452,446) 126,983 (10,214,674) Leased assets, buildings (133,433) - (75,131) - (208,564) Total accumulated depreciation / amortization (84,539,620) - (6,277,100) 846,793 (89,969,927) Net capital assets being depreciated / amortized 62,597,496 (376,736) (857,470) 106,083 61,257,207 Total governmental activities capital assets $ 84,958,841 $ (2,928,676) $ 9,346,028 $ 3,395,264 $ 87,980,929 * Assets contributed to Broadband Utility. 31 [20260901R 54] City of Superior Notes to Financial Statements December 31, 2025 Depreciation / amortization expense was charged to functions as follows: Governmental Activities General government $ 162,220 Public safety 1,180,226 Public works 3,616,044 Culture, recreation and education 1,318,610 Total governmental activities depreciation / amortization expense $ 6,277,100 Business-Type Activities Beginning Balance Additions Deletions Ending Balance Sewerage System Capital assets not being depreciated: Land $ 28,860 $ - $ - $ 28,860 Construction in progress 6,390,148 2,491,748 5,051,875 3,830,021 Total capital assets not being depreciated 6,419,008 2,491,748 5,051,875 3,858,881 Capital assets being depreciated: Buildings and improvements 18,271,952 - - 18,271,952 Machinery and equipment 7,118,020 276,224 - 7,394,244 Infrastructure 35,021,061 5,249,185 - 40,270,246 Total capital assets being depreciated 60,411,033 5,525,409 - 65,936,442 Total capital assets 66,830,041 8,017,157 5,051,875 69,795,323 Less accumulated depreciation for: Buildings and improvements (14,349,501) (385,790) - (14,735,291) Machinery and equipment (5,861,050) (195,480) - (6,056,530) Infrastructure (11,698,229) (917,316) - (12,615,545) Total accumulated depreciation (31,908,780) (1,498,586) - (33,407,366) Net capital assets being depreciated 28,502,253 4,026,823 - 32,529,076 Net sewerage system capital assets $ 34,921,261 $ 6,518,571 $ 5,051,875 $ 36,387,957 32 [20260901R 55] City of Superior Notes to Financial Statements December 31, 2025 Beginning Balance Additions Deletions Ending Balance Landfill Utility Capital assets not being depreciated: Land $ 61,240 $ - $ - $ 61,240 Total capital assets not being depreciated 61,240 - - 61,240 Capital assets being : Land improvements 18,132,369 50,164 - 18,182,533 Buildings and improvements 178,714 - - 178,714 Machinery and equipment 5,397,753 - - 5,397,753 Total capital assets being depreciated 23,708,836 50,164 - 23,759,000 Total capital assets 23,770,076 50,164 - 23,820,240 Less accumulated depreciation for: Land improvements (14,614,462) (152,520) - (14,766,982) Buildings and improvements (178,715) - - (178,715) Machinery and equipment (2,213,174) (480,333) - (2,693,507) Total accumulated depreciation (17,006,351) (632,853) - (17,639,204) Net capital assets being depreciated 6,702,485 (582,689) - 6,119,796 Net landfill utility capital assets $ 6,763,725 $ (582,689) $ - $ 6,181,036 Beginning Balance Additions Deletions Ending Balance Stormwater Utility Capital assets not being depreciated: Land $ 246,622 $ - $ - $ 246,622 Construction in progress 571,852 33,020 563,579 41,293 Total capital assets not being depreciated 818,474 33,020 563,579 287,915 Capital assets being depreciated: Land Improvements 17,132,028 563,579 - 17,695,607 Machinery and equipment 851,305 85,762 - 937,067 Total capital assets being depreciated 17,983,333 649,341 - 18,632,674 Total capital assets 18,801,807 682,361 563,579 18,920,589 Less accumulated depreciation for: Land Improvements (3,998,390) (357,927) - (4,356,317) Machinery and equipment (603,001) (65,364) - (668,365) Total accumulated depreciation (4,601,391) (423,291) - (5,024,682) Net capital assets being depreciated 13,381,942 226,050 - 13,607,992 Net stormwater utility capital assets $ 14,200,416 $ 259,070 $ 563,579 $ 13,895,907 33 [20260901R 56] City of Superior Notes to Financial Statements December 31, 2025 Beginning Balance Additions Deletions Ending Balance Golf Course Capital assets not being depreciated / amortized: Land $ 1,294,000 $ - $ - $ 1,294,000 Construction in progress 47,166 128,634 - 175,800 Total capital assets not being depreciated 1,341,166 128,634 - 1,469,800 Capital assets being depreciated / amortized: Land improvements 1,736,816 - - 1,736,816 Buildings and improvements 774,348 39,500 - 813,848 Machinery and equipment 1,300,682 118,786 23,469 1,395,999 Leased assets, equipment 252,643 - - 252,643 Total capital assets being depreciated / amortized 4,064,489 158,286 23,469 4,199,306 Total capital assets 5,405,655 286,920 23,469 5,669,106 Less accumulated depreciation / amortization for: Land improvements (1,657,042) (27,703) - (1,684,745) Buildings and improvements (580,904) (17,954) - (598,858) Machinery and equipment (657,781) (201,712) 23,469 (836,024) Leased assets, equipment (25,263) (25,265) - (50,528) Total accumulated depreciation / amortization (2,920,990) (272,634) 23,469 (3,170,155) Net capital assets being depreciated / amortized 1,143,499 (114,348) - 1,029,151 Net golf course capital assets $ 2,484,665 $ 14,286 $ - $ 2,498,951 34 [20260901R 57] City of Superior Notes to Financial Statements December 31, 2025 Beginning Balance Adjustments * Additions Deletions Ending Balance Broadband Utility Capital assets not being depreciated: Construction in progress $ - $ 2,551,940 $ 3,500,197 $ 6,052,137 $ - Total capital assets not being depreciated - 2,551,940 3,500,197 6,052,137 - Capital assets being depreciated: Land improvements $ - $ 376,736 $ 5,431,195 $ - $ 5,807,931 Machinery and equipment - - 244,206 - 244,206 Total capital assets being depreciated - 376,736 5,675,401 - 6,052,137 Total capital assets - 2,928,676 9,175,598 6,052,137 6,052,137 Less accumulated depreciation for: Land improvements - - (58,080) - (58,080) Machinery and equipment - - (12,210) - (12,210) Total accumulated depreciation - - (70,290) - (70,290) Net capital assets being depreciated - 376,736 5,605,111 - 5,981,847 Net broadband utility capital assets $ - $ 2,928,676 $ 9,105,308 $ 6,052,137 $ 5,981,847 * Assets contributed from governmental activities. Business-type activities capital assets, net as reported in the statement of net position $ 58,370,067 $ 15,314,546 $ 11,667,591 $ 64,945,698 Depreciation / amortization expense was charged to functions as follows: Business-Type Activities Sewerage $ 1,498,586 Landfill 632,853 Stormwater 423,291 Golf course 272,634 Broadband 70,290 Total business-type activities, net as reported in the statement of net position expense $ 2,897,654 35 [20260901R 58] City of Superior Notes to Financial Statements December 31, 2025 Interfund Receivables/Payables, Advances and Transfers Interfund Receivables/Payables The following is a schedule of interfund receivables and payables including any overdrafts on pooled cash and investment accounts: Receivable Fund Payable Fund Amount General fund Nonmajor governmental funds $ 100,730 Sewerage system General fund 540,468 Landfill utility General fund 170,634 Stormwater utility General fund 102,674 Total, fund financial statements 914,506 Less fund eliminations (100,730) Add interfund receivables created with internal service fund eliminations 142,551 Total internal balances, government-wide statement of net position $ 956,327 All amounts are due within one year. These interfunds resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system and (3) payments between funds are made. Advances The general fund, economic development and redevelopment authority are advancing funds to Tax Increment District Nos. 14, 16, 17, 18 and 19. The amount advanced is determined by the deficiency of revenues over expenditures and other financing sources since the district's inception. Repayment schedules have been established for the advances payable from the tax increment districts which includes annual interest of 4%. The general fund is advancing funds to the Crime Prevention and Capital Improvement Program funds. The amount advanced is determined by the deficiency of revenues over expenditures and other financing sources. No repayment schedule has been established. 36 [20260901R 59] City of Superior Notes to Financial Statements December 31, 2025 The following is a schedule of interfund advances: Receivable Fund Payable Fund Amount Amount Not Due Within One Year General fund Crime Prevention $ 95,295 $ 95,295 General fund Capital Improvement Program 269,344 269,344 General fund Tax Increment District No. 14 66,882 66,882 General fund Tax Increment District No. 16 79,569 79,569 Economic Development Tax Increment District No. 17 486,196 486,196 Redevelopment Authority Tax Increment District No. 17 378,152 378,152 General fund Tax Increment District No. 17 875,283 875,283 General fund Tax Increment District No. 18 69,362 69,362 General fund Tax Increment District No. 19 17,946 17,946 Total, fund financial statements 2,338,029 Less fund eliminations (2,338,029) Total, interfund advances, government-wide statement of net position $ - 37 [20260901R 60] City of Superior Notes to Financial Statements December 31, 2025 Transfers The following is a schedule of interfund transfers: Fund Transferred To Fund Transferred From Amount Principal Purpose General fund Sewerage system $ 85,175 Reimbursement for services General fund Landfill utility 206,611 Reimbursement for services General fund Nonmajor governmental funds 246,546 Room tax and expenditure reimbursement Capital improvement program Nonmajor governmental funds 374,022 Reimbursement of previous library project costs, sidewalk special assessments collected Capital improvement program Sewerage system 1,212,706 Capital purchases Capital improvement program Stormwater utility 717,988 Capital purchases Debt service Capital improvement program 170,000 Fire truck debt services Golf course Capital improvement program 350,000 Capital purchases Internal service funds Capital improvement program 775,000 Technology purchases Broadband utility Capital improvement program 1,500,000 Annual transfers Broadband utility Nonmajor governmental funds 462,068 Operating expenses Nonmajor governmental funds Capital improvement program 50,000 Neighborhood improvement transfer Nonmajor governmental funds Debt service 2,387,974 TID projects Nonmajor governmental funds Nonmajor governmental funds 27,232 Room tax and TID 12 closeout Nonmajor governmental funds Sewerage system 24,100 Contribution for replanting trees Nonmajor governmental funds General fund 1,603,669 Library funding budget transfer, police department grant match, City portion of liaison officers, and tree fund transfer Nonmajor governmental funds Stormwater utility 100,000 Capital purchases Total, fund financial statements 10,293,091 Less fund eliminations (4,859,443) Less government-wide eliminations (5,399,136) Less capital assets contributed to the broadband utility (5,364,522) Total transfers, government-wide statement of activities $ (5,330,010) Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. 38 [20260901R 61] City of Superior Notes to Financial Statements December 31, 2025 Long-Term Obligations Long-term obligations activity for the year ended December 31, 2025, was as follows: Beginning Balance Increases Decreases Ending Balance Amounts Due Within One Year Governmental Activities Bonds and notes payable: General obligation debt $ 27,865,000 $ - $ 2,370,000 $ 25,495,000 $ 2,120,000 General obligation notes from direct borrowings and direct placements 218,070 - 202,470 15,600 15,600 (Discounts)/Premiums: Bond premium 864,373 - 93,378 770,995 - Total bonds and notes payable 28,947,443 - 2,665,848 26,281,595 2,135,600 Other liabilities: Compensated absences* 67,235 8,511 - 75,746 12,877 Financed purchases 790,309 - 249,712 540,597 - Total other liabilities 857,544 8,511 249,712 616,343 12,877 Total governmental activities long-term liabilities, excluding lease liabilities $ 29,804,987 $ 8,511 $ 2,915,560 $ 26,897,938 $ 2,148,477 Lease liabilities (Note 3) $ 167,090 $ 80,740 Total governmental activities long- term liabilities $ 27,065,028 $ 2,229,217 Business-Type Activities Bonds and notes payable: Revenue bonds from direct borrowings and direct placements $ 8,695,647 $ 2,891,560 $ 892,354 $ 10,694,853 $ 1,010,887 Total bonds and notes payable 8,695,647 2,891,560 892,354 10,694,853 1,010,887 Other liabilities: Compensated absences* 2,476 4,970 - 7,446 1,266 Landfill closure and postclosure liability 12,802,172 214,956 - 13,017,128 - Total other liabilities 12,804,648 219,926 - 13,024,574 1,266 Total business-type activities long-term liabilities, excluding lease liabilities $ 21,500,295 $ 3,111,486 $ 892,354 $ 23,719,427 $ 1,012,153 Lease liabilities (Note 3) $ 180,651 $ 48,649 Total business-type activities long- term liabilities $ 23,900,078 $ 1,060,802 *The change in the compensated absences liability is presented as a net change. In accordance with Wisconsin Statutes, total general obligation indebtedness of the City may not exceed 5% of the equalized value of taxable property within the City's jurisdiction. The debt limit as of December 31, 2025, was $138,401,445. Total general obligation debt outstanding at year end was $25,510,600. 39 [20260901R 62] City of Superior Notes to Financial Statements December 31, 2025 General Obligation Debt All general obligation debt payable is backed by the full faith and credit of the City. Debt in the governmental funds will be retired by future property tax levies or tax increments accumulated by the debt service fund. Governmental Activities General Obligation Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2025 2006B State Trust Fund Loan * 07/2006 03/2026 4.5% $ 214,991 $ 15,600 2014A Corporate Purpose Bonds 08/2014 06/2034 2.0-4.0 6,375,000 1,525,000 2015A Street Improvement Bonds 02/2015 02/2031 2.75-3.0 3,870,000 2,230,000 2016A Corporate Purpose Bonds 06/2016 12/2036 2.0-3.0 2,065,000 1,290,000 2016B Promissory Note 06/2016 12/2026 1.5-2.5 770,000 85,000 2017B Street Improvement Bonds 04/2017 12/2037 3.0-4.0 5,380,000 3,990,000 2018A Corporate Purpose Bonds 04/2018 04/2038 3.0-3.5 5,400,000 4,280,000 2018C Community Development Bonds 08/2018 12/2035 3.0-3.7 1,415,000 1,020,000 2019A Community Development Bonds 12/2019 03/2031 2.0-2.5 1,345,000 845,000 2020B Corporate Purpose Bonds 04/2020 12/2040 2.0-4.0 3,750,000 3,475,000 2021A Corporate Purpose Bonds 04/2021 10/2041 1.1-3.0 3,090,000 2,855,000 2021B Refunding Bonds 08/2021 10/2031 1.0-2.0 3,595,000 2,145,000 2024B GO Note 05/2024 11/2039 4.0-5.0 1,925,000 1,755,000 Total governmental activities, general obligation debt $ 25,510,600 * considered direct placement or direct borrowing Debt service requirements to maturity are as follows: Governmental Activities General Obligation Debt Years Principal Interest 2026 $ 2,120,000 $ 724,837 2027 2,090,000 662,258 2028 2,160,000 600,182 2029 2,220,000 539,620 2030 2,270,000 481,396 2031-2035 9,510,000 1,558,757 2036-2040 4,925,000 347,668 2041 200,000 2,000 Total $ 25,495,000 $ 4,916,718 40 [20260901R 63] City of Superior Notes to Financial Statements December 31, 2025 Governmental Activities General Obligation Notes From Direct Borrowings and Direct Placements Year Principal Interest 2026 $ 15,600 $ 702 Revenue Debt Business-type activities revenue bonds are payable only from revenues derived from the operation of the sewerage system and stormwater utility. The City has pledged future sewerage system revenues, net of specified operating expenses, to repay revenue bonds issued in 2012, 2017, 2018, 2020, 2022, 2024, and 2025. Proceeds from the bonds provided financing for the sewerage system improvements. The bonds are payable solely from the sewerage system revenues and are payable through 2044. Annual principal and interest payments on the bonds are expected to require 53.30% of net revenues. The total principal and interest remaining to be paid on the bonds is $9,745,743. Principal and interest paid for the current year and total customer net revenues were $842,855 and $962,674, respectively. The City has pledged future stormwater utility revenues, net of specified operating expenses, to repay revenue bonds issued in 2010 and 2025. Proceeds from the bonds provided financing for the stormwater utility capital projects. The bonds are payable solely from the stormwater system revenues and are payable through 2044. Annual principal and interest payments on the bonds are expected to require 14.10% of net revenues. The total principal and interest remaining to be paid on the bonds is $2,521,504. Principal and interest paid for the current year and total customer net revenues were $256,774 and $943,365, respectively. 41 [20260901R 64] City of Superior Notes to Financial Statements December 31, 2025 Revenue debt payable at December 31, 2025, consists of the following: Business-Type Activities Revenue Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2025 Sewerage System 2012B Clean Water Fund Revenue Bonds * 02/2012 05/2031 2.4% $ 3,348,738 $ 1,240,462 2017A Clean Water Fund Revenue Bonds * 02/2017 05/2036 2.4 1,640,000 1,039,411 2018B Sewer System Revenue Bonds * 07/2018 05/2028 1.9 1,439,290 462,443 2020B Clean Water Fund Revenue Bonds * 02/2020 05/2039 1.7 2,823,890 2,280,676 (1) 2022B Clean Water Fund Revenue Bonds * 06/2022 05/2042 2.0 738,215 888,546 (2) 2024A Clean Water Fund Revenue Bonds * 01/2024 05/2043 2.145 1,868,364 1,791,083 (3) 2024A Clean Water Fund Revenue Bonds * 04/2025 05/2044 2.2 811,701 811,701 Total sewerage system 8,514,322 (1) - During 2020, the utility was authorized to issue $3,217,370 of sewerage system Clean Water Fund revenue bonds. The original amount reported above has been issued as of December 31, 2025. The repayment schedule is for the amount issued. (2) - During 2022, the utility was authorized to issue $1,059,522 of sewerage system Clean Water Fund revenue bonds. The original amount reported above has been issued as of December 31, 2025. The repayment schedule is for the amount issued. (3) - During 2024, the utility was authorized to issue $1,880,617 of sewerage system Clean Water Fund revenue bonds. The original amount reported above has been issued as of December 31, 2025. The repayment schedule is for the amount issued. Stormwater Utility 2010 Storm Water Revenue Bonds * 01/2010 05/2029 3.2% 3,398,121 918,440 2025B Storm Water Revenue Bonds * 04/2025 05/2044 2.2 1,262,091 1,262,091 Total landfill utility 2,180,531 * Considered direct placement or direct borrowing. Total business-type activities, revenue debt $ 10,694,853 42 [20260901R 65] City of Superior Notes to Financial Statements December 31, 2025 Debt service requirements to maturity are as follows: Business-Type Activities Revenue Debt Years Principal Interest 2026 $ 1,010,887 $ 220,555 2027 1,034,332 196,418 2028 1,058,348 172,110 2029 923,000 148,708 2030 697,215 130,132 2031-2035 2,786,242 461,328 2036-2040 2,205,365 206,599 2041-2044 979,464 36,544 Total $ 10,694,853 $ 1,572,394 Financed Purchases Financed purchases are payable from the Capital Improvement Program fund. Financed purchases at December 31, 2025 consist of the following: Governmental Activities Financed Purchases Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2025 Platform Truck 09/10/2020 01/15/2030 2.66% $ 1,273,400 $ 540,597 Total governmental activities financed purchases $ 540,597 Debt service requirements to maturity are as follows: Governmental Activities Financed Purchases Years Principal Interest 2027 $ 129,867 $ 14,402 2028 133,327 10,942 2029 136,878 7,390 2030 140,525 3,744 Total $ 540,597 $ 36,478 Other Debt Information The City's outstanding State Trust Fund Loans from direct borrowing related to governmental activities of $15,600 contain clauses that any delinquent payments are subject to a penalty of one percent per month and shall be deducted from any state payments that are due to the City. 43 [20260901R 66] City of Superior Notes to Financial Statements December 31, 2025 The City's outstanding debt from direct borrowings or direct placements related to the sewerage system and stormwater utility of $10,694,853 contain provisions that (1) any delinquent payments can be deducted from any state payments that are due to the City or a special charge may be added to the taxes apportioned to and levied upon the County in which the City is located and (2) in an event of default, outstanding amounts become immediately due and payable or the interest rate may be increased to the market interest rate and (3) any delinquent payments may be intercepted from the revenue of the sewerage system and stormwater utility. Lease Disclosures Lessee - Lease Liabilities Governmental Activities Lease Liabilities Beginning Balance Additions Deductions Ending Balance Amounts Due Within One Year Office space $ 242,221 $ - $ 75,131 $ 167,090 $ 80,740 Future minimum lease payments are as follows: Years Principal Interest 2026 $ 80,740 $ 11,219 2027 86,350 5,609 Total $ 167,090 $ 16,828 Business-Type Activities Lease Liabilities Beginning Balance Additions Deductions Ending Balance Amounts Due Within One Year Golf carts $ 225,130 $ - $ 44,479 $ 180,651 $ 48,649 Future minimum lease payments are as follows: Years Principal Interest 2026 $ 48,649 $ 14,279 2027 53,211 9,717 2028 58,201 4,727 2029 20,590 387 Total $ 180,651 $ 29,110 44 [20260901R 67] City of Superior Notes to Financial Statements December 31, 2025 Lessor - Lease Receivables Governmental Activities Lease Receivables Description Date of Inception Final Maturity Interest Rates Receivable Balance December 31, 2025 Building lease 01/01/2012 12/31/2041 3% $ 27,479 Montreal Pier 01/01/2021 12/31/2030 3 54,930 Marina land lease 05/01/2005 04/30/2036 3 2,087,500 Land lease 08/29/1997 08/28/2047 3 52,562 Total governmental activities $ 2,222,471 The City recognized $178,673 of lease revenue during the fiscal year. The City recognized $86,979 of interest revenue during the fiscal year. Closure and Postclosure Care Cost State and federal laws and regulations require the City to place a final cover on its landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The $12,802,172 reported as landfill closure and postclosure care liability at December 31, 2025, represents the cumulative amount. Actual cost may be higher due to inflation, changes in technology or changes in regulations. The City is required by state and federal laws and regulations to make annual contributions to a trust to finance closure and postclosure care. The City is in compliance with these requirements, and, at December 31, 2025, investments of $11,627,363 are held for these purposes. These are reported as restricted assets on the statement of net position. The City expects that future inflation costs will be paid from interest earnings on these annual contributions. However, if interest earnings are inadequate or additional postclosure care requirements are determined (due to changes in technology or applicable laws or regulations, for example) these costs may need to be covered by charges to future landfill users or from future tax revenue. Net Position/Fund Balances Net position reported on the government-wide statement of net position at December 31, 2025, includes the following: Governmental Activities Invested in capital assets: Land $ 14,875,995 Construction in progress 11,847,727 Other capital assets, net of accumulated depreciation/amortization 61,257,207 Less long-term capital debt outstanding (excluding unspent capital related debt proceeds) (24,933,192) Less lease liabilities and financed purchase (707,687) Less unamortized debt premium (770,995) Total invested in capital assets $ 61,569,055 45 [20260901R 68] City of Superior Notes to Financial Statements December 31, 2025 Governmental Funds Governmental fund balances reported on the fund financial statements at December 31, 2025, include the following: General Fund Capital Improvement Program Debt Service Nonmajor Funds Total Fund Balances Nonspendable: Inventories and prepaid items $ 65,157 $ - $ - $ - $ 65,157 Long-term loans - - - 100,000 100,000 Advances 1,473,681 - - - 1,473,681 Subtotal 1,538,838 - - 100,000 1,638,838 Restricted for: Capital projects - - - 1,334,088 1,334,088 Debt service - - 1,038,062 - 1,038,062 Library expenditures - - - 176,663 176,663 Narcotics task force - - - 29,510 29,510 Community improvement and development projects - - - 127,226 127,226 Hazardous materials grant - - - 48,752 48,752 Superior business center - - - 154,070 154,070 Tourism - - - 1,375,819 1,375,819 Housing loans - - - 993,103 993,103 Affordable housing - - - 1,469,023 1,469,023 Opioid remediation 130,513 - - - 130,513 Subtotal 130,513 - 1,038,062 5,708,254 6,876,829 Committed to: Maintenance and development of boat launching facilities - - - 30,718 30,718 Assigned to: Future projects - - - 487,657 487,657 Municipal forest fund - - - 64,543 64,543 Special assessment fund - - - 35,214 35,214 Urban Tree - - - 28,573 28,573 Economic development fund - - - 1,770,294 1,770,294 Business improvement fund - - - 285,451 285,451 Neighborhood improvement fund - - - 132,012 132,012 State and federal grant allocation and allotment fund - - - 49,611 49,611 Fire department - - - 172,113 172,113 Revolving grant fund - - - 572,009 572,009 Subtotal - - - 3,597,477 3,597,477 Unassigned (Deficit) 12,400,942 (4,099,872) - (1,262,168) 7,038,902 Total fund balances (deficit) $ 14,070,293 $ (4,099,872) $ 1,038,062 $ 8,174,281 $ 19,182,764 46 [20260901R 69] City of Superior Notes to Financial Statements December 31, 2025 Business-Type Activities Net investment in capital assets: Land $ 1,630,722 Construction in progress 4,047,114 Other capital assets, net of accumulated depreciation/amortization 59,267,862 Less long-term capital debt outstanding (excluding unspent capital related debt proceeds) (10,694,853) Less lease liabilities (180,651) Total net investment in capital assets $ 54,070,194 Accounting Changes Changes to or Within the Financial Reporting Entity (See Adjustments Below) The ARPA Grant special revenue fund and PIDP Grant Project capital projects fund, previously reported as major funds, are reported as nonmajor funds for 2025. Adjustments to Beginning Balances During fiscal year 2025, changes to or within the financial reporting entity resulted in adjustments to beginning fund balance, as follows: December 31, 2024 As Previously Reported Change to or Within the Financial Reporting Entity December 31, 2024 As Adjusted Governmental Funds Major funds: ARPA Grant $ 487,657 $ (487,657) $ - PIDP Grant Project (1,165,433) 1,165,433 - Nonmajor funds 6,670,518 (677,776) 5,992,742 4. Other Information Employees' Retirement System Plan Description The WRS is a cost-sharing multiple-employer defined benefit pension plan. WRS benefits and other plan provisions are established by Chapter 40 of the Wisconsin Statutes. Benefit terms may only be modified by the legislature. The retirement system is administered by the Wisconsin Department of Employee Trust Funds (ETF). The system provides coverage to all eligible State of Wisconsin, local government and other public employees. All employees, initially employed by a participating WRS employer on or after July 1, 2011, expected to work at least 1,200 hours a year (880 hours for teachers and school district educational support employees) and expected to be employed for at least one year from employee's date of hire are eligible to participate in the WRS. ETF issues a standalone Annual Comprehensive Financial Report (ACFR), which can be found at https://etf.wi.gov/about-etf/reports-and-studies/financial-reports-and-statements. Additionally, ETF issued a standalone Wisconsin Retirement System Financial Report, which can also be found using the link above. 47 [20260901R 70] City of Superior Notes to Financial Statements December 31, 2025 Vesting For employees beginning participation on or after January 1, 1990, and no longer actively employed on or after April 24, 1998, creditable service in each of five years is required for eligibility for a retirement annuity. Participants employed prior to 1990 and on or after April 24, 1998, and prior to July 1, 2011, are immediately vested. Participants who initially became WRS eligible on or after July 1, 2011, must have five years of creditable service to be vested. Benefits Provided Employees who retire at or after age 65 (54 for protective occupation employees, 62 for elected officials and executive service retirement participants, if hired on or before 12/31/2016) are entitled to a retirement benefit based on a formula factor, their final average earnings, and creditable service. Final average earnings is the average of the participant's three highest annual earnings period. Creditable service includes current service and prior service for which a participant received earnings and made contributions as required. Creditable service also includes creditable military service. The retirement benefit will be calculated as a money purchase benefit based on the employee's contributions plus matching employer's contributions, with interest, if that benefit is higher than the formula benefit. Vested participants may retire at age 55 (50 for protective occupations) and receive an actuarially-reduced benefit. Participants terminating covered employment prior to eligibility for an annuity may either receive employee-required contributions plus interest as a separation benefit or leave contributions on deposit and defer application until eligible to receive a retirement benefit. The WRS also provides death and disability benefits for employees. Postretirement Adjustments The Employee Trust Funds Board may periodically adjust annuity payments from the retirement system based on annual investment performance in accordance with s. 40.27, Wis. Stat. An increase (or decrease) in annuity payments may result when investment gains (losses), together with other actuarial experience factors, create a surplus (shortfall) in the reserves, as determined by the system's consulting actuary. Annuity increases are not based on cost of living or other similar factors. For Core annuities, decreases may be applied only to previously granted increases. By law, Core annuities cannot be reduced to an amount below the original, guaranteed amount (the floor) set at retirement. The Core and Variable annuity adjustments granted during recent years are as follows: Year Core Fund Adjustment % Variable Fund Adjustment % 2015 2.9 2.0 2016 0.5 (5.0) 2017 2.0 4.0 2018 2.4 17.0 2019 0.0 (10.0) 2020 1.7 21.0 2021 5.1 13.0 2022 7.4 15.0 2023 1.6 (21.0) 2024 3.6 15.0 48 [20260901R 71] City of Superior Notes to Financial Statements December 31, 2025 Contributions Required contributions are determined by an annual actuarial valuation in accordance with Chapter 40 of the Wisconsin Statutes. The employee required contribution is one-half of the actuarially determined contribution rate for General category employees, including Teachers, Executives and Elected Officials. Starting on January 1, 2016, the Executives and Elected Officials category was merged into the General Employee category. Required contributions for protective employees are the same rate as general employees. Employers are required to contribute the remainder of the actuarially determined contribution rate. The employer may not pay the employee required contribution unless provided for by an existing collective bargaining agreement. During the reporting period, the WRS recognized $2,225,104 in contributions from the City. Contribution rates for the plan year reported as of December 31, 2025 are: Employee Category Employee Employer General (Executives & Elected Officials) 6.90 % 6.90 % Protective with Social Security 6.90 14.30 Protective without Social Security 6.90 19.10 Pension Liability, Pension Expense (Revenue), Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At December 31, 2025, the City reported a liability of $2,484,857 for its proportionate share of the net pension liability. The 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 December 31, 2023 rolled forward to December 31, 2024. No material changes in assumptions or benefit terms occurred between the actuarial valuation date and the measurement date. The City's proportion of the net pension liability was based on the City's share of contributions to the pension plan relative to the contributions of all participating employers. At December 31, 2024, the City's proportion was 0.15122382%, which was an increase of 0.00104302% from its proportion measured as of December 31, 2023. For the year ended December 31, 2025, the City recognized pension expense (revenue) of $3,223,285. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between projected and actual experience $ 7,716,842 $ 7,251,411 Changes in assumptions 737,305 - Net differences between projected and actual earnings on pension plan investments 3,775,872 - Changes in proportion and differences between employer contributions and proportionate share of contributions 6,378 20,353 Employer contributions subsequent to the measurement date 2,316,312 - Total $ 14,552,709 $ 7,271,764 49 [20260901R 72] City of Superior Notes to Financial Statements December 31, 2025 $2,316,312 reported as deferred outflows of resources related to pension resulting from the WRS Employer's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability (asset) in the year ended December 31, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized in pension expense as follows: Years Ending December 31: Deferred Outflows of Resources and Deferred Inflows of Resources (Net) 2026 $ 1,494,353 2027 5,146,227 2028 (1,278,788) 2029 (397,159) Actuarial Assumptions The total pension liability in the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial Valuation Date: December 31, 2023 Measurement Date of Net Pension Liability (Asset): December 31, 2024 Experience Study: January 1, 2021 - December 31, 2023 Published November 19, 2024 Actuarial Cost Method: Entry Age Normal Asset Valuation Method: Fair Value Long-Term Expected Rate of Return: 6.8% Discount Rate: 6.8% Salary Increases: Wage Inflation Seniority/Merit 3.0% 0.1%-5.7% Mortality: 2020 WRS Experience Mortality Table Postretirement Adjustments*: 1.7% * No postretirement adjustment is guaranteed. Actual adjustments are based on recognized investment return, actuarial experience and other factors. 1.7% is the assumed annual adjustment based on the investment return assumption and the postretirement discount rate. Includes the impact of known Market Recognition Account deferred gains/losses on the liability for dividend payments. 50 [20260901R 73] City of Superior Notes to Financial Statements December 31, 2025 Actuarial assumptions are based upon an experience study conducted in 2024 that covered a three-year period from January 1, 2021 to December 31, 2023. Based on this experience study, actuarial assumptions used to measure the Total Pension Liability changed from prior year, including seniority (merit) and separation rates. The Total Pension Liability for December 31, 2024 is based upon a roll-forward of the liability calculated from the December 31, 2023 actuarial valuation. Long-Term Expected Return on Plan Assets The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Allocation Targets and Expected Returns* as of December 31, 2024 Core Fund Asset Class Asset Allocation % Long-Term Expected Nominal Rate of Return % Long-Term Expected Real Rate of Return %** Public Equity 38 7.0 4.3 Public Fixed Income 27 6.1 3.4 Inflation Sensitive 19 4.8 2.1 Real Estate 8 6.5 3.8 Private Equity/Debt 20 9.5 6.7 Leverage*** (12) 3.7 1.1 Total Core Fund 100 7.5 4.8 Variable Fund Asset U.S. Equities 70 6.5 3.8 International Equities 30 7.4 4.7 Total Variable Fund 100 6.9 4.2 * Asset Allocations are managed within established ranges; target percentages may differ from actual monthly allocations ** New England Pension Consultants' Long-Term U.S. CPI (Inflation) Forecast: 2.6% *** The investment policy used for the Core Fund involves reducing equity exposure by leveraging lower-volatility assets, such as fixed income securities. Currently, an asset allocation target of 12% policy leverage is used subject to an allowable range of up to 20%. 51 [20260901R 74] City of Superior Notes to Financial Statements December 31, 2025 Single Discount Rate A single discount rate of 6.8% was used to measure the total pension liability for the current and prior year. This discount rate is based on the expected rate of return on pension plan investments of 6.8% and a municipal bond rate of 4.08% (Source: "20-Bond GO Index" is the Bond Buyer Index, general obligation, 20 years to maturity, mixed quality as of December 31, 2024. In describing this index, the Bond Buyer notes that the bonds' average quality is roughly equivalent to Moody's Investors Service's Aa2 rating and Standard and Poor's Corp.'s AA rating.). Because of the unique structure of WRS, the 6.8% expected rate of return implies that a dividend of approximately 1.7% will always be paid. For purposes of the single discount rate, it was assumed that the dividend would always be paid. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments (including expected dividends) of current plan members. Therefore, the investment rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City's Proportionate Share of the Net Pension Liability (Asset) to Changes in the Discount Rate The following presents the City's proportionate share of the net pension liability (asset) calculated using the discount rate of 6.80%, as well as what the City's proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (5.80%) or 1-percentage-point higher (7.80%) than the current rate: 1% Decrease to Discount Rate (5.8%) Current Discount Rate (6.8%) 1% Increase to Discount Rate (7.8%) City's proportionate share of the net pension liability (asset) $ 23,311,209 $ 2,484,857 $ (12,311,667) Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in separately issued financial statements available at https://etf.wi.gov/about-etf/reports-and-studies/financial-reports- and-statements. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to or destruction of assets; errors and omissions; workers compensation; and health care of its employees. The City purchases commercial insurance to provide coverage for losses from (torts; theft of, damage to or destruction of assets; errors and omission; workers compensation; and health care of its employees). However, other risks, such as (torts; theft of, damage to or destruction of assets; errors and omission; workers compensation; and health care of its employees) are accounted for and financed by the City in the general fund and internal service fund. Self Insurance For health and dental claims, the uninsured risk of loss is $150,000 per incident and $6,485,637 in the aggregate for a policy year. The City has purchased commercial insurance for claims in excess of those amounts. Settled claims have not exceeded the commercial coverage in any of the past three years. 52 [20260901R 75] City of Superior Notes to Financial Statements December 31, 2025 All funds of the City participate in the risk management program. Funding is provided by charges to City departments, employees and retirees. Retirees use accumulated sick leave at retirement or are billed monthly premiums for health benefits based on actual costs of providing such benefits. The program is supplemented by stop-loss protection, which limits the City's annual liability. $3,684,224 was assigned for that reserve at year end, and is included in unrestricted net position of the internal service fund. A liability for a claim is established if information indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss is reasonably estimable. Liabilities include an amount for claims that have been incurred but not reported. The City does not allocate overhead costs or other nonincremental costs to the claims liability. Claims Liability Prior Year Current Year Unpaid Claims, Beginning $ 186,882 $ 414,772 Current year claims and changes in estimates 4,828,605 5,607,187 Claim payments (4,717,601) (5,835,077) Unpaid Claims, Ending $ 297,886 $ 186,882 Commitments and Contingencies Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting Standards Board pronouncements are met. The liability and expenditure for claims and judgments are only reported in governmental funds if it has matured. Claims and judgments are recorded in the government-wide statements and proprietary funds as expenses when the related liabilities are incurred. The City has received federal and state grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursements to the grantor agency for expenditures disallowed under terms of the grants. Management believes such disallowances, if any, would be immaterial. The City has active construction projects as of December 31, 2025. Work that has been completed on these projects but not yet paid for (including contract retainages) is reflected as accounts payable and expenditures. In 2016, the City issued a municipal revenue obligation as part of a development agreement. The amount of the obligation was $904,705, and is payable to the developer solely from tax increments collected from a specific portion of the development in TIF No. 13. Payments are scheduled through the year 2035, and carry an interest rate of 4.0%. The obligation does not constitute a charge upon any funds of the City. In the event that future tax increments are not sufficient to pay off the obligation, the obligation terminates with no further liability to the City. Since the amount of future payments is contingent on the collection of future TIF increments, the obligation is not reported as a liability in the accompanying financial statements. The balance of the commitment outstanding at year end was $798,950. 53 [20260901R 76] City of Superior Notes to Financial Statements December 31, 2025 Other Postemployment Benefits General Information About the OPEB Plan Plan Description The City administers a single-employer defined benefit OPEB plan that provides medical benefits to eligible retirees and their spouses through the City's group medical insurance plan, which covers both active and retired members. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Benefits Provided The City Council has the authority to establish and amend the types of benefits provided through the City OPEB plan. If eligible, the retiree may receive medical insurance benefits until they are eligible for Medicare. Benefits provided are as follows: Non-Union Employees - In return for two days banked unused paid leave, the retiree will receive one month of prepaid medical coverage upon their retirement. Union Employees - Banked unused sick and vacation days via the City's Vantage Care plan may be used for continued medical coverage on the City's plan upon retirement. All City employees may choose to remain on the City's group medical plan and self-pay the full (100%) required premium amounts when their Vantage Care Credit and/or banked months have been depleted. Employees Covered by Benefit Terms At December 31, 2025, the following employees were covered by the benefit terms: Inactive plan members or beneficiaries currently receiving benefit payments 35 Active plan members 232 Total 267 Total OPEB Liability The City's total OPEB liability of $6,064,681 was measured as of December 31, 2025, and was determined by an actuarial valuation as of January 1, 2024, rolled forward to the measurement date. Actuarial Assumptions and Other Inputs The total OPEB liability in the January 1, 2024 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 3.0% Salary increases 4.0% Healthcare cost trend rates 7.0% decreasing in various increments down to 4.5% by 2039 54 [20260901R 77] City of Superior Notes to Financial Statements December 31, 2025 The discount rate was based on S&P Municipal Bond 20 Year High-Grade Rate Index as of December 31, 2025. Mortality rates were based rates from the Wisconsin Retirement System December 31, 2023 Actuarial Valuation Report (Mortality Improvement using Scale MP-2020 applied). The actuarial assumptions used in the January 1, 2024 valuation were based on the results of an actuarial experience study the most recent WRS tables as of December 31, 2023. Changes in the Total OPEB Liability Total OPEB Liability Balances at December 31, 2024 $ 6,370,045 Changes for the year: Service cost 279,043 Interest 255,581 Changes in assumptions or other inputs (42,949) Benefit payments (797,039) Net changes (305,364) Balances at December 31, 2025 $ 6,064,681 Changes of assumptions and other inputs reflect a change in the discount rate from 4.28% to 4.43%. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.43%) or 1-percentage-point higher (5.43%) than the current discount rate: 1% Decrease Discount Rate 1% Increase Total OPEB liability $ 6,357,469 $ 6,064,681 $ 5,792,233 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (6.0% decreasing to 3.5%) or 1-percentage-point higher (8.0% decreasing to 5.5%) than the current healthcare cost trend rates: 1% Decrease Healthcare Cost Trend Rates 1% Increase Total OPEB liability $ 5,708,672 $ 6,064,681 $ 6,469,589 55 [20260901R 78] City of Superior Notes to Financial Statements December 31, 2025 OPEB Expense Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2025, the City recognized OPEB expense of $727,869. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 2,039,230 $ 46,312 Changes of assumptions or other inputs 623,186 1,462,508 Total $ 2,662,416 $ 1,508,820 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Years Ending December 31: Amount 2026 $ 203,359 2027 246,966 2028 185,494 2029 131,054 2030 130,084 Thereafter 256,639 Total $ 1,153,596 Local Retiree Life Insurance Fund (LRLIF) Plan Description The LRLIF is a multiple-employer, defined benefit OPEB plan. LRLIF benefits and other plan provisions are established by Chapter 40 of the Wisconsin Statutes. The Wisconsin Department of Employee Trust Funds (ETF) and the Group Insurance Board have statutory authority for program administration and oversight. The plan provides postemployment life insurance benefits for all eligible members. OPEB Plan Fiduciary Net Position. ETF issues a standalone Annual Comprehensive Financial Report (ACFR), which can be found at https://etf.wi.gov/about-etf/reports-and-studies/financial-reports-and-statements. Additionally, ETF issued a standalone Retiree Life Insurance Financial Report, which can be found at the link above. Benefits Provided The LRLIF plan provides fully paid up life insurance benefits for post-age 64 retired employees and pre-65 retirees who pay for their coverage. 56 [20260901R 79] City of Superior Notes to Financial Statements December 31, 2025 Contributions The Group Insurance Board approves contribution rates annually, based on recommendations from the insurance carrier. Recommended rates are based on an annual valuation, taking into consideration an estimate of the present value of future benefits and the present value of future contributions. A portion of employer contributions made during a member's working lifetime funds a postretirement benefit. Employers are required to pay the following contribution based on employee contributions for active members to provide them with Basic Coverage after age 65. There are no employer contributions required for pre-age 65 annuitant coverage. If a member retires prior to age 65, they must continue paying the member premiums until age 65 in order to be eligible for the benefit after age 65. Contribution rates for the plan year reported as of December 31, 2025 are: Coverage Type Employer Contribution 50% Postretirement Coverage 40% of member contribution 25% Postretirement Coverage 20% of member contribution Member contributions are based upon nine age bands through age 69 and an additional eight age bands for those age 70 and over. Participating members must pay monthly contribution rates per $1,000 of coverage until the age of 65 (age 70 if active). The member contribution rates in effect for the plan year are as listed below: Life Insurance Member Contribution Rates* for the Plan Year Attained Age Basic Supplemental Under 30 $0.05 $0.05 30-34 0.06 0.06 35-39 0.07 0.07 40-44 0.08 0.08 45-49 0.12 0.12 50-54 0.22 0.22 55-59 0.39 0.39 60-64 0.49 0.49 65-69 0.57 0.57 *Disabled members under age 70 receive a waiver-of-premium benefit During the reporting period, the LRLIF recognized $5,840 in contributions from the employer. 57 [20260901R 80] City of Superior Notes to Financial Statements December 31, 2025 OPEB Liabilities, OPEB Expense (Revenue) and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEBs At December 31, 2025, the City reported a liability of $1,086,297 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of December 31, 2024, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of January 1, 2024 rolled forward to December 31, 2024. No material changes in assumptions or benefit terms occurred between the actuarial valuation date and the measurement date. The City's proportion of the net OPEB liability was based on the City's share of contributions to the OPEB plan relative to the contributions of all participating employers. At December 31, 2024, the City's proportion was 0.27766500%, which was an increase of 0.00576800% from its proportion measured as of December 31, 2023. For the year ended December 31, 2025, the City recognized OPEB expense (revenue) of $40,652. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflow of Resources Deferred Inflows of Resources Differences between expected and actual experience $ - $ 113,013 Net differences between projected and actual earnings on plan investments 14,917 - Changes in actuarial assumptions 266,547 609,282 Changes in proportion and differences between employer contributions and proportionate share of contributions 41,592 69,497 Employer contributions subsequent to the measurement date 6,475 - Total $ 329,531 $ 791,792 $6,475 reported as deferred outflows of resources related to OPEB resulting from the LRLIF Employer's contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability (asset) in the year ended December 31, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Years Ending December 31: Deferred Outflows of Resources and Deferred Inflows of Resources (Net) 2026 $ (41,707) 2027 (96,560) 2028 (132,576) 2029 (129,666) 2030 (34,840) Thereafter (33,387) 58 [20260901R 81] City of Superior Notes to Financial Statements December 31, 2025 Actuarial Assumptions The total OPEB liability in the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial Valuation Date: January 1, 2024 Measurement Date of Net OPEB Liability (Asset) December 31, 2024 Experience Study: January 1, 2021 - December 31, 2023. Published November 19, 2024 Actuarial Cost Method: Entry Age Normal 20 Year Tax-Exempt Municipal Bond Yield* 4.08% Long-Term Expected Rate of Return: 4.25% Discount Rate: 4.09% Salary Increases: Wage Inflation Seniority/Merit 3.00% 0.10%-5.7% Mortality: 2020 WRS Experience Mortality Table *Based on the Bond Buyers GO 20-Bond Municipal index Actuarial assumptions are based upon an experience study conducted in 2024 that covered a three-year period from January 1, 2021 to December 31, 2023. The Total OPEB Liability for December 31, 2024 is based upon a roll-forward of the liability calculated from the January 1, 2024 actuarial valuation. 59 [20260901R 82] City of Superior Notes to Financial Statements December 31, 2025 Long-Term Expected Return on Plan Assets The long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. Investments for the LRLIF are held with Securian, the insurance carrier. Interest is calculated and credited to the LRLIF based on the rate of return for a segment of the insurance carriers' general fund, specifically 10-year A-Bonds (as a proxy, and not tied to any specific investments). The overall aggregate interest rate is calculated using a tiered approach based on the year the funds were originally invested and the rate of return for that year. Investment interest is credited based on the aggregate rate of return and assets are not adjusted to fair market value. Furthermore, the insurance carrier guarantees the principal amounts of the reserves, including all interest previously credited thereto. State OPEB Life Insurance Asset Allocation Targets and Expected Returns As of December 31, 2024 Asset Class Index Target Allocation Long-Term Expected Geometric Real Rate of Return U.S. Intermediate Credit Bonds Bloomberg U.S. Interm Credit 40.00% 2.41% U.S. Mortgages Bloomberg U.S. MBS 60.00 2.71 Inflation 2.30 Long-Term Expected Rate of Return 4.25 Single Discount Rate A single discount rate of 4.09% was used to measure the total OPEB liability for the current year, as opposed to a discount rate of 3.32% for the prior year. The significant change in the discount rate was primarily caused by the increase in the municipal bond rate from 3.26% as of December 31, 2023 to 4.08% as of December 31, 2024. The Plan's fiduciary net position was projected to be insufficient to make all projected future benefit payments of current active and inactive members. Therefore, the discount rate for calculating the total OPEB liability is equal to the single equivalent rate that results in the same actuarial present value as the long-term expected rate of return applied to benefit payments, to the extent that the plan's fiduciary net position is projected to be sufficient to make projected benefit payments, and the municipal bond rate applied to benefit payment to the extent that the plan's fiduciary net position is projected to be insufficient. The plan's fiduciary net position was projected to be available to make projected future benefit payments of current plan members through December 31, 2037. The projection of cash flows used to determine the single discount rate assumed that employer contributions will be made according to the current employer contribution schedule and that contributions are made by plan members retiring prior to age 65. 60 [20260901R 83] City of Superior Notes to Financial Statements December 31, 2025 Sensitivity of the City's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate The following presents the City's proportionate share of the net OPEB liability calculated using the discount rate of 4.09%, as well as what the City's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.09%) or 1-percentage-point higher (5.09%) than the current rate: 1% Decrease to Discount Rate (3.09%) Current Discount Rate (4.09%) 1% Increase to Discount Rate (5.09%) City's proportionate share of the net OPEB liability $ 1,451,988 $ 1,086,297 $ 804,499 Subsequent Event On March 24, 2026 the City issued general obligation promissory notes in the amount of $9,540,000 with an interest rate of 4.0%. This amount will be used for constructing capital improvements. Tax Abatement Tax abatements are a reduction in tax revenues that results from an agreement between one or more governments and an individual or entity in which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after the agreement has been entered into that contributes to economic development or otherwise benefits the governments or the citizens of those governments. The City through its Tax Incremental Financing Districts (TID) No. 13, 14, 15, 16, 17, 18 and 19 has entered into tax abatement agreements with developers in the form of tax incremental financing incentive payments to stimulate economic development. The abatements are authorized through the TID project plans. The developers pay property taxes as they become due, and, after meeting the criteria established in the development agreements, are entitled to future incentive payments that directly correlate to the taxes paid. The incentives are calculated based on a percentage of available increment as outlined in the individual agreements and the developer commitments include various development projects. Aggregate incentive payments for the year ended December 31, 2025 were $2,152,499. Anticipated future incentive payments based on such development agreements as of year end totaled $10,555,808 Effect of New Accounting Standards on Current-Period Financial Statements The Governmental Accounting Standards Board (GASB) has approved the following:  Statement No. 103, Financial Reporting Model Improvements  Statement No. 104, Disclosure of Certain Capital Assets  Statement No. 105, Subsequent Events When they become effective, application of these standards may restate portions of these financial statements. 61 [20260901R 84] REQUIRED SUPPLEMENTARY INFORMATION [20260901R 85] Variance With Original Final Actual Final Budget Revenues Taxes 13,376,427$ 13,376,427 $ 10,658,881 $ (2,717,546) $ Special assessments 5,000 5,000 5,074 74 Intergovernmental 19,973,882 19,973,882 19,595,047 (378,835) Licenses and permits 709,400 709,400 692,118 (17,282) Fines, forfeitures and penalties 198,000 198,000 155,542 (42,458) Public charges for services 162,700 162,700 122,363 (40,337) Intergovernmental charges for services 90,000 90,000 104,032 14,032 Investment income 250,000 250,000 547,631 297,631 Miscellaneous 630,150 630,150 624,712 (5,438) Total revenues 35,395,559 35,395,559 32,505,400 (2,890,159) Expenditures Current: General government 3,688,821 3,688,821 4,060,705 (371,884) Public safety 16,114,201 16,114,201 16,656,858 (542,657) Public works 7,521,441 7,521,441 7,708,155 (186,714) Health and human services 274,000 274,000 94,936 179,064 Culture and recreation 2,361,469 2,361,469 2,279,495 81,974 Conservation and development 195,686 195,686 255,786 (60,100) Debt service: Principal 2,036,851 2,036,851 - 2,036,851 Interest 646,397 646,397 - 646,397 Total expenditures 32,838,866 32,838,866 31,055,935 1,782,931 Excess of revenues over expenditures 2,556,693 2,556,693 1,449,465 (1,107,228) Other Financing Sources (Uses) Proceeds from sale of capital assets - - 60,100 60,100 Transfers in 483,000 483,000 538,332 55,332 Transfers out (3,098,463) (3,039,693) (1,603,669) 1,436,024 Total other financing sources (uses) (2,615,463) (2,556,693) (1,005,237) 1,551,456 Net change in fund balances (58,770) - 444,228 444,228 Fund Balance, Beginning 13,626,065 13,626,065 13,626,065 - Fund Balance, Ending 13,567,295$ 13,626,065 $ 14,070,293 $ 444,228 $ General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - City of Superior Year Ended December 31, 2025 Budget and Actual Budgeted Amounts See notes to required supplementary information 62 [20260901R 86] City's Proportionate City's City's Share of the Plan Fiduciary WRS Fiscal Proportion Proportionate Net Pension Net Position Year End Date of the Net Share of the City's Asset/Liability as a Percentage (Measurement Pension Net Pension Covered as a Percentage of of the Total Date) Asset/Liability (Asset) Liability Payroll Covered Payroll Pension Liability 12/31/24 0.15122382 % 2,484,857$ 20,543,824 $ 12.10 % 98.79 % 12/31/23 0.15018080 % 2,232,897 19,408,004 11.51 % 98.85 % 12/31/22 0.14851077 % 7,867,660 18,598,546 42.30 % 95.72 % 12/31/21 0.14816534 % (11,942,399) 18,075,418 66.07 % 106.02 % 12/31/20 0.14824350 % (9,255,047) 17,386,894 53.23 % 105.26 % 12/31/19 0.14976429 % (4,829,084) 17,524,968 27.56 % 102.96 % 12/31/18 0.14720350 % 5,237,040 16,873,160 31.04 % 96.45 % 12/31/17 0.14392796 % (4,273,391) 16,579,798 25.77 % 102.93 % 12/31/16 0.13821135 % 1,139,191 15,905,280 7.16 % 99.12 % 12/31/15 0.13531225 % 2,198,797 15,623,130 14.07 % 98.20 % Contributions in Relation to the Contributions Contractually Contractually Contribution as a Percentage City's Required Required Deficiency Covered of Covered Year End Date Contributions Contributions (Excess) Payroll Payroll 12/31/25 2,316,312$ 2,316,312$ -$ 21,269,019$ 10.89 % 12/31/24 2,215,814 2,215,814 - 20,543,824 10.79 % 12/31/23 1,993,559 1,993,559 - 19,132,948 10.42 % 12/31/22 1,765,521 1,765,521 - 18,598,547 9.49 % 12/31/21 1,732,029 1,732,029 - 18,075,418 9.58 % 12/31/20 1,649,481 1,649,481 - 17,386,894 9.49 % 12/31/19 1,566,952 1,566,952 - 17,524,968 8.94 % 12/31/18 1,535,356 1,535,356 - 16,873,160 9.10 % 12/31/17 1,522,716 1,522,716 - 16,579,798 9.18 % 12/31/16 1,349,137 1,349,137 - 15,905,280 8.48 % Year Ended December 31, 2025 City of Superior Schedule of Employer's Proportionate Share of the Net Pension Liability (Asset) - Wisconsin Retirement System (WRS) Year Ended December 31, 2025 Schedule of Employer Contributions - Wisconsin Retirement System See notes to required supplementary information 63 [20260901R 87] City's Proportionate City's City's Share of the Plan Fiduciary Plan Fiscal Proportion Proportionate Net OPEB Net Position Year End Date of the Net Share of the City's Liability as a Percentage (Measurement OPEB Net OPEB Covered as a Percentage of of the Total Date) Liability Liability Payroll Covered Payroll OPEB Liability 12/31/24 0.27766500 % 1,086,297$ 17,771,000 $ 6.11 % 37.20 % 12/31/23 0.27189700 % 1,250,904 16,274,000 7.69 % 33.90 % 12/31/22 0.28755700 % 1,095,542 15,800,000 6.93 % 38.81 % 12/31/21 0.28965300 % 1,711,956 15,770,000 10.86 % 29.57 % 12/31/20 0.28384200 % 1,561,336 15,259,000 10.23 % 31.36 % 12/31/19 0.29187900 % 1,242,878 15,907,597 7.81 % 37.58 % 12/31/18 0.27934600 % 720,807 15,337,065 4.70 % 48.69 % 12/31/17 0.29643500 % 891,848 14,858,204 6.00 % 44.81 % Contributions in Relation to the Contributions Contractually Contractually Contribution as a Percentage City's Required Required Deficiency Covered of Covered Year End Date Contributions Contributions (Excess) Payroll Payroll 12/31/25 6,475$ 6,475$ -$ 21,269,019$ 0.03 % 12/31/24 5,880 5,880 - 20,543,824 0.03 % 12/31/23 5,800 5,800 - 19,132,948 0.03 % 12/31/22 5,800 5,800 - 18,598,547 0.03 % 12/31/21 5,660 5,660 - 15,770,000 0.04 % 12/31/20 5,276 5,276 - 15,259,000 0.03 % 12/31/19 5,679 5,679 - 15,907,597 0.04 % 12/31/18 5,629 5,629 - 15,337,065 0.04 % Year Ended December 31, 2025 City of Superior Schedule of Employer's Proportionate Share of the Net OPEB Liability - Local Retiree Life Insurance Fund (LRLIF) Year Ended December 31, 2025 Schedule of Employer Contributions - Local Retiree Life Insurance Fund (LRLIF) See notes to required supplementary information 64 [20260901R 88] 2025 2024 2023 2022 2021 2020 2019 2018 Total OPEB Liability Service cost 279,043$ 278,666$ 219,849$ 284,907$ 372,616$ 297,810$ 386,682$ 456,412$ Interest 255,581 210,300 239,572 129,907 118,390 174,718 193,684 196,034 Differences between expected and actual experience - 2,288,580 - 355,876 - 123,364 - (497,319) Assumption changes (42,949) (1,202,195) 77,314 (236,583) (115,365) 887,985 87,012 (168,679) Other changes - - - - - - 961 166,105 Benefit payments (797,039) (925,619) (749,882) (748,576) (723,807) (694,475) (565,272) (801,353) Net change in total OPEB liability (305,364) 649,732 (213,147) (214,469) (348,166) 789,402 103,067 (648,800) Total OPEB Liability, Beginning 6,370,045 5,720,313 5,933,460 6,147,929 6,496,095 5,706,693 5,603,626 6,252,426 Total OPEB Liability, Ending 6,064,681$ 6,370,045$ 5,720,313$ 5,933,460$ 6,147,929$ 6,496,095$ 5,706,693$ 5,603,626$ Covered-Employee Payroll 18,033,544$ 17,339,463$ 16,508,836$ 15,871,693$ 16,225,730$ 15,602,743$ 16,337,862$ 16,176,605$ Total OPEB liability as a percentage of 33.63 % 36.74 % 34.65 % 37.38 % 37.89 % 41.63 % 34.93 % 34.64 % covered-employee payroll Schedule of Changes in the Total OPEB Liability and Related Ratios - Year Ended December 31, 2025 City of Superior City OPEB Plan See notes to required supplementary information 65 [20260901R 89] City of Superior Notes to the Required Supplementary Information Year Ended December 31, 2025 66 Budgetary Information The City's budget is adopted in accordance with state law. Budget amounts in the basic financial statements include appropriations authorized in the original budget resolution and subsequent revisions authorized by the City. Budgets are formally adopted for the General Fund, some special revenue funds, some capital projects funds, the debt service fund and the enterprise funds. Reported budget amounts represent the originally adopted budget as amended. Amendments to the originally adopted budget require a two-thirds vote by the City Council. Unexpended budgeted amounts lapse at the end of the year. Spending control for the General Fund is established by the amount of expenditures budgeted for major departments within the fund, but management control is exercised at budgetary line item levels. Wisconsin Retirement System The amounts determined for each fiscal year were determined as of the calendar year-end and occurred within the fiscal year. Changes in benefit terms. There were no changes of benefit terms for any participating employer in the Wisconsin Retirement System. Changes in assumptions. Based on a three-year experience study conducted in 2021 covering January 1, 2018 through December 31, 2020, the ETF Board adopted assumption changes that were used to measure the total pension liability beginning with the year-end December 31, 2021, including the following:  Lowering the long-term expected rate of return from 7.0% to 6.8%  Lowering the discount rate from 7.0% to 6.8%  Lowering the price inflation rate from 2.5% to 2.4%  Lowering the postretirement adjustments from 1.9% to 1.7%  Mortality assumptions were changed to refl ect updated trends by transitioning from the Wisconsin 2018 Mortality Table to the 2020 WRS Experience Mortality Table Based on a three-year experience study conducted in 2018 covering January 1, 2015 through December 31, 2017, the ETF Board adopted assumption changes that were used to measure the total pension liability beginning with the year-ended December 31, 2018, including the following:  Lowering the long-term expected rate of return from 7.2% to 7.0%  Lowering the discount rate from 7.2% to 7.0%  Lowering the wage inflation rate from 3.2% to 3.0%  Lowering the price inflation rate from 2.7% to 2.5%  Lowering the postretirement adjustments from 2.1% to 1.9%  Mortality assumptions were changed to refl ect updated trends by transitioning from the Wisconsin 2012 Mortality Table to the Wisconsin 2018 Mortality Table [20260901R 90] City of Superior Notes to the Required Supplementary Information Year Ended December 31, 2025 67 Local Retiree Life Insurance Fund The amounts determined for each fiscal year were determined as of the calendar year-end and occurred within the fiscal year. The City is required to present the last ten years of data; however accounting standards allow the presentation of as many years as are available until ten fiscal years are presented. Changes in benefit terms. There were no changes of benefit terms for any participating employer in the Local Retiree Life Insurance Fund. Changes in assumptions. Based on a three-year experience study conducted in 2021 covering January 1, 2018 through December 31, 2020, the ETF Board adopted assumption changes that were used to measure the total OPEB liability beginning with the year-end December 31, 2021, including the following:  Lowering the discount rate from 2.25% to 2.17%  Price inflation, separation rates and mortality assumptions were changed to reflect updated trends by transitioning from the Wisconsin 2018 Mortality Table to the 2020 WRS Experience Mortality Table City OPEB Plan The City implemented GASB Statement No. 75 in fiscal year 2018. Information prior to fiscal year 2018 is not available. The City is required to present the last ten years of data; however accounting standards allow the presentation of as many years as are available until ten fiscal years are presented. Accumulation of assets. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement No. 75. Changes in benefit terms There were no changes of benefit terms. Changes in assumptions. The discount rate changed from 4.28% in 2024 to 4.43% in 2025. [20260901R 91] SUPPLEMENTARY INFORMATION [20260901R 92] Variance With Original Final Actual Final Budget Revenues Taxes General property 12,883,427$ 12,883,427 $ 10,203,137 $ (2,680,290) $ Occupational 400,000 400,000 266,938 (133,062) Mobile home fees 40,000 40,000 21,750 (18,250) Other taxes 53,000 53,000 167,056 114,056 Total taxes 13,376,427 13,376,427 10,658,881 (2,717,546) Special Assessments Special assessments 5,000 5,000 5,074 74 Intergovernmental State aid: Shared revenues 10,581,847 10,581,847 10,636,674 54,827 Shared revenues, terminal taxes 6,277,007 6,277,007 5,770,147 (506,860) Municipal services payment 295,028 295,028 248,924 (46,104) Fire insurance 95,000 95,000 127,758 32,758 General transportation aids 475,000 475,000 379,640 (95,360) Connecting highway aids 400,000 400,000 422,666 22,666 Local streets and roads 1,850,000 1,850,000 1,928,736 78,736 Other - - 79,102 79,102 Local aid - - 1,400 1,400 Total intergovernmental 19,973,882 19,973,882 19,595,047 (378,835) Licenses and Permits Liquor and malt beverage licenses 56,000 56,000 55,604 (396) Other licenses 59,300 59,300 66,810 7,510 Building, plumbing, electric permits 321,000 321,000 400,622 79,622 Other permits 56,100 56,100 58,723 2,623 Franchise fees 217,000 217,000 110,359 (106,641) Total licenses and permits 709,400 709,400 692,118 (17,282) Fines, Forfeitures and Penalties Parking violations 85,000 85,000 60,085 (24,915) Ordinance violations 113,000 113,000 95,457 (17,543) Total fines, forfeitures and penalties 198,000 198,000 155,542 (42,458) Public Charges for Services Police department 6,700 6,700 4,499 (2,201) Fire department 90,000 90,000 54,180 (35,820) Airport 60,000 60,000 59,483 (517) City clerk - - 6 6 Culture, recreation and education 6,000 6,000 4,195 (1,805) Total public charges for services 162,700 162,700 122,363 (40,337) Intergovernmental Charges for Services Police 90,000 90,000 104,032 14,032 Total intergovernmental charges for services 90,000 90,000 104,032 14,032 Investment Income Interest and market value adjustments 250,000 250,000 547,631 297,631 Total investment income 250,000 250,000 547,631 297,631 Budgeted Amounts City of Superior Detailed Schedule of Revenues and Other Financing Sources - Budget and Actual - General Fund Year Ended December 31, 2025 68 [20260901R 93] Variance With Original Final Actual Final Budget Budgeted Amounts City of Superior Detailed Schedule of Revenues and Other Financing Sources - Budget and Actual - General Fund Year Ended December 31, 2025 Miscellaneous Rent 615,000$ 615,000 $ 618,616 $ 3,616 $ Insurance recoveries 10,000 10,000 1,947 (8,053) Other 5,150 5,150 4,149 (1,001) Total miscellaneous 630,150 630,150 624,712 (5,438) Total revenues 35,390,559 35,390,559 32,500,326 (2,890,233) Other Financing Sources Proceeds from sale of capital assets - - 60,100 60,100 Transfers in 483,000 483,000 538,332 55,332 Total other financing sources 483,000 483,000 538,332 55,332 Total revenues and other financing sources 35,873,559$ 35,873,559 $ 33,038,658 $ (2,834,901) $ 69 [20260901R 94] Variance With Original Final Actual Final Budget Expenditures General Government City council 106,716 $ 106,716 $ 142,831 $ (36,115) $ Mayor 267,041 267,041 300,254 (33,213) Finance 752,093 752,093 866,734 (114,641) City clerk 325,297 325,297 384,868 (59,571) Assessor 468,533 468,533 428,568 39,965 Elections 58,146 58,146 46,269 11,877 City attorney 273,250 273,250 309,704 (36,454) Human resources 382,389 382,389 412,258 (29,869) Buildings and grounds 901,156 901,156 1,015,354 (114,198) Miscellaneous 154,200 154,200 153,865 335 Total general government 3,688,821 3,688,821 4,060,70 5 (371,884) Public Safety Police department 9,435,077 9,435,077 9,607,731 (172,654) Fire department 5,888,774 5,888,774 6,135,574 (246,800) Inspection 790,350 790,350 913,553 (123,203) Total public safety 16,114,201 16,114,201 16,656,85 8 (542,657) Public Works Mass transit 1,243,540 1,243,540 1,226,964 16,576 Administration and engineering 461,578 461,578 690,907 (229,329) Buildings and grounds - - 12,988 (12,988) Street division 3,557,512 3,557,512 3,429,359 128,153 Airport 114,762 114,762 125,289 (10,527) Traffic 504,131 504,131 526,263 (22,132) Operations 1,639,918 1,639,918 1,696,385 (56,467) Total public works 7,521,441 7,521,441 7,708,15 5 (186,714) Health and Human Services Humane officer 166,000 166,000 38,236 127,764 Other 108,000 108,000 56,700 51,300 Total health and human services 274,000 274,00 0 94,936 179,06 4 Culture and Recreation Museum 155,000 155,000 92,895 62,105 Park department 2,206,469 2,206,469 2,186,600 19,869 Total culture and recreation 2,361,469 2,361,46 9 2,279,49 5 81,974 Conservation and Development Planning and development 195,686 195,686 255,786 (60,100) Debt Service Principal 2,036,851 2,036,851 - 2,036,851 Interest 646,397 646,397 - 646,397 Total debt service 2,683,248 2,683,24 8 - 2,683,24 8 Total expenditures 32,838,866 32,838,866 31,055,935 1,782,931 Other Financing Uses Transfers out 3,098,463 3,039,693 1,603,669 1,436,024 Total other financing uses 3,098,463 3,039,69 3 1,603,66 9 1,436,02 4 Total expenditures and other financing uses 35,937,329$ 35,878,559 $ 32,659,604 $ 3,218,955 $ Budgeted Amounts City of Superior Detailed Schedule of Expenditures and Other Financing Uses - Budget and Actual - General Fund Year Ended December 31, 2025 70 [20260901R 95] Nonmajor Nonmajor Special Capital Revenue Projects Funds Funds Total Assets Cash and investments 7,799,415$ 2,034,995 $ 9,834,410 $ Restricted cash and investments 90,069 - 90,069 Receivables, net: Special assessments 464,628 - 464,628 Loans 1,375,793 84,988 1,460,781 Other 429,274 - 429,274 Due from other governments 227,929 - 227,929 Advances to other funds 486,196 378,152 864,348 Inventories and prepaid items 482,138 - 482,138 Total assets 11,355,442$ 2,498,135 $ 13,853,577 $ Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable 469,311$ 740 $ 470,051$ Accrued liabilities 99,141 - 99,141 Due to other funds 100,730 - 100,730 Deposits 215,555 177,548 393,103 Unearned revenues 835,732 - 835,732 Advances from other funds 95,295 1,973,390 2,068,685 Total liabilities 1,815,764 2,151,678 3,967,442 Deferred Inflows of Resources Property taxes levied for subsequent year 256,207 - 256,207 Unavailable revenues 1,370,659 84,988 1,455,647 Total deferred inflows of resources 1,626,866 84,988 1,711,854 Fund Balances (Deficit) Nonspendable 100,000 - 100,000 Restricted 4,374,166 1,334,088 5,708,254 Committed 30,718 - 30,718 Assigned 3,597,477 - 3,597,477 Unassigned (deficit) (189,549) (1,072,619) (1,262,168) Total fund balances (deficit) 7,912,812 261,469 8,174,281 Total liabilities, deferred inflows of resources and fund balances 11,355,442 $ 2,498,135 $ 13,853,577 $ Nonmajor Governmental Funds Combining Balance Sheet City of Superior December 31, 2025 71 [20260901R 96] Nonmajor Nonmajor Special Capital Revenue Projects Funds Funds Total Revenues Taxes 1,457,206 $ - $ 1,457,206$ Special assessments 318,385 - 318,385 Intergovernmental 7,390,690 647,747 8,038,437 Fines, forfeitures and penalties 14,256 - 14,256 Public charges for services 1,006,542 - 1,006,542 Investment income 276,550 30,233 306,783 Miscellaneous 480,783 721,517 1,202,300 Total revenues 10,944,412 1,399,497 12,343,909 Expenditures Current: General government 106,716 - 106,716 Public safety 788,788 - 788,788 Culture and recreation 2,079,018 - 2,079,018 Conservation and development 4,889,602 822,463 5,712,065 Capital outlay 4,362,272 - 4,362,272 Debt service: Principal retirement - 150,619 150,619 Interest and fiscal charges - 51,199 51,199 Total expenditures 12,226,396 1,024,281 13,250,677 Excess (deficiency) of revenues over expenditures (1,281,984) 375,216 (906,768) Other Financing Sources (Uses) Proceeds from sale of capital assets - 5,200 5,200 Transfers in 1,798,517 2,394,458 4,192,975 Transfers out (1,055,749) (54,119) (1,109,868) Total other financing sources (uses) 742,768 2,345,539 3,088,307 Net change in fund balances (539,216) 2,720,755 2,181,539 Fund Balances (Deficit), Beginning, as Previously Reported 7,964,371 (1,293,853) 6,670,518 Accounting changes (see note disclosure) 487,657 (1,165,433) (677,776) Fund Balances (Deficit), Beginning, as Adjusted 8,452,028 (2,459,286) 5,992,742 Fund Balances, Ending 7,912,812$ 261,469 $ 8,174,281$ City of Superior Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended December 31, 2025 72 [20260901R 97] City of Superior Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2025 Police Fire Crime Grant & Department Urban Prevention Liaison Grant Loan Tree Assets Cash and investments - $ 22,536$ 165,633 $ 427,617 $ 28,573 $ Restricted cash and investments - - - - - Receivables, net: Special assessments - - - - - Loans - - - 325,765 - Other 730 228,596 6,628 - - Due from other governments - 46,607 - - - Advances to other funds - - - - - Property held for resale - - - - - Total assets 730$ 297,739$ 172,261 $ 753,382 $ 28,573 $ Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable -$ 12,883$ 148 $ - $ - $ Accrued liabilities - 6,649 - - - Due to other funds - - - - - Deposits - - - - - Unearned revenues - - - - - Advances from other funds 95,295 - - - - Total liabilities 95,295 19,532 148 - - Deferred Inflows of Resources Property taxes levied for subsequent year - - - - - Unavailable revenues - 228,596 - 325,765 - Total deferred inflows of resources - 228,596 - 325,765 - Fund Balances (Deficit) Nonspendable - - - - - Restricted - - - 427,617 - Committed - - - - - Assigned - 49,611 172,113 - 28,573 Unassigned (deficit) (94,565) - - - - Total fund balances (deficit) (94,565) 49,611 172,113 427,617 28,573 Total liabilities, deferred inflows of resources and fund balances (deficit) 730 $ 297,739$ 172,261 $ 753,382 $ 28,573 $ 73 [20260901R 98] Parks and Home SF Recreation Boat ARP A Haz Mat Grant Neighborhood Ramp Fees Grant Grant Library HUD CDBG 2006-2008 Improvement 29,052$ 1,056,397$ 55,537 $ 170,389 $ - $ 198,396$ 152,856 $ - - - 86,452 - - - - - - - - - - - - - - 342,151 107,877 - 1,910 - - 175 27,500 - - - - - - - - - - - - - - - - - 482,138 - - - - - 30,962$ 1,538,535$ 55,537 $ 257,016 $ 369,651 $ 306,273 $ 152,856 $ 244$ 218,826$ 3,105 $ 16,490 $ 26,463 $ - $ 2,709$ - - - 63,863 5,651 - - - - - - 52,908 - - - - - - - - 18,135 - 832,052 3,680 - - - - - - - - - - - 244 1,050,878 6,785 80,353 85,022 - 20,844 - - - - - - - - - - - - 107,877 - - - - - - 107,877 - - - - - - - - - - 48,752 176,663 284,629 198,396 - 30,718 - - - - - - - 487,657 - - - - 132,012 - - - - - - - 30,718 487,657 48,752 176,663 284,629 198,396 132,012 30,962$ 1,538,535$ 55,537 $ 257,016 $ 369,651 $ 306,273 $ 152,856 $ 74 [20260901R 99] City of Superior Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2025 Fire Affordable Department Public Special Economic Housing PPP Museum Events Development Assets Cash and investments 1,466,093 $ 43,598 $ - $ - $ 1,318,778$ Restricted cash and investments - - 3,617 - - Receivables, net: Special assessments - - - - - Loans 500,000 - - - 100,000 Other 13,459 - - - - Due from other governments - - - - 181,322 Advances to other funds - - - - 486,196 Property held for resale - - - - - Total assets 1,979,552$ 43,598 $ 3,617 $ - $ 2,086,296$ Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable 9,429$ 28,872 $ 7,892 $ 16,287 $ 38,030 $ Accrued liabilities - - 12,106 - 10,872 Due to other funds - - 10,408 15,667 - Deposits 1,100 29,220 - - 167,100 Unearned revenues - - - - - Advances from other funds - - - - - Total liabilities 10,529 58,092 30,406 31,954 216,002 Deferred Inflows of Resources Property taxes levied for subsequent year - - - - - Unavailable revenues 500,000 - - - - Total deferred inflows of resources 500,000 - - - - Fund Balances Nonspendable - - - - 100,000 Restricted 1,469,023 - - - - Committed - - - - - Assigned - - - - 1,770,294 Unassigned (deficit) - (14,494) (26,789) (31,954) - Total fund balances 1,469,023 (14,494) (26,789) (31,954) 1,870,294 Total liabilities, deferred inflows of resources and fund balances 1,979,552 $ 43,598 $ 3,617 $ - $ 2,086,296$ 75 [20260901R 100] CDBG Superior Business Revolving Business Municipal Special Illegal Improvement Loan Center Forest Assessment Tax District Narcotics 82,461$ 154,070 $ 66,095 $ 35,214 $ - $ 297,545$ 29,510 $ - - - - - - - - - - 208,421 - 256,207 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 82,461$ 154,070 $ 66,095 $ 243,635 $ - $ 553,752$ 29,510 $ -$ - $ 1,552$ - $ - $ 12,094$ - $ - - - - - - - - - - - 21,747 - - - - - - - - - - - - - - - - - - - - - - - - - 1,552 - 21,747 12,094 - - - - - - 256,207 - - - - 208,421 - - - - - - 208,421 - 256,207 - - - - - - - - 82,461 154,070 - - - - 29,510 - - - - - - - - - 64,543 35,214 - 285,451 - - - - - (21,747) - - 82,461 154,070 64,543 35,214 (21,747) 285,451 29,510 82,461$ 154,070 $ 66,095 $ 243,635 $ - $ 553,752$ 29,510 $ 76 [20260901R 101] City of Superior Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2025 Total Nonmajor Hotel/Motel Tourism Revolving Special Revenue Tax Commission Grant 2020 Funds Assets Cash and investments 125,462 $ 1,271,594$ 602,009 $ 7,799,415$ Restricted cash and investments - - - 90,069 Receivables, net: Special assessments - - - 464,628 Loans - - - 1,375,793 Other 46,051 104,225 - 429,274 Due from other governments - - - 227,929 Advances to other funds - - - 486,196 Property held for resale - - - 482,138 Total assets 171,513$ 1,375,819$ 602,009 $ 11,355,442$ Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable 44,287$ - $ 30,000$ 469,311 $ Accrued liabilities - - - 99,141 Due to other funds - - - 100,730 Deposits - - - 215,555 Unearned revenues - - - 835,732 Advances from other funds - - - 95,295 Total liabilities 44,287 - 30,000 1,815,764 Deferred Inflows of Resources Property taxes levied for subsequent year - - - 256,207 Unavailable revenues - - - 1,370,659 Total deferred inflows of resources - - - 1,626,866 Fund Balances Nonspendable - - - 100,000 Restricted 127,226 1,375,819 - 4,374,166 Committed - - - 30,718 Assigned - - 572,009 3,597,477 Unassigned (deficit) - - - (189,549) Total fund balances 127,226 1,375,819 572,009 7,912,812 Total liabilities, deferred inflows of resources and fund balances 171,513 $ 1,375,819$ 602,009 $ 11,355,442$ 77 [20260901R 102] City of Superior Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds Year Ended December 31, 2025 Police Fire Crime Grant & Department Urban Prevention Liaison Grant Loan Tree Revenues Taxes -$ - $ - $ - $ - $ Special assessments - - - - - Intergovernmental - 104,575 301,382 - - Fines, forfeitures and penalties 14,256 - - - - Public charges for services - 151,236 - 41,454 - Investment income - - - - - Miscellaneous - 107,807 11,514 - 5,850 Total revenues 14,256 363,618 312,896 41,454 5,850 Expenditures Current: General government - - - - - Public safety 54,549 361,095 136,279 - - Culture and recreation - - - - 44,358 Conservation and development - - - 301 - Capital outlay 26,766 - 51,022 - - Total expenditures 81,315 361,095 187,301 301 44,358 Excess (deficiency) of revenues over expenditures (67,059) 2,523 125,595 41,153 (38,508) Other Financing Sources (Uses) Transfers in - 68,250 - - 24,100 Transfers out - - - - - Total other financing sources (uses) - 68,250 - - 24,100 Net change in fund balances (67,059) 70,773 125,595 41,153 (14,408) Fund Balances (Deficit), Beginning, as Previously Reported (27,506) (21,162) 46,518 386,464 42,981 Accounting changes (see note disclosure) - - - - - Fund Balances (Deficit), Beginning, as Adjusted (27,506) (21,162) 46,518 386,464 42,981 Fund Balances (Deficit), Ending (94,565)$ 49,611 $ 172,113 $ 427,617 $ 28,573 $ 78 [20260901R 103] Parks and Home SF Recreation Boat ARPA Haz Mat Grant Neighborhood Ramp Fees Grant Grant Library HUD CDBG 2006-2008 Improvement -$ -$ -$ - $ - $ - $ - $ - - - - - - - - 4,597,297 226,296 - 890,514 - - - - - - - - - 47,873 - 4,869 379,843 262,936 16,471 - - - - 37,808 - - - - - - 107,436 6,789 - - 47,873 4,597,297 231,165 525,087 1,160,239 16,471 - - - - - - - - - - 134,943 - - - 82,169 9,065 - - 1,813,956 - - - - 509,726 - - 1,207,129 - - - 3,456,481 131,100 544,543 - - - 9,065 3,966,207 266,043 2,358,499 1,207,129 - 82,169 38,808 631,090 (34,878) (1,833,412) (46,890) 16,471 (82,169) - - - 1,572,954 - - 50,000 - (631,090) - (155,000) - - - - (631,090) - 1,417,954 - - 50,000 38,808 - (34,878) (415,458) (46,890) 16,471 (32,169) (8,090) - 83,630 592,121 331,519 181,925 164,181 - 487,657 - - - - - (8,090) 487,657 83,630 592,121 331,519 181,925 164,181 30,718$ 487,657 $ 48,752 $ 176,663 $ 284,629 $ 198,396 $ 132,012 $ 79 [20260901R 104] City of Superior Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds Year Ended December 31, 2025 Fire Affordable Department Public Special Economic Housing PPP Museum Events Development Revenues Taxes -$ - $ - $ - $ - $ Special assessments - - - - - Intergovernmental - - - - 1,070,626 Fines, forfeitures and penalties - - - - - Public charges for services - 30,763 60,182 50 - Investment income 87,296 - - - 67,317 Miscellaneous 62,434 - 4,276 - 115,831 Total revenues 149,730 30,763 64,458 50 1,253,774 Expenditures Current: General government - - - - - Public safety - 19,753 - - - Culture and recreation - - 174,460 32,004 - Conservation and development 672,327 - - - 888,203 Capital outlay - - - - 135,422 Total expenditures 672,327 19,753 174,460 32,004 1,023,625 Excess (deficiency) of revenues over expenditures (522,597) 11,010 (110,002) (31,954) 230,149 Other Financing Sources (Uses) Transfers in - - 83,213 - - Transfers out - - - - (6,484) Total other financing sources (uses) - - 83,213 - (6,484) Net change in fund balances (522,597) 11,010 (26,789) (31,954) 223,665 Fund Balances (Deficit), Beginning, as Previously Reported 1,991,620 (25,504) - - 1,646,629 Accounting changes (see note disclosure) - - - - - Fund Balances (Deficit), Beginning, as Adjusted 1,991,620 (25,504) - - 1,646,629 Fund Balances (Deficit), Ending 1,469,023$ (14,494) $ (26,789) $ (31,954) $ 1,870,294$ 80 [20260901R 105] CDBG Superior Business Revolving Business Municipal Special Illegal Improvement Loan Center Forest Assessment Tax District Narcotics -$ - $ - $ - $ - $ - $ - $ - - - 55,776 - 262,609 - - - - - - - - - - - - - - - - - 10,865 - - - - - - - 442 - 1,283 - - - - - 39,022 4,824 - - - 10,865 56,218 39,022 268,716 - - - - - 106,716 - - - - - - - - - - - 5,175 - - - - - - - - - 177,708 - - - - - - - - - - 5,175 - 106,716 177,708 - - - 5,690 56,218 (67,694) 91,008 - - - - - - - - - - - (50,000) - - - - - - (50,000) - - - - - 5,690 6,218 (67,694) 91,008 - 82,461 154,070 58,853 28,996 45,947 194,443 29,510 - - - - - - - 82,461 154,070 58,853 28,996 45,947 194,443 29,510 82,461$ 154,070 $ 64,543 $ 35,214 $ (21,747)$ 285,451 $ 29,510 $ 81 [20260901R 106] City of Superior Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds Year Ended December 31, 2025 Total Nonmajor Hotel/Motel Tourism Revolving Special Revenue Tax Commission Grant 2020 Funds Revenues Taxes 441,115$ 1,016,091$ - $ 1,457,206$ Special assessments - - - 318,385 Intergovernmental - - 200,000 7,390,690 Fines, forfeitures and penalties - - - 14,256 Public charges for services - - - 1,006,542 Investment income - 51,787 30,617 276,550 Miscellaneous - 15,000 - 480,783 Total revenues 441,115 1,082,878 230,617 10,944,412 Expenditures Current: General government - - - 106,716 Public safety - - - 788,788 Culture and recreation - - - 2,079,018 Conservation and development 224,161 750,134 459,913 4,889,602 Capital outlay - 16,938 - 4,362,272 Total expenditures 224,161 767,072 459,913 12,226,396 Excess (deficiency) of revenues over expenditures 216,954 315,806 (229,296) (1,281,984) Other Financing Sources (Uses) Transfers in - - - 1,798,517 Transfers out (213,175) - - (1,055,749) Total other financing sources (uses) (213,175) - - 742,768 Net change in fund balances 3,779 315,806 (229,296) (539,216) Fund Balances (Deficit), Beginning, as Previously Reported 123,447 1,060,013 801,305 7,964,371 Accounting changes (see note disclosure) - - - 487,657 Fund Balances (Deficit), Beginning, as Adjusted 123,447 1,060,013 801,305 8,452,028 Fund Balances (Deficit), Ending 127,226$ 1,375,819$ 572,009 $ 7,912,812$ 82 [20260901R 107] City of Superior Hallet Dock Capital July 2016 Tax Tax Tax Rehabilitation Rain Event HAP Grant PIDP Grant Incremental Incremental Incremental Project Project Project Project District No. 9 District No. 12 District No. 13 Assets Cash and investments 10,427$ 98,505 $ - $ - $ 326,327$ - $ 5,475$ Receivables, net: Loans - - - - - - - Advances to other funds - - - - - - - Total assets 10,427$ 98,505 $ - $ - $ 326,327$ - $ 5,475$ Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable -$ - $ - $ - $ - $ - $ - $ Deposits - - - - - - 10,000 Advances from other funds - - - - - - - Total liabilities - - - - - - 10,000 Deferred Inflows of Resources Unavailable revenues - - - - - - - Total deferred inflows of resources - - - - - - - Fund Balances (Deficit) Restricted 10,427 98,505 - - 326,327 - - Unassigned (deficit) - - - - - - (4,525) Total fund balances (deficit) 10,427 98,505 - - 326,327 - (4,525) Total liabilities, deferred inflows o f resources and fund balances 10,427$ 98,505 $ - $ - $ 326,327$ - $ 5,475$ Combining Balance Sheet Nonmajor Capital Projects Funds December 31, 2025 83 [20260901R 108] Tax Tax Tax Tax Tax Tax Total Nonmajor Incremental Incremental Incremental Incremental Incremental Incremental Redevelopment Capital Project District No. 14 District No. 15 District No. 16 District No. 17 District No. 18 District No. 19 Authority Funds 149,634$ 50,256 $ 131,419 $ 875,283 $ - $ - $ 387,669$ 2,034,995$ - - - - - - 84,988 84,988 - - - - - - 378,152 378,152 149,634$ 50,256 $ 131,419 $ 875,283 $ - $ - $ 850,809$ 2,498,135$ -$ - $ - $ - $ - $ 740$ - $ 740$ - - 167,548 - - - - 177,548 66,882 - 79,569 1,739,631 69,362 17,946 - 1,973,390 66,882 - 247,117 1,739,631 69,362 18,686 - 2,151,678 - - - - - - 84,988 84,988 - - - - - - 84,988 84,988 82,752 50,256 - - - - 765,821 1,334,088 - - (115,698) (864,348) (69,362) (18,686) - (1,072,619) 82,752 50,256 (115,698) (864,348) (69,362) (18,686) 765,821 261,469 149,634$ 50,256 $ 131,419 $ 875,283 $ - $ - $ 850,809$ 2,498,135$ 84 [20260901R 109] Hallet Dock Capital July 2016 Tax Tax Tax Rehabilitation Rain Event HAP Grant PIDP Grant Incremental Incremental Incremental Project Project Project Project District No. 9 District No. 12 District No. 13 Revenues Intergovernmental -$ - $ 150,000$ 464,212 - $ - $ 5,475$ Investment income - - - - - - - Miscellaneous - - 5,380 716,137 - - - Total revenues - - 155,380 1,180,349 - - 5,475 Expenditures Current: Conservation and development - - - 14,916 - - 226,112 Debt service: Principal retirement - - 150,619 - - - - Interest and fiscal charges - - 5,379 - - - 3,374 Total expenditures - - 155,998 14,916 - - 229,486 Excess (deficiency) of revenues over expenditures - - (618) 1,165,433 - - (224,011) Other Financing Sources (Uses) Proceeds from sale of capital assets - - - - - - - Transfers in - - - - - 6,484 727,629 Transfers out - - - - - - (10,544) Total other financing sources (uses) - - - - - 6,484 717,085 - Net change in fund balances - - (618) 1,165,433 - 6,484 493,074 Fund Balances (Deficit), Beginning, as Previously Reported 10,427 98,505 618 - 326,327 (6,484) (497,599) Accounting changes (see note disclosure) - -