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FINANCE COMMITTEE Meeting Minutes July 28, 2026, Regular Meeting The meeting was called to order by Councilor Tylor Elm at 4:30 pm on July 28, 2026, in Government Center Room 204. 1 . ROLLCALL PRESENT: Tylor Elm, Mike Herrick, Nick Ledin (alternate). CITY STAFF PRESENT: Nick Rhinehart (Finance Director), Renee Hoff (Assistant Finance Director), Councilor Garner Moffat, Councilor Joe Radtke, Camron Volbrecht (Fire Chief), Sue Heskin (Library Director), Justin Bernacki (Chief of Staff, Mayor’s Office). VIRTUAL: OTHERS PRESENT: Shelley Nelson (Superior Telegram) 2. APPROVAL OF MINUTES 2.1 Finance Committee (Meeting held June 23, 2026) Motion was made by Mike Herrick, seconded by Tylor Elm, and carried to approve the Finance Committee minutes June 23, 2026. 3. OLD BUSINESS 3.1 Village of Superior – Fire Protection Contract Motion was made by Mike Herrick, seconded by Nick Ledin, and carried to hold in committee. 3.2 Library Utility Cost Review Discussion regarding utility costs over the five-year review period. The telephone system was discussed and the possibility of joining the Douglas County Avaya system. The roof is warrantied until 2033 and cannot currently sustain the weight of solar panels. Energy efficiencies have kept the costs even over the five year look back period. Motion was made by Mike Herrick, seconded by Nick Ledin, carried to receive and file the Library Utility Cost Review. 3.3 Connect Superior Broadband Financial Statements Finance Director Nick Rhinehart reported that the expenses remain consistent. Broadband Manager Becken will be invited to a future meeting to discuss the progress. Motion was made by Mike Herrick, seconded by Nick Ledin, and carried to hold in committee. 3.4 Cell Phone Review & Discussion Finance Director Nick Rhinehart reported that there are 100 devices among 15 accounts with an average cost per device of $37.62. IT Director Shea will be invited to a future meeting to discuss any possible cost savings. Motion was made by Mike Herrick, seconded by Nick Ledin, and carried to hold in committee. 3.5 Landfill rates and DNR escrow account Finance Director Nick Rhinehart reported that rates will be reviewed during the budget process. Any rate increases are suggested to be gradual so as no large increases will be required during the switch to WLSSD. Motion was made by Mike Herrick, seconded by Nick Ledin, and carried to hold in committee. 4. NEW BUSINESS 4.1 Humane Society of Douglas County Contract Motion was made by Mike Herrick, seconded by Nick Ledin, and carried to hold in committee. 4.2 Barker’s Island Marina Financial Statements Motion was made by Mike Herrick, seconded by Nick Ledin, and carried to hold in committee. 4.3 2026 Tax Increment District (TID) Budgets & Appropriations Finance Director Rhinehart presented the annual 2026 TID budgets and appropriations for TIDs 13 through 19, noting they were brought forward later than usual due to the ERP implementation. He provided an overview of each TID, current projects, and existing development agreements. TID 16 was highlighted for significant recent activity, with new developments including Kari Toyota, Allstate Peterbilt, and Superior Lidgerwood Mundy expected to add substantial taxable value beginning in the 2026–2027 tax year. Committee members discussed the positive impact of these developments on net new construction and the City's tax base, expressing interest in comparing the new property values to the values of the previous locations. It was also noted that TID 19 is still in the early stages of development, with construction at the former Lake Superior Elementary School site progressing well. The committee approved the 2026 TID budgets and annual appropriations. Motion was made by Mike Herrick, seconded by Nick Ledin, and carried to approve and file the Tax Increment District (TID) Budgets & Appropriations. 5. RECURRING BUSINESS 5.1 June 2026 Check Register Motion was made by Mike Herrick, seconded by Nick Ledin, carried to approve and file the May 2026 Check Register. 5.2 General Fund Financial Statement –2026 Expenditures vs Budget Analysis as of July 17, 2026 Finance Director Nick Rhinehart spoke on the positive position of the General Fund. A question and answer period was ensued. Motion was made by Mike Herrick, seconded by Nick Ledin, and carried to approve and file the General Fund Financial Statement – 2026 Expenditures vs Budget Analysis as of July 17, 2026. 5.3 American Rescue Plan Act (ARPA) Fund Budget Review Finance Director Nicholas Rhinehart provided an update on the City's ARPA Fund budget, noting that the remaining balance continues to decline as projects are completed. Remaining expenditures include broadband fiber infrastructure work, final payments for the Police Department body camera and Taser contract, nonprofit grant reimbursements, and the reallocation of fire hall project costs to ARPA funding. Staff expects all remaining ARPA funds to be fully expended. During discussion, the committee confirmed that approximately $211,000 in remaining broadband funding is tied to ongoing work under Hanco's contract, including fiber drops for current and future projects, and that the project remains on schedule. Motion was made by Mike Herrick, seconded by Nick Ledin, and carried to approve to file the American Rescue Plan Act (ARPA) Fund Budget Review. 5.4 Insurance Update Finance Director Nicholas Rhinehart updated the committee on the City's insurance program following the summer meeting of the municipal insurance pool. He reported that the City will see an insurance rate increase, driven primarily by rising physical damage claims rather than liability coverage. Increased costs for police vehicle repairs, higher rates of vehicle thefts and pursuits in other parts of the state, and broader trends affecting the insurance and reinsurance markets are contributing to higher premiums. Rhinehart noted that, as a member of the insurance pool, the City shares risk with other participating municipalities, even though Superior has experienced relatively favorable claims experience. He also explained that nationwide pressures on the reinsurance market are impacting insurance costs across the industry. No action taken. 5.5 Other Financial Matters Future agenda item(s): • Property Tax Transparency for State Mandated School Choice Funding 6. ADJOURNMENT The meeting was adjourned at 5:15 p.m. Minutes respectfully submitted by Renée Hoff