Common Council Agenda & Packet (PDF)

CITY OF PLYMOUTH, WISCONSIN MONDAY, AUGUST 24, 2026 COMMON COUNCIL MEETING 7:00 PM COUNCIL CHAMBERS, ROOM 302 128 SMITH ST. PLYMOUTH, WI 53073 AGENDA 1. Call to order and roll call: 2. Pledge of Allegiance. 3. Approval of the Consent Agenda (Alderpersons may request removal of item(s), or part thereof without debate or vote): A. Approve minutes of the meeting held Tuesday, August 11, 2026 B. Approve City and Utility Reports: I. Electric, Water and Sewer Sales Report – July 2026 II. Utility Related Write Offs for August 2026 - $2,383.24 C. Minutes acknowledged for filing – Police and Fire Commission: July 7 – Public Works and Utilities Committee: August 11 – Committee of the Whole: August 11 D. Approve Temporary “Class B” Wine and Class “B” Beer License for Generations – Wedding, to be held at 1500 Douglas Dr. on August 29 from 4 PM – Midnight. 4. Audience Comments: Citizens comments must be recognized by the mayor or presiding officer and are limited to three minutes per person from those signed in on the registration sheet located at the back of the Council Chambers prior to the start of the meeting. 5. Items removed from Consent Agenda: 6. New Business: A. Discussion and Possible Action on Adoption of 2027-2029 City of Plymouth Strategic Plan – Tim Blakeslee, City Administrator / Utilities Manager B. Discussion and Possible Action on Agreement in Lieu of Raze Order for the Brickbauer Building at 901 Reed St.– Jack Johnston, Assistant City Administrator / Community Development Director C. Presentation and Acceptance of the 2025 Audit – Chris Russo, Finance Director 7. Resolution: A. No. 20 Resolution of Common Council Exercising Referendum Option – Tim Blakeslee, City Administrator / Utilities Manager 8. Entertain a Motion to go into Closed Session for the following: Pursuant to Wis. Stat. 19.85 (1) (b) considering dismissal, demotion, licensing or discipline of any public employee or person licensed by a board or commission or the investigation of charges against such person, or considering the grant or denial of tenure for a university faculty member, and the taking of formal action on any such matter; provided that the faculty member of other public employee or person licensed is given actual notice of any evidentiary hearing which may be held prior to final action being taken and of any meeting at which final action may be taken. The notice shall contain a statement that the person has the right to demand that the evidentiary hearing or meeting be held in open session regarding an alcohol license denial 9. Entertain a motion to go into Open Session 10. Discussion and Possible Action on Closed Session Items 11. Adjourn to 7:00 PM on Tuesday, September 8, 2026 It is likely a quorum of members of other governmental bodies of the municipality may be in attendance at the above stated me eting to gather information. No action will be taken by any governmental body at the above stated meeting other than the governmen tal body specifically referred to above in this notice. Please note that, upon reasonable notice, efforts will be made to accommodate the needs of disabled individuals through appropriate aids and services. For additional information or to request this service, please contact the City of Plymouth Clerk’s Office, located at Plymouth City Hall at 128 Smith St., Plymouth, WI or call (920) 893-1271. CITY OF PLYMOUTH, WISCONSIN TUESDAY, AUGUST 11, 2026 COMMON COUNCIL MEETING 7:00 PM COUNCIL CHAMBERS, ROOM 302 128 SMITH ST. PLYMOUTH, WI 53073 UNOFFICIAL MINUTES 1. Call to order and roll call: Mayor Pohlman called the meeting to order at 7:00 PM. On the call of the roll, the following were present: Angie Matzdorf, Diane Gilson, Mike Penkwitz, Dana Haucke, Kevin Sande, Dave Herrmann, and John Binder. Also Present: City Administrator/Utilities Manager Tim Blakeslee and Assistant City Administrator/Community Development Director Jack Johnston. Fire Chief Jim Klug, Police Chief Ken Ruggles, Assistant Police Chief Matt Starker. 2. Pledge of Allegiance. 3. Approval of the Consent Agenda (Alderpersons may request removal of item(s), or part thereof without debate or vote): Motion was made by Gilson/Sande to approve the consent agenda. Upon the call of the roll, all voted aye. Motion carried. A. Approve minutes of the meeting held Tuesday, July 28, 2026 B. Approve City and Utility Reports: I. List of City & Utility Vouchers dated 07/01/2026 – 07/31/2026 C. Minutes acknowledged for filing – Library Board: July 6 D. Building Report for July 2026 – 40 Permits at $443,508 4. Audience Comments: Citizens comments must be recognized by the mayor or presiding officer and are limited to three minutes per person from those signed in on the registration sheet located at the back of the Council Chambers prior to the start of the meeting.: None 5. Items removed from Consent Agenda: None 6. New Business: A. Announce Appointment of Bill Barbieur to Board of Review to fill a Vacancy until 2029 – Mayor Pohlman – Motion was made by Binder/Penkwitz to appoint Bill Barbieur to Board of Review to fill a Vacancy until 2029. Upon the call of the roll, all voted aye. Motion carried. B. Discussion and Possible Action of Sartori Development Agreement – Tim Blakeslee, City Administrator/Utilities Manager – Motion was made by Penkwitz/Herrmann to approve the Development Agreement from Sartori. Upon the call of the roll, Matzdorf, Gilson, Penkwitz, Haucke, Herrmann, and Binder voted aye. Sande voted nay. Motion carried 6-1. 7. Entertain a Motion to go into Closed Session for the following: Pursuant to Wis. Stat. 19.85 (1)(g) conferring with legal counsel for the governmental body who is rendering oral or written advice concerning strategy to be adopted by the body with respect to litigation in which it is or is likely to become involved regarding – 12 S Milwaukee St. and 24 Thayer St. Motion was made by Haucke/Herrmann to go into Closed Session at 7:15 PM. Upon the call of the roll, all voted aye. Motion carried. 8. Entertain a motion to go into Open Session: Motion was made by Binder/Haucke to go into open session at 7:41 PM. Upon the call of the roll, all voted aye. Motion carried. 9. Discussion and Possible Action on Closed Session Items: None. 10. Adjourn to 7:00 PM on Monday, August 24, 2026: Motion was made by Herrmann/Sande to adjourn the meeting. Upon call of the roll, all voted aye. Motion carried. Meeting adjourned at 7:41 PM. Plymouth Utilities JULY 2026 SALES & REVENUE July 2026 Electric Sales -1.6% -4.7% 3.9% -1.8% (0) 5,000,000 10,000,000 15,000,000 20,000,000 10. Residential 12. Co mmercial 13. Industrial 14. Other Month Electric Sales (kwH) Jul-26 Jul-25 % Var 1.1% -3.1% 3.3% -8.0% (0) 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 10. Residential 12. Co mmercial 13. Industrial 14. Other YTD Electric Sales (kwH) July YTD 2026 July YTD 2025 % Var July 2026 Electric Revenue 2.7% 0.0% 4.8% 2.2% $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 10. Residenti al 12. Commercial 13. Industrial 14. Other Month Electric Revenue Jul-26 Jul-25 % Var 12.4% 8.7% 12.2% 4.8% $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 10. Residenti al 12. Commercial 13. Industrial 14. Other YTD Electric Revenue July YTD 2026 July YTD 2025 % Var July 2026 Water Revenue 1.9% 14.5% -4.7% 5.0% 48.0% 1.6% $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 20. Residential 21. Mu ltifamily22. Co mmercial23. Industrial 24. Other 25. Fire Protect Month Water Revenue Jul-26 Jul-25 % Var 0.5% 6.1% 0.9% 4.0% 0.0% 1.5% $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 20. Residential 21. Mu ltifamily22. Co mmercial23. Industrial 24. Other 25. Fire Protect YTD Water Revenue July YTD 2026 July YTD 2025 % Var July 2026 Sewer Revenue 1.6% 5.1% 8.0% 73.2% $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 30. Residential 32. Co mmercial 33. Industrial 34. Other Month Sewer Revenue Jul-26 Jul-25 % Var 0.4% 3.6% 2.7% -3.4% $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 30. Residential 32. Co mmercial 33. Industrial 34. Other YTD Sewer Revenue July YTD 2026 July YTD 2025 % Var Electric $15,598,375 83% Water $1,456,977 8% Sewer $1,700,340 9% 2026 Utility Revenue Page: 1Transaction Register - Writeoffs for Council- CJRPLYMOUTH UTILITIES Aug 10, 2026 7:59AMDates: 07/04/2026 - 08/08/2026 Report Criteria: Selected types: Write Off Name Customer Number Type Reference Number Description Check Number Amount Msg Service Write Off 07/08/2026 MARTIN, JONATHAN 3.88.48765.11 Write 1 Write-off- In house 2.00- M Multiple Total 07/08/2026: 2.00- 07/17/2026 GOSSE, WAYNE 2.88.25215.02 Write 1 IN-HOUSE WRITE-OFF - DECEASED 164.23- M Multiple HANSEN, JORDAN 14.88.26131.35 Write 2 IN-HOUSE WRITE-OFF - SDC 61.90- M Multiple NIETO, NICOLE 13.87.13096.21 Write 3 IN-HOUSE WRITE-OFF - SDC 801.42- M Multiple SCHMITT, SPENCER 17.88.22220.29 Write 4 IN-HOUSE WRITE-OFF - SDC 363.64- M Multiple THUECKS, SAMANTHA 15.87.30737.21 Write 5 IN-HOUSE WRITE-OFF - SDC 416.55- M Multiple VICKER, JOSEPH 17.88.00835.20 Write 6 IN-HOUSE WRITE-OFF BANKRUPTCY 503.15- M Multiple WOLLITZ, CINDY 12.88.18073.12 Write 7 IN-HOUSE WRITE-OFF - SDC 68.45- M Multiple Total 07/17/2026: 2,379.34- 07/31/2026 HAWTHORNE WOODS 16.88.31109.15 Write 1 WRITE-OFF, IN-HOUSE .08- M Multiple HAWTHORNE WOODS 16.88.34258.22 Write 2 WRITE-OFF, IN-HOUSE .11- M Multiple HAWTHORNE WOODS 16.88.34702.37 Write 3 WRITE-OFF, IN-HOUSE .15- M Multiple HAWTHORNE WOODS 16.88.35105.24 Write 4 WRITE-OFF, IN-HOUSE .24- M Multiple Total 07/31/2026: .58- 08/03/2026 KW PROPERTIES 17.88.26823.23 Write 1 1.32- M Multiple Total 08/03/2026: 1.32- Total Write Off: 2,383.24- Grand Totals: 2,383.24- Msg: M= Manually Allocated F= Final Bill 1 City of Plymouth Police and Fire Commission Meeting Tuesday, July 7, 2026 @ 8:30 A.M. Room 210 Plymouth City Hall, 128 Smith Street, Plymouth, WI 53073 Members Present: President Mark Melcher, Vice President James Flanagan, Secretary Tim Lemkuil, Gary Rooker, Police Chief Ken Ruggles, Deputy Police Chief Matt Starker, Fire Chief James Klug, Assistan Fire Chief Jason McCoy. Call to Order: President Mark Melcher, called the meeting to order at 8:30 A.M. in Room 210 @ City Hall, located at 128 Smith Street, Plymouth, Wisconsin. Person’s desire to be heard before the Commission: None. Consideration and approval of minutes: A motion made by Gary Rooker and second by James Flanagan to approve the Police and Fire Commission meeting minutes of June 2, 2026. Motion carried. Reports from Chief of Police. Chief Ruggles reported that both Safety Night at McDonalds and the Cheese Capital Fest had great attendance. The only issues observed were that Safety Night may need a new location due to the attendance and that Cheese Fest had issues with the Friday Night car show and people wanting to park in the East Municipal Lot. Members were informed of upcoming events that the Police Department would be involved in: Culvers Night: August 11th August Family Night: August 22 nd Sheboygan County Fair: Sept. 3rd thru 7th PD Canine Golf outing September 21st. Recent significant calls included; a battery that started outside one of the downtown taverns, a deceased person in a hoarder type environment and a dog attacking another dog. Mueller and Associates will be conducting the public information portion of the hiring process for the additional officers. The cities Strategic Plan is in the process of being updated. The budget process for the 2027 has begun. Deputy Chief Starker reported on the training that the State of Wisconsin of requires 24hrs per training year, which runs July 1, thru June 30, which is a total of 384 rquired hours for the department and that the department completed 1650 hrs. Several officers completed over 100 hrs and some over 200. Reports from Fire Chief. Chief Klug reported that the Fire Department had 4 major incidents that they were dispatched to in the last month; 2 accidents and 2 MABAS calls to assist other departments. On June 17 th the library had one of there community programs meet at the firedepartment for a tour and presentation. One of the Captains had resigned from his position as his family is moving from the area but is remaining on the department as an EMS member. Orange Cross Ambulance utilized the fire department quarters for 3 days to house their crews as there were issues with the station in Plymouth. Entertain a motion to go into closed session – Police Department Disciplinary Action A motion was made to go into closed session by Tim Lemkuil and seconded by Jim Flanagan. Entertain a motion to go into open session: A motion was made to go into open session by Tim Lemkuil and seconded by Jim Flanagan. No action was taken on closed session information. Adjourn: President, Mark Melcher asked for a motion to adjourn. Motion for adjournment at 9:10 A.M.by Tim Lemkuil and second by Gary Rooker. Motion carried. Submitted on the 12 th of July, 2026 Tim Lemkuil--- Secretary PUBLIC WORKS & UTILITIES COMMITTEE OF THE PLYMOUTH COMMON COUNCIL CITY OF PLYMOUTH, WISCONSIN TUESDAY, AUGUST 11, 2026 @ 6:00 PM Plymouth City Hall Council Chambers Plymouth, WI 53073 UNOFFICIAL MINUTES 1. Call to Order & Roll Call: Acting Chairperson Mayor Pohlman called the meeting to order at 6:00 PM. Upon the call of the roll, the following members were present: Mayor Don Pohlman, John Binder, Dana Haucke, and Kevin Sande (Dave Herrmann arrived at 6:09 PM). Others present were City Administrator/Utilities Manager Tim Blakeslee and Assistant City Administrator/Community Development Director Jack Johnston, Fire Chief Jim Klug, Police Chief Ken Ruggles, Assistant Police Chief Matt Starker. 2. Approval of February 10, 2026 Meeting Minutes: Motion was made by Binder/Haucke to approve the minutes from February 10, 2026. Upon the call of the roll, all voted aye. Motion carried. 3. Election of Committee Chair: Binder nominated Sande as chairperson. Sande confirmed he would accept the position if elected. No other nominations were made. Motion was made for a unanimous ballot by Hauke/Binder. Motion carried. 4. Outage Management Presentation: Nick Whipple, the Assistant Electric Operations Manager, presented the Outage Management presentation for the Committee of the Whole. 5. Adjournment: Motion was made by Pohlman/Binder to adjourn the meeting. A unanimous aye vote was cast. Motion carried. CITY OF PLYMOUTH, WISCONSIN TUESDAY, AUGUST 11, 2026 COMMITTEE OF THE WHOLE MEETING, IMMEDIATELY AFTER PUBLIC WORKS AND UTILITIES COUNCIL CHAMBERS, ROOM 302 CITY HALL, 128 SMITH STREET UNOFFICIAL MINUTES 1. Call to Order and Roll Call: Mayor Pohlman called the meeting to order at 6:12. On the call of the roll, the following were present: Angie Matzdorf, Diane Gilson, Mike Penkwitz, Dave Hermann, Dana Haucke, and Kevin Sande. Also present: City Administrator/Utilities Manager Tim Blakeslee and Assistant City Administrator/Community Development Director Jack Johnston, Fire Chief Jim Klug, Police Chief Ken Ruggles, Assistant Police Chief Matt Starker. 2. Approve the Minutes from July 14, 2026: Motion was made by Sande/Gilson to approve the minutes from July 2026. Upon the call of the roll, all voted aye. 3. Police Department Referendum Preview: City Administrator/Utilities Manager Tim Blakeslee introduced the preview, while Kayla Thorpe from Ehlers presented. Staff noted that the resolution for putting a referendum on the November ballot would be held at the next Council meeting on August 24, 2026. 4. Cemetery Ordinance: Assistant City Administrator/Community Development Director Jack Johnston presented information regarding columbaria and cemetery fees to the Committee of the Whole. The Committee requested staff to work on an ordinance update to present to the Council at a future meeting. 5. Adjourn: Motion was made by Hermann/Penkwitz to adjourn the meeting. A unanimous aye vote was cast. Motion carried. Meeting adjourned at 6:37 PM. City of Plymouth 128 Smith St. - P.O. Box 107 Plymouth, WI 53073-0107 Telephone: (920) 893-3745 Facsimile: (920) 893-0183 Web Site: plymouthgov.com DATE: August 20, 2026 TO: Mayor and Common Council FROM: Tim Blakeslee, City Administrator/Utilities Manager RE: Adoption of 2027-2029 City of Plymouth Strategic Plan Background: The Common Council adopted the City of Plymouth’s first strategic plan for 2023- 2026. The plan has served as a guide for City priorities, projects, and decision-making, with many of the identified action items either completed or currently underway. With t he existing plan scheduled to conclude at the end of 2026, the 2026 budget included funding to complete an update and establish the City’s strategic direction for the next several years. In January, the Common Council approved a Professional Services Agreement with EverStrive Solutions to facilitate the strategic planning update. Over the past five months, EverStrive worked with elected officials, staff, community stakeholders, and residents through a process that included: • Project kickoff and review of existing City plans and operations • Individual interviews with the Mayor, Common Council members, and City Administrator • Staff interviews and focus groups • Two community stakeholder focus groups • A community survey that received 333 responses • A strategic planning workshop with the Common Council and senior staff • A staff implementation workshop to develop specific action steps The feedback gathered through the process identified several consistent themes, including maintaining Plymouth’s quality of life and small -town character, managing growth and infrastructure needs, maintaining long-term financial sustainability, improving communication and transparency, modernizing City operations, and recruiting and retaining a strong municipal workforce. 2027-2029 Strategic Plan: Lauren Palmer with EverStrive will present the plan in more detail at the meeting. The updated plan continues the four strategic goal areas originally established by the Common Council in 2023: 1. Efficient Operations The City will maintain and improve its infrastructure, facilities, systems, and processes while using technology and innovation to provide quality services in a fiscally responsible manner. Major initiatives include long-term capital planning, water and wastewater system planning, asset management, implementation of the Outage Management System, use of artificial intelligence and automation tools, and standardization of software across City departments. 2. Financial Sustainability The City will continue to focus on responsible stewardship of public resources and maintaining a structurally sound budget. Action items include developing tools to evaluate housing and utility affordability, continuing consistent spending practices, improving long-term financial forecasting, conducting quarterly financial reviews, and continuing to evaluate the City’s use of TIF and housing incentive strategies. 3. Quality of Life The City will continue efforts to maintain Plymouth as a safe, welcoming, and vibrant community. The plan includes initiatives related to public safety and emergency preparedness, communication and resident engagement, recreation, pedestrian and bicycle connectivity, downtown parking, youth programming, economic vitality, and continued support of the Plymouth Public Library renovation project. 4. Workforce Recruitment & Retention The City will focus on building and maintaining a strong municipal workforce through partnerships with local schools, internships and apprenticeships, succession planning, employee development, competitive compensation and benefits, employee recognition, and improved internal communication. Other Plan Notes: The plan also updates the City’s vision, mission, and core values. The five core values identified in the plan are Integrity, Safety, Belonging, Stewardship, and Joy. Each strategic goal includes a success statement, objectives, specific action items, and Key Performance Indicators (KPIs) that will be used to measure progress. Staff will finalize 2026 baseline information and establish 2029 targets for the identified performance measures. Progress on the strategic plan will be reported to the Common Council on a regular basis and incorporated into departmental work plans, the annual budget process, and the City Administrator/Utilities Manager’s Work Plan. The intent of the strategic plan is to serve as a practical roadmap for the organization over the next three years while maintaining flexibility to respond to changing community needs and emerging priorities. Recommendation: Staff recommends adoption of the 2027-2029 City of Plymouth Strategic Plan. Attachment: 2027-2029 Strategic Plan CITY OF PLYMOUTH, WISCONSIN 2027-2029 2 OVERVIEW A strategic plan is a roadmap. It defines what an organization is working toward, the priorities that will guide its decisions, and the specific steps it will take to get there. For the City of Plymouth, this plan sets the direction for municipal government over the next three years, translating community values and Council priorities into clear, actionable goals. This plan is built on Plymouth's vision, mission, and core values, the foundation for all of the City's work and decision-making. Plymouth's vision is to be a beautiful, safe community where people feel welcome, one that celebrates growth while remaining a place where neighbors know and care for one another. The City's mission is to deliver reliable municipal services that protect what residents value most: safe neighborhoods, community connections, and economic opportunity for current and future generations. Five core values carry out that mission: integrity, safety, belonging, stewardship, and joy. The plan is organized around four strategic goals that were established in 2023 and remain relevant for the City’s progress: 1. Efficient Operations 2. Financial Sustainability 3. Quality of Life 4. Workforce Recruitment & Retention The plan includes four elements for each strategic goal:  Success Statement – the long-term impact Plymouth aims to achieve.  Objectives – the specific results needed to reach that success.  Actions – the concrete steps the City will take over the next three years.  Key Performance Indicators – the measures used to track progress and keep the plan accountable. These four goals and their supporting objectives, actions, and metrics make up Plymouth's strategic direction. Appendix A summarizes how this plan was developed, including the interviews, focus groups, and community survey that informed it. The strategic plan is the City’s roadmap for the next three years. 3 STRATEGIC FOUNDATION During the strategic planning process, the Common Council reviewed and affirmed its foundational vision, mission, and core values. While the existing framework remains relevant, the process provided an opportunity to clarify language and ensure these statements continue to reflect the organization's commitment to the community. The vision, mission, and values serve as the foundation for all of the City of Plymouth’s work, decisions, and daily practice across the organization. VISION Plymouth is a beautiful, safe community where people feel welcome. Plymouth celebrates growth yet remains the kind of place where neighbors know each other and feel cared for. MISSION Our mission is to deliver reliable municipal services that protect what Plymouth residents value most: safe neighborhoods, community connections, and economic opportunities for residents and future generations to thrive. CORE VALUES Integrity: We do what we say. We treat others with respect, hold ourselves accountable, and bring honesty and transparency to everything we do. Safety: We protect the wellbeing of our community through sound policy, well-maintained infrastructure, and safe spaces for people of all ages and abilities. Belonging: We work on behalf of everyone. We welcome new faces and show up for our neighbors like family. Stewardship: We pursue smarter ways of serving our community, embracing new ideas and growing talent from within. Joy: We take pride in our work and enjoy doing it together. Plymouth is a beautiful, safe community where people feel welcome…neighbors know each other and feel cared for. 4 STRATEGIC GOALS Strategic goals are the foundational focus areas that guide an organization's direction, decision- making, and resource allocation. The goals were established by the Common Council in the 2023- 2026 Strategic Plan and were reviewed and updated in this planning process. Each goal is organized around four elements: Success Statements are forward-looking declarations of the long-term impact the City of Plymouth aspires to achieve. Objectives define the specific results needed for that success statement to be realized. Actions identify the enhanced and emerging initiatives that will be the strategic focus over the three-year life of this plan. Key Performance Indicators provide the performance measures used to track progress and keep the plan accountable. Preliminary performance measures are listed on page 8 and will be refined by staff for future reporting. 1. Efficient Operations Success Statement The City is committed to maintaining the systems, facilities, and infrastructure that make it a top choice for families and businesses. Success looks like city operations that are fiscally responsible, and well-maintained infrastructure that leverages innovation to deliver quality services. Objective 1.1. The City will maintain and improve core infrastructure and public facilities. Actions 1.1.1. Make capital planning a routine practice, using 5-, 10-, and 15-year outlooks, and complete scheduled facility upgrades every year. 1.1.2. Review options for updating the system that monitors and controls water and sewer operations (SCADA). 1.1.3. Expand the use of digital tools for tracking and managing City equipment and assets to all departments. 1.1.4. Study recent traffic crash data to identify roads and intersections that need safety improvements. 1.1.5. Create opportunities for Common Council members to tour facilities to learn more about operational needs. Objective 1.2. The City will improve how City systems and processes operate. Actions 1.2.1. Study the sanitary sewer system to find where rain and groundwater are leaking in and adding to treatment costs (known as an I&I study). 1.2.2. Study the water system’s infrastructure and capacity to meet future projected growth demands. 5 1.2.3. Evaluate converting large sewer customers to automated meters that send readings remotely, cutting down on manual meter checks (known as AMI). 1.2.4. Continue the wastewater treatment plant study and carry out the upgrades it recommends. 1.2.5. Finalize implementation of the Outage Management System (OMS) to respond to utility outages faster. 1.2.6. Explore artificial intelligence (AI) and automation tools that could make City operations more efficient. 1.2.7. Identify and standardize software used across City departments. 2. Financial Sustainability Success Statement The City is committed to responsible stewardship of public resources by making spending decisions with long-term fiscal health in mind. Success looks like a structurally sound budget with a strategic use of debt financing. Objective 2.1. The City will manage its finances with discipline and a long-term view. Actions 2.1.1. Establish standard planning tools to measure housing and utility affordability and compare Plymouth to peer communities. 2.1.2. Continue implementation of consistent stable spending practices across departments. 2.1.3. Work with financial consultants to improve long-term budget forecasting. 2.1.4. Conduct quarterly financial reviews of actual and projected spending to annual budget. 2.1.5. Continue evaluating the City's use of Tax Increment Financing (TIF) and housing incentive strategies (tools that use future tax revenue growth in a designated area to help fund current improvements). 3. Quality of Life Success Statement Plymouth is a place where residents feel happy, healthy, and safe, and where that reputation draws others in. Success looks like thriving local businesses, strong partnerships with areas schools, and a community that is rich with volunteerism, civic pride, and a strong sense of belonging. Objective 3.1. The City will prioritize the safety and wellbeing of residents. Actions 3.1.1. Complete a downtown parking study to seek solutions to balance parking needs with pedestrian safety. 3.1.2. Increase public education and awareness of fraud and scams. 3.1.3. Complete a multi-departmental review and update the city’s emergency response plans for disaster preparedness. 3.1.4. Work with community partners to expand Crisis Intervention Training (CIT) for staff. 6 3.1.5. Explore establishing an ad hoc resident committee to advise the city on bicycle, pedestrian, and other environmental sustainability improvements. Objective 3.2. The City will foster open communications that keep residents informed and their voices heard. Actions 3.2.1. Launch a digital map that gives residents visual awareness of projects moving through the development review and construction process. 3.2.2. Make information easy to find and understand, in a variety of formats, before the Council acts. 3.2.3. Standardize response protocols and timelines for calls, complaints, and inquiries submitted to the city’s tracking system. 3.2.4. Create more opportunities for residents to engage directly with City officials, such as neighborhood ice cream socials or Coffee with the Council sessions. 3.2.5. Explore the feasibility and cost of a print newsletter, potentially as a utility bill insert or a separate mailing. Objective 3.3. The City will invest in recreational and leisure infrastructure and attract entertainment and retail options that give residents more reasons to shop and play in Plymouth. Actions 3.3.1. Reevaluate the long-term purpose and viability of the youth center, and consider expanding youth programming to other locations, such as libraries. 3.3.2. Conduct a needs assessment focused on youth perspectives, and develop programming that responds to what young people say they want. 3.3.3. Evaluate cooperative lease programs for renting equipment and spaces in public parks. 3.3.4. Identify underused spaces in the City that could support new retail and recreation options and work with the Chamber of Commerce to recruit compatible businesses. 3.3.5. Evaluate options for a better bicycle- and pedestrian-friendly connection between downtown and east Plymouth. 3.3.6. Continue to support the Plymouth Public Library’s renovation project including capital campaign matching funds and coordination with Library leadership. 4. Workforce Recruitment & Retention Success Statement Plymouth is committed to building and sustaining a workforce that reflects the quality of the community it serves. Success looks like competitive wages that keep talent in Plymouth, strong partnerships with area schools that build a pipeline of future municipal employees, and a stable team that grows from within. Plymouth is known as a city of choice among municipal workers. Objective 4.1. The City will invest in homegrown talent by building relationships with local schools and creating structured pathways that connect young residents to municipal careers before they leave Plymouth. 7 Actions 4.1.1. Continue building youth engagement and awareness of municipal career paths through school and community partnerships. 4.1.2. Establish and expand City internship opportunities with the City for students. 4.1.3. Develop apprenticeship programs in partnership with City utilities. 4.1.4. Strengthen partnerships with area school districts to align career and workforce programs with the staffing needs of the City and its utilities. 4.1.5. Modernize recruitment by using video, social media, and other emerging outreach tools to reach potential employees. Objective 4.2. The City will strengthen organizational continuity by proactively identifying and developing internal talent and offering compensation and growth opportunities that retain skilled employees. Actions 4.2.1. Conduct a succession planning audit to identify critical roles at risk of vacancy due to retirement or turnover. 4.2.2. Document institutional knowledge held by long-tenured staff including standard operating procedures, guides, how-to manuals, and standard file storage protocols. 4.2.3. Develop individual growth and advancement pathways for high-potential employees across departments. 4.2.4. Benchmark compensation and benefits against comparable municipalities and private employers and recommend adjustments to remain competitive in the regional labor market. Objective 4.3. The City will foster a workplace culture of pride, accountability, and continuous growth, where employees feel valued, empowered to contribute, and equipped to adapt to changing needs. Actions 4.3.1. Conduct regular employee pulse surveys and stay interviews. 4.3.2. Implement structured employee recognition programs. 4.3.3. Strengthen performance feedback and development, such as 360 evaluations. 4.3.4. Research peer organization best practices and consider updates to personnel policies to enhance workforce flexibility. 4.3.5. Implement strategies to improve internal communications such as employee lunch-and- learns or a periodic staff newsletter. Defining success for each strategic goal. 8 KEY PERFORMANCE INDICATORS EFFICIENT OPERATIONS BASELINE 2029 TARGET Percentage of utility customers (by number or volume) converted to automated meters Average time between reported electricity outage and repair Annual traffic fatalities Percentage of employees who report that AI tools saved them time or improved job satisfaction (employee surveys) Percentage of employees or departments using asset management software FINANCIAL SUSTAINABILITY BASELINE 2029 TARGET Affordability ratio: Local tax burden (City property taxes + utility costs for median household) compared to median household income Credit rating Fund Balance: Unrestricted General Fund balance as a percent of annual operating expenditures Debt Ratio: Total outstanding debt compared to the City’s operating revenue QUALITY OF LIFE BASELINE 2029 TARGET Percentage of staff trained in CIT Citizen satisfaction survey rating for feeling informed about City decisions Citizen satisfaction survey rating for quality of life in Plymouth Attendance at public community events featuring local officials Revenue generated or activity generated from cooperative lease programs WORKFORCE RECRUITMENT & RETENTION BASELINE 2029 TARGET Number of youth employees or volunteers Number of formal internships or apprenticeships Average number of applicants per position posted Average number of days from vacancy to hire Percentage of employees with approved individual development plans Ap pendix A: Strategic Planning Process The City of Plymouth engaged EverStrive Solutions to lead a five-month process to update the strategic plan. The process was designed to build shared understanding across the organization and community, engage a wide range of voices, and produce a plan that is both visionary and actionable. PHASE 1: PROJECT KICKOFF EverStrive Solutions met with the city administrator to confirm goals, deliverables, and expectations. This initial meeting affirmed the project approach, established key milestones, and gathered direction about desired outcomes. PHASE 2: INSIGHT GATHERING To build a shared understanding of how Plymouth operates today, EverStrive Solutions conducted a two-part environmental assessment encompassing document review and internal interviews. 1. Document Review. EverStrive completed a thorough review of existing priorities and operations to fully understand the City's current environment. This included the 2023–2026 Strategic Plan, budgets, departmental reports and the organizational chart. 2. Internal Interviews. Following the document review, EverStrive conducted a series of one-on-one interviews and focus groups to gain a deeper understanding of organizational strengths, challenges, and previous strategies. This included individual virtual interviews with the city administrator, mayor, and each member of the Common Council, as well as three focus groups with City staff: one with leaders and managers across the organization, and two with frontline and program-level staff. PHASE 3: COMMUNITY ENGAGEMENT Community engagement is a critical component of any strategic planning process. It ensures the final plan reflects the values, needs, and priorities of the people who call Plymouth home. EverStrive Solutions led two complementary engagement efforts to gather broad input while making meaningful use of City staff time and resources. 1. Digital Community Survey. EverStrive designed and hosted an accessible online survey to gather input from residents and stakeholders across the community. The City's communications team promoted the survey through existing channels including the City website, social media, and newsletters. While not statistically representative of the community at large, the survey provided valuable insights that informed the strategic planning discussion. 2. Stakeholder Focus Groups. EverStrive planned and facilitated two one-hour virtual focus groups with up to eight participants each. Participants included business and industry representatives, nonprofit leaders, neighborhood representatives, faith-based organizations, and residents representing diverse perspectives from across the community. The City identified participants, and EverStrive managed invitations and facilitation. Appendix A-1 includes a summary of the insight gathering process including internal interviews, focus groups, and survey results. Common Council Planning Workshop 9 PH ASE 4: PLAN DEVELOPMENT This phase brought together the insights gathered from leadership, staff, and the community to shape the foundation of Plymouth's Strategic Plan. EverStrive Solutions planned and facilitated a strategic planning workshop with the Common Council and senior City staff. The workshop focused on goal development, building on the framework from the existing Strategic Plan. The result was a shared vision for the City and the identification of key objectives to support each goal over the next three to five years. Following the workshop, EverStrive developed an initial draft of the strategic plan for internal review by project leadership. PHASE 5: IMPLEMENTATION PLANNING AND ADOPTION Once Plymouth's strategic priorities were established, the focus shifted to turning vision into action. EverStrive Solutions facilitated an implementation workshop for City staff to develop action steps and identify measurable outcomes for each goal area. Appendix A-1: Insight Gathering and Stakeholder Survey EverStrive Solutions gathered input from elected officials, staff, community stakeholders, and residents to understand Plymouth's strengths, challenges, priorities, and opportunities for the future. This appendix summarizes the feedback, key themes, and the engagement process that shaped the completed strategic plan update. Insight Gathering Phase To build a shared understanding of how Plymouth operates today, EverStrive Solutions conducted internal interviews with the City Administrator, Mayor, and each member of Common Council, in addition to three focus groups with staff. Interviews with Members of the Governing Body EverStrive conducted one-on-one interviews with members of the governing body to gather input ahead of the priority-setting workshop with Common Council. The conversations identified shared priorities and concerns about future goals and community needs. Common themes included:  Community pride and quality of life – strong pride in the community and a shared interest in maintaining its character, safety, and quality of life.  Growth and development – housing, economic development, infrastructure capacity, and public safety were top priorities, with attention to long-term fiscal sustainability.  Governance and decision-making – value placed on transparency, clear roles, and productive discussion that balances a variety of perspectives.  Long-term planning – importance of thoughtful planning around infrastructure, affordability, and sustainability.  Areas of differing perspective – views varied on the pace and type of growth, use of development incentives, and how to prioritize sustainability, affordability, and infrastructure investment. Staff Interviews and Focus Groups EverStrive gathered staff perspective through interviews with City leadership and key operational staff, along with focus groups with department directors and program staff across the organization. Common themes included:  Organizational strengths and collaboration – staff are motivated, service-oriented, and proactive, with strong cross-department coordination and constructive relationships with residents.  Growth and infrastructure pressures – continued growth is raising questions about development pace, housing activity, infrastructure capacity, and future utility investment, with staffing and resources not always keeping pace. 10  Pu blic safety and service capacity – emergency response capacity and related funding decisions are priorities for council discussion.  Workforce retention and culture – recruiting and retaining staff, particularly in technical roles, remains difficult amid private-sector competition, compounded by turnover, retirements, and generational shifts, with experiences varying across departments.  Communication and strategic alignment – desire for a plan that elected officials and staff see themselves reflected in, along with clearer, more consistent communication about decisions and strategy.  Technology, systems, and modernization – aging facilities, vehicles, and paper-based processes create challenges; opportunities exist to modernize technology, training, and succession planning to prepare for continued growth.  Limited capacity for strategic implementation – day-to-day operational demands make it difficult to consistently advance long-term plan priorities. Staff take pride in serving Plymouth well day-to-day, but keeping up with growth, service demands, and operations strains capacity to focus on strategic initiatives. Staff want the plan to be a practical, visible guide for decisions, not a document that competes with the daily workload. Community Engagement Phase Co mmunity engagement efforts were designed to ensure the final strategic plan reflects the values and priorities of the people who call Plymouth home. EverStrive conducted two, one-hour stakeholder focus groups and designed and hosted a digital community survey to gather broad input from residents and stakeholders. Community Focus Groups EverStrive conducted focus groups in May with a cross-section of engaged community members, civic and business representatives, and residents. Across the two sessions, several key themes emerged:  Strong community identity and pride – described as close-knit, engaged, supportive, and family- oriented, with a high value placed on community character.  Balancing growth with small-town character – growth is expected but should be intentional, well- planned, and aligned with the community's identity and quality of life.  Housing diversity and affordability – both sessions cited a need for more housing options for families, workers, seniors, and residents at different income levels.  Downtown vitality and economic development – opportunities to strengthen downtown activity, support local businesses, and attract visitors.  Infrastructure, mobility, and public safety – recurring priorities as the community continues to grow.  Recreation and quality of life – interest in expanded recreation, entertainment, and family-oriented amenities.  Fiscally responsible planning – support for data-informed, long-term planning that balances growth, service demands, and affordability.  Collaboration and visible progress – strong cross-sector collaboration, with interest in both long-term investments and near-term visible wins. Community Survey EverStrive worked with the City to design and distribute an online community survey, open May 1–15. The survey took about 10 minutes to complete, included 10 questions, and drew more than 330 responses through the City's newsletter and social media channels. 11  Res pondent profile – most respondents (81%) identified as residents, followed by property owners and people who work in Plymouth.  Top current strengths – small-town character, safety, friendly community, local events, parks and trails, downtown, and convenience.  Future vision – most respondents want Plymouth to retain its small-town feel while allowing for careful, controlled growth.  Strategic plan priorities – Quality of life ranked highest among the plan's current goals, followed by financial sustainability, efficient operations, and workforce development. Residents prioritized what they experience directly over the internal operations that support it.  Five-year priorities – family recreation options (133 responses), street maintenance and safety (125), and public parks and walking trails (105) led the list.  Growth management – preserving character (253 responses), keeping infrastructure paced with growth (132), and protecting open space (114) topped priorities.  Housing development – views were mixed on whether the City is doing enough to encourage housing development and a variety of housing options: 41% yes, 34% not sure, 24% no.  Economic development – downtown/commercial revitalization was the top choice (201 responses), followed by tourism and recreation (183) and attracting new industries. Open-ended responses reinforced these themes:  Preserve small-town character – seen as central to Plymouth's identity and worth protecting as the community grows.  Manage growth carefully – openness to growth alongside concern about overdevelopment and impacts on character, roads, and infrastructure.  Address housing affordability and choice – concern that new housing may not be affordable, with mixed views on preferred type and scale.  Invest in infrastructure and public facilities – road maintenance, sidewalks, parks, and trails frequently cited as needing continued attention.  Expand recreation and youth opportunities – interest in more family-oriented activities, youth programming, and gathering spaces.  Maintain safety and quality of life – safety, low crime, and emergency services tied directly to Plymouth's quality of life.  Support fiscal responsibility and transparency – concerns about taxes and spending, and a desire for clear communication about City decisions.  Strengthen downtown and economic vitality – support for revitalization, filling vacant storefronts, and attracting appropriate business and tourism activity.  Protect natural areas and sustainability – interest in preserving green space, trees, and environmentally responsible growth practices. The complete survey summary report with questions is attached for reference. 12 13 14 15 16 17 18 19 2027-2029 STRATEGIC PLAN UPDATE COMMON COUNCIL PRESENTATION August 25, 2026 Strategic Plan PresentationPrepared by WHAT WE' LL COVER 1 The Process How this plan came together over five months 2 What We Heard Themes from leadership, staff, and the community 3 The Strategic Plan Four goals that will guide Plymouth through 2029 4 What’s Next? How to implement and track progress “The strategic plan is the City’s roadmap for the next three years.” CITY OF PLYMOUTH · STRATEGIC PLAN 2027–2029 2 STRATEGI C PLANNI NG PROCESS 1 KICKOFF 2 INSIGHT GATHERING 3 COMMUNITY ENGAGEMENT 4 PLAN DEVELOPMENT 5 IMPLEMENTATION PLANNING 5 Months, start to finish 5 Common Council Planning Workshop CITY OF PLYMOUTH · STRATEGIC PLAN 2027–2029 4 Focus Groups 5 Survey Responses 333 2 On Site Workshops WHAT WE HEARD LEADERSHI P & STAFF PERSPECTI VES FROM THE COMMON COUNCIL ▪ Community pride and quality of life ▪ Growth — housing, economic development, infrastructure capacity, public safety ▪ Strong value on transparency and clear governance ▪ Importance of long-term, fiscally sound planning FROM CITY STAFF ▪ Motivated, service-oriented staff with strong cross-department collaboration ▪ Growth is straining infrastructure and staff capacity ▪ Workforce retention is difficult amid private- sector competition ▪ Processes, facilities and equipment need modernization Staff take pride in serving Plymouth well day-to-day, but keeping up with growth, service demands, and operations strains capacity to focus on strategic initiatives. CITY OF PLYMOUTH · STRATEGIC PLAN 2027–2029 5 WHAT WE HEARD VOI CES FROM THE COMMUNI TY 333 Survey responses 2 Community Focus Groups 81% Respondents who are residents SURVEY RESPONDENT PRIORITY RANKING OF GOALS 1. Enhanced Quality of Life 2. Financial Sustainability 3. Efficient City Operations 4. City Workforce Development 253 respondents named “preserving Plymouth’s character and small-town feel” as their top growth-management priority — the single largest response. TOP THREE FUTURE PRIORITIES 133 125 105 103 93 Family recreation options Street maintenance & safety Public parks & walking trails Housing options / affordability Law enforcement & public safety CITY OF PLYMOUTH · STRATEGIC PLAN 2027–2029 6 FOUNDATION VISION, MISSION & CORE VALUES VISION Plymouth is a beautiful, safe community where people feel welcome. Plymouth celebrates growth yet remains the kind of place where neighbors know each other and feel cared for. MISSION Deliver reliable municipal services that protect what Plymouth residents value most: safe neighborhoods, community connections, and economic opportunities for current and future generations. FIVE CORE VALUES Integrity Safety Belonging Stewardship Joy CITY OF PLYMOUTH · STRATEGIC PLAN 2027–2029 7 PLAN FRAMEWORK: A ROADMAP FOR THE NEXT THREE YEARS Strategic Goals Established in 2023 1. Efficient Operations 2. Financial Sustainability 3. Quality of Life 4. Workforce Retention & Recruitment Four Elements for Each Goal  Success Statement – the long- term impact Plymouth aims to achieve.  Objectives – the specific results needed to reach that success.  Actions – the concrete steps the City will take over the next three years.  Key Performance Indicators – the measures used to track progress and keep the plan accountable. 1 GOAL 1 EFFI CI ENT OPERATI ONS Success looks like city operations that are fiscally responsible, and well-maintained infrastructure that leverages innovation to deliver quality services. OBJECTIVE 1.1 Infrastructure & Public Facilities ▪ Make capital planning routine — 5-, 10-, and 15- year outlooks, annual facility upgrades ▪ Review options for updating the water/sewer SCADA control system ▪ Expand digital tools for tracking City equipment and assets ▪ Study traffic crash data to identify safety improvements OBJECTIVE 1.2 City Systems & Processes ▪ Study water and wastewater systems for growth demands ▪ Convert large sewer customers to automated meters (AMI) ▪ Finalize the Outage Management System; explore AI & automation tools ▪ Standardize software and leverage AI CITY OF PLYMOUTH · STRATEGIC PLAN 2027–2029 9 2 GOAL 2 FINANCIAL SUSTAINABILI T Y Success looks like a structurally sound budget, with spending decisions made in the interest of the City’s long-term fiscal health and a strategic use of debt financing. OBJECTIVE 2.1 Manage Finances with Discipline & a Long-Term View ▪ Establish standard tools to measure housing and utility affordability, benchmarked against peer communities ▪ Continue implementation of consistent stable spending practices across departments ▪ Work with financial consultants to improve long-term budget forecasting ▪ Conduct quarterly financial reviews of actual vs. projected spending ▪ Continue evaluating the City's use of TIF and housing incentive strategies CITY OF PLYMOUTH · STRATEGIC PLAN 2027–2029 10 3 GOAL 3 QUALI T Y OF LIFE Success looks like thriving local businesses, strong school partnerships, and a community rich with volunteerism, civic pride, and belonging. OBJECTIVE 3.1 Safety & Wellbeing ▪ Downtown parking study ▪ Public education on fraud and scam awareness ▪ Disaster preparedness ▪ Expand Crisis Intervention Training (CIT) for staff ▪ Sustainability committee OBJECTIVE 3.2 Open Communication ▪ Digital map showing development & construction projects ▪ Standardize responses for resident inquiries ▪ Create more direct engagement ▪ Explore feasibility of a print newsletter OBJECTIVE 3.3 Recreation & Vitality ▪ Reevaluate the youth center and programming needs ▪ Identify underused space for retail & recreation ▪ Improve the bike/pedestrian connections ▪ Continue supporting the Library's renovation project CITY OF PLYMOUTH · STRATEGIC PLAN 2027–2029 11 4 GOAL 4 WORKFORCE RECRUI TMENT & RETENTI ON Plymouth is committed to building a workforce that reflects the community it serves — competitive wages, strong school partnerships, and a stable team that grows from within. OBJECTIVE 4.1 Homegrown Talent ▪ Build youth awareness of municipal career paths ▪ Expand City internships & apprenticeships ▪ Strengthen partnerships with area schools ▪ Modernize recruitment with video and social media OBJECTIVE 4.2 Organizational Continuity ▪ Succession planning audit ▪ Document institutional knowledge ▪ Develop growth pathways for employees ▪ Benchmark compensation & benefits against peer municipalities OBJECTIVE 4.3 Workplace Culture ▪ Employee pulse surveys and stay interviews ▪ Employee recognition programs ▪ Strengthen performance feedback and best practices ▪ Improve internal communication CITY OF PLYMOUTH · STRATEGIC PLAN 2027–2029 12 KEY PERFORMANCE INDICATORS WHAT’ S NEXT? TRACKING PROGRESS EFFICIENT OPERATIONS ▪ % of utility customers converted to automated meters ▪ Average time between reported outage and repair ▪ Annual traffic fatalities ▪ % of employees who report AI tools saved them time FINANCIAL SUSTAINABILITY ▪ Affordability ratio ▪ Credit rating ▪ Unrestricted fund balance as % of expenditures ▪ Debt ratio QUALITY OF LIFE ▪ % of staff trained in Crisis Intervention (CIT) ▪ Citizen satisfaction: feeling informed ▪ Citizen satisfaction: quality of life ▪ Attendance at public community events WORKFORCE ▪ Number of youth employees or volunteers ▪ Number of formal internships / apprenticeships ▪ Average days from vacancy to hire ▪ % of employees with approved development plans These are preliminary measures. Staff will finalize 2026 baselines and 2029 targets for each metric and report progress to the Council on a regular cadence. CITY OF PLYMOUTH · STRATEGIC PLAN 2027–2029 13 THANK YOU Questions & Discussion City of Plymouth Strategic Plan 2027–2029 · Prepared by EverStrive Solutions City of Plymouth 128 Smith St. - P.O. Box 107 Plymouth, WI 53073-0107 Telephone: (920) 893-3745 Facsimile: (920) 893-0183 Web Site: plymouthgov.com DATE: August 15, 2026 TO: Common Council & Mayor FROM: Jack Johnston, Assistant City Administrator/Community Development Director RE: Discussion and Possible Action on Agreement in Lieu of Raze Order for the Brickbauer Building at 901 Reed Street Background: At the regular Common Council meeting on July 14, 2026, the Council rescinded a raze order for the former Brickbauer Hospital building located at 901 Reed Street after the owners provided a Stabilization, Security and Disposition Plan to the City in an effort to showcase their intention to address the immediate building security needs, interior condition of the property, as well as enact a plan to market the property to find a suitable end user. Current Request: In lieu of the raze order, the owner’s counsel have prepared an agreement that memorializes their plan, and outlines specific deadlines for 60, 90, and ongoing plans to address concerns with the building. Staff worked with City Attorney Fieber and Del Ponte to review the proposed agreement. In short, the agreement still gives the City permission to inspect the property throughout the duration of these operations, as well as conduct an inspection at the end of the 90 days to confirm the deficiencies have been addressed and the owners are making the improvements they outlined in the Plan. It should also be noted that the agreement would expire one year after execution. There is language is this agreement that would allow the City to re- issue a raze order after the 90 days should the property become old, dilapidated, or out of repair and consequently dangerous, unsafe, unsanitary, or otherwise unfit for human habitation. Staff Recommendation: Staff views this agreement as a sign of good faith from the property owners that they are taking real strides to improve the property and find a permanent solution to it, while also giving the owners time to find that solution. Staff is comfortable with the agreement and recommends the Council approve it as presented. Copies Mailed/Emailed To: I. Troy Mayne: tam@dewittllp.com Attachments: I. Agreement in Lieu of Raze Order II. July 9th Letter and Stabilization, Security and Disposition Plan AGREEMENT This Agreement between the City of Plymouth, Wisconsin (“the City”) and NSH 916 East Clifford Street LLC (“Property Owner”) (collectively “the Parties”), provides as follows: WHEREAS, Property Owner is the owner of real property located at 901 Reed Street, tax parcel 59271-821561 (“the Property”); and WHEREAS, the Property improvements include multiple structures including the building located at the corner of Reed Street and Selma Street commonly known as the “Brickbauer Building”; and WHEREAS, the City served an Order to Raze Property relating to the condition of the Brickbauer Building that was subsequently rescinded by the City; WHEREAS, the Parties wish to enter this Agreement to forego the additional expense of the Raze Order process, and the Parties acknowledge the Agreement is a compromise and settlement of disputed claims regarding the condition of the Brickbauer Building. NOW, THEREFORE, based on the above recitations and other matters, it is hereby agreed between the parties as follows: 1. Property Owner has submitted to City a Security, Stabilization and Marketing Plan (“Plan”), with the understanding that the Plan will be updated and modified from time to time as cleanup, repair and investigation of the Brickbauer Building proceeds. 2. As of the date of this Agreement, the Property Owner has completed the following steps of the Plan: • Engaged contractors to conduct onsite work to secure and board any damaged or accessible areas of the Brickbauer Building with work beginning the week of July 6. • Secured all exterior entry points to Brickbauer Building – COMPLETED • Secured all rooftop entry points of Brickbauer Building – COMPLETED • Contracted for and performed exterior landscaping work – COMPLETED • Contracted for painting of boarded entries of Brickbauer Building – COMPLETED 3. Per the Plan, by September 12, 2026, Property Owner shall perform the following (“60-Day Items”) with regard to the Brickbauer Building: • Complete a comprehensive inspection of the exterior of the Brickbauer Building. • Complete a comprehensive inspection of the interior of the Brickbauer Building. • Dispose of loose, damaged interior fixtures and obtain broom swept condition. • Evaluate surveillance camera alternatives to assist law enforcement. • Install additional "No Trespassing" signage around the property. • Coordinate a meeting with local law enforcement regarding unauthorized access. • Establish routine inspections of the property to identify and promptly address any new security breaches. • Remove exterior debris. • Mow and trim vegetation. • Remove brush and overgrowth surrounding the building. • Secure areas exposed to the elements. • Secure roof openings to reduce material water intrusion, where practicable. 4. Per the Plan, by October 12, 2026, Property Owner shall perform the following (“90- Day Items”) with regard to the Brickbauer Building: • Perform stabilization efforts to the extent reasonably practicable. • Evaluate land division and zoning changes that may improve marketability of Brickbauer Building as a separate unit. • Continue routine inspections. 5. Upon conclusion of the 90- Day Period, the Property Owner shall perform the following (“Ongoing Items”) with regard to the Brickbauer Building: • Promptly address any newly identified exterior conditions that create additional public safety concerns. • Continue maintenance of the exterior grounds to improve the appearance of the Property and discourage trespassing. • Perform inspections of the property to identify and promptly address any new security breaches. • Repair or reinforce damaged boarding and security measures as needed. 6. Until the 60- Day Items and 90 -Day Items have been completed, the City, upon providing at least two weeks’ notice to Property Owner via email to sbailey@nshorehc.com shall be entitled to inspect the Brickbauer Building during normal business hours to confirm the progress of the repairs. 7. Upon completing the 60-Day Items and 90-Day Items, Property Owner shall permit the City to complete a final inspection of the Brickbauer Building. If the City believes Property Owner has not completed the 60-Day Items or 90-Day Items, then the City shall notify Property Owner in writing via email to sbailey@nshorehc.com and tam@dewittllp.com as to what specific steps it believes need to be taken to complete the Items, and the City shall provide Property Owner sixty (60) days to correct any alleged deficiencies before proceeding per paragraph 9. If Property Owner thereafter corrects the alleged deficiencies within the sixty days, the City shall take no further action other than to continue to monitor the condition of the Brickbauer Building to determine whether it has fallen into disrepair in the future. Upon request by Property Owner, the City shall also meet and confer with Property Owner at the Property to discuss any alleged deficiencies before taking any further action that the City may be permitted to take under this Agreement. 8. Except as provided in Paragraph 9, nothing in this Agreement shall preclude the City from serving a Raze Order against Property Owner if the Property shall become old, dilapidated, or out of repair and consequently dangerous, unsafe, unsanitary, or otherwise unfit for human habitation following completion of the 60-Day and 90-Day Items. 9. If Property Owner fails to timely complete the 60-Day Items and 90-Day Items, the City shall be permitted to provide Property Owner notice of such failure in the same manner provided in Paragraph 7, identifying what specific steps it believes Property Owner needs to take to cure the default, and providing sixty (60) days to cure the default. Upon request by Property Owner, the City shall also meet and confer with Property Owner at the Property to discuss any alleged default. Only after providing such notice and an opportunity to cure may the City be entitled to serve a new Raze Order based on the conditions of the Property that gave rise to the Raze Order served prior to this Agreement, which will permit the City to order or raze the Property. 10. It is agreed this Agreement supersedes all prior agreements, oral or written, and other documents and constitutes the entire agreement and release between the parties. It may not be amended or modified except by an instrument executed by both parties. 11. This Agreement shall be binding on the Property Owner and is not intended to bind future owners or assignees of the Property. 12. This Agreement contains the entire agreement between the Parties and supersedes all previous writings or oral negotiations, commitments and understandings. 13. This Agreement shall not be modified except in writing signed by all Parties. 14. This document is being executed and delivered within the State of Wisconsin and shall be governed, interpreted, construed and enforced according to the laws of the State of Wisconsin. Any dispute concerning this document or the matters governed hereby shal l have exclusive jurisdiction and venue in the circuit courts for Sheboygan County, Wisconsin. 15. This Agreement may be executed in any number of counterparts, each of which together shall be deemed an original, but all of which together shall constitute one and the same instrument. A signature may be electronic or original and may be delivered by facs imile transmission or by e-mail delivery of a “.pdf” format data file. Such a signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof. 16. The representations and warranties made in this document shall survive its execution and delivery. 17. Both Parties hereby warrant, represent and acknowledge that the Agreement has been freely executed, that both Parties have had an opportunity to review the Agreement with such persons and advisors, including legal professionals, as each party may desire. T he Parties further acknowledge that any Party was induced to enter into the Agreement by any promises, guarantees or representations not included in the Agreement. 18. This Agreement shall become effective upon the execution by all of the undersigned. 19. This Agreement shall terminate one year after the effective date. CITY OF PLYMOUTH ______________________________ By: Its: Dated: ________________________ Approved by Council on: ________________ NSH 916 EAST CLIFFORD STREET LLC ______________________________ By: Its: Dated: ________________________ 25 W. Main Street Suite 800 Madison, WI 53703-4298 P: 608.255.8891 F: 608.252.9243 dewittllp.com tam@dewittllp.com 608.252.9327 July 9, 2026 VIA EMAIL: kelly.delponte@hopplaw.com Attorney Kelly Del Ponte Hopp Neumann Humke LLP 2124 Kohler Memorial Drive #310 Sheboygan, WI 53081 RE: City of Plymouth Order to Raze 901Reed Street, Plymouth (“Property”) Attorney Del Ponte: Our office represents North Shore Healthcare LLC (“North Shore”) and its affiliated entity NSH 916 East Clifford Street LLC, the owner of the Property (“Landowner”). On June 16, 2026, the City of Plymouth (“City”) served Landowner’s registered agent with an Order to Raze the Property (the “Order”). I contacted you to determine whether informal resolution of the City’s concerns would be possible in lieu of the Section 66.0413 (“Raze Statute”) statutory process set in motion when the City served the Order. During subsequent discussions, you indicated that the Common Council of the City may be willing to address alternatives in closed session at its meeting on July 14 if a request was made by July 9 so that the matter could be placed on the agenda on July 10. This letter is a formal request to have this matter placed on the July 14 Common Council agenda. While I initially understood that the Landowner could participate in the closed session, you later clarified that this was not the case. Nonetheless, Landowner requests the opportunity to state its case, either in advance of, or at the meeting in open or closed session. The Raze Statute includes unique procedural burdens and Landowner would like to make sure that legal counsel are in agreement as to the proper method of “pausing” the Order if the Common Council is inclined to work informally with the Landowner . Landowner’s specific request is that the Council will authorize an appropriate abeyance of the raze order process to allow the Landowner to perform the Stabilization, Security and Disposition Plan (“Plan”) as attached in this letter. Landowner is diligently working to address the City’s concerns and reserves the right to submit additional information prior to July 14 Common Council meeting. Attorney Kelly Del Ponte July 9, 2026 Page 2 1. Recent Property History There are two buildings located on Tax Parcel 59271821561, an older brick former hospital building located on the corner of Reed and Selma (“Brickbauer”) and a newer former medical clinic building (“Clinic”). Landowner acquired the lot and both buildings from a financially distressed organization at the same time that it acquired nursing home and assisted living facilities on the parcel to the south (Tax Parcel 59271821562). The facilities to the south are presently operated by related North Shore companies. Landowner understands that at one time, Aurora Health was a tenant of Brickbauer and Clinic and vacated both before North Shore took title. North Shore’s acquisition plans did not include long-term ownership of Brickbauer or Clinic and a real estate broker has been engaged to seek a buyer or tenant for each. The different ages and potential uses of each building present a marketing challenge, as does the fact that they share a single legal lot. Futhermore, interconnection issues for utilities and building services between the building on each of the Tax Parcels have complicated the disposition. 2. City Involvement The City sent a letter dated March 2, 2026, requesting an inspection of Brickbauer. North Shore requested details about the City’s concerns and cooperated with the inspection request. Some details of break-ins and maintenance shortcomings were provided to North Shore by local police, but the City did not express concerns about the condition of the Property directly to Landowner before the March inspection request. Until receiving the Order on June 16, North Shore was not contacted about the inspection results and was not aware that the City’s concerns rose to this level. The Order approach appears excessive given that both buildings have economic value and potential for adaptive reuse despite their age, vacancies, and marketing challenges. 3. Immediate Response As outlined in the Plan, upon receiving the Order Landowner has promptly taken measures to secure the Property, reduce the risk of break -ins and other unauthorized activity , and address the unsightly exterior condition of Brickbauer and its grounds. 4. Legal Position If required, Landowner intends to defend the Order by seeking a restraining order from the circuit court as provided in the Raze Statute. Among other defenses, Landowner disagrees that noted interior conditions noted in the Order are appropriate grounds for the relief requested in the Order. Nonetheless, Landowner desire s to resolve the City’s concerns on a cooperative basis before significant legal expenses are incurred by all parties. Attorney Kelly Del Ponte July 9, 2026 Page 3 Landowner is confident that its legal position is meritorious and will also seek costs as allowed in the Raze Statute if the case proceeds. 5. Request North Shore respectfully requests that the City Council rescind or otherwise defer enforcement of the Order, in a manner to be mutually agreed by legal counsel for City and Landowner, and instead work with the Landowner in accordance with the Plan. We believe this approach directly addresses the City's public safety concerns while preserving the opportunity for redevelopment of a long-standing property within the Plymouth community. North Shore is committed to working collaboratively with the City to ensure the property is maintained responsibly and that progress continues toward an appropriate long-term resolution. North Shore appreciates the Council's consideration of this proposal and welcome the opportunity to discuss any aspect of the Plan. Respectfully submitted, DeWitt LLP Troy A. Mayne TAM:sf cc: North Shore Healthcare Stabilization, Security and Disposition Plan (“Plan”) Brickbauer Building – 901 Reed Street, Plymouth Status Date: July 9, 2026 North Shore and Landowner appreciate the City's concerns regarding the current condition of Brickbauer. Identifying a tenant or buyer to invest in the adaptive reuse of this former hospital building has proven to be a challenge. However, North Shore reco gnizes the importance of protecting public safety while also preserving the opportunity for future redevelopment of this historic property. We respectfully request that the Common Council rescind the Order while North Shore implements the following Plan. 1. Owner Responsibility North Shore acknowledges that the exterior condition of Brickbauer and surrounding site have suffered from neglect and are taking corrective steps. In light of information provided by the City about the break -ins and community perception of the vacant building, North Shore has already completed security and building access “hardening” measures to address thes e legitimate safety concerns. However, North Shore believes that it shares the same long -term Property goals as the City and would like to work collaboratively on a solution. 2. Immediate Security Plan As of the date of this letter, North Shore has already taken the following steps: • Engaged contractors to conduct onsite work to secure and board any damaged or accessible areas with work beginning the week of July 6. • Secured all exterior entry points. • Secured all rooftop entry points. • Contracted for exterior landscaping work to be conducted the week of July 13. • Contracted for painting of boarded entries to be conducted the week of July 13. 3. 60-day Security and Maintenance Plan Within sixty (60) days of Council approval of appropriate rescission or deferral of the Order procedural process, North Shore will: • Complete a comprehensive inspection of the exterior of the building. • Complete a comprehensive inspection of the interior of the building. • Confirm completion of exterior landscaping work. • Confirm completion of painting of boarded entries. • Dispose of loose, damaged interior fixtures and obtain broom swept condition. • Repair or reinforce damaged boarding and security measures as needed. • Evaluate security camera alternatives to assist law enforcement. • Install additional "No Trespassing" signage around the property. • Coordinate with local law enforcement regarding unauthorized access. • Establish routine inspections of the property to identify and promptly address any new security breaches. • Remove exterior debris. • Mow and trim vegetation. • Remove brush and overgrowth surrounding the building. • Continue maintenance of the exterior grounds to improve the appearance of the Property and discourage trespassing. 4. Building Stabilization Recognizing the age and condition of the building, within sixty (60) days of Common Council rescinding the Order, North Shore will evaluate and complete practical stabilization measures intended to prevent further deterioration where reasonably feasible, including: • Secure areas exposed to the elements. • Address roof openings where practical to reduce additional water intrusion. • Monitor the condition of the structure during routine property inspections. • Promptly address any newly identified exterior conditions that create additional public safety concerns. 5. Long-Term Property Strategy North Shore recognizes that Brickbauer requires a long -term solution that balances public safety, responsible stewardship, and the future of the property. Unfortunately, the Property presents marketing and development challenges due to the site layout, le gal lot status and interconnected utility services. Over the coming months, North Shore will evaluate the most appropriate long -term course of action for the property. This evaluation will include consideration of potential redevelopment opportunities, disposition alternatives, and other options that best s erve both the community and the property's future. Specifically, North Shore intends to consult with the City on the feasibility of a land division of Brickbauer from Clinic to accelerate and enhance the sales prospects of each. As this evaluation progresses, North Shore will continue working collaboratively with the City and will provide updates regarding the status of these efforts. 6. Communication with the City North Shore is committed to maintaining open communication with the City of Plymouth throughout this process. Accordingly, North Shore Health proposes to: • Notify the City of significant developments related to marketing or disposition of the Property. • Meet with City representatives as reasonably requested to discuss progress and address concerns. 7. Proposed Timeline Within 60 Days • Remove exterior debris and damaged interior fixtures. • Complete landscaping and grounds maintenance. Within 90 Days • Complete identified reasonably practical stabilization efforts. • Continue active property marketing. • Continue routine inspections. Ongoing • Maintain building security. • Maintain grounds. • Continue marketing and evaluating redevelopment opportunities. • Provide periodic updates to the City. City of Plymouth 128 Smith St. - P.O. Box 107 Plymouth, WI 53073-0107 DATE: August 24, 2026 Telephone: (920) 893-3745 Facsimile: (920) 893-0183 Web Site: plymouthgov.com TO: Mayor and Common Council FROM: Christopher Russo, Finance Director RE: Presentation of 2025 Financial Audit BACKGROUND: The City and Utility continue to be in solid financial shape as of the year ended 12/31/25. Baker Tilly will present the results of the 2025 Audit at the August 24, 2025 Common Council meeting. Financial highlights as noted in the financial audit reports: • The City’s overall financial position, as reflected in total net position, increased $4.587 million (all funds). o The net position of governmental activities increased by $625,980. Net position of governmental activities increased primarily due to interest income and payment of long-term debt. o The net position of business-type activities increased $3.961 million primarily due to Utility income. • The general fund decreased by $193,694. This is due to an additional interfund transfer of $605,824 to the capital fund per the fund balance policy. Removing this transfer, the general fund increased by $412,130 helped by increased interest income and increased variable revenue sources. • The City retired $1.440 million of general obligation debt. The City issued $6.9 million of general obligation debt. • A larger portion of 2025 capital project costs were carried forward and are projected to be completed in future years. Because of this, along with the additional interfund transfer from the general fund , the capital improvements fund has $3 .791 million assigned for future capital improvements of the City. As in previous years, the auditors noted a deficiency in the City’s internal controls due to a lack of segregation of duties. Although this comment is not uncommon for a municipality the size of Plymouth, we take it very seriously and staff continues to look for ways to improve procedures to mitigate the risks associated with a lack of segregation of duties. Recommendation: Accept the 2025 audit reports and related financial statements. Attachments: • 2025 Audit Documents City of Plymouth Financial highlights August 24, 2026 Client service team Justin Hoagland, CPA, Principal Aaron Galvan, CPA, Manager © 2025 Baker Tilly US, LLP City of Plymouth General fund results Summarized income statement Actual Final budget Variance Revenues and other financing sources 8,688,325$ 8,265,383 $ 422,942 $ Expenditures and other financing uses 8,882,019 8,265,383 (616,636) Net change in fund balance (193,694) $ - $ (193,694)$ Fund balance category definitions Nonspendable - amounts cannot be spent either because they are not in spendable form or because legal or contractual requirements require them to be maintained in tact. Restricted - amounts that can be spent only for the specific purposes stipulated by an external source. Committed - amounts constrained for specific purposes that are internally imposed through formal action of the governing body. Assigned - spendable amounts that are intended to be used for specific purposes that are not considered restricted or committed. Unassigned - residual amounts that have not been classified within other categories above. $352,772 $- $- $618,099 $2,887,033 $3,857,904 $217,992 $- $- $651,560 $3,182,046 $4,051,598 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 Nonspendable Restricted Committed Assigned Unassigned Total General fund - fund balance by category2024 2025 © 2025 Baker Tilly US, LLP Source: current and prior year financial statement information and other benchmark information as noted. Page 1 City of Plymouth General fund - fund balance trends Fund balance policy: 20-25% of the general fund annual operating budget. Other reference values GFOA recommends a minimum of no less than 2 months (16.7%) of general fund expenditures. Median reference value generated from 2021 - 2024 Baker Tilly municipal client data for population range of under 10,000. 29.8% 40.4% 41.8% 48.3% 42.4% 37.8% 37.6% 37.2% 37.4% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 2021 2022 2023 2024 2025 Unrestricted general fund - fund balance as a percentage of expenditures General Fund Actual Policy minimum Policy maximum Reference - Median © 2025 Baker Tilly US, LLP Source: current and prior year financial statement information and other benchmark information as noted. Page 2 City of Plymouth General obligation debt Debt management policy: Actual percentage of debt limit at 12/31/25: 16% Total debt outstanding by type at 12/31/2025 General obligation Prom Notes Total City 5,945,000$ - $ 5,945,000$ Utility 4,255,000 95,000 4,350,000 Total 10,200,000$ 95,000 $ 10,295,000$ Comparative metrics available online through the Wisconsin Policy Forum. Select "Debt" -- options for custom comparisons or comparisons by county https://wispolicyforum.org/research/municipal-datatool-examining-and-comparing-wisconsin-cities-and-villages/ The City does not currently have a debt management policy. $15,580,000 $12,325,000 $8,815,000 $4,710,000 $10,200,000 $45,525,730 $47,989,710 $55,582,770 $58,085,525 $63,076,465 $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 2021 2022 2023 2024 2025 General obligation debt capacity Total G.O. debt outstanding G.O. debt limit © 2025 Baker Tilly US, LLP Source: current and prior year financial statement information and other benchmark information as noted. Page 3 City of Plymouth Governmental funds - debt service Current and prior year data 2025 2024 Principal 610,000 $ 1,650,000$ Interest 133,797 108,192 Total 743,797 $ 1,758,192$ Non-capital expenditures 11,038,106$ 9,077,006 $ Other reference values Median reference value generated from 2021 - 2024 Baker Tilly municipal client data for population range of under 10,000. 20.6% 17.9% 18.7% 19.4% 6.7% 16.6% 16.7% 14.1% 14.3% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 2021 2022 2023 2024 2025 Debt service to non-capital expenditures City of Plymouth Reference - Median © 2025 Baker Tilly US, LLP Source: current and prior year financial statement information and other benchmark information as noted. Page 4 Reporting and insights from 2025 audit: City of Plymouth December 31, 2025 THIS COMMUNICATION IS INTENDED SOLELY FOR THE INFORMATION AND USE OF THOSE CHARGED WITH GOVERNANCE, AND, IF APPROPRIATE, MANAGEMENT, AND IS NOT INTENDED TO BE AND SHOULD NOT BE USED BY ANYONE OTHER THAN THESE SPECIFIED PARTIES. 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. Executive summary August 20, 2026 To the Common Council City of Plymouth 900 County Road PP P.O. Box 277 Plymouth, WI 53073-0277 We have completed our audit of the financial statements of the City of Plymouth (the City) for the year ended December 31, 2025, and have issued our report thereon dated August 20, 2026. This letter presents communications required by our professional standards. Your audit should provide you with confidence in your financial statements. The audit was performed based on information obtained from meetings with management, data from your systems, knowledge of your City's operating environment and our risk assessment procedures. We strive to provide you clear, concise communication throughout the audit process and of the final results of our audit. Additionally, we have included information on key risk areas the City should be aware of in your strategic planning. We are available to discuss these risks as they relate to your organization's financial stability and future planning. If you have questions at any point, please connect with us: • Aaron Worthman, Principal: Aaron.Worthman@bakertilly.com or +1 (512) 975 7281 • Justin Hoagland, Principal: Justin.Hoagland@bakertilly.com or +1 (608) 240 2497 Sincerely, Baker Tilly US, LLP Aaron Worthman, CPA, Principal Justin Hoagland, CPA, Principal © 2025 Baker Tilly US, LLP Page | 3 Responsibilities Our responsibilities As your independent auditor, our responsibilities include: • Planning and performing the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Reasonable assurance is a high level of assurance. • Assessing the risks of material misstatement of the financial statements, whether due to fraud or error. Included in that assessment is a consideration of the City's internal control over financial reporting. • Performing appropriate procedures based upon our risk assessment. • Evaluating the appropriateness of the accounting policies used and the reasonableness of significant accounting estimates made by management. • Forming and expressing an opinion based on our audit about whether the financial statements prepared by management, with the oversight of the Common Council: • Are free from material misstatement • Present fairly, in all material respects and in accordance with accounting principles generally accepted in the United States of America • Our audit does not relieve management or the Common Council of their responsibilities. We are also required to communicate significant matters related to our audit that are relevant to the responsibilities of the Common Council, including: • Internal control matters • Qualitative aspects of the City's accounting practice including policies, accounting estimates and financial statement disclosures • Significant unusual transactions • Significant difficulties encountered • Disagreements with management • Circumstances that affect the form and content of the auditors' report • Audit consultations outside the engagement team • Corrected and uncorrected misstatements • Other audit findings or issues © 2025 Baker Tilly US, LLP Page | 4 Audit status Significant changes to the audit plan There were no significant changes made to either our planned audit strategy or to the significant risks and other areas of emphasis identified during the performance of our risk assessment procedures. © 2025 Baker Tilly US, LLP Page | 5 Audit approach and results Planned scope and timing Audit focus Based on our understanding of the City and environment in which you operate, we focused our audit on the following key areas: • Key transaction cycles • Areas with significant estimates • Areas of complexity and additional compliance requirements including TIF Districts Our areas of audit focus were informed by, among other things, our assessment of materiality. Materiality in the context of our audit was determined based on specific qualitative and quantitative factors combined with our expectations about the City's current year results. Key areas of focus and significant findings Significant risks of material misstatement A significant risk is an identified and assessed risk of material misstatement that, in the auditor's professional judgment, requires special audit consideration. Within our audit, we focused on the following areas below. Significant risk areas Testing approach Conclusion Management override of controls Incorporate unpredictability into audit procedures, emphasize professional skepticism and utilize audit team with industry expertise Procedures identified provided sufficient evidence for our audit opinion Improper revenue recognition due to fraud Confirmation or validation of certain revenues supplemented with detailed predictive analytics based on non-financial data and substantive testing of related receivables Procedures identified provided sufficient evidence for our audit opinion Segregation of duties Incorporate unpredictability into audit procedures, emphasize professional skepticism and utilize audit team with industry expertise Procedures identified provided sufficient evidence for our audit opinion © 2025 Baker Tilly US, LLP Page | 6 Other areas of emphasis We also focused on other areas that did not meet the definition of a significant risk, but were determined to require specific awareness and a unique audit response. Other areas of emphasis Cash and investments Revenues and receivables General disbursements Payroll Pension liabilities and assets Long-term debt Capital assets including infrastructure Net position and fund balance calculations Financial reporting and required disclosures Internal control matters We considered the City's internal control over financial reporting as a basis for designing our audit procedures for the purpose of expressing an opinion on the financial statements. We are not expressing an opinion on the effectiveness of the City's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. We identified the following deficiencies as material weaknesses: • Inadequate segregation of duties A properly designed system of internal control includes adequate staffing as well as policies and procedures to properly segregate duties. This includes systems that are designed to limit the access or control of any one individual to your government's assets or accounting records, and to achieve a higher likelihood that errors or irregularities in your accounting processes would be discovered by your staff in a timely manner. At this time, due to staffing and financial limitations, the proper internal controls are not in place to achieve adequate segregation of duties. As a result, errors, irregularities or fraud could occur as part of the financial reporting process that may not be discovered by someone in your organization. Therefore, we are reporting a material weakness related to the internal control environment. © 2025 Baker Tilly US, LLP Page | 7 • Missing key controls There are certain controls that are not currently in place related to significant transaction cycles. As a result, there is a risk that erroneous or unauthorized transactions or misstatements could occur without the knowledge of management or the governing body. Our recommendations for strengthening controls are listed below. Controls over utility billing • Persons involved in the cash receipting process should be independent of other billing duties. Controls journal entries • Adjusting journal entries and supporting documentation should be reviewed and approved by an appropriate person who is not the original preparer. Since the controls listed above or other compensating controls are not currently in place, errors or irregularities could occur as part of the accounting processes that might not be discovered by management or the governing body. Therefore, the absence of these controls is considered to be a material weakness. We recommend that a designated employee review the segregation of duties, risks, and these potential controls and determine whether additional controls should be implemented. This determination should take into consideration a cost / benefit analysis. • Financial statement close process Properly designed systems of internal control provide your organization with the ability to process and record accurate monthly and year-end transactions and annual financial reports. Our audit includes a review and evaluation of the internal controls relating to financial reporting. Common attributes of a properly designed system of internal control for financial reporting are as follows: • There is adequate staffing to prepare financial reports throughout the year and at year-end. • Material misstatements are identified and corrected during the normal course of duties. • Complete and accurate financial statements, including footnotes, are prepared. • Financial reports are independently reviewed for completeness and accuracy. Our evaluation of the internal controls over financial reporting has identified control deficiencies that are considered to be a material weakness surrounding the preparation of financial statements and footnotes, and an independent review of financial reports. Management has not prepared financial statements that are in conformity with generally accepted accounting principles. © 2025 Baker Tilly US, LLP Page | 8 Required communications Qualitative aspect of accounting practices • Accounting policies: Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we have advised management about the appropriateness of accounting policies and their application. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted, and the application of existing accounting policies was not changed during 2025. We noted no transactions entered into by the City during the year for which accounting policies are controversial or for which there is a lack of authoritative guidance or consensus or diversity in practice. • Accounting estimates: Accounting estimates, including fair value estimates, are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements, the degree of subjectivity involved in their development and because of the possibility that future events affecting them may differ significantly from those expected. The following estimates are of most significance to the financial statements: Estimate Management's process to determine Baker Tilly's conclusions regarding reasonableness Accrued compensated absences Evaluation of hours earned and accumulated in accordance with employment policies and average wage per hour rates Reasonable in relation to the financial statements as a whole Net pension liability and related deferrals Evaluation of information provided by the Wisconsin Retirement System Reasonable in relation to the financial statements as a whole Self-insurance claims Historical claims analysis and report provided by a 3rd party administrator Reasonable in relation to the financial statements as a whole Depreciation Evaluate estimated useful life of the asset and original acquisition value Reasonable in relation to the financial statements as a whole There have been no significant changes made by management to either the processes used to develop the particularly sensitive accounting estimates, or to the significant assumptions used to develop the estimates, noted above. • Financial statement disclosures: The disclosures in the financial statements are neutral, consistent and clear. © 2025 Baker Tilly US, LLP Page | 9 Significant unusual transactions There have been no significant transactions that are outside the normal course of business for the City or that otherwise appear to be unusual due to their timing, size or nature. Significant difficulties encountered during the audit We encountered no significant difficulties in dealing with management and completing our audit. Disagreements with management Professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Audit report There have been no departures from the auditors' standard report. Audit consultations outside the engagement team We encountered no difficult or contentious matters for which we consulted outside of the engagement team. Uncorrected misstatements and corrected misstatements Professional standards require us to accumulate misstatements identified during the audit, other than those that are clearly trivial and to communicate accumulated misstatements to management. Management is in agreement with the misstatements we have identified, and they have been corrected in the financial statements. In our judgment, none of the misstatements that management has corrected, either individually or in the aggregate, indicate matters that could have had a significant effect on the City’s financial reporting process. Other audit findings or issues We encountered no other audit findings or issues that require communication at this time. We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. © 2025 Baker Tilly US, LLP Page | 10 Other information in documents containing audited basic financial statements Official statements (or other equivalent document which we may not read unless engaged separately) The City's audited financial statements are "general purpose" financial statements. General purpose financial statements consist of the basic financial statements that can be used by a broad group of people for a broad range of activities. Once we have issued our audit report, we have no further obligation to update our report for events occurring subsequent to the date of our report. The City can use the audited financial statements in other client prepare documents, such as official statements related to the issuance of debt, without our acknowledgement. Unless we have been engaged to perform services in connection with any subsequent transaction requiring the inclusion of our audit report, as well as to issue an auditor's acknowledgment letter, we have neither read the document nor performed subsequent event procedures in order to determine whether or not our report remains appropriate. Management's consultations with other accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing or accounting matters. Written communications between management and Baker Tilly The attachments include copies of other material written communications, including a copy of the management representation letter. Compliance with laws and regulations We did not identify any non-compliance with laws and regulations during our audit. Fraud We did not identify any known or suspected fraud during our audit. Going concern Pursuant to professional standards, we are required to communicate to you, when applicable, certain matters relating to our evaluation of the City's ability to continue as a going concern for a reasonable period of time but no less than 12 months from the date of the financial statements, including the effects on the financial statements and the adequacy of the related disclosures, and the effects on the auditor's report. No such matters or conditions have come to our attention during our engagement. Independence We are not aware of any relationships between Baker Tilly and the City that, in our professional judgment, may reasonably be thought to bear on our independence. Related parties We did not have any significant findings or issues arise during the audit in connection with the City's related parties. © 2025 Baker Tilly US, LLP Page | 11 Other matters We applied certain limited procedures to the required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplementary information which accompanies the financial statements but is not RSI. With respect to the supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Nonattest services The following nonattest services were provided by Baker Tilly: • Financial statement preparation In addition, we prepared GASB No. 34 conversion entries which are summarized in the "Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position" and the "Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities" in the financial statements. None of these nonattest services constitute an audit under generally accepted auditing standards, including Government Auditing Standards. © 2025 Baker Tilly US, LLP Page | 12 Common Council Resources Our business is to know every aspect of yours and to maintain a constant lookout for what's next. We invite you to learn about some of the trending challenges and opportunities for public sector organizations like yours and how Baker Tilly can help. To explore more trending topics and regulatory updates, visit our resource page at https://www.bakertilly.com/insights/audit-committee-resource-page. Capital project oversight Public sector capital projects face increasing pressure from cost escalation, supply chain disruption, regulatory complexity and heightened scrutiny around transparency and accountability. Strong planning, governance and controls are critical across the full project life cycle, from feasibility and funding strategy through execution and closeout. Independent oversight helps chart a clear course from planning to delivery. Our teams work alongside leadership to strengthen governance, establish financial and contractual controls, align funding with project goals, and monitor performance throughout execution, helping projects stay on schedule, within budget, and aligned with community priorities. Succession planning An aging workforce, rising retirement rates, and competition for specialized talent make succession planning a fiscal and operational a priority for public sector organizations. By identifying critical roles, assessing workforce risk, building internal talent pipelines, and integrating succession planning with broader workforce strategies, Baker Tilly helps organizations preserve institutional knowledge and maintain continuity, today, and into the future. Economic development Successful economic development depends on disciplined planning, sound financial analysis and coordinated execution. Public sector leaders must balance incentives, infrastructure investment, funding opportunities and stakeholder priorities while maintaining fiscal responsibility. Baker Tilly’s supports local governments with strategic and financial planning, incentive structuring and negotiation, tax increment financing administration, project financing, grant strategy, and economic and fiscal impact analysis. This integrated approach helps leaders move from vision to action, strengthening communities and advancing sustainable, long-term growth. © 2025 Baker Tilly US, LLP Page | 13 Management representation letter © 2025 Baker Tilly US, LLP Page | 21 Client service team Aaron Worthman, CPA Principal 4807 Innovate Ln Madison, WI 53718 United States T +1 (512) 975 7281 | Madison aaron.worthman@bakertilly.com Justin Hoagland, CPA Principal 4807 Innovate Ln Madison, WI 53718 United States T +1 (608) 240 2497 | Madison justin.hoagland@bakertilly.com Stephanie Silva, CPA Manager 901 S MoPac Expressway Bldg. IV Ste. 100 Austin, TX 78746 United States T +1 (737) 209 4270 | Austin stephanie.silva@bakertilly.com Aaron Galvan, CPA Manager 4807 Innovate Ln Madison, WI 53718 United States T +1 (608) 240 2684 | Madison aaron.galvan@bakertilly.com © 2025 Baker Tilly US, LLP Page | 22 Accounting changes relevant to the City of Plymouth Future accounting standards update GASB Statement Number Description Potentially impacts you Effective date 103 Financial Reporting Model Improvements 12/31/26 104 Disclosure of Certain Capital Assets 12/31/26 105 Subsequent events 12/31/27 Further information on upcoming GASB pronouncements. Changes to the financial reporting model GASB Statement 103, Financial Reporting Model Improvements, builds on Statement 34 by providing key targeted improvements to the financial reporting model. Its requirements are designed to: • Enhance the effectiveness of governmental financial reports in providing information essential for decision making and assessing a government's accountability, and • Address certain application issues. The targeted improvements contained in Statement 103 establish or modify existing accounting and financial reporting requirements related to: • Management's discussion and analysis - While the overall requirements do not substantially change management's discussion and analysis, the modifications are meant to improve the analysis included in this section and provide details about the items that should be discussed as currently known facts, decisions, or conditions expected to have a significant financial effect in the subsequent period. • Unusual or infrequent items (previously known as extraordinary and special items) - The new Statement simplifies GASB literature by eliminating the separate presentation of extraordinary and special items. Under the requirement of Statement 103, applicable items will either be identified as unusual or infrequent, or both. • Presentation of the proprietary fund statement of revenues, expenses, and changes in fund net position - The changes are designed to improve consistency around the classification of items in these statements by better defining what should be included in operating revenues and expenses and nonoperating revenues and expenses including, for example, the addition of subsidies received or provided as a new category of nonoperating revenues and expenses. • Major component unit information, and Budgetary comparison information - Statement 103 is designed to improve the consistency of the reporting of major component unit information and budgetary comparison information by specifying required placement of that information. © 2025 Baker Tilly US, LLP Page | 23 Revisions to disclosures for certain capital assets Governments are required to provide information on capital assets in the footnotes to the financial statements as outlined in GASB Statement No. 34. Recent standards have impacted the accounting and reporting for capital assets and as a result GASB issued Statement No. 104, Disclosure of Certain Capital Assets to provide enhanced disclosures for certain capital assets, including (a) Lease assets reported under Statement No. 87, intangible right-to-use assets reported under Statement No. 94 and subscription assets reported under Statement No. 96 should all be disclosed separately, and by major class of underlying asset. In addition, if there are any other intangible assets reported they should also be disclosed separately. (b) Capital assets that are held for sale should have the ending balance with separate disclosure for historical cost and related accumulated depreciation as well as any outstanding debt for which the asset is pledged as collateral disclosed by major class of asset. Assets held for sale are defined as those for which the government has decided to pursue the sale, and it is probable that the sale will be finalized within one year of the financial statement date. While these changes are focused on footnote disclosures it is important to plan ahead to ensure the required information is available for implementation. Updated guidance for the financial reporting of subsequent events GASB Statement No. 105, Subsequent Events, which supersedes GASB Statement No. 56, is intended to enhance consistency in the application of requirements for subsequent events. The Statement defines subsequent events as transactions or other events that occur after year end but before the date the financial statements are available to be issued. The date the financial statements are available to be issued is the date at which (a) the financial statements are complete in a form and format that complies with generally accepted accounting principles (GAAP) and (b) approvals necessary for issuance have been obtained, or typically the opinion date. The definition of subsequent events in this Statement modifies the subsequent events time frame throughout the GASB literature. The Statement also clarifies: • The different types of subsequent events (recognized and nonrecognized events) • W hen note disclosures are required • The information that should be included in those note disclosures © 2025 Baker Tilly US, LLP Page | 24 Two-way audit communications As part of our audit of your financial statements, we are providing communications to you throughout the audit process. Auditing requirements provide for two-way communication and are important in assisting the auditor and you with more information relevant to the audit. As this past audit is concluded, we use what we have learned to begin the planning process for next year's audit. It is important that you understand the following points about the scope and timing of our next audit: a. We address the significant risks of material misstatement, whether due to fraud or error, through our detailed audit procedures. b. We will obtain an understanding of the five components of internal control sufficient to assess the risk of material misstatement of the financial statements whether due to error or fraud, and to design the nature, timing and extent of further audit procedures. We will obtain a sufficient understanding by performing risk assessment procedures to evaluate the design of controls relevant to an audit of financial statements and to determine whether they have been implemented. We will use such knowledge to: • Identify types of potential misstatements. • Consider factors that affect the risks of material misstatement. • Design tests of controls, when applicable, and substantive procedures. c. We will not express an opinion on the effectiveness of internal control over financial reporting or compliance with laws, regulations and provisions of contracts or grant programs. d. The concept of materiality recognizes that some matters, either individually or in the aggregate, are important for fair presentation of financial statements in conformity with generally accepted accounting principles while other matters are not important. In performing the audit, we are concerned with matters that, either individually or in the aggregate, could be material to the financial statements. Our responsibility is to plan and perform the audit to obtain reasonable assurance that material misstatements, whether caused by errors or fraud, are detected. Our audit will be performed in accordance with auditing standards generally accepted in the United States of America. We are very interested in your views regarding certain matters. Those matters are listed here: a. We typically will communicate with your top level of management unless you tell us otherwise. b. We understand that the governing board has the responsibility to oversee the strategic direction of your organization, as well as the overall accountability of the entity. Management has the responsibility for achieving the objectives of the entity. c. We need to know your views about your organization's objectives and strategies, and the related business risks that may result in material misstatements. d. We anticipate that the City will receive an unmodified opinion on its financial statements. e. Which matters do you consider warrant particular attention during the audit, and are there any areas where you request additional procedures to be undertaken? f. Have you had any significant communications with regulators or grantor agencies? g. Are there other matters that you believe are relevant to the audit of the financial statements? © 2025 Baker Tilly US, LLP Page | 25 Also, is there anything that we need to know about the attitudes, awareness and actions of the governing body concerning: a. The entity's internal control and its importance in the entity, including how those charged with governance oversee the effectiveness of internal control? b. The detection or the possibility of fraud? We also need to know if you have taken actions in response to developments in financial reporting, laws, accounting standards, governance practices, or other related matters, or in response to previous communications with us. With regard to the timing of our audit, here is some general information. We perform preliminary financial audit work during the months of October-December, and sometimes early in January. Our final financial fieldwork is scheduled during the spring to best coincide with your readiness and report deadlines. After fieldwork, we wrap up our financial audit procedures at our office and issue drafts of our report for your review. Final copies of our report and other communications are issued after approval by your staff. This is typically 6-12 weeks after final fieldwork, but may vary depending on a number of factors. Keep in mind that while this communication may assist us with planning the scope and timing of the audit, it does not change the auditor's sole responsibility to determine the overall audit strategy and the audit plan, including the nature, timing and extent of procedures necessary to obtain sufficient appropriate audit evidence. We realize that you may have questions on what this all means, or wish to provide other feedback. We welcome the opportunity to hear from you. City of Plymouth Financial Statements and Supplementary Information December 31, 2025 City of Plymouth Table of Contents December 31, 2025 Page Independent Auditors' Report i Required Supplementary Information Management's Discussion and Analysis iv Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 1 Statement of Activities 3 Fund Financial Statements Balance Sheet - Governmental Funds 4 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 6 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 7 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 9 Statement of Net Position - Proprietary Fund 10 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Fund 12 Statement of Cash Flows - Proprietary Fund 13 Statement of Fiduciary Net Position - Custodial Fund 15 Statement of Changes in Fiduciary Net Position - Custodial Fund 16 Index to Notes to Financial Statements 17 Notes to Financial Statements 18 Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 51 Schedule of Proportionate Share of the Net Pension Liability (Asset) - Wisconsin Retirement System 52 Schedule of Employer Contributions - Wisconsin Retirement System 52 Notes to Required Supplementary Information 53 City of Plymouth Table of Contents December 31, 2025 Page Supplementary Information Combining Balance Sheet - Nonmajor Governmental Funds 54 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 56 Combining Statement of Net Position - Internal Service Funds 58 Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Internal Service Funds 59 Combining Statement of Cash Flows - Internal Service Funds 60 Independent Auditors' Report To the City Council of City of Plymouth 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 Plymouth, 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). 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. 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. 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 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, 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 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. Madison, Wisconsin August 20, 2026 iii City of Plymouth Management's Discussion and Analysis Year ended December 31, 2025 (Unaudited) iv This discussion and analysis of the City of Plymouth's (the City) financial information provides an overall review of financial activities for the year. The analysis generally focuses on City financial performance as a whole. A comparison to prior year data is also presented for additional analysis. This discussion and analysis should be read in conjunction with the City's financial statements, which immediately follow this section. Financial Highlights  The City's overall financial position, as reflec ted in total net position, increased $4,587,400. Net position of governmental activities increased $625,980 and net position of business-type activities increased $3,961,420.  In the governmental funds, total fund balances increased $4,328,819 including an decrease of $193,694 in the general fund.  The City issued $6,900,000 of general obligation debt.  The capital improvements fund has $3,791,430 assi gned for future capital improvements of the City. Expenditures of the capital improvements fund will continue to be funded with current tax levy. Overview of the Financial Statements The City’s basic financial statements are comprised of 1) government-wide financial statements, 2) fund financial statements and 3) notes to the basic financial statements. In addition, other information supplementary to the basic financial statements is provided. Government-Wide Financial Statements  The government-wide financial statements are the statement of net position and statement of activities. These statements are designed to provide readers with a broad overview of the City's finances in a manner similar to private-sector business. Both statements distinguish functions that are supported principally by property taxes and intergovernmental revenues, called governmental activities, from functions that are intended to recover all or a significant portion of costs through user fees and charges called business-type activities.  The statement of net position presents information on all of the City's assets, deferred outflow of resources, liabilities and deferred inflows of resources, with the difference 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 informati on showing how the City's net position changed during the year. This statement reports the cost of government functions and how those functions were financed for the year.  The government-wide financial statements are shown on pages 1 to 3 of this report. Fund Financial Statements  The City also produces 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, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Fund statements generally report operations in more detail than the government-wide statements and provide information that may be useful in evaluating the City's near-term financing requirements. City of Plymouth Management's Discussion and Analysis Year ended December 31, 2025 (Unaudited) v  There are two fund financial statements, t he balance sheet and the statement of revenues, expenditures and changes in fund balances. Generally, fund statements focus on near-term inflows and outflows of spendable resources and their impact on fund balances.  Because the focus of fund financial statements is narrower than that of the government-wide financial statements it is useful to make comparisons between the information presented. By doing so, readers may better understand the long-term impact of the government’s near-term financial decisions. A reconciliation to facilitate this comparison is provided on separate statements.  The City has three kinds of funds: governmental , proprietary and fiduciary. Governmental funds include the City's nine funds (general, debt service, committed, revolving loan, USDA revolving loan, garbage and recycling, housing grant, and the water and sewer lateral. In the current year, the City has six capital project funds, including five TIF Districts. The City's proprietary funds consist of enterprise funds (the Plymouth Utilities) and internal service funds (health care and risk management). The City's only fiduciary fund is the custodial tax collection fund.  Financial information is presented separately on both the balance sheet and the statement of revenues, expenditures and changes in fund balances for the general, tax increment housing, debt service, TIF District #4 and capital improvements funds as these funds are considered to be major funds. Data for the remaining funds are combined into a single, aggregate column. Data for each of the individual nonmajor funds is provided separately as supplementary information. The governmental fund financial statements are shown on pages 4 to 9 of this report.  The proprietary fund statements fo r the enterprise funds and internal service funds are prepared on the same basis of accounting and measurement focus as the government-wide financial statements. In addition, the City provides a statement of cash flows for the proprietary funds. The internal service funds have been allocated between the governmental activities and business-type activities in the government-wide financial statements. The proprietary fund financial statements are shown on pages 10 to 14 of this report.  The City serves as the trustee, or fiduciary, for assets that belong to other governments including State, County, School District and Vocational School tax collections. The City is responsible for ensuring that the assets reported in this fund are used only for their intended purposes and by those to whom the assets belong. The City excludes the activities from the government-wide financial statements because it cannot use these assets to finance its operations. The fiduciary fund financial statements are presented on pages 15 and 16.  The City adopts an annual appropriated budget for the general fund. A budgetary comparison schedule has been provided to demonstrate budget compliance. The budgetary comparison schedule is on page 51. Notes to the Basic Financial Statements The notes to the basic financial statements provide additional information that is essential to the 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 17 to 50 of this report. City of Plymouth Management's Discussion and Analysis Year ended December 31, 2025 (Unaudited) vi Major Features of the Government-Wide and Fund Financial Statements The major features of the City's financial statements, including the portion of the activities reported and the type of information contained, is shown in the following table. Government-Wide Statements Fund Financial Statements Governmental Funds Proprietary Funds Fiduciary Funds Scope Entire City (except fiduciary funds) The activities of the City that are not proprietary or fiduciary, such as public safety, public works and culture, recreation and education Proprietary funds consist of enterprise funds (the Plymouth Utilities) and internal service funds (health care and risk management) Instances in which the City administers resources on behalf of someone else, such as State, County and School tax collections Required financial statements Statement of net position Statement of activities Balance sheet Statement of revenues, expenditures and changes in fund balances Statement of net position Statement of revenues, expenses and changes in net position Statement of cash flows Statement of fiduciary net position Statement of changes in fiduciary net position Basis of accounting and measurement focus Accrual accounting and economic resources focus Modified accrual accounting and current financial resources focus Accrual accounting and economic resources focus Accrual accounting and economic resources focus Type of asset and liability information All assets and liabilities, both financial and capital, short- term and long- term Generally assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets or long- term liabilities included All assets and liabilities, both financial and capital; short-term and long-term All assets and liabilities, both financial and capital; short-term and long-term; the City's funds do not currently contain any capital assets, although they can Type of inflow and outflow information All revenues and expenses during the year, regardless of when cash is received or paid Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and the related liability is due and pa yable All revenues and expenses during the year, regardless of when cash is received or paid All additions or deductions during the year, regardless of when cash is received or paid City of Plymouth Management's Discussion and Analysis Year ended December 31, 2025 (Unaudited) vii Financial Analysis The City as a Whole Net Position. Table 1, below, provides a summary of the City's net position for the year ended December 31, 2025 compared to 2024. . 2025 2024 2025 2024 2025 2024 Current and Other Assets 25,890,308$ 22,237,612 $ 40,085,171 $ 40,765,477 $ 65,975,479 $ 63,003,089 $ Capital Assets 22,116,435 21,895,730 78,692,299 73,470,403 100,808,734 95,366,133 Total assets 48,006,743 44,133,342 118,777,470 114,235,880 166,784,213 158,369,222 Total deferred outflows of resources 1,899,838 2,641,716 1,247,667 1,634,433 3,147,505 4,276,149 Long-Term Liabilities 6,753,938 2,844,451 11,599,165 10,988,711 18,353,103 13,833,162 Other Liabilities 1,617,192 793,374 2,382,442 2,462,411 3,999,634 3,255,785 Total liabilities 8,371,130 3,637,825 13,981,607 13,451,122 22,352,737 17,088,947 Total deferred inflows of resources 7,559,644 9,787,406 650,599 987,680 8,210,243 10,775,086 Net Position Net inv estment in capital assets 17,861,398 19,518,947 74,189,236 70,848,975 92,050,634 90,367,922 Restricted 5,742,048 3,948,256 - - 5,742,048 3,948,256 Unrestricted 10,372,361 9,882,624 31,203,695 30,582,536 41,576,056 40,465,160 Total net position 33,975,807 $ 33,349,827 $ 105,392,931 $ 101,431,511 $ 139,368,738 $ 134,781,338 $ Governmental Activities Business-Type Activities Totals December 31, 2025 and 2024 Table 1 City of Plymouth Condensed Statement of Net Position City of Plymouth Management's Discussion and Analysis Year ended December 31, 2025 (Unaudited) viii Change in Net Position. Table 2 shows the change in net position for the years ended December 31, 2025 and 2024.  Program revenues totaled $2,192,372 for governmental activities and $31,219,534 for business-type activities. In total, program revenues increased by $1,403,996 compared to 2024, due to an increase in the utility charges for services.  General revenues totaled $10,907,213 for government al activities and $2,101,072 for business-type activities. In total, general revenues decreased $373,290 compared to 2024, due mainly to a decrease in tax revenue. 2025 2024 2025 2024 2025 2024 Revenues Program revenues: Charges for services 1,419,063 $ 1,208,085 $ 30,998,399 $ 30,090,969 $ 32,417,462 $ 31,299,054 $ Operating grants and contributions 773,309 661,276 - - 773,309 661,276 Capital grants and contributions - - 221,135 47,580 221,135 47,580 General revenues: Property taxes 7,750,455 7,919,604 - - 7,750,455 7,919,604 Other taxes 311,207 295,894 - - 311,207 295,894 Intergovernmental 1,843,922 2,148,023 - - 1,843,922 2,148,023 Investment income 823,283 797,041 2,011,223 2,007,804 2,834,506 2,804,845 Other 178,346 209,121 89,849 4,088 268,195 213,209 Total revenues 13,099,585 13,239,044 33,320,606 32,150,441 46,420,191 45,389,485 Expenses General government 3,927,913 1,078,455 - - 3,927,913 1,078,455 Public safety 3,413,037 3,134,668 - - 3,413,037 3,134,668 Public works 2,940,776 3,302,211 - - 2,940,776 3,302,211 Health and human services 202,348 207,438 - - 202,348 207,438 Culture, education and recreation 2,077,597 1,688,862 - - 2,077,597 1,688,862 Conservation and development 320,312 345,161 - - 320,312 345,161 Interest and fiscal charges 209,721 70,945 - - 209,721 70,945 Plymouth Utilities - - 28,741,087 27,013,140 28,741,087 27,013,140 Total expenses 13,091,704 9,827,740 28,741,087 27,013,140 41,832,791 36,840,880 Change in net position before transfers 7,881 3,411,304 4,579,519 5,137,301 4,587,400 8,548,605 Trans fers 618,099 651,560 (618,099) (651,560) - - Change in net position 625,980 4,062,864 3,961,420 4,485,741 4,587,400 8,548,605 Net Position, January 1 33,349,827 29,286,963 101,431,511 96,945,770 134,781,338 126,232,733 Net Position, December 31 33,975,807$ 33,349,827 $ 105,392,931 $ 101,431,511 $ 139,368,738 $ 134,781,338 $ Table 2 Years ended December 31, 2025 and 2024 Governmental Activities Busine ss-Type Activitie s Totals City of Plymouth Change in Net Position City of Plymouth Management's Discussion and Analysis Year ended December 31, 2025 (Unaudited) ix Governmental Activities Net Cost of Governmental Activities. Table 3 reports the cost of seven major City activities for the years ended December 31, 2025 and 2024. The table also shows each activity’s net cost (total cost less fees generated by the activities and grants and contributions provided for specific programs). The net cost shows the financial burden that was placed on the City's taxpayers by each of these functions.  The total cost of all governmental activities for the year was $13,091,704, an increase of $3,263,964 compared to 2024.  Individuals, other governments and others who di rectly participated in or benefited from a program paid $1,419,063 of the costs.  Governmental and other operating grants and contri butions accounted for $773,309 of the costs.  The net cost of governmental activities were financed with general revenues and transfers, which consists of property taxes, other taxes, intergovernmental revenues, donations, investment income (loss), miscellaneous items and a transfer from the business-type activities. 2025 2024 2025 2024 General government 3,927,913 $ 1,078,455 $ 3,375,632 $ 720,905 $ Public safety 3,413,037 3,134,668 2,900,759 2,724,094 Public works 2,940,776 3,302,211 2,304,382 2,698,407 Health and human services 202,348 207,438 202,348 207,438 Culture, education and recreation 2,077,597 1,688,862 1,586,628 1,218,975 Conservation and development 320,312 345,161 319,862 317,615 Interest and fiscal charges 209,721 70,945 209,721 70,945 Total 13,091,704 $ 9,827,740 $ 10,899,332 $ 7,958,379 $ Table 3 Net Cost of Governmental Activities Years ended December 31, 2025 and 2024 Total Cost of Services Net Cost of Services City of Plymouth Management's Discussion and Analysis Year ended December 31, 2025 (Unaudited) x  Property taxes and intergovernmental revenues and account for the greatest portion of revenues for the City as illustrated below.  Expenses and prog ram revenues by major function are illustrated below. Property taxes 57% Intergovernmental revenues 13% Charges for services 10% Operating grants and contributions 6%Other taxes 2% Other general revenues and transfers 12% Revenue by Source - Governmental Activities $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 General government Public safety Public works Health and human services Culture, education, and recreation Conservation and development Interest and fiscal charges Expenses and Program Revenues - Governmental Activities Expenses Program Revenues City of Plymouth Management's Discussion and Analysis Year ended December 31, 2025 (Unaudited) xi Business-Type Activities Revenues for the City's business-type activities (Plymouth Utilities) are comprised of charges for services, capital grants and contributions and investment income. (See Table 2)  The Utilities revenues exceeded expenses by $3 ,961,420, a decrease of $524,321 compared to 2024.  Charges for services, which are amounts paid by individuals and others for electric, water and sewage service, totaled $30,998,399 for 2025, an increase of $907,430 compared to 2024. A major portion of this increase related to the increase in cost of power, with a minor portion related to an increase electric utility rates.  Capital grants and contributions from customers and developers totaled $221,135, an increase of $173,556, compared to 2024. Governmental Funds The City completed the year with a total governmental fund balance of $15,984,809, which was $4,328,819 more than last year's ending fund balance of $11,655,990.  The general fund had a decrease in fund balance of $193,694. This includes an additional transfer of $605,824.32 to the Capital fund per the fund balance policy.  The tax increment housing fund (new fund in 2025) had an increase in fund balance of $2,612,365  The debt service fund had an increase in fund balance of $171,290.  The TIF District #4 fund had a decrease in fund balance of $2,905,200, due to closing out the TIF.  The capital improvements fund had an increase in fund balance of $2,160,934, due to debt issuances an additional transfer of $605,824.32 from the General fund per the fund balance policy. General Fund Budgetary Highlights Consistent with current state statutes and regulations the Common Council adopts a general fund budget. Generally, the budget is not significantly modified during the year. The general fund had an unfavorable budget variance of $193,694 for the year. The general fund budgetary comparison schedule is shown on page 51 of this report. Capital Asset and Debt Administration Capital Assets As of December 31, 2025, the City had invested over $208 million in a broad range of capital assets, including land, land improvements, buildings, infrastructure, utility transmission and distribution systems and machinery and equipment. (See Table 4) Additional information about capital assets can be found in Note 4. Accumulated depreciation on these assets totaled $51,425,458 for governmental activities and $56,124,370 for business-type activities.  Major capital asset additions for the year include public works, equipment/vehicles, and utility system improvements. City of Plymouth Management's Discussion and Analysis Year ended December 31, 2025 (Unaudited) xii Long-Term Obligations At year end, the City had $10,295,000 in general obligation debt and promissory notes outstanding - an increase of $5,460,000 from last year. Additional information about the City's long-term obligations is presented in Note 4 to the financial statements. 2025 2024 2025 2024 2025 2024 Land 1,651,719 $ 1,931,402 $ 1,499,338 $ 1,499,338 $ 3,151,057 $ 3,430,740 $ Land improvements 3,475,412 3,463,364 - - 3,475,412 3,463,364 Buildings 8,534,453 8,192,303 - - 8,534,453 8,192,303 Infrastructure 51,638,658 50,867,033 - - 51,638,658 50,867,033 Utility plant - - 122,775,432 120,528,555 122,775,432 120,528,555 Machinery and equipment 7,788,879 7,105,697 - - 7,788,879 7,105,697 Construction in progress 452,772 225,366 10,541,899 5,166,720 10,994,671 5,392,086 73,541,893 71,785,165 134,816,669 127,194,613 208,358,562 198,979,778 Accumulated depreciation (51,425,458) (49,889,435) (56,124,370) (53,724,210) (107,549,828) (103,613,645) Total 22,116,435 $ 21,895,730 $ 78,692,299 $ 73,470,403 $ 100,808,734 $ 95,366,133 $ Table 4 Capital Assets Governmental Activities Busine ss-Type Activitie s Totals December 31, 2025 and 2024 2025 2024 2025 2024 2025 2024 General obligation debt 5,945,000$ 2,295,000 $ 4,255,000 $ 2,415,000 $ 10,200,000 $ 4,710,000 $ Promissory notes - - 95,000 125,000 95,000 125,000 Total 5,945,000 $ 2,295,000 $ 4,350,000 $ 2,540,000 $ 10,295,000 $ 4,835,000 $ Table 5 TotalsGovernmental Activities Business-type Activities City of Plymouth's Outstanding Debt General Obligation, Revenue Bonds, and Promissory Notes City of Plymouth Management's Discussion and Analysis Year ended December 31, 2025 (Unaudited) xiii Factors Bearing on the City's Future Currently known circumstances that will impact the City's financial status in the future are:  The federal government passed the American Rescue Plan Act on March 11, 2022 to respond to the COVID-19 public health emergency and its negative economic impacts. Amounts were appropriated for fiscal year 2022 to units of local government to mitigate the fiscal effects stemming from the public health emergency. The City's estimated award is $900,000, which will be used to combat the negative effects of the public health emergency in the local economy. The City received 50% of the funds in 2021, with the remaining received during 2022. The funds are to cover costs obligated by December 31, 2024. As of December 31, 2025, all of these funds have been spent. Contacting the City's Financial Management This financial report is designed to provide our citizens, taxpayers, customers and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City Administrator/Utilities Manager or Finance Director, City of Plymouth, P.O. Box 107, Plymouth, Wisconsin 53073. City of Plymouth Statement of Net Position December 31, 2025 Governmental Activities Business- Type Activities Total Assets and Deferred Outflows of Resources Assets Cash and investments $ 19,350,499 $ 23,823,160 $ 43,173,659 Receivables: Taxes 6,661,325 - 6,661,325 Delinquent personal property taxes 28,349 - 28,349 Delinquent special assessments 3,998 - 3,998 Accounts 27,271 2,305,074 2,332,345 Accrued interest 32,965 181,951 214,916 Loans 1,572,047 - 1,572,047 Due from other governmental units 44,276 - 44,276 Internal balances (1,908,379) 1,908,379 - Prepayments 77,957 4,264 82,221 Inventory - 1,678,012 1,678,012 Replacement account - 1,199,951 1,199,951 Investment in American Transmission Company - 8,984,380 8,984,380 Capital assets: Land 1,651,719 1,499,338 3,151,057 Construction in progress 452,772 10,541,899 10,994,671 Capital assets, net of depreciation 20,011,944 66,651,062 86,663,006 Total assets 48,006,743 118,777,470 166,784,213 Deferred Outflows of Resources Deferred outflows related to pension 1,899,838 1,240,845 3,140,683 Unamortized loss on advance refunding - 6,822 6,822 Total deferred outflows of resources 1,899,838 1,247,667 3,147,505 Liabilities, Deferred inflows of Resources and Net Position Liabilities Accounts payable 1,137,773 2,041,667 3,179,440 Accrued liabilities 392,941 120,498 513,439 Due to other governmental units 16,412 - 16,412 Deposits 65,111 107,864 172,975 Unearned revenues 4,955 - 4,955 Other current liabilities - 112,413 112,413 Noncurrent liabilities: Due within one year 656,876 355,000 1,011,876 Due in more than one year 5,746,753 11,065,409 16,812,162 Net pension liability 350,309 178,756 529,065 Total liabilities 8,371,130 13,981,607 22,352,737 Deferred Inflows of Resources Deferred inflows related to pension 894,179 650,599 1,544,778 Property tax levied for next period 6,665,465 - 6,665,465 Total deferred inflows of resources 7,559,644 650,599 8,210,243 See notes to financial statements 1 City of Plymouth Statement of Net Position December 31, 2025 Governmental Activities Business- Type Activities Total Net Position Net investment in capital assets $ 17,861,398 $ 74,189,236 $ 92,050,634 Restricted for: TIF activities 2,025,938 - 2,025,938 Debt service 50,789 - 50,789 Loan programs 1,052,956 - 1,052,956 Affordable housing 2,612,365 - 2,612,365 Unrestricted 10,372,361 31,203,695 41,576,056 Total net position $ 33,975,807 $105,392,931 $139,368,738 See notes to financial statements 2 City of Plymouth Statement of Activities - Year Ended December 31, 2025 Program Revenues Net (Expenses) Revenues and Changes in Net Position Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-Type Activities Total Governmental activities: General government $ 3,927,913 $ 552,281 $ - $ - $ (3,375,632) $ - $ (3,375,632) Public safety 3,413,037 187,743 324,535 - (2,900,759) - (2,900,759) Public works 2,940,776 446,490 189,904 - (2,304,382) - (2,304,382) Health and human services 202,348 - - - (202,348) - (202,348) Culture, education and recreation 2,077,597 232,099 258,870 - (1,586,628) - (1,586,628) Conservation and development 320,312 450 - - (319,862) - (319,862) Interest and fiscal charges 209,721 - - - (209,721) - (209,721) Total governmental activities 13,091,704 1,419,063 773,309 - (10,899,332) - (10,899,332) Business-type activities: Electric 24,802,642 25,561,441 - 221,135 - 979,934 979,934 Water 1,703,028 2,529,464 - - - 826,436 826,436 Sewage 2,235,417 2,907,494 - - - 672,077 672,077 Total business-type activities 28,741,087 30,998,399 - 221,135 - 2,478,447 2,478,447 Total $ 41,832,791 $ 32,417,462 $ 773,309 $ 221,135 (10,899,332) 2,478,447 (8,420,885) General Revenues Taxes: Property taxes, levied for general purposes 4,741,936 - 4,741,936 Property taxes, levied for TIF districts 3,008,519 - 3,008,519 Other taxes 311,207 - 311,207 Intergovernmental revenues not restricted to specific programs 1,843,922 - 1,843,922 Donations 75,816 - 75,816 Investment income 823,283 2,011,223 2,834,506 Miscellaneous 102,530 89,849 192,379 Total general revenues 10,907,213 2,101,072 13,008,285 Transfers 618,099 (618,099) - Change in net position 625,980 3,961,420 4,587,400 Net Position, Beginning 33,349,827 101,431,511 134,781,338 Net Position, Ending $ 33,975,807 $ 105,392,931 $ 139,368,738 See notes to financial statements 3 City of Plymouth Balance Sheet - Governmental Funds December 31, 2025 General Tax Increment Housing Fund Debt Service TIF District #4 Assets Cash and investments $ 3,330,770 $ 2,612,365 $ 175,695 $ - Receivables: Taxes 5,643,480 - - - Delinquent personal property taxes 28,349 - - - Delinquent special assessments - - - - Accounts 14,047 - - - Accrued interest 21,697 - - - Loans - - - - Due from other governments 41,380 - - - Due from other funds 618,099 - - - Prepayments 76,204 - - - Advances to other funds 248,219 - - - Total assets $ 10,022,245 $ 2,612,365 $ 175,695 $ - Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable $ 97,743 $ - $ - $ - Accrued liabilities 268,036 - - - Deposits 55,632 - - - Due to other governments 16,412 - - - Unearned revenues 4,955 - - - Due to other funds - - - - Advances from other funds 73,943 - - - Total liabilities 516,721 - - - Deferred Inflows of Resources Unearned revenues 5,647,620 - - - Total deferred inflows of resources 5,647,620 - - - Fund Balances Nonspendable 352,772 - - - Restricted - 2,612,365 175,695 - Committed - - - - Assigned 618,099 - - - Unassigned (deficit) 2,887,033 - - - Total fund balances 3,857,904 2,612,365 175,695 - Total liabilities, deferred inflows of resources and fund balances $ 10,022,245 $ 2,612,365 $ 175,695 $ - See notes to financial statements 4 Capital Improvements Nonmajor Governmental Funds Total $ 4,532,008 $ 5,024,976 $ 15,675,814 - 1,017,845 6,661,325 - - 28,349 - 3,998 3,998 - 2,497 16,544 - 4,397 26,094 - 1,572,047 1,572,047 - 2,896 44,276 - - 618,099 - - 76,204 - 615,000 863,219 $ 4,532,008 $ 8,243,656 $ 25,585,969 $ 740,578 $ 56,031 $ 894,352 - - 268,036 - 9,479 65,111 - - 16,412 - - 4,955 - 9,000 9,000 - 1,603,886 1,677,829 740,578 1,678,396 2,935,695 - 1,017,845 6,665,465 - 1,017,845 6,665,465 - 3,998 356,770 - 3,078,894 5,866,954 - 3,709,790 3,709,790 3,791,430 - 4,409,529 - (1,245,267) 1,641,766 3,791,430 5,547,415 15,984,809 $ 4,532,008 $ 8,243,656 $ 25,585,969 See notes to financial statements 5 City of Plymouth Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position December 31, 2025 Total Fund Balances, Governmental Funds $ 15,984,809 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental funds are not financial resources and, therefore, are not reported in the funds. See Note 2. 22,116,435 The net pension liability does not relate to current financial resources and is not reported in the governmental funds. (350,309) Deferred outflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds. 1,899,838 Deferred inflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds. (894,179) Internal service funds are reported in the statement of net position as governmental activities. 1,747,748 Some liabilities, including long-term debt, are not due and payable in the current period and, therefore, are not reported in the funds. Bonds and notes payable (5,945,000) Compensated absences (178,496) Accrued interest (124,906) Unamortized premium on debt (280,133) Net Position of Governmental Activities $ 33,975,807 See notes to financial statements 6 City of Plymouth Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Year Ended December 31, 2025 General Tax Increment Housing Fund Debt Service TIF District #4 Revenues Taxes $ 4,881,382 $ - $ - $ 2,536,476 Intergovernmental 1,953,627 - - 157,202 Licenses and permits 262,023 - - - Fines, forfeitures and penalties 133,759 - - - Public charges for services 295,832 - - - Intergovernmental charges for services 163,613 - - - Investment income 364,690 75,889 - 65,601 Miscellaneous revenues 15,300 - - - Total revenues 8,070,226 75,889 - 2,759,279 Expenditures Current: General government 1,046,453 - - 2,421,183 Public safety 2,931,686 - - - Public works 1,190,526 - - - Health and human services 202,583 - - - Culture, recreation and education 1,371,986 - - - Conservation and development 90,859 - - 150 Capital outlay - - - - Debt service: Principal - - 370,000 - Interest and fiscal charges - - 12,600 - Total expenditures 6,834,093 - 382,600 2,421,333 Excess (deficiency) of revenues over expenditures 1,236,133 75,889 (382,600) 337,946 Other Financing Sources Debt issued - - - - Transfers out (2,047,926) - - (3,243,146) Sale of property - - - - Transfers in 618,099 2,536,476 383,200 - Premium on debt issued - - 170,690 - Total other financing sources (1,429,827) 2,536,476 553,890 (3,243,146) Net change in fund balances (193,694) 2,612,365 171,290 (2,905,200) Fund Balances, Beginning 4,051,598 - 4,405 2,905,200 Fund Balances, Ending $ 3,857,904 $ 2,612,365 $ 175,695 $ - See notes to financial statements 7 Capital Improvements Nonmajor Governmental Funds Total $ - $ 643,804 $ 8,061,662 143,652 199,137 2,453,618 - - 262,023 - - 133,759 - 446,108 741,940 9,817 - 173,430 34,725 156,601 697,506 - 98,601 113,901 188,194 1,544,251 12,637,839 - 204,784 3,672,420 23,717 82,581 3,037,984 - 512,228 1,702,754 - - 202,583 - 10,698 1,382,684 - 204,875 295,884 2,401,398 - 2,401,398 - 240,000 610,000 43,655 77,542 133,797 2,468,770 1,332,708 13,439,504 (2,280,576) 211,543 (801,665) 2,105,000 2,155,000 4,260,000 - - (5,291,072) 15,028 - 15,028 2,321,482 49,914 5,909,171 - 66,667 237,357 4,441,510 2,271,581 5,130,484 2,160,934 2,483,124 4,328,819 1,630,496 3,064,291 11,655,990 $ 3,791,430 $ 5,547,415 $ 15,984,809 See notes to financial statements 8 City of Plymouth 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 Net Change in Fund Balances, Total Governmental Funds $ 4,328,819 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 Net Position the cost of these assets is capitalized and they are depreciated over their estimated useful lives and reported as depreciation expense in the Statement of Activities. Capital outlay is reported as an expenditure in the fund financial statements but is capitalized in the government-wide financial statements 2,401,398 Some items reported as operating expenditures in the fund financial statements but are capitalized in the government-wide statements 56,794 Depreciation is reported in the government-wide financial statements (1,790,100) Net book value of assets retired (447,387) Debt issued provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. Debt issued (4,260,000) Principal repaid 610,000 Governmental funds report debt premiums and discounts as other financing sources (uses) or financing sources or uses. However, in the Statement of Net Position, these are reported as additions to or deductions from long-term debt. These are allocated over the period the debt is outstanding in the Statement of Activities and are reported as interest expense. Premium on debt issued (237,357) Amortization of premium 39,007 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. Compensated absences (17,268) Accrued interest on debt (114,931) Net pension liability (43,870) Deferred outflows of resources related to pensions (741,878) Deferred inflows of resources related to pensions 660,577 Internal service funds are used by management to charge insurance costs to individual funds. The change in net position of the internal service fund reported with governmental activities 182,176 Change in Net Position of Governmental Activities $ 625,980 See notes to financial statements 9 City of Plymouth Statement of Net Position - Proprietary Fund December 31, 2025 Plymouth Utilities Governmental Activities - Internal Service Funds Assets Current assets: Cash and investments $ 23,823,160 $ 3,674,685 Interest receivable 181,951 6,871 Customer accounts receivable 2,162,045 1,901 Other accounts receivable 143,029 8,826 Inventory 1,678,012 - Prepayments 4,264 1,753 Due from municipality 9,000 - Current portion of advance to TIF 30,000 - Total current assets 28,031,461 3,694,036 Noncurrent assets: Capital assets: Electric plant 65,650,476 - Water plant 27,614,029 - Sewage plant 31,010,265 - Construction work in progress 10,541,899 - Less accumulated depreciation (56,124,370) - Other assets: Replacement account 1,199,951 - Advance to municipality 73,943 - Advance to TIF's 710,667 - Investment in American Transmission Company 8,984,380 - Total noncurrent assets 89,661,240 - Total assets 117,692,701 3,694,036 Deferred Outflows of Resources Unamortized loss on advanced refunding 6,822 - Deferred outflows related to pension 1,240,845 - Total deferred outflows of resources 1,247,667 - See notes to financial statements 10 City of Plymouth Statement of Net Position - Proprietary Fund December 31, 2025 Plymouth Utilities Governmental Activities - Internal Service Funds Liabilities Current liabilities: Accounts payable $ 2,041,667 $ 243,420 Due to municipality 618,099 - Customer deposits 107,864 - Accrued interest 34,139 - Accrued vacation leave 86,359 - Other current liabilities 55,603 - Commitment to community 56,810 - Current portion of general obligation bonds payable 325,000 - Current portion of promissory notes 30,000 - Total current liabilities 3,355,541 243,420 Noncurrent liabilities: Long-term debt: General obligation bonds payable 3,930,000 - Accrued sick leave 130,040 - Promissory notes 65,000 - Unamortized premium on debt 159,885 - Customer advances for construction 6,780,484 - Net pension liability 178,756 - Total noncurrent liabilities 11,244,165 - Total liabilities 14,599,706 243,420 Deferred Inflows of Resources Deferred inflows related to pension 650,599 - Total deferred inflows of resources 650,599 - Net Position Net investment in capital assets 74,189,236 - Unrestricted 29,500,827 3,450,616 Total net position 103,690,063 $ 3,450,616 Adjustments to reflect the consolidation of internal service funds activities related to enterprise funds. 1,702,868 Net position business-type activities $ 105,392,931 See notes to financial statements 11 City of Plymouth Statement of Revenues, Expenses and Changes in Net Position - Proprietary Fund Year Ended December 31, 2025 Plymouth Utilities Governmental Activities - Internal Service Funds Operating Revenues Electric $ 25,561,441 $ - Water 2,529,464 - Sewage 2,907,494 - City and Utility contributions - 1,268,061 Other - 320,941 Total operating revenues 30,998,399 1,589,002 Operating Expenses Electric 24,711,473 - Water 1,703,028 - Sewage 2,235,417 - Health care costs, City employees - 691,388 Health care costs, Utility employees - 428,715 Risk management insurance and expense - 383,932 Total operating expenses 28,649,918 1,504,035 Operating income 2,348,481 84,967 Nonoperating Revenues (Expenses) Interest on investments 2,011,223 125,777 Merchandising & jobbing 89,849 - Legislative expenses (5,328) - Interest expense and debt issuance costs (75,436) - Amortization of premium 18,118 - Amortization of loss on advance refunding (2,341) - Issuance costs (54,750) - Total nonoperating revenues (expenses) 1,981,335 125,777 Income before contributions and transfers 4,329,816 210,744 Contributions and Transfers Capital contributions 221,135 - Transfers out (618,099) - Total contributions and transfers (396,964) - Change in net position 3,932,852 210,744 Net Position, Beginning 99,757,211 3,239,872 Net Position, Ending 103,690,063 $ 3,450,616 Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds 28,568 Change in net position of business-type activities $ 3,961,420 See notes to financial statements 12 City of Plymouth Statement of Cash Flows - Proprietary Fund Year Ended December 31, 2025 Plymouth Utilities Governmental Activities - Internal Service Funds Cash Flows From Operating Activities Received from customers $ 30,845,146 $ 1,604,634 Received from municipality for services 153,523 - Paid to suppliers for goods and services (22,371,115) (1,396,633) Paid to employees for services (1,782,747) - Net cash flows from operating activities 6,844,807 208,001 Cash Flows From Investing Activities Investments sold and matured 28,966,176 - Investment income 1,557,582 127,142 Investments purchased (16,461,349) - Investment in American Transmission Company (720,772) - Net cash flows from investing activities 13,341,637 127,142 Cash Flows From Noncapital Financing Activities Paid to municipality for tax equivalent (651,560) - Net cash flows from noncapital financing activities (651,560) - Cash Flows From Capital and Related Financing Activities Debt issued 2,640,000 - Debt retired (830,000) - Interest paid (51,099) - Premium on debt issuance 87,411 - Received from TIF 75,000 - Acquisition and construction of capital assets (8,790,562) - Debt issuance costs (54,750) - Capital contributions received 221,135 - Advance (refund) for construction (1,265,058) - Net cash flows from capital and related financing activities (7,967,923) - Net change in cash and cash equivalents 11,566,961 335,143 Cash and Cash Equivalents, Beginning 4,794,906 1,789,907 Cash and Cash Equivalents, Ending $ 16,361,867 $ 2,125,050 See notes to financial statements 13 City of Plymouth Statement of Cash Flows - Proprietary Fund Year Ended December 31, 2025 Plymouth Utilities Governmental Activities - Internal Service Funds Reconciliation of Operating Income to Net Cash Flows From Operating Activities Operating income $ 2,348,481 $ 84,967 Nonoperating revenue 84,522 - Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation 3,334,624 - Depreciation charged to other funds 19,026 - Changes in assets, liabilities, and deferred inflows and outflows: Customer accounts receivable (46,150) - Other accounts receivable (55,829) 15,632 Inventory 1,009,757 - Prepayments (3,896) (1,753) Accounts payable 76,937 109,155 Customer deposits (7,300) - Accrued vacation and sick leave 2,673 - Other current liabilities 101 - Commitment to community 25,027 - Pension related amounts 56,834 - Net cash flows from operating activities $ 6,844,807 $ 208,001 Reconciliation of Cash and Cash Equivalents to the Statement of Net Position, Proprietary Funds Cash and investments $ 23,823,160 $ 3,674,685 Replacement account 1,199,951 - Total cash and investments 25,023,111 3,674,685 Less noncash equivalents (8,661,244) (1,549,635) Cash and cash equivalents $ 16,361,867 $ 2,125,050 Noncash Capital and Related Financing Activities Dividends reinvested in American Transmission Company $ 205,645 $ - Change in fair value of investments $ 291,647 $ - See notes to financial statements 14 City of Plymouth Statement of Fiduciary Net Position - Custodial Fund December 31, 2025 Tax Collection Fund Assets Cash and investments $ 7,879,890 Taxes receivable 3,380,321 Total assets 11,260,211 Liabilities Due to other governments 11,260,211 Total liabilities 11,260,211 Net Position Total net position $ - See notes to financial statements 15 City of Plymouth Statement of Changes in Fiduciary Net Position - Custodial Fund Year Ended December 31, 2025 Tax Collection Fund Additions Property taxes collected for other governments $ 7,174,317 Total additions 7,174,317 Deductions Property taxes distributed to other governments 7,174,317 Total deductions 7,174,317 Change in fiduciary net position - Net Position, Beginning - Net Position, Ending $ - See notes to financial statements 16 City of Plymouth Index to Notes to Financial Statements December 31, 2025 Page 1. Summary of Significant Accounting Policies 18 Reporting Entity 18 Government-Wide and Fund Financial Statements 19 Measurement Focus, Basis of Accounting and Financial Statement Presentation 21 Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity 22 Deposits and Investments 22 Receivables 23 Inventories and Prepaid Items 24 Restricted Assets 24 Capital Assets 24 Other Assets 25 Deferred Outflows of Resources 25 Compensated Absences 25 Long-Term Obligations 25 Replacement Account 25 Customer Advances for Construction 26 Deferred Inflows of Resources 26 Equity Classifications 26 Pension 27 Basis for Existing Rates 27 2. Reconciliation of Government-Wide and Fund Financial Statements 28 Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Statement of Net Position 28 3. Stewardship, Compliance and Accountability 28 Budgetary Information 28 Excess Expenditures and Other Financing Uses Over Budget 28 Deficit Balances 29 Limitations on the City's Tax Levy 29 4. Detailed Notes on All Funds 29 Deposits and Investments 29 Receivables 32 Capital Assets 33 Interfund Receivables/Payables, Advances and Transfers 36 Long-Term Obligations 38 Net Position/Fund Balances 40 5. Other Information 42 Employees' Retirement System 42 Risk Management 47 Commitments and Contingencies 49 Subsequent Event 49 Tax Abatement 49 Economic Dependency 50 Effect of New Accounting Standards on Current-Period Financial Statements 50 17 City of Plymouth Notes to Financial Statements December 31, 2025 1. Summary of Significant Accounting Policies The accounting policies of the City of Plymouth, 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. Component Unit Not Presented Plymouth Redevelopment Authority (RDA) The RDA was created under the provisions of Wisconsin State Statute 66.1333 and is a legally separate organization. The board of the RDA is appointed by the mayor. Wisconsin Statutes provide for circumstances whereby the City can impose its will on the RDA, and also create a potential financial benefit to or burden on the City. The RDA's financial statements are not included in these financial statements as the activity of the RDA was deemed to be immaterial to the City. 18 City of Plymouth 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. 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. 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 and proprietary funds. 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. 19 City of Plymouth Notes to Financial Statements December 31, 2025 Special Revenue Fund Tax Increment Housing Special Revenue Fund is used to account for the receipts and expenditures of funds that are restricted for supporting affordable housing activities per state statutes.. 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 TID or enterprise debt. Capital Projects Funds Capital Improvements 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. Tax Incremental Financing (TIF) No. 4 Capital Projects Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditures outlined in the TID project plan. Enterprise Funds The City reports the following major enterprise fund: Plymouth Utilities Fund accounts for operations of the electric, water and sewage systems. 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). Committed Revolving Loan USDA Revolving Loan Garbage and Recycling Housing Grant Water and Sewer Lateral 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. TIF District #5 TIF District #6 TIF District #7 TIF District #8 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. Health Care Risk Management 20 City of Plymouth Notes to Financial Statements December 31, 2025 Custodial Fund 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. Tax Collection Fund 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 Plymouth 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. 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. 21 City of Plymouth Notes to Financial Statements December 31, 2025 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 utilities 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. 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. The City has adopted an investment policy. That policy follows the state statute for allowable investments. 22 City of Plymouth Notes to Financial Statements December 31, 2025 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 4. 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 4 for further information. 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 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 water, electric and sewage utilities 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 grant funds for 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 housing rehabilitation loans receivable has not been reduced by an allowance for uncollectible accounts. 23 City of Plymouth Notes to Financial Statements December 31, 2025 It is the City's policy to record revenue when the initial loan is made from the federal grant funds. The net amount of the loan receivable balance is included in restricted fund balance. 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 inventories, if material, are recorded at cost based on the average cost method using the purchases method of accounting. 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. 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 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 general capital assets and $5,000 for 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. Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation reflected in the statement of net position. Depreciation 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 45-50 Years Land Improvements 20-50 Years Machinery and equipment 5-20 Years Infrastructure 10-100 Years Electric plant 7-50 Years Water plant 4-77 Years Sewage plant 15-100 Years 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. 24 City of Plymouth Notes to Financial Statements December 31, 2025 Other Assets Investment in American Transmission Company (ATC) The electric utility is a member of the ATC, which was formed by approximately 25 utilities to plan, construct, maintain, monitor and own electric transmission facilities in Wisconsin. The utility owns less than 1/2 of 1% of the ATC. The investment in the ATC can only be redeemed by the ATC or another existing member. The investment earns dividends quarterly, some of which are paid in cash and some of which are required to be reinvested. From time to time, the utility has the option to contribute additional funds to maintain their proportionate share of ownership. The investment is valued at net asset value per share which is equal to the original cost, plus additional contributions and reinvested dividends and approximates fair value. 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. 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 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. Replacement Account This account represents internally designated funds for capital replacements of the wastewater treatment plant. 25 City of Plymouth Notes to Financial Statements December 31, 2025 Customer Advances for Construction The balance represent fees collected for future capital improvements. The fees may be refundable based in rules file with the PSCW or statutory requirements. 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. 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 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. 26 City of Plymouth Notes to Financial Statements December 31, 2025 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. 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. In the General Fund, it is the policy of the City to maintain a minimum unassigned fund balance that will maintain working capital to meet the cash flow needs of the City and thus reducing the need for short-term borrowing, serve as a safeguard for unanticipated expenditures and show fiscal responsibility. Per the City’s fund balance policy, the unassigned fund balance in the General Fund shall be maintained at a level of 20% to 25% of the budgeted general fund appropriations and any excess shall be allocated according to Council policy. The balance at year-end was $2,887,033, or 35%, and is included in unassigned General fund balance. See Note 4 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. Basis for Existing Rates Current electric rates were approved by the Public Service Commission of Wisconsin on October 15, 2025 and were placed into effect on November 1, 2025. Current water rates were approved by the Public Service Commission of Wisconsin on February 15, 2023 and placed into effect on April 1, 2023. Current sewage rates were approved by the common council effective April 1, 2023. 27 City of Plymouth Notes to Financial Statements December 31, 2025 2. Reconciliation of Government-Wide and Fund Financial Statements Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Statement of Net Position The governmental fund balance sheet includes a reconciliation between fund balance, total governmental funds and net position, governmental activities as reported in the government-wide statement of net position. The details of this reconciliation include the following items. Capital assets used in governmental funds are not financial resources and, therefore, are not reported in the funds. Land $ 1,651,719 Buildings 8,534,453 Machinery and equipment 7,788,879 Infrastructure 51,638,658 Land improvements 3,475,412 Construction in progress 452,772 Less accumulated depreciation (51,425,458) Combined adjustment for capital assets $ 22,116,435 3. Stewardship, Compliance and Accountability Budgetary Information A budget has been adopted for all funds with the exception of the Tax Increment Housing Fund. Wisconsin Statute 65.90 requires that an annual budget be adopted for all funds. Excess Expenditures and Other Financing Uses Over Budget The following funds had significant expenditures and other financing uses over budget: Funds Budgeted Expenditures and Other Financing Uses Actual Expenditures and Other Financing Uses Excess Expenditures and Other Financing Uses Over Budget General Fund $ 8,265,383 $ 8,882,019 $ 616,636 Committed 181,700 231,059 49,359 Housing Grant 5,200 12,335 7,135 TIF District #4 - 5,664,479 5,664,479 TIF District #6 100,626 100,627 1 TIF District #7 - 12,116 12,116 TIF District #8 - 229,596 229,596 Risk Management 311,375 383,932 72,557 The City controls expenditures at the department level. Some individual departments experienced expenditures which exceeded appropriations. The detail of those items can be found in the City's year- end budget to actual report. 28 City of Plymouth 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 TIF District #5 $ 476,541 Excess expenditures over revenues TIF District #6 705,410 Excess expenditures over revenues TIF District #7 63,316 Excess expenditures over revenues 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. 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. 4. Detailed Notes on All Funds Deposits and Investments The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the statement of net position and balance sheet as cash and investments. The City's deposits and investments at year end were comprised of the following: Carrying Value Statement Balances Associated Risks Checking and money market $ 21,226,095 $ 21,172,586 Custodial credit Certificates of deposits (negotiable) 6,119,416 6,119,416 Credit, custodial credit, concentration of credit and interest rate LGIP 121 121 Credit U.S. treasuries 8,222,053 8,222,053 Custodial credit and interest rate U.S. agency securities, implicitly guaranteed 3,973,875 3,973,875 Credit, custodial credit, concentration of credit and interest rate State and local bonds 12,711,940 12,711,940 Credit, custodial credit, concentration of credit and interest rate Total deposits and investments $ 52,253,500 $ 52,199,991 29 City of Plymouth Notes to Financial Statements December 31, 2025 Reconciliation to financial statements Per statement of net position: Unrestricted cash and investments $ 43,173,659 Replacement account 1,199,951 Per statement of fiduciary net position, custodial funds: Tax Collection Fund 7,879,890 Total deposits and investments $ 52,253,500 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 City maintains collateral agreements with its banks. At December 31, 2025, the banks had pledged various government securities in the amount of $15,466,850 to secure the City's deposits. 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:  U.S. Agency Securities - uses a market based approach which considers yield, price of comparable securities, coupon rate, maturity, credit quality and dealer-provided prices.  U.S. Treasuries - uses a market based approach which considers yield, price of comparable securities, coupon rate, maturity, credit quality and dealer-provided prices.  State and Local Bonds - uses a market based approach which considers yield, price of comparable securities, coupon rate, maturity, credit quality and dealer-provided prices.  Certificate of Deposits (negotiable) - uses a market based approach which considers yield, price of comparable securities, coupon rate, maturity, credit quality and dealer- provided prices. December 31, 2025 Investment Type Level 1 Level 2 Level 3 Total U.S. agency securities, implicitly guaranteed $ - $ 3,973,875 $ - $ 3,973,875 State and local bonds - 12,711,940 - 12,711,940 U.S. treasuries - 8,222,053 - 8,222,053 Certificates of deposits (negotiable) - 6,119,416 - 6,119,416 Total $ - $ 31,027,284 $ - $ 31,027,284 30 City of Plymouth Notes to Financial Statements December 31, 2025 The investment in ATC is measured at the net asset value (NAV) per share of ownership. As of December 31, 2025, the fair value of the investment was $8,984,380. ATC was formed by approximately 25 utilities to plan, construct, maintain, monitor and own electric transmission facilities in Wisconsin. The utility elected to receive an investment in ATC at its inception rather than directly sell its transmission facilities. The utility owns less than 1/2 of 1% of ATC. The utility has no unfunded commitment at year-end. The investment in ATC can only be redeemed by ATC or another existing member. 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 U.S. agency securities, implicitly guaranteed AA+ to AA State and local bonds A- to AAA Certificates of deposits (negotiable) NR The City also held investments in the following external pool which is not rated: LGIP - external pool 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 Portfolio Federal Home Loan Bank U.S. agency securities, implicitly guaranteed %8.68 31 City of Plymouth Notes to Financial Statements December 31, 2025 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 Years) Investment Type Fair Value Less Than 1 1-5 Greater Than 5 U.S. agency securities, implicitly guaranteed $ 3,973,875 $ 3,047,335 $ 926,540 $ - State and local bonds 12,711,940 2,814,952 9,896,988 - U.S. treasuries 8,222,053 6,841,405 872,483 508,165 Certificate of deposits (negotiable) 6,119,416 1,837,391 4,282,025 - Total $ 31,027,284 $ 14,541,083 $ 15,978,036 $ 508,165 See Note 1 for further information on deposit and investment policies. Receivables All receivables, except $1,095,394 in nonmajor funds are expected to be collected within one year. 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 Property taxes receivable for subsequent year $ 6,666,465 Gift certificates 4,955 Total unearned/unavailable revenue for governmental funds $ 6,671,420 Unearned revenue included in liabilities $ 4,955 Unearned revenue included in deferred inflows 6,666,465 Total unearned revenue for governmental funds $ 6,671,420 32 City of Plymouth Notes to Financial Statements December 31, 2025 Capital Assets Capital asset activity for the year ended December 31, 2025, was as follows: Beginning Balance Additions Deletions Ending Balance Governmental Activities Capital assets not being depreciated: Land $ 1,931,402 $ 116,190 $ 395,873 $ 1,651,719 Construction in progress 225,366 227,406 - 452,772 Total capital assets not being depreciated 2,156,768 343,596 395,873 2,104,491 Capital assets being depreciated: Land improvements 3,463,364 12,048 - 3,475,412 Buildings 8,192,303 342,150 - 8,534,453 Infrastructure 50,867,033 771,625 - 51,638,658 Machinery and equipment 7,105,697 988,773 305,591 7,788,879 Total capital assets being depreciated 69,628,397 2,114,596 305,591 71,437,402 Total capital assets 71,785,165 2,458,192 701,464 73,541,893 Less accumulated depreciation for: Land improvements (2,158,660) (99,678) - (2,258,338) Buildings (4,363,995) (205,928) - (4,569,923) Infrastructure (38,662,635) (1,007,672) - (39,670,307) Machinery and equipment (4,704,145) (476,822) 254,077 (4,926,890) Total accumulated depreciation (49,889,435) (1,790,100) 254,077 (51,425,458) Net capital assets being depreciated 19,738,962 324,496 51,514 20,011,944 Total governmental activities capital assets, net as reported in the statement of net position $ 21,895,730 $ 668,092 $ 447,387 $ 22,116,435 Depreciation expense was charged to functions as follows: Governmental Activities General government $ 126,278 Public safety 234,696 Public works 1,371,032 Culture, education and recreation 58,094 Total governmental activities depreciation expense $ 1,790,100 33 City of Plymouth Notes to Financial Statements December 31, 2025 Business-Type Activities Beginning Balance Additions Deletions Ending Balance Sewer Capital assets not being depreciated: Land and land rights $ 192,453 $ - $ - $ 192,453 Construction in progress 751,484 - 751,484 - Total capital assets not being depreciated 943,937 - 751,484 192,453 Capital assets being depreciated: Collection system 14,116,786 - - 14,116,786 Collection system pumping 3,257,438 331,660 52,367 3,536,731 Treatment and disposal 10,886,566 1,324,358 208,701 12,002,223 General 1,162,072 - - 1,162,072 Total capital assets being depreciated 29,422,862 1,656,018 261,068 30,817,812 Total capital assets 30,366,799 1,656,018 1,012,552 31,010,265 Less accumulated depreciation for: Collection system (2,683,628) (142,563) 69,823 (2,756,368) Collection system pumping (1,865,658) (112,228) - (1,977,886) Treatment and disposal (9,942,747) (347,095) 275,679 (10,014,163) General (681,984) (79,850) - (761,834) Total accumulated depreciation (15,174,017) (681,736) 345,502 (15,510,251) Net capital assets being depreciated 14,248,845 974,282 (84,434) 15,307,561 Net sewer capital assets $ 15,192,782 $ 974,282 $ 667,050 $ 15,500,014 Beginning Balance Additions Deletions Ending Balance Water Capital assets not being depreciated: Land and land rights $ 221,228 $ - $ - $ 221,228 Total capital assets not being depreciated 221,228 - - 221,228 Capital assets being depreciated: Source of supply 567,881 - - 567,881 Pumping 1,672,194 85,738 13,538 1,744,394 Water treatment 749,265 969 - 750,234 Transmission and distribution 22,151,226 526,351 82,426 22,595,151 General 1,708,304 43,983 17,146 1,735,141 Total capital assets being depreciated 26,848,870 657,041 113,110 27,392,801 Total capital assets 27,070,098 657,041 113,110 27,614,029 Less accumulated depreciation for: Source of supply (322,720) (16,469) - (339,189) Pumping (676,574) (64,324) 18,050 (722,848) Water treatment (436,838) (44,985) 51 (481,772) Transmission and distribution (4,987,175) (404,401) 109,509 (5,282,067) General (1,037,360) (33,714) 17,146 (1,053,928) Total accumulated depreciation (7,460,667) (563,893) 144,756 (7,879,804) Net capital assets being depreciated 19,388,203 93,148 (31,646) 19,512,997 Net water capital assets $ 19,609,431 $ 93,148 $ (31,646) $ 19,734,225 34 City of Plymouth Notes to Financial Statements December 31, 2025 Beginning Balance Additions Deletions Ending Balance Electric Capital assets not being depreciated: Land and land rights $ 1,085,657 $ - $ - $ 1,085,657 Construction in progress 4,415,236 6,451,090 324,427 10,541,899 Total capital assets not being depreciated 5,500,893 6,451,090 324,427 11,627,556 Capital assets being depreciated: Distribution 55,866,045 573,275 370,768 56,068,552 General 8,390,778 182,489 77,000 8,496,267 Total capital assets being depreciated 64,256,823 755,764 447,768 64,564,819 Total capital assets 69,757,716 7,206,854 772,195 76,192,375 Less accumulated for: Distribution (26,036,607) (1,902,081) 435,004 (27,503,684) General (5,052,919) (254,712) 77,000 (5,230,631) Total accumulated depreciation (31,089,526) (2,156,793) 512,004 (32,734,315) Net capital assets being depreciated 33,167,297 (1,401,029) (64,236) 31,830,504 Net electric capital assets $ 38,668,190 $ 5,050,061 $ 260,191 $ 43,458,060 Business-type activities capital assets, net as reported in the statement of net position $ 73,470,403 $ 6,117,491 $ 895,595 $ 78,692,299 Depreciation expense was charged to functions as follows: Business-Type Activities Sewer $ 731,281 Water 529,115 Electric 2,074,228 Total business-type activities, net as reported in the statement of net position expense $ 3,334,624 Depreciation expense may be different from business-type activity accumulated depreciation additions because of joint metering, salvage, cost of removal, internal allocations or costs associated with the disposal of assets. 35 City of Plymouth 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 Plymouth Utilities $ 618,099 Plymouth Utilities Water and Sewer Lateral 9,000 Total, fund financial statements 627,099 Add interfund receivables created with internal service fund eliminations 1,702,868 Less government-wide eliminations (1,236,198) Add interfund advances 814,610 Total internal balances, government-wide statement of net position $ 1,908,379 All amounts are due within one year. This interfund relates to the payment in lieu of taxes (PILOT) due from the Utilities to the General Fund on an annual basis. Advances The Plymouth Utilities is advancing funds to TIF District #6. The amount advanced is determined by the deficiency of revenues over expenditures and other financing sources On December 7, 2010, the common council adopted a resolution to create TIF District #6 and established boundaries. Financing for the initial capital improvements has been secured by the municipality through issuance of $6.9 million combined utility revenue bonds, dated July 6, 2011, and these amounts are currently being shown as an advance. The 2011 revenue bonds have been refunded with the 2020 general obligation bonds.A repayment schedule has been established for these advances and no interest is being charged. The final payment to the General Fund for the balance of the advance is in 2025. The Utilities portion of this advance is in the amount of $745,666, however a repayment schedule as only been created for $317,426 of this balance as follows: $30,000 for each year of 2026-2028, $25,000 in 2029, $30,000 in 2030 and $167,426 in 2031. If the cash flow of TIF District #6 improves, the repayment schedule will be adjusted to return as much as possible to the Utilities. Currently, $428,240 is not covered by the repayment schedule. On September 24, 2024, the common council adopted the resolution to create TIF District #7 and establish boundaries. The deficit cash in TIF District #7 are currently shown as an advance from the General Fund. No repayment schedule has been established and no interest being charged. On June 5, 2025, the common council adopted the resolution to create TIF District #8 and establish boundaries. The deficit cash in TIF District #8 are currently shown as an advance from the General Fund. No repayment schedule has been established and no interest is being charged. The Utilities are advancing funds to the General Fund. The amount advanced relates to the initial costs of setting up the Stormwater fund. In 2025, the Stormwater fund will be separated from the General Fund and this advance will be subsequently paid by the public user fee charges collected. No repayment schedule has been established and no interest is being charged. 36 City of Plymouth Notes to Financial Statements December 31, 2025 On January 19, 2023, the common council adopted a resolution for the Revolving Loan fund to advance $750,000 to TIF District #5 to finance the construction of E Clifford Street. This is a zero-interest loan payable through 2028 and the repayment schedule is as follows: TIF 5 Years Principal 2026 $ 155,000 2027 155,000 2028 305,000 Total $ 615,000 The following is a schedule of interfund advances: Receivable Fund Payable Fund Amount Amount Not Due Within One Year General Fund TIF District #8 $ 184,903 $ 184,903 General Fund TIF District #7 63,316 63,316 Plymouth Utilities General Fund 73,943 73,943 Plymouth Utilities TIF District #6 740,667 710,667 Revolving Loan TIF District #5 615,000 460,000 Total, fund financial statements 1,677,829 Less fund eliminations (863,219) Total, interfund advances, government-wide statement of net position $ 814,610 Transfers The following is a schedule of interfund transfers: Fund Transferred To Fund Transferred From Amount Principal Purpose General Fund Plymouth Utilities $ 618,099 PILOT Debt Service General Fund 383,200 Tax levy distribution Capital Improvements General Fund 1,614,812 Tax levy distribution Garbage and Recycling General Fund 49,914 Tax levy distribution Tax Increment Housing TIF District #4 2,536,476 Establish affordable housing fund Capital Improvements TIF District #4 706,670 Refund of increment in excess of project costs Total, fund financial statements 5,909,171 Less fund eliminations (5,291,072) Total transfers, government-wide statement of activities $ 618,099 37 City of Plymouth Notes to Financial Statements December 31, 2025 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. 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 $ 2,295,000 $ 4,260,000 $ 610,000 $ 5,945,000 $ 605,000 Premium on long-term debt 81,783 237,357 39,007 280,133 - Total bonds and notes payable 2,376,783 4,497,357 649,007 6,225,133 605,000 Other liabilities: Compensated absences* 161,229 17,267 - 178,496 51,876 Total other liabilities 161,229 17,267 - 178,496 51,876 Total governmental activities long- term liabilities $ 2,538,012 $ 4,514,624 $ 649,007 $ 6,403,629 $ 656,876 Business-Type Activities Bonds and notes payable: General obligation debt $ 2,415,000 $ 2,640,000 $ 800,000 $ 4,255,000 $ 325,000 Promissory notes 125,000 - 30,000 95,000 30,000 Premium on long-term debt 90,592 87,411 18,118 159,885 - Total bonds and notes payable 2,630,592 2,727,411 848,118 4,509,885 355,000 Other liabilities: Customer advances for construction 8,045,542 268,948 1,534,006 6,780,484 - Compensated absences* 143,312 33,379 46,651 130,040 - Total other liabilities 8,188,854 302,327 1,580,657 6,910,524 - Total business-type activities long- term liabilities $ 10,819,446 $ 3,029,738 $ 2,428,775 $ 11,420,409 $ 355,000 *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 $63,076,465. Total general obligation debt outstanding at year end was $10,200,000. 38 City of Plymouth 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. Business-type activities debt is payable by revenues from user fees of those funds or, if the revenues are not sufficient, by future tax levies. Governmental Activities General Obligation Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2025 2016 G.O. Refunding Bonds 05/18/16 04/01/27 2.00% $ 5,485,000 $ 445,000 2019 G.O. Promissory Note 12/05/19 05/01/29 2.00-3.00 1,540,000 660,000 2020 G.O. Refunding Bond 02/27/20 05/01/31 2.00-3.00 1,000,000 580,000 2025 G.O. Promissory Note 08/13/25 05/01/45 4.00-5.00 4,260,000 4,260,000 Total governmental activities, general obligation debt $ 5,945,000 Business-Type Activities General Obligation Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2025 General obligation refunding bonds 02/27/20 05/01/31 2.00-3.00% $ 2,785,000 $ 1,615,000 Utility improvement projects 08/13/25 05/01/45 4.00-5.00 775,000 775,000 Electric improvement projects 08/13/25 05/01/45 4.00-5.00 1,865,000 1,865,000 Total business-type activities, general obligation debt $ 4,255,000 Debt service requirements to maturity are as follows: Governmental Activities Business-Type Activities General Obligation Debt General Obligation Debt Years Principal Interest Principal Interest 2026 $ 605,000 $ 268,078 $ 325,000 $ 173,963 2027 660,000 206,200 365,000 136,619 2028 640,000 184,475 375,000 124,894 2029 635,000 160,700 385,000 114,219 2030 390,000 140,700 380,000 103,419 2031-2035 1,580,000 466,925 860,000 394,894 2036-2040 650,000 232,000 715,000 252,169 2041-2045 785,000 85,294 850,000 90,446 Total $ 5,945,000 $ 1,744,372 $ 4,255,000 $ 1,390,623 39 City of Plymouth Notes to Financial Statements December 31, 2025 Other Long-Term Debt Other Long-Term Debt at December 31, 2025 consists of the following: Business-Type Activities Other Long-Term Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2025 Renewable energy project, direct 02/07/19 03/28/29 0.00% $ 300,000 $ 95,000 Total business-type activities other long-term debt $ 95,000 Debt service requirements to maturity are as follows: Business-Type Activities Other Long-Term Debt Years Principal Interest 2026 $ 30,000 $ - 2027 30,000 - 2028 30,000 - 2029 5,000 - Total $ 95,000 $ - Net Position/Fund Balances Net position reported on the government-wide statement of net position at December 31, 2025, includes the following: Governmental Activities Net investment in capital assets: Land $ 1,651,719 Construction in progress 452,772 Other capital assets, net of accumulated depreciation 20,011,944 Less long-term debt outstanding (5,945,000) Plus unspent capital related debt proceeds 1,970,096 Less unamortized debt premium (280,133) Total net investment in capital assets $ 17,861,398 40 City of Plymouth 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 Debt Service Capital Improvements Tax Increment Housing Nonmajor Funds Total Fund Balances Nonspendable: Inventories and prepaid items $ 76,204 $ - $ - $ - $ - $ 76,204 Delinquent specials/personal property taxes 28,349 - - - 3,998 32,347 Advances 248,219 - - - - 248,219 Subtotal 352,772 - - - 3,998 356,770 Restricted for: Debt service - 175,695 - - - 175,695 TIF activities - - - - 2,025,938 2,025,938 Affordable Housing - - - 2,612,365 - 2,612,365 Loans - - - - 1,052,956 1,052,956 Subtotal - 175,695 - 2,612,365 3,078,894 5,866,954 Committed to: Garbage and recycling - - - - 82,163 82,163 Loans - - - - 3,117,962 3,117,962 Room tax - - - - 228,790 228,790 Sick leave - - - - 55,000 55,000 Mural maintenance - - - - 19,945 19,945 Parks and playgrounds - - - - 19,914 19,914 Streets - - - - 20,000 20,000 Veterans memorial - - - - 2,177 2,177 Fire - - - - 109,576 109,576 Police - - - - 37,984 37,984 Library - - - - 15,366 15,366 Grant purposes - - - - 913 913 Subtotal - - - - 3,709,790 3,709,790 Assigned to: PILOT 618,099 - - - - 618,099 Capital projects - - 3,791,430 - - 3,791,430 Subtotal 618,099 - 3,791,430 - - 4,409,529 Unassigned (Deficit) 2,887,033 - - - (1,245,267) 1,641,766 Total fund balances $ 3,857,904 $ 175,695 $ 3,791,430 $ 2,612,365 $ 5,547,415 $ 15,984,809 41 City of Plymouth Notes to Financial Statements December 31, 2025 Business-Type Activities Net investment in capital assets: Land $ 1,499,338 Construction in progress 10,541,899 Other capital assets, net of accumulated depreciation 66,651,062 Less long-term debt outstanding (4,350,000) Less unamortized debt premium (159,885) Plus unamortized loss on refunding 6,822 Total net investment in capital assets $ 74,189,236 5. 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. 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. 42 City of Plymouth Notes to Financial Statements December 31, 2025 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 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 $474,853 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 43 City of Plymouth Notes to Financial Statements December 31, 2025 Pension Liability, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At December 31, 2025, the City reported a liability of $529,065 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 0.03219793%, which was an increase of 0.00020286% from its proportion measured as of December 31, 2023. For the year ended December 31, 2025, the City recognized pension expense of $656,858. 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 $ 1,643,037 $ 1,543,939 Changes in assumptions 156,983 - Net differences between projected and actual earnings on pension plan investments 803,942 - Changes in proportion and differences between employer contributions and proportionate share of contributions 5,687 839 Employer contributions subsequent to the measurement date 531,034 - Total $ 3,140,683 $ 1,544,778 $531,034 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 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 $ 320,841 2027 1,099,102 2028 (270,676) 2029 (84,395) 2030 (1) 44 City of Plymouth Notes to Financial Statements December 31, 2025 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. 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. 45 City of Plymouth Notes to Financial Statements December 31, 2025 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%. 46 City of Plymouth 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.). 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) $ 4,963,323 $ 529,065 $ (2,621,347) 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. At December 31, 2025, the City reported a payable to the pension plan which represents contractually required contributions outstanding as of the end of the year. 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. These risks are covered through the City's participation in CVMIC programs, commercial insurance and the City's partially self-funded health care program. Settled claims have not exceeded coverage in any of the last three years. There were no significant reductions in coverage compared to the prior year. Beginning January 1, 2013, the City switched to an insurance internal service fund method of accounting for its health care and risk management programs. The purpose of an internal service fund is "to account for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental unit, or to other governmental units, on a cost-reimbursements basis." In this case, health care and risk management costs are being centralized and provided as a benefit to all City departments. 47 City of Plymouth Notes to Financial Statements December 31, 2025 Public Entity Risk Pool Wisconsin Municipal Insurance Commission (WMIC) Cities and Villages Mutual Insurance Company (CVMIC) The WMIC is an intergovernmental cooperation commission created by contract under Section 66.30 of the Wisconsin Statutes. It was created in August, 1987 for the purpose of facilitating the organization, establishment and capitalization of the CVMIC, and has numerous cities and villages as members. The CVMIC is a municipal mutual insurance company established on September 14, 1987 under Section 611.23 of the Wisconsin Statutes. The CVMIC provides liability insurance coverage to the cities and villages which make up the membership of the WMIC. The CVMIC is self-insured up to a maximum of $2,000,000 of each insurance risk. Losses paid by CVMIC plus administrative expenses will be recovered through premiums to the participating pool of municipalities. The City's share of such losses is approximately 1%. Management of each organization consists of a board of directors or officers comprised of representatives elected by each of three classes of participants based on population. The City does not exercise any control over the activities of the agencies beyond the election of the officers and board. Financial statements of WMIC and CVMIC can be obtained directly from CVMIC's offices. The City pays an annual premium to CVMIC for its general liability insurance, which provides coverage up to $5,000,000 per occurrence, less the City's retained liability. The City's retained liability is limited to $25,000 per occurrence and an annual aggregate limit of $100,000. Changes in the fund's claims loss liability follow: Year Beginning Balance Incurred Claims Claims Paid/ Settled Ending Balance 2025 $ - $ 18,787 $ - $ 18,787 Health Care Program Effective January 1, 2013, the City and Utilities transferred $815,824 and $667,500, respectively to establish the new health care internal service fund. The purpose of this fund is to pay medical and prescription drug claims of all City employees and their dependents and to minimize the total costs of annual insurance coverage. For the current plan year, the City utilized Prairie States Enterprises as the third-party administrator for processing claims and uses Health Payment Systems (as a supplementary option) for pre-processing the claims for further discounts. In addition to maintaining a reserve fund, the City carries stop-loss coverage with ASG / Companion Life, which covers claims in excess of $75,000 per individual up to an aggregate of $1,357,976. Changes in fund's claims loss liability follows: Year Beginning Balance Incurred Claims Claims Paid/ Settled Ending Balance 2025 $ 128,215 $ 1,215,191 $ 1,120,103 $ 223,303 48 City of Plymouth Notes to Financial Statements December 31, 2025 In 2011, the City joined the Center for Health & Wellness. The consortium provides nurse practitioner, physical therapist, chiropractic care, primary medical doctor care and limited wellness services to its members at a reduced cost. The public-private partnership contracts with Prevea Health to staff the Center. Costs related to the Center for Health & Wellness are part of the health care internal service fund. 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. Long-Term Contracts, WPPI Energy The electric utility is one of 51 WPPI Energy member municipalities located throughout the States of Wisconsin, Michigan and Iowa. On December 1, 1989, each initial WPPI Energy member commenced purchasing electric service from W PPI Energy under a long-term Power Supply Contract for Participating Members (long-term contract). Under the long-term contract, WPPI Energy is obligated to provide and sell, and each member is obligated to take and pay for, the electric power and energy required for the operation of each member's electric utility. The long-term contract requires all WPPI Energy members to pay for power and energy requirements supplied or made available by WPPI Energy at rates sufficient to cover WPPI Energy's revenue requirement including power supply costs, administrative expenses and debt service. WPPI Energy's subsequent year's operating budget and rates are approved annually by its Board of Directors, consisting of representatives from each member. The members have agreed to charge rates to retail customers sufficient to meet their WPPI Energy obligations. The long-term contract provides that all payments to WPPI Energy constitute operating expenses of the utility payable from any operating and maintenance fund established for that system. Fifty members, representing approximately 99.8% of WPPI Energy's existing load, have long-term contracts through December 31, 2055. The remaining member has a long-term contract through December 31, 2037. WPPI Energy's outstanding debt service obligation to be paid by its members through their wholesale power charges through the remainder of the long-term contract was $ 221 million as of December 31, 2025. Subsequent Event On July 2, 2026, the City issued $11,565,000 of General Obligation Promissory Notes. The proceeds of the notes will be used to finance capital improvement projects. Tax Abatement In 2024, the City issued a municipal revenue obligation as part of a developer agreement. The amount of the obligation was $6,300,000 and is payable to the developer solely from tax increments collected from a special portion of the development in TID No. 7. Payments are scheduled through the year 2045 (the life of the TID). 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 $6,300,000. 49 City of Plymouth Notes to Financial Statements December 31, 2025 Economic Dependency Electric Utility The utility has one significant customer who was responsible for 15% of operating revenues in 2025. Sewerage Utility The utility has one significant customer who was responsible for 25% of operating revenues in 2025. Water Utility The utility has one significant customer who was responsible for 10% of operating revenues in 2025. 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. 50 REQUIRED SUPPLEMENTARY INFORMATION City of Plymouth Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund Year Ended December 31, 2025 Original and Final Budget Actual Variance With Final Budget Revenues Taxes $ 4,874,083 $ 4,881,382 $ 7,299 Intergovernmental 1,939,338 1,953,627 14,289 Licenses and permits 197,290 262,023 64,733 Fines, forfeitures and penalties 86,800 133,759 46,959 Public charges for services 256,700 295,832 39,132 Intergovernmental charges for services 136,500 163,613 27,113 Investment income 75,372 364,690 289,318 Miscellaneous revenues 6,300 15,300 9,000 Total revenues 7,572,383 8,070,226 497,843 Expenditures Current: General government 1,137,428 1,046,453 90,975 Public safety 2,798,797 2,931,686 (132,889) Public works 1,596,119 1,190,526 405,593 Health and human services 143,035 202,583 (59,548) Culture, recreation and education 1,121,492 1,371,986 (250,494) Conservation and development 27,010 90,859 (63,849) Total expenditures 6,823,881 6,834,093 (10,212) Excess of revenues over expenditures 748,502 1,236,133 487,631 Other Financing Sources (Uses) Transfers out (1,441,502) (2,047,926) (606,424) Sale of property 3,000 - (3,000) Transfers in 690,000 618,099 (71,901) Total other financing sources (uses) (748,502) (1,429,827) (681,325) Net change in fund balance - (193,694) (193,694) Fund Balance, Beginning 4,051,598 4,051,598 - Fund Balance, Ending $ 4,051,598 $ 3,857,904 $ (193,694) See notes to the required supplementary information 51 City of Plymouth Schedule of Proportionate Share of the Net Pension Liability (Asset) Wisconsin Retirement System Year Ended December 31, 2025 City's Proportionate City's City's Share of the Net Plan Fiduciar y Proportion Proportionate Pension Liability Net Position as a of the Net Share of the City's (Asset) as a Percentage of the Fiscal Pension Net Pension Covered Percentage o f Total Pension Year Ending Asset Liability (Asset) Payroll Covered Payroll Liability 12/31/25 0.03219793 % 529,065$ 5,307,860$ 9.97% 98.79 % 12/31/24 0.03199507 % 475,704 5,043,905 9.43 % 98.85 % 12/31/23 0.03204068 % 1,697,415 4,668,582 36.36 % 95.72 % 12/31/22 0.03233349 % (2,606,138) 4,565,017 57.09 % 106.02 % 12/31/21 0.03231786 % (2,017,648) 4,534,351 44.50 % 105.26 % 12/31/20 0.03206321 % (1,033,864) 4,463,535 23.16 % 102.96 % 12/31/19 0.03133121 % 1,114,666 4,196,530 26.56 % 96.45 % 12/31/18 0.03095614 % (919,124) 4,106,942 22.38 % 102.93 % 12/31/17 0.03045086 % 250,988 3,910,997 6.42 % 99.12 % 12/31/16 0.03095444 % 503,004 3,908,249 12.87 % 98.20 % Schedule of Employer Contributions Wisconsin Retirement System Year Ended December 31, 2025 Contributions in Relation to the Contributions Contractually Contractually Contribution as a Percentage Fiscal Required Required Deficiency Covered of Covered Year Ending Contributions Contributions (Excess) Payroll Payroll 12/31/25 531,034$ 531,034$ -$ 5,822,219$ 9.12 % 12/31/24 474,855 474,855 - 5,307,861 8.95 % 12/31/23 429,532 429,532 - 5,043,906 8.52 % 12/31/22 372,489 372,489 - 4,668,582 7.98 % 12/31/21 370,638 370,638 - 4,565,017 8.12 % 12/31/20 368,668 368,668 - 4,534,352 8.13 % 12/31/19 340,756 340,756 - 4,463,536 7.63 % 12/31/18 326,606 326,606 - 4,196,530 7.78 % 12/31/17 322,928 322,928 - 4,106,943 7.86 % 12/31/16 288,509 288,509 - 3,910,997 7.38 % See notes to the required supplementary information 52 City of Plymouth Notes to Required Supplementary Information Year Ended December 31, 2025 Budgetary Information Budgetary information is derived from the annual operating budget and is presented using the same basis of accounting for each fund as described in Note 1. The budgeted amounts presented are as presented in the original budget and no amendments were adopted during the year. The City may authorize transfers of budgeted amounts within departments. Transfers between departments and changes to the overall budget must be approved by a two-thirds action. Appropriations lapse at year end unless specifically carried over. There were no carryovers to the following year. Budgets are adopted at the department level of expenditure. 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 reflect 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 reflect updated trends by transitioning from the Wisconsin 2012 Mortality Table to the Wisconsin 2018 Mortality Table 53 SUPPLEMENTARY INFORMATION City of Plymouth Combining Balance Sheet - Nonmajor Governmental Funds December 31, 2025 Special Revenue Funds Committed Revolving Loan USDA Revolving Loan Garbage and Recycling Housing Grant Assets Cash and investments $ 534,180 $ 1,092,860 $ 412,279 $ 117,765 $ 247,072 Receivables: Taxes - - - 478,462 - Accrued interest - 3,520 - - - Delinquent special assessments - - - - - Loans - 879,381 - - 393,605 Accounts 2,497 - - - - Due from other governments - - - 2,896 - Advances to other funds - 615,000 - - - Total assets $ 536,677 $ 2,590,761 $ 412,279 $ 599,123 $ 640,677 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable $ 17,533 $ - $ - $ 38,498 $ - Due to other funds - - - - - Deposits 9,479 - - - - Advances from other funds - - - - - Total liabilities 27,012 - - 38,498 - Deferred Inflows of Resources Unearned revenues - - - 478,462 - Total deferred inflows of resources - - - 478,462 - Fund Balances Nonspendable - - - - - Restricted - - 412,279 - 640,677 Committed 509,665 2,590,761 - 82,163 - Unassigned (deficit) - - - - - Total fund balances (deficit) 509,665 2,590,761 412,279 82,163 640,677 Total liabilities, deferred inflows of resources and fund balances $ 536,677 $ 2,590,761 $ 412,279 $ 599,123 $ 640,677 54 Special Revenue Funds Capital Projects Funds Water and Sewer Lateral TIF District #5 TIF District #6 TIF District #7 TIF District #8 Total Nonmajor Governmental Funds $ 236,263 $ 138,459 $ 35,257 $ - $ 2,210,841 $ 5,024,976 39,255 362,810 104,871 32,447 - 1,017,845 877 - - - - 4,397 3,998 - - - - 3,998 299,061 - - - - 1,572,047 - - - - - 2,497 - - - - - 2,896 - - - - - 615,000 $ 579,454 $ 501,269 $ 140,128 $ 32,447 $ 2,210,841 $ 8,243,656 $ - $ - $ - $ - $ - $ 56,031 9,000 - - - - 9,000 - - - - - 9,479 - 615,000 740,667 63,316 184,903 1,603,886 9,000 615,000 740,667 63,316 184,903 1,678,396 39,255 362,810 104,871 32,447 - 1,017,845 39,255 362,810 104,871 32,447 - 1,017,845 3,998 - - - - 3,998 - - - - 2,025,938 3,078,894 527,201 - - - - 3,709,790 - (476,541) (705,410) (63,316) - (1,245,267) 531,199 (476,541) (705,410) (63,316) 2,025,938 5,547,415 $ 579,454 $ 501,269 $ 140,128 $ 32,447 $ 2,210,841 $ 8,243,656 55 City of Plymouth Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended December 31, 2025 Special Revenue Funds Committed Revolving Loan USDA Revolving Loan Garbage and Recycling Housing Grant Revenues Taxes $ 171,761 $ - $ - $ - $ - Intergovernmental 96,276 - - 22,165 - Public charges for services - - - 446,108 - Investment income - 72,987 14,288 - 7,947 Miscellaneous revenues 66,004 - - - - Total revenues 334,041 72,987 14,288 468,273 7,947 Expenditures Current: General government - 4,324 - - - Public safety 82,581 - - - - Public works - - - 512,228 - Culture, recreation and education 10,698 - - - - Conservation and development 137,780 - - - 12,335 Debt service: Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 231,059 4,324 - 512,228 12,335 Excess (deficiency) of revenues over expenditures 102,982 68,663 14,288 (43,955) (4,388) Other Financing Sources Debt issued - - - - - Premium on debt issued - - - - - Transfers in - - - 49,914 - Total other financing sources - - - 49,914 - Net change in fund balances 102,982 68,663 14,288 5,959 (4,388) Fund Balances (Deficit), Beginning 406,683 2,522,098 397,991 76,204 645,065 Fund Balances (Deficit), Ending $ 509,665 $ 2,590,761 $ 412,279 $ 82,163 $ 640,677 56 Special Revenue Funds Capital Projects Funds Water and Sewer Lateral TIF District #5 TIF District #6 TIF District #7 TIF District #8 Total Nonmajor Governmental Funds $ - $ 360,968 $ 111,075 $ - $ - $ 643,804 - 71,203 9,493 - - 199,137 - - - - - 446,108 14,312 10,161 3,039 - 33,867 156,601 - - 32,597 - - 98,601 14,312 442,332 156,204 - 33,867 1,544,251 - 4,216 224 12,116 183,904 204,784 - - - - - 82,581 - - - - - 512,228 - - - - - 10,698 2,882 50,150 728 - 1,000 204,875 - 155,000 85,000 - - 240,000 - 18,175 14,675 - 44,692 77,542 2,882 227,541 100,627 12,116 229,596 1,332,708 11,430 214,791 55,577 (12,116) (195,729) 211,543 - - - - 2,155,000 2,155,000 - - - - 66,667 66,667 - - - - - 49,914 - - - - 2,221,667 2,271,581 11,430 214,791 55,577 (12,116) 2,025,938 2,483,124 519,769 (691,332) (760,987) (51,200) - 3,064,291 $ 531,199 $ (476,541) $ (705,410) $ (63,316) $ 2,025,938 $ 5,547,415 57 City of Plymouth Combining Statement of Net Position - Internal Service Funds December 31, 2025 Health Care Risk Management Total Assets Current assets: Cash and investments $ 3,172,583 $ 502,102 $ 3,674,685 Receivables: Accrued interest 6,694 177 6,871 Accounts 8,826 1,901 10,727 Prepaid items 1,753 - 1,753 Total assets 3,189,856 504,180 3,694,036 Liabilities Current liabilities: Accounts payable 223,303 20,117 243,420 Total liabilities 223,303 20,117 243,420 Net Position Unrestricted 2,966,553 484,063 3,450,616 Total net position $ 2,966,553 $ 484,063 $ 3,450,616 58 City of Plymouth Combining Statement of Revenues, Expenditures and Changes in Fund Net Position - Internal Service Funds Year Ended December 31, 2025 Health Care Risk Management Total Operating Revenues City and Utility contributions $ 956,687 $ 311,374 $ 1,268,061 Other 173,054 147,887 320,941 Total operating revenues 1,129,741 459,261 1,589,002 Operating Expenses Health care costs, City employees 691,388 - 691,388 Health care costs, Utility employees 428,715 - 428,715 Risk management insurance and expenses - 383,932 383,932 Total operating expenses 1,120,103 383,932 1,504,035 Operating income 9,638 75,329 84,967 Nonoperating Revenues Investment income 114,237 11,540 125,777 Total nonoperating revenues 114,237 11,540 125,777 Change in net position 123,875 86,869 210,744 Net Position, Beginning 2,842,678 397,194 3,239,872 Net Position, Ending $ 2,966,553 $ 484,063 $ 3,450,616 59 City of Plymouth Combining Statement of Cash Flows Internal Service Funds Year Ended December 31, 2025 Health Care Risk Management Total Cash Flows From Operating Activities Received from customers $ 1,128,432 $ 476,202 $ 1,604,634 Paid to suppliers for goods and services (1,026,768) (369,865) (1,396,633) Net cash flows from operating activities 101,664 106,337 208,001 Cash Flows From Investing Activities Investment income 115,567 11,575 127,142 Net cash flows from investing activities 115,567 11,575 127,142 Net change in cash and cash equivalents 217,231 117,912 335,143 Cash and Cash Equivalents, Beginning 1,445,678 344,229 1,789,907 Cash and Cash Equivalents, Ending $ 1,662,909 $ 462,141 $ 2,125,050 Reconciliation of Operating Income to Net Cash Flows From Operating Activities Operating income $ 9,638 $ 75,329 $ 84,967 Changes in assets and liabilities: Accounts receivable (1,309) 16,941 15,632 Accounts payable 95,088 14,067 109,155 Prepaids (1,753) - (1,753) Net cash flows from operating activities $ 101,664 $ 106,337 $ 208,001 Reconciliation of Cash and Cash Equivalents to the Statement of Net Position Cash and investments, statement of net position $ 3,172,583 $ 502,102 $ 3,674,685 Less noncash equivalents (1,509,674) (39,961) (1,549,635) Cash and cash equivalents $ 1,662,909 $ 462,141 $ 2,125,050 Noncash Capital and Related Financing Activities None 60 Madison, WI 53707-7398 4807 Innovate Lane Plymouth Utilities Report to the Common Council August 24, 2026 Presented By: Baker Tilly US, LLP P.O. Box 7398 Note: Actual data was derived from current and prior years audited financial statements 512 975 7281 Aaron Worthman, CPA, Principal 2021 2022 2023 2024 2025 Residential 63,745 63,025 61,487 61,636 64,061 Small Commercial and Industrial 22,750 21,804 21,156 23,114 22,168 Industrial 179,396 179,298 177,581 174,321 170,762 Public Authority and Other 425 398 375 367 366 Total 266,316 264,525 260,599 259,438 257,357 What it means…. Plymouth Utilities Electric kWh's sold have seen a decrease since 2021 mainly due to decreases in industrial usage from year to year. - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000Residential Small Commercial andIndustrialIndustrial Public Authority andOtherComparison of Electric kWh's (000) Sold2021 - 202520212022202320242025 Prepared by Baker Tilly US, LLP Page 2 2021 2022 2023 2024 2025 Residential 125,689 122,456 124,112 121,692 122,386 Multifamily Residential 20,794 19,833 19,373 19,851 20,133 Commercial 28,641 27,360 33,743 38,990 46,324 Industrial 177,160 170,143 171,603 183,402 176,335 Public Authority 7,765 6,972 6,755 6,897 7,718 Total 360,049 346,764 355,586 370,832 372,896 What it means…. Plymouth Utilities The trend in water utilities is to see decreasing usage due to water conservation efforts. Recently, there was a upward spike in commerical due to a significant increase in demand while industrial usage reverted back to its previous sales levels. - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000Residential Multifamily Residential Commercial Industrial Public AuthorityComparison of Water Gallons (000) Sold2021 - 202520212022202320242025 Prepared by Baker Tilly US, LLP Page 3 2021 2022 2023 2024 2025 Residential 129,202 126,857 123,239 121,163 121,780 Commercial 48,547 45,690 45,827 51,035 55,378 Industrial 120,313 156,873 166,366 194,853 178,936 Public Authority 10,452 10,022 16,089 17,972 24,341 Total 308,514 339,442 351,521 385,023 380,435 What it means…. Wastewater treatment saw a significant increase in industrial sales in 2024 which signficantly reduced in 2025. Plymouth Utilities - 50,000 100,000 150,000 200,000 250,000Residential Commercial Industrial Public AuthorityComparison of Sewer Gallons (000) Billed2021 - 202520212022202320242025 Prepared by Baker Tilly US, LLP Page 4 2007 - 2010 2021 2022 2023 2024 2025 Net Investment Rate Base 30,971,905$ 31,176,290$ 31,299,927$ 32,929,526$ 32,647,824$ Authorized Return 5.30% 5.30% 5.30% 5.30% 4.90% Authorized Operating Return 1,641,511$ 1,652,343$ 1,658,896$ 1,745,265$ 1,599,743$ Actual Operating Income - Regulatory Basis850,278$ 957,960$ 782,599$ 1,027,974$ 796,310$ Actual Return 2.75% 3.07% 2.50% 3.12% 2.44% Difference (791,233)$ (694,383)$ (876,297)$ (717,291)$ (803,433)$ What it means... Rate of return is a key indicator of financial results in any regulated utility like your electric utility. Any growth in plant requires that rates cover the cost of providing service or the utility will weaken financially in the long run. Current rates were approved by the PSCW on October 15, 2025 and placed into effect on November 1, 2025. The electric utility's new authorized rate of return is 4.90%. It is important to point out that the operating income reported here will not match what is reported in the financial statements due to PSCW ratemaking rules. Plymouth Utilities $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 2021 2022 2023 2024 2025Electric Rate of Return2021 - 2025 Authorized Actual Prepared by Baker Tilly US, LLP Page 5 2007 - 2010 2021 2022 2023 2024 2025 Net Investment Rate Base 16,854,951$ 16,879,130$ 16,811,256$ 16,770,439$ 16,818,925$ Authorized Return 6.00% 6.00% 6.00% 6.00% 6.00% Authorized Operating Return 1,011,297$ 1,012,748$ 1,008,675$ 1,006,226$ 1,009,136$ Actual Operating Income - Regulatory Basis687,799$ 636,070$ 694,519$ 649,539$ 640,611$ Actual Return 4.08% 3.77% 4.13% 3.87% 3.81% Difference (323,498)$ (376,678)$ (314,156)$ (356,687)$ (368,525)$ What it means... Rate of return is a key indicator of financial results in any regulated utility like your water utility. Any growth in plant requires that rates cover the cost of providing service or the utility will weaken financially in the long run. Current rates were approved by the PSCW on February 15, 2023 and placed into effect on April 1, 2023. It is important to point out that the operating income reported here will not match what is reported in the financial statements due to PSCW ratemaking rules. Plymouth Utilities $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2021 2022 2023 2024 2025Water Rate of Return2021- 2025 Authorized Actual Prepared by Baker Tilly US, LLP Page 6 2021 2022 2023 2024 2025 Funding Benchmark Estimated Monthly Revenues2,465,414$ 2,669,811$ 2,561,992$ 2,507,581$ 2,583,200$ Actual Unrestricted Funds on Hand16,282,044$ 24,239,267$ 25,555,657$ 24,469,379$ 23,823,160$ Months billings on Hand 6.60 9.08 9.97 9.76 9.22 What it means…. A utility should maintain funds to cover its operations in a normal business operation cycle (i.e. quarterly, monthly) plus a contingency. In addition, utilities should have available an amount equal to one year's routine capital improvements. These funding levels facilitate budgeting since there will be less concern for business cycle fluctuations. This shows that the utility has historically had ample cash reserves for operations. Please note, $6,780,500 of unrestricted cash was advanced for the substation project. Plymouth Utilities $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,0002021 2022 2023 2024 2025Unrestricted Funds on Hand2021 - 2025ActualMinimum Recommended (3 - 6 months) Prepared by Baker Tilly US, LLP Page 7 Prepared by Baker Tilly US, LLP Page 8 2021 2022 2023 2024 2025 Investment in Capital Assets 59,850,810$ 60,899,394$ 64,147,415$ 70,848,975$ 74,189,236$ Net Property, Plant, and Equipment69,092,307$ 68,097,376$ 69,269,620$ 73,470,403$ 78,692,299$ Percent of Net Plant Not Funded by Debt 87% 89% 93% 96% 94% What it means…. Obtaining financing for capital improvements is normally a necessity for capital intensive utilities. Management should keep their related debt to a manageable level as this allows you to be less aggressive seeking rate relief and provides more options to address unanticipated expenses. Normal utility target is 50% or more equity and 50% or less debt. Plymouth Utilities 0%10%20%30%40%50%60%70%80%90%100% 2021 2022 2023 2024 2025Utility Net Position vs. Net Plant 2021 - 2025 Prepared by Baker Tilly US, LLP Page 9 Plymouth Utilities An Enterprise Fund of the City of Plymouth, Wisconsin Financial Statements and Supplementary Information December 31, 2025 and 2024 Plymouth Utilities An Enterprise Fund of the City of Plymouth, Wisconsin Table of Contents December 31, 2025 and 2024 Page Independent Auditors' Report 1 Required Supplementary Information Management's Discussion and Analysis (Unaudited) 4 Financial Statements Statements of Net Position 11 Statements of Revenues, Expenses and Changes in Net Position 13 Statements of Cash Flows 15 Notes to Financial Statements 17 Required Supplementar y Information Schedule of Proportionate Share of Net Pension Liability (Asset) - Wisconsin Retirement System 46 Schedule of Employer Contributions - Pension - Wisconsin Retirement System 46 Notes to Required Supplementary Information - Wisconsin Retirement System 47 Supplementary Information Electric Utility Plant 48 Water Utility Plant 49 Sewage Utility Plant 50 Electric Utility Operating Revenues and Expenses 51 Water Utility Operating Revenues and Expenses 53 Sewage Utility Operating Revenues and Expenses 55 1 Independent Auditors' Report To the Common Council of City of Plymouth Opinion We have audited the financial statements of the Plymouth Utilities (Utility), an enterprise fund of the City of Plymouth, WI, as of and for the years ended December 31, 2025 and 2024, and the related notes to the 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 financial position for the Utility as of December 31, 2025 and 2024, and the changes in financial position and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). 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 Utility and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 1, the financial statements of the Utility are intended to present the financial position, the changes in the financial position, and cash flows of only the Utility. They do not purport to, and do not, present fairly the financial position of the City of Plymouth, WI, as of December 31, 2025, and 2024, and the changes in financial position, or cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is 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. 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. 2 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 opinion. 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 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, 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 Utility'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. 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 financial statements. Such information is the responsibility of management and, although not a part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the 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 financial statements, and other knowledge we obtained during our audit of the 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. 3 Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. 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 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 financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the 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 financial statements as a whole. Madison, Wisconsin August 20, 2026 MANAGEMENT'S DISCUSSION AND ANALYSIS Plymouth Utilities Management's Discussion and Analysis December 31, 2025 and 2024 (Unaudited) 4 The management of the Plymouth Utilities (Utility) offers all persons interested in the financial position of the Utility an objective, easy to read overview and analysis of the Utility's financial performance during the years ending December 31, 2025 and 2024. You are invited to read this narrative in conjunction with the Utility's financial statements. Financial Highlights  The electric utility’s operating revenues in 2025, generated mostly by user fees, increased by $1,021,500 or 4% mostly due to an increase in cost of power along with an increase in electric rates (effective November 1, 2026).  The electric utility’s operation and maintenance expenses in 2025, increased by $1,421,800 or 7% mostly due to an increase in purchased power.  The water utility’s operating revenues in 2025, generated mostly by user fees, increased by $7,900 or 0.3% due to an increase in water usage.  The water utility’s operation and maintenance expenses in 2025, increased by $42,500 or 4% due mostly to an increase in repair costs, water main breaks, and labor and salaries.  The sewage utility’s operating revenues, generated mostly by treatment charges, decreased by $121,900 or 4% during fiscal year 2025 due to lower usage and strength charges to industrial customers.  The sewage utility’s operation and maintenance expenses in 2025, increased by $69,000 or 5% due mostly to an increase in fuel and chemical costs, and labor and salaries. Overview of the Financial Statements The Utility is a self-supporting entity and a separate enterprise fund of the City of Plymouth. The Utility provides electric, water and sewage services to properties within the City of Plymouth and portions of the Towns of Plymouth, Sheboygan Falls, Herman, Mitchell, Greenbush, Lyndon, Rhine, Scott, Osceola and Forest. The Utility is managed by the Plymouth Common Council (Common Council) and the electric and water utilities operate under service rules and rates that are established by the Public Service Commission of Wisconsin (PSCW). The sewage utility operates under rules and rates established by the Common Council. The accounting records are maintained in accordance with the Uniform System of Accounts prescribed by the PSCW and in accordance with the Governmental Accounting Standards Board. This annual report consists of two parts: Management's Discussion and Analysis and the financial statements, as well as the independent auditors' report. An analysis of the Utility's financial position begins with a review of the Statements of Net Position and the Statements of Revenues, Expenses and Changes in Net Position. These two statements report the Utility's net position and changes therein. The Utility's net position - 'the difference between assets, deferred outflows of resources, liabilities and deferred inflows of resources' is key to measuring the financial health of the Utility. Over time, increases or decreases in the net position value are an indicator of whether the financial position is improving or deteriorating. However, it should be noted that the financial position may also be affected by other non-financial factors, including economic conditions, customer growth, climate conditions and new regulations. Plymouth Utilities Management's Discussion and Analysis December 31, 2025 and 2024 (Unaudited) 5 Utility Financial Analysis The Statements of Net Position include all of the Utility's assets, deferred outflows of resources, liabilities and deferred inflows of resources and provide information about the nature and amount of investments in resources and the obligations to creditors. This statement provides the basis for evaluating the capital structure and assessing the liquidity and financial flexibility of the Utility. A summary of the Utility’s Statements of Net Position is presented below in Table 1. Table 1 Condensed Statements of Net Position 2025 2024 2023 2025-2024 Change Current and other assets $ 39,000,402 $ 39,742,737 $ 40,696,013 $ (742,335) Capital assets 78,692,299 73,470,403 69,269,620 5,221,896 Total assets 117,692,701 113,213,140 109,965,633 4,479,561 Deferred outflows of resources 1,247,667 1,634,433 2,389,104 (386,766) Current and other liabilities 10,249,706 11,562,682 10,655,171 (1,312,976) Long-term debt outstanding 4,350,000 2,540,000 5,025,000 1,810,000 Total liabilities 14,599,706 14,102,682 15,680,171 497,024 Deferred inflows of resources 650,599 987,680 1,347,964 (337,081) Net investment in capital assets 74,189,236 70,848,975 64,147,415 3,340,261 Unrestricted 29,500,827 28,908,236 31,179,187 592,591 Total net position $ 103,690,063 $ 99,757,211 $ 95,326,602 $ 3,932,852 Net investment in capital assets increased by $3.3 million over 2024 due to an increase in capital assets during 2025. Plymouth Utilities Management's Discussion and Analysis December 31, 2025 and 2024 (Unaudited) 6 The specific nature or source of these changes becomes more evident in the Statements of Revenues, Expenses and Changes in Net Position as shown in Table 2. The Statements of Revenues, Expenses and Changes in Net Position provide an indication of the Utility's financial health. Table 2 Condensed Statements of Revenues, Expenses and Changes in Net Position 2025 2024 2023 2025-2024 Change Operating revenues $ 30,998,399 $ 30,090,969 $ 30,743,905 $ 907,430 Nonoperating revenues 2,119,190 2,030,010 1,999,838 89,180 Total revenues 33,117,589 32,120,979 32,743,743 996,610 Depreciation expense 3,334,624 3,218,179 3,355,421 116,445 Other operating expenses 25,315,294 23,781,966 24,990,528 1,533,328 Nonoperating expenses 137,855 86,245 146,575 51,610 Total expenses 28,787,773 27,086,390 28,492,524 1,701,383 Income before capital contributions and transfers 4,329,816 5,034,589 4,251,219 (704,773) Capital contributions 221,135 47,580 522,366 173,555 Transfers (618,099) (651,560) (640,516) 33,461 Changes in net position 3,932,852 4,430,609 4,133,069 (497,757) Net Position, Beginning 99,757,211 95,326,602 91,193,533 4,430,609 Total Net Position, Ending $ 103,690,063 $ 99,757,211 $ 95,326,602 $ 3,932,852 The Utility's operating revenues increased by $907,400. Total other operating expenses increased $1,533,300. Capital contributions increased by $173,600 due to higher amount of capital contributions related to electric utility projects in 2025. Plymouth Utilities Management's Discussion and Analysis December 31, 2025 and 2024 (Unaudited) 7 Sales of electricity increased $1,082,700 or 4%, in 2025. The most recent rate adjustment was approved October 15, 2025, effective November 1, 2025. Sales of water increased by $8,600 or 0.3%, in 2025. The most recent rate adjustment was approved February 15, 2023, effective April 1, 2023. Plymouth Utilities Management's Discussion and Analysis December 31, 2025 and 2024 (Unaudited) 8 Sewage billings decreased $121,300 or 4%, in 2025. The most recent rate adjustment was effective April 1, 2023. The Statements of Cash Flows report the cash provided and used by operating activities, as well as other cash sources such as investment income and cash payments for repayment of capital additions. Table 3 Condensed Statements of Cash Flows 2025 2024 2023 2025-2024 Change Cash flows from: Operating activities $ 6,790,057 $ 4,470,675 $ 5,568,575 $ 2,319,382 Noncapital financing activities (651,560) (640,516) (686,650) (11,044) Capital and related financing activities (7,913,173) (6,466,953) (5,040,218) (1,446,220) Investing activities 13,341,637 2,927,793 (6,231,316) 10,413,844 Net change in cash and cash equivalents 11,566,961 290,999 (6,389,609) 11,275,962 Cash and Cash Equivalents, Beginning 4,794,906 4,503,907 10,893,516 290,999 Cash and Cash Equivalents, Ending $ 16,361,867 $ 4,794,906 $ 4,503,907 $ 11,566,961 Plymouth Utilities Management's Discussion and Analysis December 31, 2025 and 2024 (Unaudited) 9 Table 4 Capital Assets - Electric Utility 2025 2024 2023 2025-2024 Change Capital assets: Distribution $ 56,245,034 $ 56,042,527 $ 53,659,846 $ 202,507 General 9,405,442 9,299,953 9,187,742 105,489 Total capital assets 65,650,476 65,342,480 62,847,588 307,996 Less accumulated depreciation (32,734,315) (31,089,526) (29,275,409) (1,644,789) Construction in progress 10,541,899 4,415,236 1,312,243 6,126,663 Net capital assets $ 43,458,060 $ 38,668,190 $ 34,884,422 $ 4,789,870 The electric utility’s net capital assets increased $4,789,900 in 2025, primarily due to an increase in construction in progress additions. Table 5 Capital Assets - Water Utility 2025 2024 2023 2025-2024 Change Capital assets: Source of supply $ 789,109 $ 789,109 $ 789,109 $ - Pumping 1,744,394 1,672,194 1,672,194 72,200 Water treatment 750,234 749,265 749,265 969 Transmission and distribution 22,595,151 22,151,226 21,876,315 443,925 General 1,735,141 1,708,304 1,664,241 26,837 Total capital assets 27,614,029 27,070,098 26,751,124 543,931 Less accumulated depreciation (7,879,804) (7,460,667) (6,967,686) (419,137) Net capital assets $ 19,734,225 $ 19,609,431 $ 19,783,438 $ 124,794 During 2025, the water utility’s net capital assets increased by $124,800 due to more capital asset activity offset by annual depreciation. Plymouth Utilities Management's Discussion and Analysis December 31, 2025 and 2024 (Unaudited) 10 Table 6 Capital Assets - Sewage Utility 2025 2024 2023 2025-2024 Change Capital assets: Collecting system $ 14,396,079 $ 14,116,786 $ 13,825,296 $ 279,293 Collecting system pumping 3,361,340 3,361,340 3,361,340 - Treatment and disposal 12,090,774 10,975,117 10,871,090 1,115,657 General 1,162,072 1,162,072 1,103,562 - Total capital assets 31,010,265 29,615,315 29,161,288 1,394,950 Less accumulated depreciation (15,510,251) (15,174,017) (14,664,646) (336,234) Construction in progress - 751,484 105,118 (751,484) Net capital assets $ 15,500,014 $ 15,192,782 $ 14,601,760 $ 307,232 During 2025, the sewage utility’s capital assets increase by $307