Administration Committee Meeting — Agenda Packet

A Quorum of the Common Council, Board of Public Works, Personnel Committee, Plan Commission, Redevelopment Authority, and other City bodies may attend this meeting, though no official action of these bodies will be taken. ADMINISTRATION COMMITTEE MEETING AGENDA Monday, July 20, 2026 at 6:30 PM First Floor Conference Rooms 100 Main Street, Menasha, WI or immediately following the Common Council meeting A. Call to Order B. Roll Call C. Minutes to Approve 1. Administration Committee, 7/6/26 D. Discussion / Action Items 1. Review & Accept the 2025 City of Menasha Financial Audit (CliftonLarsonAllen LLP) E. Adjournment "Menasha is committed to its diverse population. Our Non-English speaking population and those with disabilities are invited to contact the Menasha City Clerk at 967-3603 24-hours in advance of the meeting for the City to arrange special accommodations." Page 1 of 174 ADMINISTRATION COMMITTEE MINUTES Monday, July 6, 2026 at 6:30 PM First Floor Conference Rooms 100 Main Street, Menasha, WI A. CALL TO ORDER Meeting called to order by Chairperson Hale at 7:34pm. B. ROLL CALL Present: Alds. Rand, Eisenach, Hale, Perkins, Lewis, Marshall, Grade Absent: Ald. School Also Present: FD Sassman, DPW Merten, CDD Dane, DC Hanchek, CA Struve, Mayor Hammond, Clerk Snyder C. MINUTES TO APPROVE 1. Administration Committee, 6/1/26 Motion by District 2 Alderperson Eisenach seconded by District 7 Alderperson Grade to approve as amended. Motion carried on voice vote. District 3 Alderperson Hale offered a friendly amendment to the June 1, 2026 Administration Committee minutes. Specifically, the chairperson is listed inaccurately. D. DISCUSSION / ACTION ITEMS 1. Update to Strong Neighborhoods Program - Proposed Motion by District 2 Alderperson Eisenach, seconded by District 6 Alderperson Marshall to approve. Motion carried 7-0 on roll call. Staff advised on specifics around the property acquisition provisions of the Strong Neighborhoods program. These changes reflect recent updates to related manuals, as approved by the Common Council. Changes additionally incentivize housing development. E. ADJOURNMENT Motion by District 2 Alderperson Eisenach seconded by District 6 Alderperson Marshall to adjourn the Administration Committee meeting at 7:39pm. Motion carried on voice vote. Minutes submitted by City Clerk Kaija Snyder. Page 2 of 174 CITY OF MENASHA, WISCONSIN EXECUTIVE AUDIT SUMMARY AND COMMUNICATIONS YEAR ENDED DECEMBER 31, 2025 Page 3 of 174 CITY OF MENASHA, WISCONSIN TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2025 EXECUTIVE SUMMARY 1 FORMAL REQUIRED COMMUNICATIONS 2 APPENDIX A – FINANCIAL TRENDS 6 APPENDIX B – MANAGEMENT REPRESENTATION LETTER 10 Page 4 of 174 Executive Summary __________________________________________________________________________________ (1) We prepared this Executive Audit Summary in conjunction with our audit of City of Menasha’s (the City) financial statements for the year ended December 31, 2025. Audit Opinions over Financial Statements Based on the audit procedures performed, we’ve concluded that your financial statements are fairly stated. We issued what is known as a “clean” audit report. Summary of Auditors’ Results Internal Controls over Financial Reporting An audit finding is a comment on either the design and/or the effectiveness of the system of internal control. An audit finding may involve financial reporting, compliance, and/or the design or effectiveness of internal controls. Our report on internal control included the following deficiency in internal controls over financial reporting: Significant Deficiency:  Finding 2025-001 Preparation of Annual Financial Report This finding is recurring from prior year and management has responded with sufficient corrective action. Management believes the cost for additional staff time and training to prepare year-end reports outweigh the benefits to be received. They will continue to review and approve the financial reports prior to issuance. Noncompliance material to the financial statements: None reported Page 5 of 174 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.  CliftonLarsonAllen LLP  CLAconnect.com  (2) FORMAL REQUIRED COMMUNICATIONS Honorable Mayor and Common Council Members City of Menasha, Wisconsin We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of City of Menasha, Wisconsin as of and for the year ended December 31, 2025, and have issued our report thereon dated June 24, 2026. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards, and the Department of Health Services Audit Guide, as well as certain information related to the planned scope and timing of our audit in our engagement letter dated January 8, 2026. Professional standards also require that we communicate to you the following information related to our audit. Significant audit findings or issues Qualitative aspects of accounting practices Accounting policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Menasha, Wisconsin are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2025. We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates Accounting 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 and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the financial statements was: Page 6 of 174 Honorable Mayor and Common Council Members City of Menasha, Wisconsin (3)  Management’s estimate of the single employer other post-employment benefit (OPEB) Liability and related deferred inflows and outflows is based on an actuarial report. We evaluated the methods, assumptions, and data used to develop the single employer OPEB liability and related disclosures in determining that it is reasonable in relation to the financial statements taken as a whole. Financial statement disclosures Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. There were no particularly sensitive financial statement disclosures. The financial statement disclosures are neutral, consistent, and clear. Significant unusual transactions We identified no significant unusual transactions. Difficulties encountered in performing the audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Uncorrected misstatements Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has determined that the effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. T he following summarizes the uncorrected misstatement of the financial statements:  During the closure audit of Tax Incremental District #4, it was found that an escrow account in the amount of $53,668 was not recorded as a cash asset in the fund. As a result, an entry to record the asset was recorded and this overstates 2025 revenues. Uncorrected misstatements or the matters underlying uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even if management has concluded that the uncorrected misstatements are immaterial to the financial statements under audit. Corrected misstatements None of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with management For purposes of this letter, a disagreement with management is a disagreement on a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. No such disagreements arose during our audit. Management representations We have requested certain representations from management that are included in the attached management representation letter dated June 24, 2026. Page 7 of 174 Honorable Mayor and Common Council Members City of Menasha, Wisconsin (4) Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the entity’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement as the entity’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement. Required supplementary information With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI. Supplementary information in relation to the financial statements as a whole With respect to the schedule of expenditures of federal awards (SEFA) and the schedule of expenditures of state awards (SESA) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the SEFA and SESA to determine that the SEFA and SESA comply with the requirements of the Department of Health Services Audit Guide, the method of preparing them has not changed from the prior period or the reasons for such changes, and the SEFA and SESA are appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the SEFA and SESA and to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated June 24, 2026. With respect to the individual and combining fund statements and schedules, and the Schedule of Settlement of DHS Cost Reimbursement Award – Public Health Department as required by the Department of Health Services Audit Guide, (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, 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 or the reasons for such changes, 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. We have issued our report thereon dated June 24, 2026. Page 8 of 174 Honorable Mayor and Common Council Members City of Menasha, Wisconsin (5) * * * This communication is intended solely for the information and use of the City Common Council and management of City of Menasha, Wisconsin and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Green Bay, Wisconsin June 24, 2026 Page 9 of 174 (6) APPENDIX A FINANCIAL TRENDS CITY GOVERNMENTAL FUND BALANCES Presented below is a summary of the City’s governmental fund balances on December 31, 2025 and 2024. This information is provided for assessing financial results for 2025 and for indicating financial resources available at the start of the 2025 budget year. Change from 12/31/25 12/31/24 Prior Year General Fund: Nonspendable for: Inventories and Prepaid Items 194,449$ 170,798$ 23,651$ Long-Term Advance 405,869 949,842 (543,973) Assigned 11,868 99,465 (87,597) Unassigned 3,081,563 2,790,647 290,916 Total General Fund Balance 3,693,749 4,010,752 (317,003) Debt Service Fund: Restricted 164,104 - 164,104 Unassigned - (195,701) 195,701 Total Debt Service Fund 164,104 (195,701) 246,121 Special Revenue Funds: Restricted for: Housing Rehabilitation Revolving Loans 13,341 22,121 (8,780) Community Development Block Grant 611,832 558,839 52,993 Strong Neighborhoods Program 602,737 631,453 (28,716) Park Development 218,456 193,817 24,639 Library Endowment 525,468 477,023 48,445 Hattie Miner Scholarship 13,815 14,232 (417) Public Safety Donations 46,116 36,797 9,319 Park and Recreation Donations 83,413 79,735 3,678 Menasha 2000 5,079 5,079 - Senior Center Fundraising 17,684 9,221 8,463 Committed: Recycling 39,734 73,553 (33,819) Assigned: Local Fiscal Recovery Fund - 166,344 (166,344) Unassigned: Marina Operations (111,180) (98,784) (12,396) EPA Brownfield - (745) 745 Total Special Revenue Funds 2,066,495 2,168,685 (102,190) Capital Projects Funds: Restricted: Tax Incremental District No. 8 81,766 64,501 17,265 Tax Incremental District No. 10 79,648 25,909 53,739 Unassigned: Capital Improvements (310,992) (654,688) 343,696 Tax Incremental District No. 4 2 (55,260) 55,262 Tax Incremental District No. 7 (442,618) (481,344) 38,726 Tax Incremental District No. 11 (581,312) (722,032) 140,720 Tax Incremental District No. 12 (1,044,691) (2,002,314) 957,623 Tax Incremental District No. 13 (1,716,397) (1,612,194) (104,203) Total Capital Projects Funds (3,934,594) (5,437,422) 1,502,828 Total Governmental Fund Balances 1,989,754$ 546,314$ 1,329,756$ Page 10 of 174 (7) APPENDIX A (CONTINUED) FINANCIAL TRENDS General Fund – Fund Balance The general fund balance decreased $317,003 during 2025, compared to an adopted budget decrease of $215,004. The unassigned portion of the general fund totaled $3,081,563 or 14% of the 2025 general fund expenditures. The remaining fund balance is reported as 1) nonspendable of $600,318 for amounts that cannot be spent because of being in nonspendable form or legally required to remain in intact and 2) assigned of $11,868 for subsequent year expenditures based on Council resolution to carryforward unspent appropriations. General Fund – Budget The City budgeted a deficit of $215,004 that was to be covered with available fund balance. The actual year end resulted in a deficit of $317,003 that was also covered with sufficient available fund balance. Detailed budget versus actual statements are presented with the basic financial statements and supplementary information within the audited financial statements. Page 11 of 174 (8) APPENDIX A (CONTINUED) FINANCIAL TRENDS DEBT POSITION At December 31, 2025, the City has outstanding general obligation debt totaling $38,472,052. Annual principal and interest maturities of the outstanding general obligation debt on December 31, 2025, are allocated as follows: Year Ended December 31 Principal Interest Principal Interest Principal Interest 2025 2,916,614$ 1,145,606$ 170,000$ 21,738$ 3,086,614$ 1,167,344$ 2026 2,637,374 1,051,571 175,000 18,200 2,812,374 1,069,771 2027 2,683,941 963,442 180,000 14,427 2,863,941 977,869 2028 2,704,189 871,454 180,000 10,513 2,884,189 881,967 2029 2,646,473 778,898 185,000 6,451 2,831,473 785,349 2030-2034 11,608,461 2,687,439 190,000 2,185 11,798,461 2,689,624 2035-2039 9,835,000 1,182,579 - - 9,835,000 1,182,579 2040-2044 2,360,000 194,108 - - 2,360,000 194,108 Totals 37,392,052$ 8,875,097$ 1,080,000$ 73,514$ 38,472,052$ 8,948,611$ General City Menasha Utilities Total G.O. Debt The City’s general obligation debt increased by $762,289 in 2025 as a result of the net effect of new issued debt of $3,630,000 and principal payments of $2,867,712. The City’s tax incremental financing districts are responsible for outstanding debt of $856,554 and these debt payments will be recovered from future tax increments generated. Legal Margin for New Debt The City’s legal margin for creation of additional general obligation debt on December 31, 2025, was $61,947,153 as follows: Equalized Valuation of the City 2,008,384,100$ Statutory Limitation Percentage (x) 5% General Obligation Debt Limitation, per Section 67.03 of the Wisconsin Statutes 100,419,205 Total Outstanding General Obligation Debt Applicable to Debt Limitation 38,472,052 Legal Margin for New Debt 61,947,153$ The City is currently utilizing 38.3% of its legal margin for new debt as opposed to 41.3% in prior year. General obligation debt includes $1,080,000 of Menasha Utilities debt that is included in the calculation of legal margin for new debt. Page 12 of 174 (9) APPENDIX A (CONTINUED) FINANCIAL TRENDS TAX INCREMENTAL DISTRICTS The City has created and recorded financial activity in eight tax incremental districts as of December 31, 2025. As noted, TID No. 14 was closed and unrecoverable costs will be funded by excess resources of other funds. T ID eligible financial transactions of the districts are recorded in capital project funds. A summary of the net unreimbursed project costs and outstanding long-term debt as of December 31, 2025, is presented below: Net Outstanding Outstanding Unreimbursed Long-term Long-term Project Costs Debt Debt Tax Incremental District No. 4 (4,619)$ -$ -$ Tax Incremental District No. 7 540,700 98,081 98,081 Tax Incremental District No. 8 (22,217) 59,549 59,549 Tax Incremental District No. 10 (79,646) - - Tax Incremental District No. 11 982,961 401,647 401,647 Tax Incremental District No. 12 1,317,186 255,000 255,000 Tax Incremental District No. 13 1,756,790 42,277 42,277 Totals 4,491,155$ 856,554$ 856,554$ A summary of the base value, equalized value, create date and statuary termination date for each district as of December 31, 2025, is presented below: TID Only Current (Increment) Creation Statutory Base Value Value Value Date Termination Date Tax Incremental District No. 4 4,196,000$ 9,493,600$ 5,297,600$ 5/19/1997 5/19/2024 Tax Incremental District No. 7 687,300 7,841,000 7,153,700 7/4/2003 7/4/2030 Tax Incremental District No. 8 484,500 4,706,900 4,222,400 11/15/2004 11/15/2031 Tax Incremental District No. 10 9,701,900 14,637,100 4,935,200 6/5/2006 6/5/2033 Tax Incremental District No. 11 284,900 10,621,000 10,336,100 7/16/2007 7/16/2034 Tax Incremental District No. 12 21,715,600 127,117,800 105,402,200 5/16/2011 5/16/2031 Tax Incremental District No. 13 10,082,700 51,386,600 41,303,900 7/6/2015 7/6/2042 Page 13 of 174 (10) APPENDIX B MANAGEMENT REPRESENTATION LETTER Page 14 of 174 Page 15 of 174 Page 16 of 174 Page 17 of 174 Page 18 of 174 Page 19 of 174 Page 20 of 174 Page 21 of 174 Page 22 of 174 Page 23 of 174 CITY OF MENASHA, WISCONSIN ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2025 Page 24 of 174 CITY OF MENASHA, WISCONSIN TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2025 INDEPENDENT AUDITORS’ REPORT 1 BASIC FINANCIAL STATEMENTS STATEMENT OF NET POSITION 6 STATEMENT OF ACTIVITIES 7 FUND FINANCIAL STATEMENTS BALANCE SHEET – GOVERNMENTAL FUNDS 9 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – GOVERNMENTAL FUNDS 11 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – GENERAL FUND 13 STATEMENT OF NET POSITION – PROPRIETARY FUNDS 14 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION – PROPRIETARY FUNDS 18 STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS 20 STATEMENT OF FIDUCIARY NET POSITION – FIDUCIARY FUND 24 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION – FIDUCIARY FUND 25 NOTES TO BASIC FINANCIAL STATEMENTS 26 REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) – WISCONSIN RETIREMENT SYSTEM 89 SCHEDULE OF CONTRIBUTIONS – WISCONSIN RETIREMENT SYSTEM 89 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) – LOCAL RETIREE LIFE INSURANCE FUND 90 SCHEDULE OF CONTRIBUTIONS – LOCAL RETIREE LIFE INSURANCE FUND 90 SCHEDULE OF CHANGES IN OPEB LIABILITY AND RELATED RATIOS 91 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 92 Page 25 of 174 CITY OF MENASHA, WISCONSIN TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2025 SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – DEBT SERVICE FUND 95 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – CAPITAL IMPROVEMENT FUND 96 COMBINING BALANCE SHEET – NONMAJOR GOVERNMENTAL FUNDS 99 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – NONMAJOR GOVERNMENTAL FUNDS 103 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – HOUSING REHAB 107 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – COMMUNITY DEVELOPMENT BLOCK GRANT 108 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – MARINA OPERATIONS 109 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – STRONG NEIGHBORHOODS PROGRAM 110 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – PARK DEVELOPMENT 111 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – RECYCLING 112 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – LIBRARY ENDOWMENT 113 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – HATTIE MINOR SCHOLARSHIP 114 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – PUBLIC SAFETY DONATIONS 115 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – PARK AND RECREATION DONATIONS 116 Page 26 of 174 CITY OF MENASHA, WISCONSIN TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2025 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – NEIGHBORHOOD IMPROVEMENT GRANT 117 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – MENASHA 2000 118 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – SENIOR CENTER FUNDRAISING 119 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – LOCAL FISCAL RECOVERY FUNDS 120 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – EPA BROWNFIELD 121 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – TAX INCREMENTAL DISTRICT NO. 4 122 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – TAX INCREMENTAL DISTRICT NO. 7 123 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – TAX INCREMENTAL DISTRICT NO. 8 124 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – TAX INCREMENTAL DISTRICT NO. 10 125 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – TAX INCREMENTAL DISTRICT NO. 11 126 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – TAX INCREMENTAL DISTRICT NO. 12 127 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – TAX INCREMENTAL DISTRICT NO. 13 128 COMBINING STATEMENT OF NET POSITION – INTERNAL SERVICE FUNDS 130 Page 27 of 174 CITY OF MENASHA, WISCONSIN TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2025 COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION – INTERNAL SERVICE FUNDS 131 COMBINING STATEMENT OF CASH FLOWS – INTERNAL SERVICE FUNDS 132 SCHEDULE OF SETTLEMENT OF DHS COST REIMBURSEMENT AWARD – PUBLIC HEALTH DEPARTMENT 134 ADDITIONAL INDEPENDENT AUDITORS’ REPORT FOR BASIC FINANCIAL STATEMENTS INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH THE GOVERNMENT AUDITING STANDARDS AND THE WISCONSIN DEPARTMENT OF HEALTH SERVICES AUDIT GUIDE 137 FEDERAL AND STATE AWARDS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 140 SCHEDULE OF EXPENDITURES OF STATE AWARDS 141 NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS 142 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 143 Page 28 of 174 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.  CliftonLarsonAllen LLP  CLAconnect.com  (1) INDEPENDENT AUDITORS’ REPORT Honorable Mayor and Common Council Members City of Menasha, Wisconsin Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Menasha, 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, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City, as of December 31, 2025, the respective changes in financial position, and, where applicable, cash flows thereof, and the budgetary statement for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the 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. Page 29 of 174 Honorable Mayor and Common Council Members City of Menasha, Wisconsin (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 opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the schedules relating to pensions and other postemployment benefits 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 GAAS, 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 Page 30 of 174 Honorable Mayor and Common Council Members City of Menasha, Wisconsin (3) 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. Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, 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. Our opinions on the basic financial statements are not affected by this missing information. Supplementary Information Our audit for the year ended December 31, 2025 was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The individual and combining fund statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of Settlement of DHS Cost Reimbursement and schedule of expenditures of federal and state awards, as required by the Wisconsin Department of Health Services Audit Guide, for the year ended December 31, 2025 are also presented for purposes of additional analysis and are 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 for the year ended December 31, 2025 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 GAAS. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole for the year ended December 31, 2025. We also previously audited, in accordance with GAAS, the basic financial statements of the City as of and for the year ended December 31, 2024, (not presented herein), and have issued our report thereon dated June 19, 2025 which contained unmodified opinions on the respective financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information. The individual and combining fund statements and schedules for the year ended December 31, 2024 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and related directly to the underlying accounting and other records used to prepare the 2024 basic financial statements. The information was subjected to the audit procedures applied in the audit of the 2024 basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare those financial statements or to those financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, individual and combining fund statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole for the year ended December 31, 2024. Page 31 of 174 Honorable Mayor and Common Council Members City of Menasha, Wisconsin (4) Report on Summarized Comparative Information We have previously audited the City’s 2024 financial statements, and we expressed unmodified audit opinions on the respective financial statements of the governmental activities, business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information in our report dated June 19, 2025. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2024, is consistent, in all material respects, with the audited financial statements from which it has been derived. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 24, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Green Bay, Wisconsin June 24, 2026 Page 32 of 174 (5) BASIC FINANCIAL STATEMENTS Page 33 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF NET POSITION DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (6) Component Unit Governmental Business-Type Totals Redevelopment Activities Activities 2025 2024 Authority ASSETS Cash and Investments 11,815,132$ 8,226,105$ 20,041,237$ 16,606,287$ 2,466,514$ Receivables: Taxes and Special Charges 7,970,321 - 7,970,321 8,190,976 - Delinquent Taxes 34,439 - 34,439 38,137 - Accounts 304,089 4,168,891 4,472,980 4,201,543 - Special Assessments 3,360,653 167,059 3,527,712 3,997,250 - Loans 2,944,955 - 2,944,955 3,236,279 - Other - 79,213 79,213 73,332 - Internal Balances (2,000,466) 2,000,466 - - - Due From Other Governments 829,241 3,088,536 3,917,777 4,410,194 - Prepaid Items and Supplies 207,181 1,594,930 1,802,111 1,778,390 - Assets Held for Resale - - - - 476,499 Restricted Assets: Cash and Investments 898,822 6,736,536 7,635,358 7,512,139 - Leases Receivable 456,125 790,748 1,246,873 1,319,360 - Capital Assets, Nondepreciable 10,857,715 4,055,300 14,913,015 20,187,702 - Capital Assets, Depreciable and Amortizable 55,202,973 59,628,906 114,831,879 105,304,536 - Total Assets 92,881,180 90,536,690 183,417,870 176,856,125 2,943,013 DEFERRED OUTFLOWS OF RESOURCES Pension Related Amounts 8,333,669 1,903,841 10,237,510 14,285,111 - Other Postemployment Related Amounts 291,331 127,606 418,937 507,640 - Total Deferred Outflows of Resources 8,625,000 2,031,447 10,656,447 14,792,751 - LIABILITIES Accounts Payable 1,607,686 3,799,764 5,407,450 4,608,181 5,577 Accrued and Other Current Liabilities 852,467 2,114,533 2,967,000 2,606,626 - Due to Other Governments 217 - 217 312 1,940,963 Accrued Interest Payable 490,897 32,104 523,001 506,841 - Special Deposits 8,960 144,909 153,869 145,159 - Unearned Revenues - 338 338 201,231 - Long-Term Obligations: Due Within One Year 3,025,925 2,059,466 5,085,391 5,590,297 - Due in More Than One Year 37,814,168 9,994,830 47,808,998 48,718,939 - Net Pension Liability 1,427,414 324,760 1,752,174 1,599,115 - Other Postemployment Benefits 1,371,870 326,108 1,697,978 1,730,117 - Total Liabilities 46,599,604 18,796,812 65,396,416 65,706,818 1,946,540 DEFERRED INFLOWS OF RESOURCES Property Taxes Levied for Subsequent Year 15,597,860 - 15,597,860 15,275,588 - Lease Related Amounts 456,125 790,748 1,246,873 1,319,360 - Pension Related Amounts 4,180,378 948,292 5,128,670 8,559,925 - Other Postemployment Related Amounts 918,114 217,245 1,135,359 1,152,110 - Total Deferred Inflows of Resources 21,152,477 1,956,285 23,108,762 26,306,983 - NET POSITION Net Investment in Capital Assets 26,551,733 51,018,761 77,570,494 72,162,870 - Restricted: Revolving Loans 1,629,165 - 1,629,165 1,609,180 - Strong Neighborhoods Program 602,737 - 602,737 631,453 - Special Projects 1,071,445 - 1,071,445 1,229,974 - Equipment and Plant Replacement - 4,874,385 4,874,385 3,806,438 - Debt Service - 248,714 248,714 263,954 - Capital Projects - 287,486 287,486 393,805 - Unrestricted 3,899,019 15,385,694 19,284,713 19,537,401 996,473 Total Net Position 33,754,099$ 71,815,040$ 105,569,139$ 99,635,075$ 996,473$ Page 34 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (7) Operating Capital Grants Charges for Grants and and Functions/Programs Expenses Services Contributions Contributions GOVERNMENTAL ACTIVITIES General Government 2,043,835$ 432,090$ 37,627$ -$ Public Safety 11,360,250 551,080 98,644 - Public Works 7,555,513 614,439 1,139,892 21,064 Health and Human Services 1,376,341 551,302 226,098 - Culture and Recreation 2,364,422 1,066,001 28,230 - Conservation and Development 1,613,769 17,667 138,483 - Interest and Fiscal Charges 782,383 - - - Total Governmental Activities 27,096,513 3,232,579 1,668,974 21,064 BUSINESS-TYPE ACTIVITIES Electric Utility 37,779,644 39,174,752 - 277,877 Water Utility 4,376,884 6,736,700 - 52,869 Telecommunication Utility 55,740 114,048 - 20,836 Sewerage System 2,068,371 2,788,151 - 33,177 Stormwater Utility 1,233,191 2,018,589 - - Total Business-Type Activities 45,513,830 50,832,240 - 384,759 Total Primary Government 72,610,343$ 54,064,819$ 1,668,974$ 405,823$ COMPONENT UNIT Redevelopment Authority 182,871$ 577,052$ -$ -$ Program Revenues Page 35 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF ACTIVITIES (CONTINUED) YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (8) Net (Expense) Revenue Component and Changes in Net Position Unit Governmental Business-Type Totals Redevelopment Functions/Programs Activities Activities 2025 2024 Authority GOVERNMENTAL ACTIVITIES General Government (1,574,118)$ -$ (1,574,118)$ (1,350,071)$ -$ Public Safety (10,710,526) - (10,710,526) (9,802,827) - Public Works (5,780,118) - (5,780,118) 665,830 - Health and Human Services (598,941) - (598,941) (719,246) - Culture and Recreation (1,270,191) - (1,270,191) (3,555,650) - Conservation and Development (1,457,619) - (1,457,619) (950,053) - Interest and Fiscal Charges (782,383) - (782,383) (631,384) - Total Governmental Activities (22,173,896) - (22,173,896) (16,343,401) - BUSINESS-TYPE ACTIVITIES Electric Utility - 1,672,985 1,672,985 944,190 - Water Utility - 2,412,685 2,412,685 2,275,284 - Telecommunication Utility - 79,144 79,144 39,281 - Sewerage System - 752,957 752,957 596,083 - Stormwater Utility - 785,398 785,398 1,042,450 - Total Business-Type Activities - 5,703,169 5,703,169 4,897,288 - Total Primary Government (22,173,896) 5,703,169 (16,470,727) (11,446,113) - COMPONENT UNIT Redevelopment Authority - - - - 394,181 GENERAL REVENUES AND TRANSFERS Taxes: Property Taxes 11,785,242 - 11,785,242 11,559,002 - Tax Increments 2,134,930 - 2,134,930 2,207,676 - Other Taxes 169,387 - 169,387 173,328 - Federal and State Grants and Other Contributions not Restricted to Specific Functions 5,614,192 - 5,614,192 5,292,007 - Interest and Investment Earnings 495,154 735,911 1,231,065 1,372,285 - Miscellaneous 1,451,914 18,061 1,469,975 1,090,845 - Transfers 1,151,567 (1,151,567) - - - Total General Revenues and Transfers 22,802,386 (397,595) 22,404,791 21,695,143 - CHANGE IN NET POSITION 628,490 5,305,574 5,934,064 10,249,030 394,181 Net Position - Beginning of Year 33,125,609 66,509,466 99,635,075 89,386,045 602,292 NET POSITION - END OF YEAR 33,754,099$ 71,815,040$ 105,569,139$ 99,635,075$ 996,473$ Page 36 of 174 CITY OF MENASHA, WISCONSIN BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (9) Tax Nonmajor Incremental Capital Governmental Totals General Debt Service District No. 12 Improvements Funds 2025 2024 ASSETS Cash and Investments 8,475,978$ 895,798$ -$ 574,994$ 1,373,362$ 11,320,132$ 9,712,656$ Restricted Cash and Investments - - - - 898,822 898,822 821,959 Receivables: Taxes and Special Charges 5,201,387 893,306 - - 1,875,628 7,970,321 8,190,976 Delinquent Taxes 34,439 - - - - 34,439 38,137 Accounts 190,137 - - 92,780 3,481 286,398 111,279 Special Assessments 840 3,303,850 - - 55,963 3,360,653 3,881,059 Loans - 1,940,963 - - 1,003,992 2,944,955 3,236,279 Due From Other Funds 21,773 - - - - 21,773 - Advance to Other Funds 405,869 - - - 500,000 905,869 1,774,842 Due From Other Governments 794,310 - - (7,887) 12,818 799,241 1,030,332 Inventories and Prepaid Items 194,449 - - - - 194,449 170,798 Leases Receivable 456,125 - - - - 456,125 501,657 Total Assets 15,775,307$ 7,033,917$ -$ 659,887$ 5,724,066$ 29,193,177$ 29,469,974$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable 390,426$ -$ -$ 970,879$ 149,506$ 1,510,811$ 783,234$ Accrued and Other Current Liabilities 811,172 - - - 7,641 818,813 547,229 Advances from Other Funds - - - - 2,505,869 2,505,869 3,909,533 Due to Other Governments 217 - - - - 217 312 Special Deposits 8,960 - - - - 8,960 7,023 Unearned Revenues - - - - - - 200,869 Total Liabilities 1,210,775 - - 970,879 2,663,016 4,844,670 5,448,200 DEFERRED INFLOWS OF RESOURCES Property Taxes Levied for Subsequent Year 10,414,658 1,625,000 - - 3,558,202 15,597,860 15,275,588 Unavailable Grant Revenues - - - - - - 580,877 Unavailable Revenue-Loans Receivable - 1,940,963 - - 1,003,992 2,944,955 3,236,279 Unavailable Revenue-Lease Receivable 456,125 - - - - 456,125 501,657 Unavailable Revenue-Special Assessments - 3,303,850 - - 55,963 3,359,813 3,881,059 Total Deferred Inflows of Resources 10,870,783 6,869,813 - - 4,618,157 22,358,753 23,475,460 FUND BALANCES Nonspendable 600,318 - - - - 600,318 1,120,640 Restricted - 164,104 - - 2,299,355 2,463,459 2,118,727 Committed - - - - 39,734 39,734 73,553 Assigned 11,868 - - - - 11,868 265,809 Unassigned 3,081,563 - - (310,992) (3,896,196) (1,125,625) (3,032,415) Total Fund Balances 3,693,749 164,104 - (310,992) (1,557,107) 1,989,754 546,314 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 15,775,307$ 7,033,917$ -$ 659,887$ 5,724,066$ 29,193,177$ 29,469,974$ Page 37 of 174 CITY OF MENASHA, WISCONSIN BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (10) 2025 2024 RECONCILIATION TO THE STATEMENT OF NET POSITION Total Fund Balances as Shown on Previous Page 1,989,754$ 546,314$ Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds. 61,382,582 59,316,826 Other long-term assets are not available to pay current period expenditures and, therefore, are deferred in the funds. Special Assessments 3,359,813 3,881,059 Grant Receivable 30,000 580,877 Loans Receivable 1,003,992 1,028,220 Land Contract Receivable 1,940,963 2,208,059 Net position of the internal service fund is reported in the Statement of Net Position as governmental activities 4,577,523 4,415,798 Deferred outflows and inflows of resources represents a consumption or acquisition of net position that applies to a future period and, therefore, are not reported in the funds. Deferred Outflows Related to Pensions 8,333,669 11,607,338 Deferred Inflows Related to Pensions (4,180,378) (6,962,349) Deferred Outflows Related to Other Postemployment Benefits 291,331 356,679 Deferred Inflows Related to Other Postemployment Benefits (918,114) (950,464) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Bonds and Notes Payable (37,512,035) (36,570,505) Lease Liability (1,072,344) (1,121,920) Premium on Debt (461,884) (388,035) Compensated Absences (1,720,592) (1,686,772) Net Pension Liability (1,427,414) (1,300,157) Other Postemployment Benefit (1,371,870) (1,367,928) Accrued Interest on Long-Term Obligations (490,897) (467,431) Net Position of Governmental Activities as Reported on the Statement of Net Position 33,754,099$ 33,125,609$ Page 38 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (11) Tax Nonmajor Incremental Capital Governmental Totals General Debt Service District No. 12 Improvements Funds 2025 2024 REVENUES Taxes 10,110,002$ 1,500,000$ -$ -$ 2,477,117$ 14,087,119$ 13,937,705$ Special Assessments - 220,613 - - 27,026 247,639 356,738 Intergovernmental 6,776,910 225,000 - 580,828 526,874 8,109,612 10,788,862 Licenses and Permits 459,540 - - - 15,950 475,490 450,011 Fines and Forfeits 109,251 - - - - 109,251 128,271 Public Charges for Services 614,593 - - - 164,521 779,114 800,649 Intergovernmental Charges for Services 1,834,547 - - - 96 1,834,643 1,303,680 Miscellaneous 545,909 1,270,232 - 305,677 278,951 2,400,769 2,528,355 Total Revenues 20,450,752 3,215,845 - 886,505 3,490,535 28,043,637 30,294,271 EXPENDITURES Current: General Government 1,827,708 - - 48,061 170,214 2,045,983 1,798,697 Public Safety 10,340,224 - - 437,771 6,209 10,784,204 10,079,857 Public Works 3,336,478 - - 129,974 483,001 3,949,453 3,605,533 Health and Human Services 1,336,169 - - - 751 1,336,920 1,356,426 Culture and Recreation 4,259,464 - - 1,516,593 215,843 5,991,900 7,799,072 Conservation and Development 449,643 - - - 841,374 1,291,017 1,507,644 Debt Service: Principal - 2,720,770 - - - 2,720,770 2,696,934 Interest and Fiscal Charges - 1,203,351 - - - 1,203,351 1,044,652 Capital Outlay - - - 1,959,116 249,612 2,208,728 6,628,862 Total Expenditures 21,549,686 3,924,121 - 4,091,515 1,967,004 31,532,326 36,517,677 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,098,934) (708,276) - (3,205,010) 1,523,531 (3,488,689) (6,223,406) OTHER FINANCING SOURCES (USES) Long-Term Debt Issued - - - 3,664,000 - 3,664,000 5,121,081 Premium on Debt Issued - 128,043 - - - 128,043 173,239 Proceeds From Sale of Capital Assets 24,855 - - - - 24,855 16,396 Transfers In 760,076 985,038 - - 3,000 1,748,114 1,726,472 Transfers Out (3,000) (45,000) - (115,294) (469,589) (632,883) (688,124) Total Other Financing Sources (Uses) 781,931 1,068,081 - 3,548,706 (466,589) 4,932,129 6,349,064 NET CHANGE IN FUND BALANCES (317,003) 359,805 - 343,696 1,056,942 1,443,440 125,658 Fund Balances - Beginning of Year, as Originally Reported 4,010,752 (195,701) (2,002,314) (654,688) (611,735) 546,314 420,656 Change Within Financial Reporting Entity Major to Nonmajor Fund - - 2,002,314 - (2,002,314) - - Fund Balances - Beginning of Year, as Adjusted 4,010,752 (195,701) - (654,688) (2,614,049) 546,314 420,656 FUND BALANCES - END OF YEAR 3,693,749$ 164,104$ -$ (310,992)$ (1,557,107)$ 1,989,754$ 546,314$ Page 39 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (12) 2025 2024 RECONCILIATION TO THE STATEMENT OF ACTIVITIES Net Change in Fund Balances as Shown on Previous Page 1,443,440$ 125,658$ Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital Assets Reported as Expenditures in Governmental Fund Statements 5,287,104 11,888,720 Depreciation and Amortization Expense Reported in the Statement of Activities (3,101,043) (2,794,219) Net Book Value of Disposals 113,327 48,901 Governmental funds do not present revenues that are not available to pay current obligations. In contrast, such revenues are reported in the Statement of Activities when earned. (1,363,447) (340,310) Debt issued provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. Lease Principal Repaid 49,576 35,922 Long-Term Debt Issued (3,630,000) (5,121,081) Lease Principal Issued - (72,138) Premium on Debt Issued (128,043) (173,239) Principal Repaid 2,720,771 2,696,934 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds: Accrued Interest on Long-Term Debt (23,466) (13,896) Amortization of Premium 54,194 38,624 Compensated Absences (33,820) (570,020) Net Pension Liability (127,257) 3,348,680 Deferred Outflows of Resources Related to Pensions (3,273,669) (6,164,656) Deferred Inflows of Resources Related to Pensions 2,781,971 2,792,350 Other Postemployment Benefits (3,942) 6,778 Deferred Outflows of Resources Related to Other Postemployment Benefits (65,348) 746 Deferred Inflows of Resources Related to Other Postemployment Benefits 32,350 (70,428) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue (expense) of the internal service funds is reported with governmental activities. (71,907) (105,508) Change in Net Position of Governmental Activities as Reported in the Statement of Activities 660,791$ 5,557,818$ Page 40 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL – GENERAL FUND YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (13) Variance Final Budget - Budget Positive 2024 Original Final Actual (Negative) Actual REVENUES Taxes 10,111,408$ 10,111,408$ 10,110,002$ (1,406)$ 10,078,571$ Intergovernmental 6,726,198 6,726,198 6,776,910 50,712 6,545,460 Licenses and Permits 446,570 446,570 459,540 12,970 442,311 Fines and Forfeits 129,000 129,000 109,251 (19,749) 128,271 Public Charges for Services 602,300 602,300 614,593 12,293 609,981 Intergovernmental Charges for Services 1,856,341 1,856,341 1,834,547 (21,794) 1,303,660 Miscellaneous 384,921 384,921 545,909 160,988 576,383 Total Revenues 20,256,738 20,256,738 20,450,752 194,014 19,684,637 EXPENDITURES Current: General Government 1,833,749 1,833,563 1,827,708 5,855 1,796,824 Public Safety 10,254,650 10,254,650 10,340,224 (85,574) 9,932,467 Public Works 3,270,222 3,270,222 3,336,478 (66,256) 3,064,233 Health and Human Services 1,266,301 1,266,301 1,336,169 (69,868) 1,355,366 Culture and Recreation 4,227,823 4,227,823 4,259,464 (31,641) 4,205,332 Conservation and Development 470,903 470,903 449,643 21,260 378,050 Total Expenditures 21,323,648 21,323,462 21,549,686 (226,224) 20,732,272 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,066,910) (1,066,724) (1,098,934) (32,210) (1,047,635) OTHER FINANCING SOURCES (USES) Proceeds From Sale of Capital Assets 11,050 11,050 24,855 13,805 16,396 Transfers In 840,670 840,670 760,076 (80,594) 772,044 Transfers Out - - (3,000) (3,000) (3,000) Total Other Financing Sources (Uses) 851,720 851,720 781,931 (69,789) 785,440 NET CHANGE IN FUND BALANCE (215,190) (215,004) (317,003) (101,999) (262,195) Fund Balance - Beginning of Year 4,010,752 4,010,752 4,010,752 - 4,272,947 FUND BALANCE - END OF YEAR 3,795,562$ 3,795,748$ 3,693,749$ (101,999)$ 4,010,752$ Page 41 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (14) Menasha Sewage Stormwater Utilities Treatment Utility ASSETS Current Assets: Cash and Investments 6,411,215$ 955,678$ 859,212$ Receivables: Customer Accounts 3,700,014 303,577 165,300 Special Assessments - 87,750 79,309 Other 79,213 - - Advances To Other Funds - 800,000 800,000 Due From Other Governments 415,038 2,673,498 - Prepaid Items and Supplies 1,594,930 - - Total Current Assets 12,200,410 4,820,503 1,903,821 Noncurrent Assets: Restricted Assets: Cash and Investments 6,564,838 171,698 - Other Assets: Lease Receivable 790,748 - - Capital Assets: Nondepreciable 2,070,067 67,450 1,917,783 Depreciable 38,975,613 7,348,085 13,305,208 Total Capital Assets 41,045,680 7,415,535 15,222,991 Total Assets 60,601,676 12,407,736 17,126,812 DEFERRED OUTFLOWS OF RESOURCES Pension Related Amounts 1,645,865 87,169 170,807 Other Postemployment Related Amounts 113,549 4,721 9,336 Total Deferred Outflows of Resources 1,759,414 91,890 180,143 Enterprise Funds Page 42 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF NET POSITION PROPRIETARY FUNDS (CONTINUED) DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (15) Governmental Activities - Totals Internal Service Funds 2025 2024 2025 2024 ASSETS Current Assets: Cash and Investments 8,226,105$ 6,624,846$ 495,000$ 268,785$ Receivables: Customer Accounts 4,168,891 4,072,277 17,691 17,987 Special Assessments 167,059 116,191 - - Other 79,213 73,332 - - Due From Other Funds 1,600,000 2,200,000 - - Due From Other Governments 3,088,536 3,379,862 30,000 - Prepaid Items and Supplies 1,594,930 1,580,082 12,732 27,510 Total Current Assets 18,924,734 18,046,590 555,423 314,282 Noncurrent Assets: Restricted Assets: Cash and Investments 6,736,536 6,690,180 - - Other Assets: Lease Receivable 790,748 817,703 - - Capital Assets: Nondepreciable 4,055,300 3,887,861 259,483 44,216 Depreciable 59,628,906 57,616,421 4,418,623 4,626,914 Total Capital Assets 63,684,206 61,504,282 4,678,106 4,671,130 Total Assets 90,136,224 87,058,755 5,233,529 4,985,412 DEFERRED OUTFLOWS OF RESOURCES Pension Related Amounts 1,903,841 2,677,773 - - Other Postemployment Related Amounts 127,606 150,961 - - Total Deferred Outflows of Resources 2,031,447 2,828,734 - - Page 43 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF NET POSITION PROPRIETARY FUNDS (CONTINUED) DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (16) Menasha Sewage Stormwater Utilities Treatment Utility LIABILITIES Current Liabilities: Accounts Payable 3,160,178$ 57,099$ 582,487$ Accrued and Other Current Liabilities 2,095,460 6,522 12,551 Insurance Claims Payable - - - Due to Other Funds - - - Accrued Interest Payable 32,104 - - Special Deposits 33,167 - 111,742 Unearned Revenues 338 - - Current Portion of Long-Term Debt 1,442,790 616,676 - Total Current Liabilities 6,764,037 680,297 706,780 Long-Term Obligations, Less Current Portion: General Obligation Debt 910,000 - - Revenue Bonds 6,032,045 2,851,433 - Due to Village of Fox Crossing - - 162,853 Subscription Payable - - - Compensated Absences - 12,348 26,151 Net Pension Liability 280,950 14,796 29,014 Other Postemployment Benefits 252,658 24,646 48,804 Total Long-Term Obligations 7,475,653 2,903,223 266,822 Total Liabilities 14,239,690 3,583,520 973,602 DEFERRED INFLOWS OF RESOURCES Special Charges on Subsequent Year Tax Roll - - - Pension Related Amounts 819,990 43,332 84,970 Other Postemployment Related Amounts 169,790 15,929 31,526 Lease Related Amounts 790,748 - - Total Deferred Inflows of Resources 1,780,528 59,261 116,496 NET POSITION Net Investment in Capital Assets 32,525,895 3,936,176 14,556,690 Restricted: Debt Service 248,714 - - Depreciation 4,694,385 - - Equipment Replacement - 180,000 - Capital Projects 87,486 - 200,000 Information Technology Equipment - - - Unrestricted 8,784,392 4,740,669 1,460,167 Total Net Position 46,340,872$ 8,856,845$ 16,216,857$ Enterprise Funds Page 44 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF NET POSITION PROPRIETARY FUNDS (CONTINUED) DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (17) Governmental Activities - Totals Internal Service Funds 2025 2024 2025 2024 LIABILITIES Current Liabilities: Accounts Payable 3,799,764$ 3,726,481$ 96,875$ 98,466$ Accrued and Other Current Liabilities 2,114,533 2,029,444 - - Insurance Claims Payable - - 33,654 29,953 Due to Other Funds - - 21,773 65,309 Accrued Interest Payable 32,104 39,410 - - Special Deposits 144,909 138,136 - - Unearned Revenues 338 362 - - Current Portion of Long-Term Debt 2,059,466 2,819,951 - - Total Current Liabilities 8,151,114 8,753,784 152,302 193,728 Long-Term Obligations, Less Current Portion: General Obligation Debt 910,000 1,080,000 - - Revenue Bonds 8,883,478 10,402,254 - - Due to Village of Fox Crossing 162,853 200,503 - - Subscription Payable - - 73,238 - Compensated Absences 38,499 39,296 - - Net Pension Liability 324,760 298,958 - - Net Other Postemployment Benefits 326,108 362,189 - - Total Long-Term Obligations 10,645,698 12,383,200 73,238 - Total Liabilities 18,796,812 21,136,984 225,540 193,728 DEFERRED INFLOWS OF RESOURCES Special Charges on Subsequent Year Tax Roll - - 30,000 - Pension Related Amounts 948,292 1,597,576 - - Other Postemployment Related Amounts 217,245 201,646 - - Lease Related Amounts 790,748 817,703 - - Total Deferred Inflows of Resources 1,956,285 2,616,925 30,000 - NET POSITION Net Investment in Capital Assets 51,018,761 46,579,034 4,604,868 4,671,130 Restricted: Debt Service 248,714 263,954 - - Depreciation 4,694,385 3,626,438 - - Equipment Replacement 180,000 180,000 - - Capital Projects 287,486 393,805 - - Information Technology Equipment - - - 42,000 Unrestricted 14,985,228 15,090,349 373,121 78,554 Total Net Position 71,414,574 66,133,580 4,977,989$ 4,791,684$ Adjustment to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds 400,466 375,886 Net Position of Business-Type Activities as Reported on . the Statement of Net Position 71,815,040$ 66,509,466$ Page 45 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (18) Menasha Sewage Stormwater Utilities Treatment Utility OPERATING REVENUES Charges for Services 45,713,321$ 2,788,151$ 1,948,220$ Other 312,179 - 70,369 Total Operating Revenues 46,025,500 2,788,151 2,018,589 OPERATING EXPENSES Operation and Maintenance 39,239,973 1,887,061 1,064,861 Insurance Payments and Claims - - - Depreciation 2,550,076 164,951 180,579 Taxes 262,204 - - Total Operating Expenses 42,052,253 2,052,012 1,245,440 OPERATING INCOME (LOSS) 3,973,247 736,139 773,149 NONOPERATING REVENUES (EXPENSES) Interest Income 600,512 59,169 76,230 Other Income Deductions (167) - - Merchandising and Jobbing 17,520 - - Nonoperating grants - - - Gain on Disposal of Capital Assets - - - Interest and Fiscal Charges (148,347) (22,962) (5,728) Other Nonoperating Revenues (Expenses) (11,501) - 541 Total Nonoperating Revenues (Expenses) 458,017 36,207 71,043 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 4,431,264 772,346 844,192 Capital Contributions 351,582 33,177 - Transfers In - 112,450 11,508 Transfers Out (1,275,525) - - CHANGE IN NET POSITION 3,507,321 917,973 855,700 Net Position - Beginning of Year 42,833,551 7,938,872 15,361,157 NET POSITION - END OF YEAR 46,340,872$ 8,856,845$ 16,216,857$ Enterprise Funds Page 46 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS (CONTINUED) YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (19) Governmental Activities - Totals Internal Service Funds 2025 2024 2025 2024 OPERATING REVENUES Charges for Services 50,449,692$ 49,493,819$ 2,808,448$ 2,724,650$ Other 382,548 290,002 82,775 344,419 Total Operating Revenues 50,832,240 49,783,821 2,891,223 3,069,069 OPERATING EXPENSES Operation and Maintenance 42,191,895 41,450,921 1,883,103 1,826,451 Insurance Payments and Claims - - 338,593 284,975 Depreciation 2,895,606 2,844,158 495,989 458,761 Taxes 262,204 266,867 - - Total Operating Expenses 45,349,705 44,561,946 2,717,685 2,570,187 OPERATING INCOME (LOSS) 5,482,535 5,221,875 173,538 498,882 NONOPERATING REVENUES (EXPENSES) Interest Income 735,911 822,770 1,851 2,153 Other Income Deductions (167) (158) - - Merchandising and Jobbing 17,520 9,502 - - Nonoperating grants - 76,734 - - Gain on Disposal of Capital Assets - - (25,420) 50,771 Interest and Fiscal Charges (177,037) (226,371) - - Other Nonoperating Revenues (Expenses) (10,960) (511,855) - - Total Nonoperating Revenues (Expenses) 565,267 170,622 (23,569) 52,924 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 6,047,802 5,392,497 149,969 551,806 Capital Contributions 384,759 202,976 - - Transfers In 123,958 251,400 36,336 - Transfers Out (1,275,525) (1,289,748) - - CHANGE IN NET POSITION 5,280,994 4,557,125 186,305 551,806 Net Position - Beginning of Year 66,133,580 61,576,455 4,791,684 4,239,878 NET POSITION - END OF YEAR 71,414,574$ 66,133,580$ 4,977,989$ 4,791,684$ RECONCILIATION TO THE STATEMENT OF ACTIVITIES Net Change in Net Position 5,280,994$ 4,557,125$ Adjustment to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds 24,580 134,087 Net Change in Net Position per Statement of Activities 5,305,574$ 4,691,212$ Page 47 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (20) Menasha Sewage Stormwater Utilities Treatment Utility CASH FLOWS FROM OPERATING ACTIVITIES Cash Received From Customers 45,856,595$ 2,811,410$ 2,016,793$ Cash Received from City - - - Cash Paid for Employee Wages and Benefits (3,569,163) (288,244) (637,331) Cash Paid to Suppliers (36,188,405) (1,624,896) 169,317 Net Cash Provided by Operating Activities 6,099,027 898,270 1,548,779 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Intergovernmental revenues - - 541 Due To/From Other Funds - - 600,000 Transfer In - 112,450 11,508 Transfer out (1,275,525) - - Net Cash Provided (Used) by Noncapital Financing Activities (1,275,525) 112,450 612,049 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of Capital Assets (3,115,306) (165,722) (1,385,054) Sale of Capital Assets - - - Subscription Issuances - - - Specials Collected - 19,501 (70,369) Asset Disposal Costs and Salvage (17,051) - - Proceeds of Long-Term Debt 347,123 - - Principal Paid on Long-Term Debt (2,232,903) (241,572) (37,650) Interest Paid on Long-Term Debt (154,123) (22,962) (5,728) Net Cash Used by Capital and Related Financing Activities (5,172,260) (410,755) (1,498,801) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Investments (1,719,777) - - Sale of Investments 2,031,000 - - Interest Received 436,277 59,169 76,230 Net Cash Provided (Used) by Investing Activities 747,500 59,169 76,230 CHANGE IN CASH AND CASH EQUIVALENTS 398,742 659,134 738,257 Cash and Cash Equivalents - Beginning of Year 10,436,181 468,242 120,955 CASH AND CASH EQUIVALENTS - END OF YEAR 10,834,923$ 1,127,376$ 859,212$ Enterprise Funds Page 48 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (CONTINUED) YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (21) Governmental Activities - Totals Internal Service Funds 2025 2024 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Cash Received From Customers 50,684,798$ 49,823,500$ 459,126$ 933,333$ Cash Received from City - - 2,419,936 2,105,724 Cash Paid for Employee Wages and Benefits (4,494,738) (4,198,324) (871,854) (822,273) Cash Paid to Suppliers (37,643,984) (38,551,915) (1,332,954) (1,274,073) Net Cash Provided by Operating Activities 8,546,076 7,073,261 674,254 942,711 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Intergovernmental revenues 541 226,733 - - Due To/From Other Funds 600,000 6,400 (31,079) (62,478) Transfer In 123,958 45,000 36,336 - Transfer Out (1,275,525) (1,289,748) - - Net Cash Provided (Used) by Noncapital Financing Activities (551,026) (1,011,615) 5,257 (62,478) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of Capital Assets (4,666,082) (4,113,975) (502,965) (884,186) Sale of Capital Assets - - (25,420) 50,771 Subscription Issuances - - 109,683 - Specials Collected (50,868) 6,904 - - Asset Disposal Costs and Salvage (17,051) (94,563) - - Proceeds of Long-Term Debt 347,123 538,982 - - Principal Paid on Long-Term Debt (2,512,125) (2,493,317) (36,445) - Interest Paid on Long-Term Debt (182,813) (229,735) - - Net Cash Used by Capital and Related Financing Activities (7,081,816) (6,385,704) (455,147) (833,415) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Investments (1,719,777) (518,000) - - Sale of Investments 2,031,000 1,225,000 - - Interest Received 571,676 1,005,550 1,851 2,153 Net Cash Provided (Used) by Investing Activities 882,899 1,712,550 1,851 2,153 CHANGE IN CASH AND CASH EQUIVALENTS 1,796,133 1,388,492 226,215 48,971 Cash and Cash Equivalents - Beginning of Year 11,025,378 9,636,886 268,785 219,814 CASH AND CASH EQUIVALENTS - END OF YEAR 12,821,511$ 11,025,378$ 495,000$ 268,785$ Page 49 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (CONTINUED) YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (22) Menasha Sewage Stormwater Utilities Treatment Utility RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income (Loss) 3,973,247$ 736,139$ 773,149$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities: Depreciation and Amortization 2,550,076 164,951 180,579 Depreciation Charged to Clearing Accounts 127,312 - - Merchandising and Jobbing 17,353 - - Miscellaneous (11,501) - - Change in Liability (Asset) and Deferred Outflows and Inflows of Resources: Pension 127,303 7,787 15,360 Tower Painting 1,147 - - Other Postemployment Benefits 18,696 (4,383) (11,440) Change in Operating Assets and Liabilities: Accounts Receivables (129,443) 34,625 (1,796) Lease Receivables 26,955 - - Other Receivable (5,881) - - Due From Other Governments (19,217) (11,366) - Prepaid Items and Supplies (15,995) - - Accounts Payable (550,997) (28,032) 517,362 Insurance Claims Payable - - - Accrued and Other Current Liabilities 89,028 (495) (3,444) Due to Other Funds (72,077) - - Deferred Inflows - Leases (26,955) - - Special Deposits - - 78,850 Unearned Revenues (24) - - Compensated Absences - (956) 159 Net Cash Provided by Operating Activities 6,099,027$ 898,270$ 1,548,779$ RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION Cash and Investments in Current Assets 6,411,215$ 955,678$ 859,212$ Cash and Investments in Restricted Assets 6,564,838 171,698 - Less: Long-Term Cash Equivalents (2,141,130) - - Total Cash and Cash Equivalents 10,834,923$ 1,127,376$ 859,212$ NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Capital Contributions 351,582$ 33,177$ -$ Capital Assets Included in Accounts Payable 134,950 11,250 503,448 Enterprise Funds Page 50 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (CONTINUED) YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (23) Governmental Activities - Totals Internal Service Funds 2025 2024 2025 2024 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income (Loss) 5,482,535$ 5,221,875$ 173,538$ 498,882$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities: Depreciation and Amortization 2,895,606 2,844,158 495,989 458,761 Depreciation Charged to Clearing Accounts 127,312 111,810 - - Merchandising and Jobbing 17,353 9,344 - - Miscellaneous (11,501) 17,603 - - Change in Liability (Asset) and Deferred Outflows and Inflows of Resources: Pension 150,450 (70,749) - - Tower Painting 1,147 - - - Other Postemployment Benefits 2,873 6,553 - - Change in Operating Assets and Liabilities: Accounts Receivables (96,614) 196,591 296 (6,857) Lease Receivables 26,955 25,348 - - Other Receivable (5,881) - - - Due From Other Governments (30,583) (2,886) - - Prepaid Items and Supplies (15,995) (9,057) 14,778 (14,111) Accounts Payable (61,667) (418,313) (1,591) 27,027 Insurance Claims Payable - (412,667) - - Accrued and Other Current Liabilities 85,089 53,235 3,701 2,164 Due to Other Funds (72,077) (156,122) (12,457) (23,155) Deferred Credits (26,955) (25,348) - - Special Deposits 78,850 (168,665) - - Unearned Revenues (24) (10) - - Compensated Absences (797) (149,439) - - Net Cash Provided by Operating Activities 8,546,076$ 7,073,261$ 674,254$ 942,711$ RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION Cash and Investments in Current Assets 8,226,105$ 6,624,846$ 495,000$ 268,785$ Cash and Investments in Restricted Assets 6,736,536 6,690,180 - - Less: Long-Term Cash Equivalents (2,141,130) (2,289,648) - - Total Cash and Cash Equivalents 12,821,511$ 11,025,378$ 495,000$ 268,785$ NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Capital Contributions 384,759$ 202,976$ -$ -$ Capital Assets Included in Accounts Payable 649,648 422,540 - - Page 51 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUND DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (24) Property Tax Menasha Collection Fund Sesquicentennial 2025 2024 ASSETS Current Assets: Cash and Investments 10,511,810$ 6,101$ 10,517,911$ 9,533,404$ Receivables: Taxes 12,926,429 - 12,926,429 13,055,505 Total Assets 23,438,239 6,101 23,444,340 22,588,909 DEFERRED INFLOWS OF RESOURCES Property Taxes Levied for Subsequent Year 23,438,239 - 23,438,239 22,580,421 LIABILITIES Current Liabilities: Accounts Payable - - - 618 NET POSITION Restricted for Other Governments -$ 6,101$ 6,101$ 7,870$ Totals Custodial Funds Page 52 of 174 CITY OF MENASHA, WISCONSIN STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUND DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) See accompanying Notes to Basic Financial Statements. (25) Property Tax Menasha Collection Fund Sesquicentennial 2025 2024 ADDITIONS Tax and Special Charges Collections 22,644,955$ -$ 22,644,955$ 22,468,683$ Miscellaneous - - - 128,737 22,644,955 - 22,644,955 22,597,420 DEDUCTIONS Payments to Other Taxing Entities 22,644,955 - 22,644,955 22,468,683 Payments to Other 1,770 1,770 121,248 22,644,955 1,770 22,646,725 22,589,931 CHANGE IN NET POSITION - (1,770) (1,770) 7,489 Fiduciary Net Position - Beginning of Year - 7,870 7,870 381 FIDUCIARY NET POSITION - END OF YEAR -$ 6,100$ 6,100$ 7,870$ Totals Custodial Funds Page 53 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (26) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Menasha, Wisconsin (the City), have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting principles and policies utilized by the City are described below: A. Reporting Entity The City of Menasha is a municipal corporation governed by an elected eight-member board. In accordance with GAAP, the basic financial statements are required to include the City (the primary government) and any separate component units that have a significant operational or financial relationship with the City. The City has identified the Redevelopment Authority of the City of Menasha, Wisconsin (RDA) and Menasha Utilities as component units to be included in the City’s financial statements in accordance with standards. B. Individual Component Units Discretely Presented Component Unit The component unit column in the basic financial statements includes the financial data of the Redevelopment Authority of the City of Menasha, Wisconsin (the RDA). The RDA was established to coordinate blight prevention and elimination and urban renewal throughout the City. The financial statements of the RDA are discretely presented in a separate column to emphasize that it is legally separate from the City. The RDA is governed by a seven-member board appointed by the Mayor and confirmed by the City Council. The RDA essentially exists to provide oversight and funding for City development projects in accordance with the powers conferred by the Wisconsin Statutes. City approval is needed for the acquisition and transfer of real estate, exercise powers of eminent domain, issuance of debt and establishment of an annual budget. Separate financial statements are not prepared for the RDA. Blended Component Unit Although legally separate from the City, Menasha Utilities is blended and reported as if it were a part of the primary government because of the fiscal dependency, financial burden, and financial benefit between the City and Menasha Utilities. Page 54 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (27) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Joint Ventures Neenah-Menasha Sewerage Commission The City of Menasha is a participant with six other area municipalities in a joint venture to operate a wastewater treatment facility. The Neenah-Menasha Sewerage Commission was created for that purpose. The Commission is governed by a seven- member board composed of appointed members from the various municipalities. The Commission is designed to be a self-supporting entity, deriving its revenues from sewage treatment user fees from the various municipalities and industries it serves. The Commission has not been created for profit, and no part of the net income or profit shall accrue to the benefit of any private individual or any organization created for profit. Complete financial statements for the Neenah-Menasha Sewerage Commission can be obtained from the Commission's office at 101 Garfield Avenue, Menasha, Wisconsin 54952. Menasha-Neenah Municipal Court The City of Neenah and the City of Menasha have enacted joint ordinances creating the Menasha-Neenah Municipal Court. Each City’s proportionate share in the annual operations is equal to the percentage share of citations issued by that city compared to the total citations issued by both cities since the inception of the municipal court. The breakdown as of December 31, 2025, was as follows: Number of Citations Number of Since % of 2025 Citations Inception Total City of Menasha 1,608 40,710 39.93% City of Neenah 1,987 61,236 60.07% Totals 3,595 101,946 100.00% The municipal court prepares an annual budget and submits it to Neenah and Menasha as part of the cities’ annual budgeting process. The cities each pay a proportionate share of the municipal court budget. In addition to its proportionate share, Menasha also pays the City of Neenah an annual administrative fee. The administrative fee is reviewed annually. The City of Neenah has established a Municipal Court fund (a custodial fund) to account for municipal court activity. As of December 31, 2025, the Court was in a deficit position and the City of Menasha’s share of this deficit was $100,775. The City of Menasha paid this deficit in full subsequently in 2026. Financial information of the court as of December 31, 2025, is included in the City of Neenah’s financial statements as supplementary information. Separate financial statements are not available. The City of Menasha does not have an equity interest in this organization. Page 55 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (28) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Joint Ventures (Continued) Neenah-Menasha Fire Rescue On January 1, 2003, the City of Neenah and City of Menasha merged their fire departments. The merged fire department is known as the Neenah-Menasha Fire Rescue (NMFR). It provides fire and rescue services to the citizens of both communities. The communities share in the annual operation of the fire department as follows: City of Menasha – 38.88% and City of Neenah – 61.12%. Annually as part of the budget process, the joint finance and personnel committee will re-evaluate the cost distribution formula based on the following five factors: 1) population, 2) equalized value, 3) annual fire/rescue calls, and 4) square miles. The Joint Fire Commission consists of six members with three-year staggered terms. Neenah and Menasha each appoint three members to the commission. The appointees are not elected officials of the municipalities. The oversight of the day-to-day operations and budgetary matters of the Neenah-Menasha Fire Rescue are conducted by the Joint Fire Finance and Personnel Committee. The recommendations of the Joint Finance and Personnel Committee shall be acted upon separately by the common councils of both Neenah and Menasha and are effective only upon concurrence of both councils. The City of Neenah is responsible for administering and accounting for all funds received and disbursed. A separate fund (a custodial fund) has been established by the City of Neenah to account for fire services. The City accounts for its share of the operations in the general fund. The City of Menasha does not have an equity interest in this organization. Financial information related to the Neenah-Menasha Fire Rescue as of December 31, 2025, is included in the City of Neenah’s financial statements as supplementary information. Separate financial statements are not available. D. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which are primarily supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for services. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. 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. Taxes and other items not properly included among program revenues are reported instead as general revenues. Page 56 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (29) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Government-Wide and Fund Financial Statements (Continued) Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Governmental funds include general, special revenue, debt service, and capital projects funds. Proprietary funds include enterprise and internal service 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 – This is the City’s primary operating fund. It accounts for all financial resources of the general government, except those accounted for in another fund. Debt Service Fund – This fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of government funds. Capital Improvements – This fund accounts for the resources accumulated and payments made for the acquisition or construction of major capital improvements. The City reports the following major enterprise funds: Menasha Utilities Fund – This fund is used to account for the operating activities of the Menasha Water, Telecommunications and Electric operations. Sewage Treatment Fund – This fund is used to account for the operating activities of the Menasha Sewage Treatment operations. Stormwater Utility Fund – This fund is used to account for the operating activities of the Menasha Stormwater operations. Additionally, the City reports the following fund types:  Internal service fund accounts for fleet maintenance, information technology, insurance services and postemployment sick leave provided to other departments of the City on a cost reimbursement basis.  The City accounts for property taxes and special charges collected on behalf of other governments in a custodial fund. Page 57 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (30) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Measurement Focus and Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service principal and interest expenditures, including lease and subscription liabilities, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. General capital asset acquisitions, including entering into contracts giving the City the right to use assets, are reported as expenditures in governmental funds. Issuance of long-term debt and financing through leases and subscription-based information technology arrangements are reported as other financing sources. Revenues susceptible to accrual include intergovernmental grants, intergovernmental charges for services, public charges for services and interest. Other revenues such as licenses and permits, fines and forfeits and miscellaneous revenues are recognized when received in cash or when measurable and available. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in- lieu of taxes and other charges between the City’s water and electric functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s proprietary funds are charges to customers for services. Operating expenses for proprietary funds include the costs of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Page 58 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (31) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance 1. Cash and Investments Cash and investments are combined in the financial statements. Cash deposits consist of demand and time deposits with financial institutions. Investments are stated at fair value. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. For purposes of the statement of cash flows, all cash deposits and highly liquid investments (including restricted assets) with a maturity of three months or less from date of acquisition are considered to be cash equivalents. 2. Property Taxes Property taxes consist of taxes on real estate and personal property. They are levied during December of the prior year and become an enforceable lien on property the following January 1. Property taxes are payable in various options depending on the type and amount. Personal property taxes are payable on or before January 31 in full. Real estate taxes are payable in full by January 31 or in four equal installments on or before January 31, March 31, May 31, and July 31. Real estate taxes not paid by July 31 are purchased by the County as part of the August tax settlement. Delinquent personal property taxes remain the collection responsibility of the City. The City bills and collects its own property taxes and also levies and collects taxes for the Menasha Joint School District, Appleton Area School District, Winnebago and Calumet Counties, and Fox Valley Technical College. Collections and remittances of taxes for other entities are accounted for in the property tax custodial fund. 3. Accounts Receivable Accounts receivable are recorded at gross amounts with uncollectible amounts recognized under the direct write-off method. No allowance for uncollectible accounts has been provided since it is believed that the amount of such allowance would not be material to the basic financial statements. 4. Special Assessments Assessments against property owners for public improvements are generally not subject to full settlement in the year levied. Special assessments are placed on tax rolls on an installment basis. Revenue from special assessments recorded in governmental funds is recognized as collections are made or as current installments are placed on tax rolls. Page 59 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (32) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance (Continued) 5. Loans Receivable The City has received federal and state grant funds for economic development and housing rehabilitation loan programs and has passed the funds to various businesses and individuals in the form of loans. The City records a loan receivable and expenditure when the loan has been made and the funds disbursed. No allowance for uncollectible accounts has been provided since it is believed that the amount of such allowance would not be material to the basic financial statements. In the governmental funds, the City records a deferred inflow of resources for the net amount of the receivable. As the loans are repaid, revenue is recognized. Any unspent loan proceeds are presented as restricted fund balance in the fund financial statements. 6. Interfund Receivables and Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as “due from other funds” and “due to other funds” in the fund financial statements. The amount reported on the statement of net position for internal balances represents the residual balance outstanding between the governmental and business-type activities. 7. Prepaid Supplies Prepaid supplies are recorded at cost, which approximates market, using the first-in, first-out method. Prepaid supplies consist of expendable supplies held for consumption. The cost is recorded as an expenditure at the time individual supply items are consumed rather than when purchased. Prepaid supplies of governmental funds in the fund financial statements are classified as nonspendable fund balance to indicate that they do not represent spendable available financial resources. Page 60 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (33) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance (Continued) 8. Prepaid Items Payments made to vendors that will benefit periods beyond the end of the current fiscal year are recorded as prepaid items and are accounted for on the consumption method. Prepaid items of governmental funds in the fund financial statements are classified as nonspendable fund balance to indicate that they do not represent spendable available financial resources. 9. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $5,000 or higher and an estimated useful life in excess of a year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets of the City are depreciated or amortized using the straight-line method over the following estimated useful lives: Governmental Business-Type Assets Activities Activities Land Improvements 15 - Buildings and Improvements 30 - 50 25 - 50 Machinery and Equipment 5 - 25 3 - 10 Infrastructure 25 - 100 - Right-to-Use Lease Asset - Building 5 - 25 - Right-to-Use Lease Asset - Machinery and Equipment 4 - Years Right-to-use lease assets are initially measured at the present value of payments expected to be made during the lease term, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset. Page 61 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (34) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance (Continued) 9. Capital Assets (Continued) Subscription assets are initially measured as the sum of the present value of payments expected to be made during the subscription term, payments associated with the subscription-based information technology arrangement (SBITA) contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received from the SBITA vendor at the commencement of the SBITA term. Subscription assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying information technology assets. 10. Compensated Absences The liability for compensated absences reported in the government-wide and proprietary fund statements consists of leave that has not been used that is attributable to services already rendered, accumulates and is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. The liability also includes amounts for leave that has been used for time off but has not yet been paid in cash or settled through noncash means and certain other types of leave. 11. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The category of deferred outflow of resources reported in the statement of net position is related to pensions and other postemployment benefits. Deferred outflows on pension and other postemployment benefits are more fully discussed in Note 3.H. and 3.J. In addition to liabilities, the statement of net position and the governmental funds balance sheet includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. In the government-wide financial statements. The deferred inflows of resources reported on the statement of net position relate to subsequent year property taxes, pension and other postemployment benefits, which are more fully discussed in Note 3.H. and 3.J. The statement of net position and the governmental funds balance sheet also report a deferred inflow of resources related to leases. The lease related deferred inflow of resources is recorded in an amount equal to the corresponding lease receivable plus any payments received at or before the start of the lease term that relates to future periods, less any lease incentives paid to, or on behalf of the lessee at or before the commencement of the lease term. The inflow of resources is recognized in a systematic and rational manner over the term of the lease. Page 62 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (35) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance (Continued) 11. Deferred Outflows/Inflows of Resources (Continued) Under the modified accrual basis of accounting, deferred inflows of resources also include revenues not collected within the availability period after the fiscal year-end. The City has reported deferred inflows of resources related to unavailable revenues for property taxes, grants, loan receivables, and special assessments. These amounts are deferred and will be recognized as an inflow of resources in the period that amounts become available. 12. Long-Term Obligations In the government-wide financial statements, and proprietary funds in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed as incurred. In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 13. 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:  New Pension Liability (Asset),  Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions,  Pension Expense (Revenue). Information about the fiduciary new position of the WRS and additions to/deduction 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. Page 63 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (36) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance (Continued) 14. Other Postemployment Benefits Other than Pensions (OPEB) Single Employer Defined Postemployment Benefit Plan For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related OPEB, and OPEB expense (revenue), information about the fiduciary net position of the City’s Other Postemployment Benefit Plan (the Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Multiple-Employer Defined Benefit Post Employment Plan – Local Retiree Life Insurance Fund The fiduciary net position of the Local Retiree Life Insurance Fund (LRLIF) has been determined using the flow of economic resources measurement focus and the accrual basis of accounting. This includes for purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to other postemployment benefits, OPEB expense (revenue). Information about the fiduciary net position of the LRLIF and additions to/deductions from LRLIF’s fiduciary net position have been determined on the same basis as they are reported by LRLIF. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Page 64 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (37) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance (Continued) 15. Fund Balance and Net Position Governmental Fund Financial Statements Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used: Nonspendable Fund Balance – Amounts that are not in spendable form (such as inventory, prepaid items, or long-term receivables) or are legally or contractually required to remain intact. Restricted Fund Balance – Amounts that are constrained for specific purposes by external parties (such as grantor or bondholders), through constitutional provisions, or by enabling legislation. Committed Fund Balance – Amounts that are constrained for specific purposes by action of the City Council. These constraints can only be removed or changed by the City Council using the same action that was used to create them. Assigned Fund Balance – Amounts that are constrained for specific purposes by action of City management. Residual amounts in any governmental fund, other than the General Fund, are also reported as assigned. Unassigned Fund Balance – Amounts that are available for any purpose. Positive unassigned amounts are only reported in the General Fund. The City has not adopted a fund balance spend-down policy regarding the order in which fund balance will be utilized. When a policy does not specify the spend-down policy, GASB Statement No. 54 indicates that restricted funds would be spent first, followed by committed funds, and then assigned funds. Unassigned funds would be spent last. Government-Wide and Proprietary Fund Statements Net position is classified and displayed in three components: Net Investment in Capital Assets – Amount of capital assets, net of accumulated depreciation or amortization, and capital related deferred outflows of resources, less outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets and any capital related deferred inflows of resources. Page 65 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (38) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance (Continued) 16. Fund Balance and Net Position Government-Wide and Proprietary Fund Statements (Continued) Restricted Net Position – Amount of net position that is subject to restrictions that are imposed 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. Unrestricted Net Position – Net position that is neither classified as restricted nor as 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. G. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. H. Prior Year Information Comparative amounts for the prior year have been presented in the basic financial statements to provide an understanding of changes in the City’s financial position and operations. The comparative amounts may be summarized in total and not at the level of detail required for a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the City’s financial statements for the year ended December 31, 2024, from which the summarized information was derived. Page 66 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (39) NOTE 2 STEWARDSHIP AND COMPLIANCE A. Budgets and Budgetary Accounting The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: 1. During October, City management submits to the City Council a proposed operating budget for the calendar year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. After submission to the governing body, public hearings are held to obtain taxpayer comments. Following the public hearings, the proposed budget, including authorized additions and deletions, is legally enacted by City Council action. 2. Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds. Budget is defined as the originally approved budget plus or minus approved amendments. Individual amendments throughout the year were not material in relation to the original budget. Budget appropriations not expended during the year are closed to fund balance unless authorized by the governing body to be forwarded into the succeeding year’s budget. 3. During the year, formal budgetary integration is employed as a management control device for the governmental funds adopting a budget. 4. The legal level of budgetary control is by activity or department. Expenditures may not exceed appropriations provided in detailed budget accounts maintained for each activity or department of the City. Amendments to the budget during the year require initial approval by management and are subsequently authorized by the City Council. Management does not have authority to amend activity or department budget accounts. 5. Encumbrance accounting is not used by the City to record commitments related to unperformed contracts for goods or services. The City did not have any material violation of legal or contractual provisions for the fiscal year ended December 31, 2025. Page 67 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (40) NOTE 2 STEWARDSHIP AND COMPLIANCE (CONTINUED) B. Excess of Expenditures Over Budget Appropriations The following expenditure accounts of the governmental funds had actual expenditures in excess of budget appropriations for the year ended December 31, 2025, as follows: Excess Funds Expenditures General: Public Safety 85,574$ Public Works 66,256 Health and Human Services 69,868 Culture and Recreation 31,641 Debt Service: Interest and Fiscal Charges 109,100 Capital Improvements: General Government 8,761 Public Works 129,974 Library Endowment: Culture and Recreation 11,510 Hattie Minor Scholarship: Culture and Recreation 500 Local Fiscal Recovery Funds: General Government 43,589 Culture and Recreation 202,958 Tax Incremental District No. 4: Culture and Recreation 7,000 General Government 78,430 Tax Incremental District No. 10: Capital Outlay 35,572 Excess expenditures were funded by positive variances in fund revenues, fund balance, or other fund appropriations. Page 68 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (41) NOTE 2 STEWARDSHIP AND COMPLIANCE (CONTINUED) C. Deficit Nonmajor Fund Equity The following major and nonmajor funds had deficit fund balance or net position as of December 31, 2025: Deficit Fund Funds Balance Special Revenue Funds: Marina Operations 111,180$ Capital Projects Funds: Capital Improvements 310,992 Tax Incremental District No. 7 442,618 Tax Incremental District No. 11 581,032 Tax Incremental District No. 12 1,044,691 Tax Incremental District No. 13 1,716,397 The City anticipates funding the Marina Operations deficit from future revenues of the fund. The City anticipates funding the Capital Improvements deficit with debt proceeds in subsequent year. Tax Incremental District funds are anticipated to be funded with future incremental taxes levied over the life of the district, which is typically 27 years for the districts created before October 1, 1995, and 23 years for districts created thereafter through September 30, 2004. Beginning October 1, 2004, the life of new districts varies by type of district (20-27 years) and may be extended in some cases. Other fund deficits are anticipated to be funded with special assessments, charges for services, or general tax revenues. D. Property Tax Levy Limit Wisconsin state statutes provide for a limit on the property tax levies for all Wisconsin cities, villages, towns and counties. For the 2025 and 2026 budget years, Wisconsin Statutes limit the increase in the maximum allowable tax levy to the change in the City’s January 1 equalized value as a result of net new construction. The actual limit for the City for the 2025 budget was 1.774%. The actual limit for the City for the 2026 budget was 1.392%. Debt service for debt authorized after July 1, 2005 is exempt from the levy limit. In addition, Wisconsin statutes allow the limit to be adjusted for the increase in debt service authorized prior to July 1, 2005 and in certain other situations. Page 69 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (42) NOTE 3 DETAILED NOTES ON ALL FUNDS A. Cash and Investments The City maintains various cash and investment accounts, including pooled funds that are available for use by all funds. Each fund’s portion of these accounts is displayed on the financial statements as cash and investments. Invested cash consists of deposits and investments that are restricted by Wisconsin Statutes to the following: Time deposits; repurchase agreements; securities issued by federal, state and local governmental entities; statutorily authorized commercial paper and corporate securities; and the Wisconsin Local Government Investment Pool. The City’s library endowment funds may invest in additional types of investments as allowed under Chapter 881 of the Wisconsin Statutes. The carrying amount of the City’s cash and investments totaled $40,661,020 on December 31, 2025, as summarized below: Petty Cash and Cash on Hand 6,814$ Deposits with Financial Institutions 31,606,004 Investments: Cash Management 157,120 Common Stock 40 U.S. Treasury Securities 624,412 Mutual Funds 505,266 Municipal Bonds 2,245,620 Negotiable Certificates of Deposit 586,655 Wisconsin Local Government Investment Pool 4,504,515 Beneficial Interest in Assets Held by the Community Foundation 424,574 Total 40,661,020$ Page 70 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (43) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Cash and Investments (Continued) Reconciliation to the basic financial statements: Government-Wide Statement of Net Position: Primary Government: Cash and Investments 20,041,237$ Restricted Cash and Investments 7,635,358 Component Unit: Cash and Investments 2,466,514 Fiduciary Fund Statement of Net Position: Cash and Investments 10,517,911 Total 40,661,020$ Fair Value Measurements 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 observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following fair value measurements as of December 31, 2025: Level 1 Level 2 Level 3 Investments: Common Stock 40$ -$ -$ U.S. Treasury Securities - 624,412 - Mutual Funds 505,266 - - Municipal Bonds - 2,245,620 - Negotiable Certificates of Deposit - 586,655 - Interest in Community Foundation - - 424,574 Totals 505,306$ 3,456,687$ 424,574$ Fair Value Measurements Using: Page 71 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (44) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Cash and Investments (Continued) Beneficial Interest in Assets Held by the Community Foundation The City entered into an agreement with the Community Foundation for the Fox Valley Region, Inc. (the Foundation) to establish the General Trust Fund and the Memorial Trust Funds of the Elisha D. Smith Public Library Endowment. The funds are to be used for support of the City’s library operations. The Foundation retains these funds as its property in a corporate capacity, not a trust capacity, while the City reports its interest in the assets held by the Foundation at fair value. These funds are classified as Level 3 as they are within the pooled investments of the Foundation and no availability of pricing or estimated recent trade prices of the investments of the pool. The balance in these funds as of December 31, 2025, is $424,574. Since the Foundation retains ultimate authority and control over the fund, additional disclosures of investment risks are not available. Deposits and investments of the City are subject to various risks. Presented below is a discussion of the City’s deposits and investments and the related risks. Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. Wisconsin statutes require repurchase agreements to be fully collateralized by bonds or securities issued or guaranteed by the federal government or its instrumentalities. The City does not have an additional custodial credit policy. Deposits with financial institutions within the state of Wisconsin are insured by the Federal Deposit Insurance Corporation (FDIC) in the amount of $250,000 for the combined amount of all time and savings deposits and $250,000 for interest-bearing and noninterest-bearing demand deposits per official custodian per insured depository institution. Deposits with financial institutions located outside the state of Wisconsin are insured by the FDIC in the amount of $250,000 for the combined amount of all deposit accounts per official custodian per depository institution. Deposits with credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF) in the amount of $250,000 per credit union member. Also, the State of Wisconsin has a State Guarantee Fund which provides a maximum of $1,000,000 per public depository above the amount provided by an agency of the U.S. Government. However, due to the relatively small size of the State Guarantee Fund in relation to the Fund’s total coverage, total recovery of insured losses may not be available. This coverage has been considered in determining custodial credit risk. As of December 31, 2025, none of the City’s deposits with financial institutions were in excess of federal and state depository insurance limits. Page 72 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (45) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Cash and Investments (Continued) Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Wisconsin statutes limit investment in securities to the top two ratings assigned by nationally recognized statistical rating organizations. Presented below is the actual rating as of the year-end for each investment type. Exempt From Not Investment Type Amount Disclosure AAA Aa Rated U.S. Treasury Securities 624,412$ 624,412$ -$ -$ -$ Municipal Bonds 2,245,620 - 518,029 1,727,591 - Negotiable Certificates of Deposit 586,655 - - - 586,655 Totals 3,456,687$ 624,412$ 518,029$ 1,727,591$ 586,655$ Concentration of Credit Risk At December 31, 2025, the City had no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity: 12 Months 13 to 24 25 to 60 More Than Investment Type Amount or Less Months Months 60 Months U.S. Treasury Securities 624,412$ 254,074$ 123,966$ -$ 246,372$ Municipal Bonds 2,245,620 1,436,969 808,651 - - Negotiable Certificates of Deposit 586,655 451,720 - 134,935 - Totals 3,456,687$ 2,142,763$ 932,617$ 134,935$ 246,372$ Remaining Maturity (in Months) Page 73 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (46) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Cash and Investments (Continued) Investment in Wisconsin Local Government Investment Pool The City has investments in the Wisconsin Local Government Investment Pool of $4,504,515 at year-end. 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 Village’s share of the LGIP’s assets was substantially equal to the carrying value. Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Wisconsin statutes limit investments in securities to the top two ratings assigned by nationally recognized statistical rating organizations. The Village does not have an additional credit risk policy. The Village’s investment in the Wisconsin local government investment pool is not rated. Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The Village does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. As of December 31, 2025 the Wisconsin local government investment pool had a weighted average maturity of 13 days. Page 74 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (47) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) B. Restricted Assets Restricted assets on December 31, 2025, totaled $7,635,358 and consisted of cash and investments held for the following purposes: Funds Amount Purpose Governmental Activities: Library 525,468$ Endowment funds Community Development Community Development Block Grant 373,354 Grant proceeds to be used for loans to homeowners Total Governmental Activities 898,822 Business-Type Activities: Menasha Utilities: Debt Reserve 838,500 Resources set aside to make up potential future deficiencies in the debt service account Debt Service 698,118 Resources accumulated for debt service payments over the next twelve months Depreciation 4,100,680 Resources accumulated for repairs, replacements, or additions to capital assets Capital Replacements 681,191 Resources accumulated for painting and maintenance of the water tower and chemical stabilization. Postemployment Benefits 246,349 Resources accumulated for postemployment health benefits Total Menasha Utilities 6,564,838 Sewage Treatment Resources set aside for equipment Equipment Replacement 171,698 purchases Total Business-Type Activities 6,736,536 Total Restricted Assets 7,635,358$ Page 75 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (48) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) C. Leases Receivable The City, acting as lessor, leases property under long-term, noncancelable lease agreements. A summary of the City’s leases receivable terms and interest rates is as follows: Governmental Activities: Cell tower space. Monthly installments ranging from $766 to $3,280 totaling $333,544 plus interest at rates of 3.43%, due dates ranging from 2023 - 2038. Cell tower space. Monthly installments ranging from $2,376 to $2,605 totaling $30,775 plus interest at rates of 2.35%, due dates ranging from 2023 - 2026. Parking lot space. Annual installments ranging from $478 to $5,500 totaling $91,806 plus interest at rates of 4.25%, due dates ranging from 2023 - 2054. Business-Type Activities: Cell tower space. Monthly installments escalating from $2,695 to $5,905 totaling $790,748 plus interest at rates of 1.0%, due date of 2043. The leases provide for increases in future minimum annual rental payments. For the year ended, December 31, 2025, for governmental activities, the City received in lease revenue $45,534 and $16,248 in interest on the leases receivable and in business- type activities, the City received in lease revenue $26,955 and $8,025 in interest on the lease receivable. The statement of net position reports $456,125 and $790,748 for governmental activities and business-type activities, respectively, in leases receivable and corresponding deferred inflows of resources. Page 76 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (49) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) D. Capital Assets Capital asset activity for the year ended December 31, 2025, was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Nondepreciable: Land 7,593,690$ -$ -$ 7,593,690$ Construction in Progress 8,706,151 1,491,273 6,933,399 3,264,025 Total Capital Assets, Nondepreciable 16,299,841 1,491,273 6,933,399 10,857,715 Capital Assets, Depreciable and Amortizable: Land Improvements 3,085,276 - - 3,085,276 Buildings and Improvements 23,318,902 3,120,903 23,644 26,416,161 Machinery and Equipment 16,755,737 5,584,444 471,226 21,868,955 Infrastructure 37,876,374 1,914,200 944,375 38,846,199 Right-to-Use Lease Asset - Building 1,144,956 - - 1,144,956 Right-to-Use Lease Assets - Equipment 72,138 - - 72,138 Right-to-Use Subscription Asset - 109,683 - 109,683 Subtotals 82,253,383 10,729,230 1,439,245 91,543,368 Less Accumulated Depreciation and Amortization for: Land Improvements 1,227,414 205,483 - 1,432,897 Buildings and Improvements 8,012,752 648,157 5,094 8,655,815 Machinery and Equipment 8,097,776 1,001,769 362,481 8,737,064 Infrastructure 17,081,661 1,159,382 958,343 17,282,700 Right-to-Use Lease Asset - Building 140,677 46,892 - 187,569 Right-to-Use Lease Assets - Equipment 4,988 18,035 - 23,023 Right-to-Use Subscription Asset - 21,327 - 21,327 Subtotals 34,565,268 3,101,045 1,325,918 36,340,395 Total Capital Assets, Depreciable and Amortizable, Net 47,688,115 7,628,185 113,327 55,202,973 Governmental Activities Capital Assets, Net 63,987,956$ 9,119,458$ 7,046,726$ 66,060,688 Less: Capital Related Debt 37,479,734 Less: Lease Liability 1,072,344 Less: Subscription Liability 73,238 Less: Capital Related Accounts Payable 494,993 Less: Debt Premium 461,884 Net Investment in Capital Assets 26,551,733$ Page 77 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (50) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) D. Capital Assets (Continued) Beginning Ending Balance Increases Decreases Balance Business-Type Activities: Capital Assets, Nondepreciable: Land 2,817,272$ 13,412$ 668$ 2,830,016$ Construction in Progress 1,070,589 994,908 840,213 1,225,284 Total Capital Assets, Nondepreciable 3,887,861 1,008,320 840,881 4,055,300 Capital Assets, Depreciable: Buildings and Improvements 9,080,326 403,946 132,099 9,352,173 Improvements Other Than Buildings 74,156,079 3,621,400 883,725 76,893,754 Machinery and Equipment 21,662,639 992,335 513,506 22,141,468 Subtotals 104,899,044 5,017,681 1,529,330 108,387,395 Less Accumulated Depreciation for: Electric Distribution Utility 23,756,859 1,523,596 808,318 24,472,137 Energy Services Utility 160,211 1,511 161,722 - Telecommunications Utility 701,979 28,424 - 730,403 Water Utility 16,829,127 1,123,855 577,010 17,375,972 Sewage Treatment Utility 2,785,005 164,951 - 2,949,956 Storm Sewer Utility 3,049,442 180,579 - 3,230,021 Subtotals 47,282,623 3,022,916 1,547,050 48,758,489 Total Capital Assets, Depreciable, Net 57,616,421 1,994,765 (17,720) 59,628,906 Business-Type Activities Capital Assets, Net 61,504,282$ 3,003,085$ 823,161$ 63,684,206 Less: Capital Related Debt 12,015,797 Less: Capital Related Accounts Payable 649,648 Net Investment in Capital Assets 51,018,761$ Page 78 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (51) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) D. Capital Assets (Continued) Depreciation and amortization expense was charged to functions of the City as follows: Governmental Activities: General Government 112,253$ Public Safety 300,905 Public Works 1,997,448 Health and Human Services 10,274 Culture and Recreation 680,165 Total Depreciation and Amortization Expense - Governmental Activities 3,101,045$ Business-Type Activities: Electric Distribution Utility 1,523,596$ Energy Services Utility 1,511 Telecommunications Utility 28,424 Water Utility 1,123,855 Sewerage Treatment 164,951 Stormwater Utility 180,579 Total Increase in Accumulated Depreciation - Business-Type Activities 3,022,916$ Reconciliation of Certain Differences between the Governmental Fund Balance Sheet and the Statement of Net Position Related to Capital Assets 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. One element of that reconciliation explains that “capital assets used in governmental funds are not current financial resources and, therefore, are not reported in the funds.” The detail of this difference is as follows: Capital Assets Per Statement of Net Position: Land 7,593,690$ Construction in Progress 3,264,025 Depreciable Capital Assets, Net of Depreciation 55,202,973 Subtotal 66,060,688 Less: Internal Service Fund Capital Assets (4,678,106) Net Adjustment for Capital Assets 61,382,582$ Page 79 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (52) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) E. Interfund Receivable, Payables, and Transfers Interfund receivables and payables between individual funds of the City, as reported in the fund financial statements, as of December 31, 2025, are detailed below: Interfund Interfund Receivables Payables General Fund 427,642$ -$ Special Revenue Funds: Marina Operations - 109,849 Strong Neighborhoods Program 500,000 - Enterprise Funds: Sewage Treatment 800,000 - Stormwater Utility 800,000 - Internal Service Funds: Information Technology - 21,773 Capital Project Funds: Tax Incremental District No. 7 - 381,208 Tax Incremental District No. 11 - 492,304 Tax Incremental District No. 12 - 161,218 Tax Incremental District No. 13 - 1,361,290 Totals 2,527,642$ 2,527,642 Government-Wide Adjustments: Fund Eliminations (927,642) Internal Service Fund Allocations 400,466 Internal Balances - Government-Wide Statement of Net Position 2,000,466$ The above interfund receivables and payable were recorded to eliminate deficit cash balances in the funds. The amount payable and reported as advance in the financial statements of the Marina Operations fund relate to a working capital loan made. None of the balance is scheduled to be collected in the subsequent year. The general fund, strong neighborhoods program, storm water and sewage treatment are advancing funds to Tax Incremental District Nos. 7, 11, 12 and 13. The amount advanced is determined by the deficiency of revenues over expenditures and other financing sources since the district’s inception. No repayment schedule has been established. The City anticipates that future cash inflows will be sufficient to offset the current deficit cash balances. Page 80 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (53) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) E. Interfund Receivable, Payables, and Transfers (Continued) Interfund transfers for the year ended December 31, 2025, were as follows: Transfer Transfer Fund In Out General 760,076$ 3,000$ Debt Service fund 985,038 45,000 Marina Operations - 5,000 Public Safety Donations 3,000 - Capital Improvements - 115,294 Tax Incremental District No. 4 - 37,651 Tax Incremental District No. 7 - 111,521 Tax Incremental District No. 8 - 71,787 Tax Incremental District No. 10 - 10,485 Tax Incremental District No. 11 - 71,215 Tax Incremental District No. 12 - 91,450 Tax Incremental District No. 13 - 70,480 Subtotal 1,748,114 632,883 Enterprise Funds: Menasha Utilities - 1,275,525 Sewage Treatment 112,450 - Stormwater Utility 11,508 - Subtotal 123,958 1,275,525 Internal Service Funds: Information Technology 36,336 - Totals 1,908,408$ 1,908,408$ Interfund transfers were made for the following purposes: Tax Equivalent Payment of Menasha Utilities: General Fund 646,406$ Debt Service 629,119 Tax Incremental Districts to Debt Service for Debt Repayment 355,919 TID Payments to General Fund to Cover TID Administrative Costs 108,670 General Fund Payment from Marina Fund for Annual Payment 5,000 Transfer of Donations from General Fund 3,000 Capital Improvements Payment to Sewage Treatment for Development Projects 67,450 Capital Improvements Payment to Storm Water for Special Assessments 11,508 Debt Service Payment to Sewage Treatment 45,000 Capital Improvements to Information Technology Internal Service Fund 36,336 Total 1,908,408$ Page 81 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (54) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) F. Long-Term Obligations The following is a summary of changes in long-term obligations of the City for the year ended December 31, 2025. Beginning Ending Due Within Balance Issued Retired Balance One Year Governmental Activities: General Obligation Debt: Bonds 31,960,000$ 3,630,000$ 2,055,000$ 33,535,000$ 2,255,000$ Notes From Direct Borrowings 4,504,765 - 647,713 3,857,052 661,614 Total General Obligation Debt 36,464,765 3,630,000 2,702,713 37,392,052 2,916,614 WPPI Loan 105,740 34,000 19,757 119,983 21,458 Lease Liabilities 1,121,920 - 49,576 1,072,344 51,600 Subscription Liabilities - 109,683 36,445 73,238 36,253 Debt Premium 388,035 128,043 54,194 461,884 - Compensated Absences 1,686,772 60,740 26,920 1,720,592 - Governmental Activities Long- Term Obligations 39,767,232$ 3,962,466$ 2,889,605$ 40,840,093$ 3,025,925$ Business-Type Activities: General Obligation Debt: Bonds 1,245,000$ -$ 165,000$ 1,080,000$ 170,000$ Revenue Bonds From Direct Borrowings 8,332,205 347,123 1,706,384 6,972,944 915,629 Revenue Bonds 4,725,000 - 925,000 3,800,000 935,000 Due to Village of Fox Crossing 200,503 - 37,650 162,853 38,837 Compensated Absences 39,296 159 956 38,499 - Business-Type Activities Long- Term Obligations 14,542,004$ 347,282$ 2,834,990$ 12,054,296$ 2,059,466$ Total interest paid during the year on long-term debt totaled $1,223,494. The City has outstanding notes from direct borrowings related to governmental activities of $601,554 issued through the Wisconsin State Trust Fund Loan program. The outstanding total of these issuances of $601,544 are subject to a statutory provision that in the event of late or non-payment, a one percent per month penalty will be charged and the payment will be collected through a reduction in payments from the State of Wisconsin. The City’s outstanding notes from direct borrowings related to governmental activities of $3,255,498 contain a provision that in an event of default, outstanding amounts become immediately due if the City is unable to make payment. Page 82 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (55) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) F. Long-Term Obligations (Continued) The City’s outstanding revenue bonds from direct borrowings related to business-type activities include amounts outstanding due to the Department of Administration for the Safe Drinking Water and Clean Water Fund Loan Programs totaling $6,890,389 and purchased capacity in WPPI Energy totaling $82,555. Safe Drinking Water and Clean Water Fund loans contain the following provisions in the event of a default: 1) Wisconsin Department of Administration can deduct amounts due from any state payments due to the City of Menasha or add the amounts due as a special charge to the property taxes apportioned; 2) may appoint a receiver for the Program’s benefit; 3) may declare the principal amount immediately due and payable; 4) may enforce any right or obligation under the financing agreement including the right to seek specific performance or mandamus; and 5) may increase the interest rate set forth in the financing agreement to the market interest rate. The WPPI Loan contains a provision that in the event of default, WPPI reserves the right to apply payments among principal, interest, late charges, collection costs and other charges at its discretion. General Obligation Debt General obligation debt currently outstanding is detailed as follows: Date of Final Interest Original Balance Issue Maturity Rates Indebtedness 12/31/25 Direct Borrowing - State Trust Fund Loan 12/30/16 3/15/26 3.00% 337,000$ 42,277$ Direct Borrowing - State Trust Fund Loan 1/18/17 3/15/26 3.00 3,039,013 157,630 Direct Borrowing - State Trust Fund Loan 1/18/17 3/15/33 3.50 738,821 401,647 General Obligation Refunding Bonds 8/29/19 3/1/31 1.75-3.00 4,090,000 2,955,000 General Obligation Refunding Bonds 4/30/20 3/1/30 1.80-2.65 9,600,000 3,430,000 General Obligation Refunding Bonds 4/30/20 3/1/33 2.00-2.40 5,670,000 4,130,000 General Obligation Bonds, Series 2021B 6/17/21 3/1/40 2.00-4.00 14,085,000 13,130,000 General Obligation Corporate Purpose Bonds 7/27/22 3/1/42 2.80-4.00 3,265,000 2,845,000 General Obligation Promissory Notes 3/15/23 1/31/29 4.58 1,016,355 668,979 General Obligation Promissory Notes 3/15/23 1/31/32 4.58 3,651,000 2,586,519 General Obligation Promissory Notes 8/8/24 3/1/44 4.0-5.0 4,595,000 4,495,000 General Obligation Promissory Notes 8/28/25 3/1/45 4.0-5.0 3,630,000 3,630,000 Total Outstanding General Obligation Debt 38,472,052$ Page 83 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (56) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) F. Long-Term Obligations (Continued) Annual principal and interest maturities of the outstanding general obligation debt of $38,472,052 on December 31, 2025, are detailed below: Year Ended December 31, Principal Interest Principal Interest 2026 661,614$ 169,146$ 2,255,000$ 976,460$ 2027 482,374 142,493 2,155,000 909,078 2028 503,941 120,926 2,180,000 842,516 2029 484,189 98,328 2,220,000 773,126 2030 351,473 76,684 2,295,000 702,214 2031 - 2035 1,373,461 133,976 10,235,000 2,553,463 2036 - 2040 - - 9,835,000 1,182,579 2041 - 2045 - - 2,360,000 194,108 Totals 3,857,052$ 741,553$ 33,535,000$ 8,133,544$ Year Ended Totals December 31, Principal Interest Principal Interest 2026 170,000$ 21,738$ 3,086,614$ 1,167,344$ 2027 175,000 18,200 2,812,374 1,069,771 2028 180,000 14,427 2,863,941 977,869 2029 180,000 10,513 2,884,189 881,967 2030 185,000 6,451 2,831,473 785,349 2031 - 2035 190,000 2,185 11,798,461 2,689,624 2036 - 2040 - - 9,835,000 1,182,579 2041 - 2045 - - 2,360,000 194,108 Totals 1,080,000$ 73,514$ 38,472,052$ 8,948,611$ Governmental Activities Bonded DebtNotes from Direct Borrowings Bonded Debt Business-Type Activities Legal Margin for New Debt The City’s legal margin for creation of additional general obligation debt on December 31, 2025, was $61,947,153 as follows: Equalized Valuation of the City 2,008,384,100$ Statutory Limitation Percentage (x) 5% General Obligation Debt Limitation, Per Section 67.03 of the Wisconsin Statutes 100,419,205 Total Outstanding General Obligation Debt Applicable to Debt Limitation 38,472,052 Legal Margin for New Debt 61,947,153$ Page 84 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (57) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) F. Long-Term Obligations (Continued) Revenue Bonds Revenue bonds outstanding on December 31, 2025, totaled $10,772,944 and were comprised of the following issues: Date of Final Interest Original Balance Issue Maturity Rates Indebtedness 12/31/25 Direct Borrowings: Safe Drinking Water Loan Program 3/12/08 5/1/27 237.000% 2,733,387$ 323,156$ Safe Drinking Water Loan Program 11/9/11 5/1/31 2.400 872,956 287,809 Safe Drinking Water Loan Program 7/24/13 5/1/33 2.630 504,200 217,927 Safe Drinking Water Loan Program 4/11/07 5/1/26 2.668 779,363 124,314 Safe Drinking Water Loan Program 4/22/09 5/1/28 2.475 678,908 248,018 Safe Drinking Water Loan Program 11/9/11 5/1/31 2.200 233,307 82,519 Safe Drinking Water Loan Program 6/13/12 5/1/32 2.200 639,000 498,586 Safe Drinking Water Loan Program 7/25/12 5/1/32 2.200 1,276,480 52,697 Safe Drinking Water Loan Program 2/17/21 9/1/29 1.000 895,150 749,026 Safe Drinking Water Loan Program 7/27/22 5/1/42 2.145 914,316 816,961 Safe Drinking Water Loan Program 7/10/24 5/1/44 2.150 538,982 850,159 Sewer System 2013 Clean Water Loan (1) 2/13/13 5/1/32 2.650 6,139,423 2,639,217 Revenue Bonds: Refunding Bonds, Series 2021A 2/17/21 9/1/29 1.000 8,385,000 3,800,000 WPPI Note 5/27/22 5/28/32 - 130,350 82,555 Total Outstanding Revenue Bonds 10,772,944$ (1) The proceeds of the sewage treatment utility's 2013 Sewer Clean Water Fund Loan were paid directly to the Neenah-Menasha Sewerage Commission for expansion of the regional plant. P rincipal and interest payments on this debt will be paid by the Neenah-Menasha Sewerage Commission under an agency agreement. The debt service is recovered by Neenah-Menasha Sewerage Commission as part of its annual use charges. The resulting due from other governments and revenue bonds of a like amount has been recorded by the City of Menasha and will be reduced as payments are made. Annual principal and interest maturities of the outstanding revenue bonds of $10,772,944 on December 31, 2025, are detailed below: Year Ended December 31, Principal Interest Principal Interest Principal Interest 2026 915,629$ 148,918$ 935,000$ 38,000$ 1,850,629$ 186,918$ 2027 883,489 127,457 945,000 28,650 1,828,489 156,107 2028 737,218 108,115 955,000 19,200 1,692,218 127,315 2029 711,170 90,860 965,000 9,650 1,676,170 100,510 2030 728,064 73,761 - 728,064 73,761 2030 - 2034 1,877,782 173,838 - - 1,877,782 173,838 2035 - 2039 746,820 74,750 - - 746,820 74,750 2039 - 2044 372,772 11,868 - - 372,772 11,868 Totals 6,972,944$ 809,567$ 3,800,000$ 95,500$ 10,772,944$ 905,067$ Totals Business-Type Activities Bonds From Direct Borrowings Bonded Debt Page 85 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (58) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) F. Long-Term Obligations (Continued) Due to Village of Fox Crossing As of December 31, 2025, the City owes the Village of Fox Crossing $162,853 related to the City’s portion of the Environmental Improvement Fund WDOA Loan issued originally in 2014. Annual principal and interest maturities are described below: Year Ended December 31, Principal Interest Total 2026 38,837$ 5,728$ 44,565$ 2027 40,062 4,522 44,584 2028 41,325 3,279 44,604 2029 42,629 1,996 44,625 Totals 162,853$ 15,525$ 178,378$ Business-Type Activities Utility Revenues Pledged The City has pledged future electric, water, and sewer customer revenues, net of specified operating expenses, to repay the electric, water, and sewer system revenue bonds. Proceeds from the revenue bonds provided financing for the construction or acquisition of capital assets of the City’s electric, water, and sewage treatment utilities. Outstanding debt service of revenue bonds, 2025 principal and interest paid, and net customer revenues follows: Electric Water Sewage Utility Utility Treatment Net Customer Revenues: Charges for Services 38,947,166$ 6,649,331$ 2,788,151$ Other Income 232,806 87,369 - Total Operating Revenues 39,179,972 6,736,700 2,788,151 Less: Operating Expenses (1) 36,313,624 3,187,761 1,887,061 Net Customer Revenues 2,866,348$ 3,548,939$ 901,090$ (1) Excludes Depreciation Expense Debt Service: Principal 935,000$ 337,790$ 224,311$ Interest 38,000 66,176 22,962 Total Debt Service 973,000$ 403,966$ 247,273$ Remaining Principal and Interest 3,895,500$ 4,010,145$ 881,440$ Page 86 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (59) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) G. Leases Payable The City leases office space under a long-term, noncancelable lease agreement. The existing lease agreement expires in 2046. The City also leases several vehicles under long-term, noncancelable lease agreements that expire in 2028. Total principal and interest costs for such leases for governmental funds was $91,028 for the year ended December 31, 2025. The future minimum lease payments for this agreements are as follows: Governmental Activities Year Ending December 31, Principal Interest Total 2026 51,600$ 39,428$ 91,028$ 2027 53,708 37,320 91,028 2028 50,409 35,159 85,568 2029 37,782 33,506 71,288 2030 39,224 32,064 71,288 2031 - 2035 219,740 136,700 356,440 2036 - 2040 264,980 91,460 356,440 2041 - 2045 319,533 36,907 356,440 2046 35,368 276 35,644 Total 1,072,344$ 442,820$ 1,515,164$ Right-to-use assets acquired through outstanding leases are explained further at Note 3.D. H. Subscription-Based Information Technology Arrangements The City has entered into a subscription based-information technology arrangement (SBITA) for cybersecurity software. The SBITA arrangement expires in 2027 and provides for twelve-month renewal options thereafter. The SBITA assets and the related accumulated amortization are detailed in Note 3.D. The future subscription payments under SBITA agreements are as follows: Governmental Activities Year Ending December 31, Principal Interest Total 2026 36,253$ 1,041$ 37,294$ 2027 36,985 309 37,294 Total 73,238$ 1,350$ 74,588$ Page 87 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (60) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) I. Pension Plan Plan Description The Wisconsin Retirement System (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 1200 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, which can be found at http://etf.wi.gov/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 occupations and 62 for elected officials and executive service retirement plan participants, if hired on or before December 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 earnings periods. Creditable service includes current service and prior service for which a participant received earnings and made contributions as required. Creditable service also includes creditable military service. The retirement benefit will be calculated as a money purchase benefit based on the employee’s contributions plus matching employer’s contributions, with interest, if that benefit is higher than the formula benefit. Vested participants may retire at or after age 55 (50 for protective occupations) and receive an actuarially reduced benefit. Participants terminating covered employment 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. Page 88 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (61) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) I. Pension Plan (Continued) 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: Core Fund Variable Fund Year Adjustment % Adjustment % 2015 2.9 2 2016 0.5 -5 2017 2.0 4 2018 2.4 17 2019 0.0 -10 2020 1.7 21 2021 5.1 13 2022 7.4 15 2023 1.6 -21 2024 3.6 15 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 ending December 31, 2025, the WRS recognized $1,595,367 in contributions from the City. Page 89 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (62) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) I. Pension Plan (Continued) Contributions (Continued) Contribution rates for the reporting period are: Employee Category Employee Employer General (Including Executives and Elected Officials) 6.95% 6.95% Protective With Social Security 6.95 15.37 Protective Without Social Security 6.95 19.37 Pension Assets, Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and deferred Inflows of Resources Related to Pensions At December 31, 2025, the City reported a liability of $1,752,174 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 0.10663408%, which was a decrease of 0.00091977% from its proportion measured as of December 31, 2023. For the year ended December 31, 2025, the City recognized pension expense of $2,359,053 At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Experience 5,441,460$ 5,113,266$ Net Differences Between Projected and Actual Earnings on Pension Plan Investments 2,662,522 - Changes in Assumptions 519,904 - Changes in Proportion and Differences Between Employer Contributions and Proportionate Share of Contributions 18,257 15,404 Employer Contributions Subsequent to the Measurement Date 1,595,367 - Totals 10,237,510$ 5,128,670$ Page 90 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (63) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) H. Pension Plan (Continued) Pension Assets, Liabilities, Pension Expense, and Deferred Outflows of Resources and deferred Inflows of Resources Related to Pensions (Continued) The $1,595,367 reported as deferred outflows related to pension resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability (asset) in the year ended December 31, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized in pension expense as follows: Year Ended December 31, Expense 2026 1,054,921$ 2027 3,635,610 2028 (896,988) 2029 (280,070) Total 3,513,473$ 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 Asset Valuation Method: Fair Value Long-Term Expected Rate of Return: 6.8% Discount Rate: 6.8% Salary Increases: Wage Inflation 3.0% Seniority/Merit 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. Page 91 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (64) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) H. Pension Plan (Continued) Actuarial Assumptions (Continued) 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 the prior year, including seniority (merit) and separation rates. The total pension liability for December 31, 2024 is based upon a roll-forward of the liability calculated from the December 31, 2023 actuarial valuation. Long-Term Expected Return on Plan Assets – The long-term expected rate of return on pension plan investments was determined using a building-block method in which best- estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Long-Term Long-Term Expected Expected Current Asset Nominal Rate Real Rate Allocation % of Return % of Return % Core Fund Asset Class: Public Equity 38.0% 7.0% 4.3% Public Fixed Income 27.0% 6.1% 3.4% Private Equity/Debt 20.0% 9.5% 6.7% Inflation Sensitive Assets 19.0% 4.8% 2.1% Real Estate 8.0% 6.8% 3.8% Cash -12.0% 3.7% 1.1% Total Core Fund 100.0% 7.5% 4.8% Variable Fund Asset Class: U.S. Equities 70.0% 6.5% 3.8% International Equities 30.0% 7.4% 4.7% Total Variable Fund 100.0% 6.9% 4.2% New England Pension Consultants Long-Term US CPI (Inflation) Forecast: 2.6% Asset Allocations are managed within established ranges. Target percentages may differ from actual monthly allocations. 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%. Page 92 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (65) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) H. Pension Plan (Continued) Actuarial Assumptions (Continued) Single Discount Rate – A single discount rate of 6.80% was used to measure the total pension liability for the current and prior year. The discount rate is based on the expected rate of return on pension plan investments of 6.80% 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 6.80% expected rate of return implies that a dividend of approximately 1.70% will always be paid after reflecting known changes in the Market Recognition Account. 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 long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 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 Current 1% Increase to Discount Rate Discount Rate Discount Rate (5.80%) (6.80%) (7.80%) City's Proportionate Share of the Net Pension Liability (Asset) 16,437,684$ 1,752,174$ (8,681,459)$ Payables to the Pension Plan At December 31, 2025, the City reported a payable of $210,670 for the outstanding amount of contributions to the pension plan for the year ended December 31, 2025. Page 93 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (66) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) I. Deferred Compensation Plans The City offers its employees an option between two deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Employees can elect to contribute to the plan by selecting a percentage of their salary or selecting a dollar amount. Annual amounts to be contributed may not exceed IRS limits. The City contributes a maximum of $30 per month for eligible employees. Total contributions made by the City were $33,186 for the year ended December 31, 2025. Of this amount, $7,209 was paid to Nationwide Retirement Solutions and $25,977 to Wisconsin Deferred Compensation, as the third- party administrators for these plans. The deferred compensation plan assets are placed in trust for the sole benefit of employees and beneficiaries participating in the Plan and therefore are not recorded on these financial statements. J. Other Postemployment Benefits The City reports OPEB related balances at December 31, 2025, as summarized below: Deferred Deferred OPEB Outflows of Inflows of OPEB Liability Resources Resources Expense Local Retiree Life Insurance Fund (LRLIF) 837,012$ 278,410$ 605,886$ 39,901$ Single-Employer Defined OPEB Plan 860,966 140,527 529,473 35,475 Total 1,697,978$ 418,937$ 1,135,359$ 75,376$ Page 94 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (67) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) J. Other Postemployment Benefits (Continued) 1. Single-Employer Defined Postemployment Benefit Plan Plan Description – The City provides health care insurance coverage for employees who retire until they reach the age of 65. The retired employee contributes 100% of the premium for family coverage or 100% of the premium for single coverage. Eligibility and Benefits Provided Police Officers and Eligible for retiree healthcare coverage until age 65 if they Firefighters meet the following requirements: 1. Age 50 and retire on immediate annuity from the Wisconsin Retirement System (WRS); or 2. Age 50 with 20 years of service and retire on deferred annuity from WRS. All Others Eligible for retiree healthcare coverage until age 65 if they meet the following requirements: 1. Age 55 and retire on immediate annuity from the Wisconsin Retirement System (WRS); or 2. Age 55 with 20 years of service and retire on deferred annuity from WRS. Employees Covered by Benefit Terms At December 31, 2024, the following employees were covered by the benefit terms: Inactive Employees or Beneficiaries Currently Receiving Benefit Payments 3 Active Employees 187 Total 190 Contributions Retired plan members and beneficiaries currently receiving benefits are required to contribute 100% towards the cost of insurance premiums not covered by the City explicit subsidy based on the employee group and their retirement date. The City of Menasha and City of Neenah provide an explicit subsidy of $55/$190 (single/family) toward Fire retiree premiums. The City of Menasha is responsible for 40% of the explicit subsidy. Total OPEB Liability The City’s Total OPEB Liability was measured as of December 31, 2025, and the total OPEB liability used to calculate the Total OPEB Liability was determined by an actuarial valuation as of January 1, 2025. Page 95 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (68) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) J. Other Postemployment Benefits (Continued) 1. Single-Employer Defined Postemployment Benefit Plan (Continued) Actuarial Assumptions – The total OPEB liability in the January 1, 2025 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Actuarial Valuation Date: January 1, 2025 Measurement Date: December 31, 2025 Actuarial Cost Method: Entry Age Normal Level % of Salary Discount Rate: 4.83% Salary Increases: Inflation 3.00% Merit/Longevity 0.5% - 4.8% Mortality: Healthy Retirees RPH-2021 Total Dataset Mortality Table Disabled Retirees RPH-2021 Total Dataset Mortality Table Healthcare Cost Trend Rates: 8.0% in 2026 decreasing by 0.25% annually to an ultimate rate of 4.50% Discount Rate – The discount rate used to measure the total OPEB liability was 4.83% as opposed to 4.28% in prior year, which is based on the Bond Buyer GO 20- Year Bond Index as of the week of the measurement date. No assets have been accumulated in an irrevocable trust, so the Bond Buyer GO 20-Year Bond Index has been applied to all periods. Changes in the Total OPEB Liability Increase (Decrease) Total OPEB Liability Balance at January 1, 2025 741,129$ Changes for the Year: Service Cost 79,443 Interest 34,463 Changes in Assumptions 45,035 Difference Between Expected and Actual Experience (8,040) Benefit Payments (31,064) Net Changes 119,837 Balance at December 31, 2025 860,966$ Page 96 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (69) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) J. Other Postemployment Benefits (Continued) 1. Single-Employer Defined Postemployment Benefit Plan (Continued) Sensitivity of the Total OPEB Liability to Changes in the Discount Rate – The following presents the Total OPEB Liability of the City, as well as what the City’s Total OPEB Liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.83%) or 1-percentage-point higher (5.83%) than the current rate: 1% Decrease to Current 1% Increase to Discount Rate Discount Rate Discount Rate (3.83%) (4.83%) (5.83%) Total OPEB Liability 932,077$ 860,966$ 795,946$ Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates – The following presents the Total OPEB Liability of the City, as well as what the City’s Total OPEB Liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates: Healthcare Cost 1% Decrease Trend Rates 1% Increase (7.0% Decreasing (8.0% Decreasing (9.0% Decreasing to 3.50%) to 4.50%) to 5.50%) Total OPEB Liability 783,332$ 860,966$ 952,842$ OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB – For the year ended December 31, 2025, the City recognized OPEB expense of $35,475 At December 31, 2025, the City reported deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Experience -$ 355,861$ Changes in Assumptions 140,527 173,612 Totals 140,527$ 529,473$ Page 97 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (70) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) J. Other Postemployment Benefits (Continued) 1. Single-Employer Defined Postemployment Benefit Plan (Continued) Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in other postemployment benefits expense as follows: Year Ended December 31, Expense 2026 (78,428)$ 2027 (72,950) 2028 (68,385) 2029 (46,247) 2030 (46,252) Thereafter (76,684) Total (388,946)$ Payable to the OPEB Plan At December 31, 2025, the City reported no payable for outstanding amounts of contribution to the Plan required for the year ended December 31, 2025. 2. Local Retiree Life Insurance Fund Plan Description The LRLIF is a multiple-employer defined benefit OPEB plan. LRLIF benefits and other plan provisions are established by Chapter 40 of the Wisconsin Statutes. The Wisconsin Department of Employee Trust Funds (ETF) and the Group Insurance Board have statutory authority for program administration and oversight. The plan provides postemployment life insurance benefits for all eligible members. OPEB Plan Fiduciary Net Position ETF issues a standalone Annual Comprehensive Financial Report, which can be found at http://etf.wi.gov/about-etf/reports-and-studies/financial-reports-and- statements. Additionally, EFT issued a standalone Retiree Life Insurance Financial Report, which can also be found using the link above. Benefits Provided The LRLIF plan provides fully paid-up life insurance benefits for post-age 64 retired members and pre-65 retirees who pay for their coverage. Page 98 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (71) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) J. Other Postemployment Benefits (Continued) 2. Local Retiree Life Insurance Fund (Continued) Contributions The Group Insurance Board approves contribution rates annually, based on recommendations from the insurance carrier. Recommended rates are based on an annual valuation, taking into consideration an estimate of the present value of future benefits and the present value of future contributions. A portion of employer contributions made during a member’s working lifetime funds a post-retirement benefit. Employers are required to pay the following contributions based on member contributions for active members to provide them with Basic Coverage after age 65. There are no employer contributions required for pre-age 65 annuitant coverage. If a member retires prior to age 65, they must continue paying the member premiums until age 65 to be eligible for the benefit after age 65. Contribution rates as of December 31, 2025, are: Coverage Type Employer Contribution 50% Postretirement Coverage 40% of Member Contribution 25% Postretirement Coverage 20% of Member Contribution Member contributions are based upon nine age bands through age 69 and an additional eight age bands for those age 70 and over. Participating members must pay monthly contribution rates per $1,000 of coverage until the age of 65 (age 70 if active). The member contribution rates in effect for the year ended December 31, 2024, are listed below: Attained Age Basic Supplemental Under 30 $0.05 $0.05 30 - 34 0.06 0.06 35 - 39 0.07 0.07 40 - 44 0.08 0.08 45 - 49 0.12 0.12 50 - 54 0.22 0.22 55 - 59 0.39 0.39 60 - 64 0.49 0.49 65 - 69 0.57 0.57 Life Insurance Member Contribution Rates for the Year Ended December 31, 2024 Page 99 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (72) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) J. Other Postemployment Benefits (Continued) 2. Local Retiree Life Insurance Fund (Continued) During the reporting period, the LRLIF recognized $3,906 in contributions from the employer. OPEB Liabilities, OPEB Expense (Revenue) and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At December 31, 2025, the City reported a liability of $837,012 for its proportionate share of the net OPEB liability (asset). The net OPEB liability was measured as of December 31, 2024, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of January 1, 2024 rolled forward to December 31, 2024. No material changes in assumptions or benefits terms occurred between the actuarial valuation date and the measurement date. The City’s proportion of the net OPEB liability was based on the City’s share of contributions to the OPEB plan relative to the contributions of all participating employers. At December 31, 2024, the City’s proportion was 0.21394600%, which was a decrease of 0.00102100% from its proportion measured as of December 31, 2023. For the year ended December 31, 2025, the City recognized OPEB expense of $39,901. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Experience -$ 87,080$ Net Differences Between Projected and Actual Earnings on OPEB Plan Investments 11,494 - Changes in Assumptions 205,379 469,463 Changes in Proportion and Differences Between Employer Contributions and Proportionate Share of Contributions 61,537 49,343 Totals 278,410$ 605,886$ Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Page 100 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (73) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) J. Other Postemployment Benefits (Continued) 2. Local Retiree Life Insurance Fund (Continued) Year Ended December 31, Expense 2026 (27,516)$ 2027 (63,415) 2028 (95,735) 2029 (89,844) 2030 (21,668) Thereafter (29,298) Total (327,476)$ Actuarial Assumptions – The total OPEB liability actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Actuarial Valuation Date: 1/1/202 Measurement Date of Net OPEB Liability (Asset): December 31, 2024 Experience Study: January 1, 2021 - December 31, 2023 Published November 19, 2024 Actuarial Cost Method: Entry Age Normal 20-Year Tax-Exempt Municipal Bond Yield*: 4.08% Long-Term Expected Rate of Return: 4.25% Discount Rate: 4.09% Salary Increases: Wage Inflation 3.00% Seniority/Merit 0.1% - 5.7% Mortality: 2020 WRS Experience Mortality Table *Based on the bond Buyers GO Index Actuarial assumptions are based upon an experience study conducted in 2024 that covered a three-year period from January 1, 2021 to December 31, 2023. The total OPEB liability for December 31, 2024 is based upon a roll-forward of the liability calculated from the January 1, 2024 actuarial valuation. Page 101 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (74) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) J. Other Postemployment Benefits (Continued) 2. Local Retiree Life Insurance Fund (Continued) Long-Term Expected Return on Plan Assets – The long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. Investments for the LRLIF are held with Securian, the insurance carrier. Interest is calculated and credited to the LRLIF based on the rate of return for a segment of the insurance carriers’ general fund, specifically 10-year A- Bonds (as a proxy, and not tied to any specific investments). The overall aggregate interest rate is calculated using a tiered approach based on the year the funds were originally invested and the rate of return for that year. Investment interest is credited based on the aggregate rate of return and assets are not adjusted to fair market value. Furthermore, the insurance carrier guarantees the principal amounts of the reserves, including all interest previously credited thereto. Long-Term Expected Geometric Target Real Rate Asset Class Index Allocation of Return % U.S. Intermediate Credit Bonds Bloomberg US Interim Credit 40% 2.41% U.S. Mortgages Bloomberg US 60% 2.71% Inflation 2.30% Long-Term Expected Rate of Return 4.25% The long-term expected rate of return remained unchanged from in the prior year at 4.25%. The long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The expected inflation rate remained unchanged from the prior year at 2.30%. Single Discount Rate – A single discount rate of 4.09% was used to measure the total OPEB liability for the current year, as opposed to a discount rate of 3.32% for the prior year. The change in the discount rate was primarily caused by the increase in the municipal bond rate from 3.26% as of December 31, 2023 to 4.08% as of December 31, 2024. The Plan’s fiduciary net position was projected to be insufficient to make all projected future benefit payments of current active and inactive members. Therefore, the discount rate for calculating the total OPEB liability is equal to the single equivalent rate that results in the same actuarial present value as the long-term expected rate of return applied to benefit payments, to the extent that the plan’s fiduciary net position is projected to be sufficient to make projected benefit payments, and the municipal bond rate applied to benefit payment to the extent that the plan’s fiduciary net position is projected to be insufficient. The plan’s fiduciary net position was projected to be available to make projected future benefit payments of current plan members through December 31, 2037. Page 102 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (75) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) J. Other Postemployment Benefits (Continued) 2. Local Retiree Life Insurance Fund (Continued) The projection of cash flows used to determine the single discount rate assumed that employer contributions will be made according to the current employer contribution schedule and that contributions are made by plan members retiring prior to age 65. Sensitivity of the City’s Proportionate Share of Net OPEB Liability (Asset) to Changes in the Discount Rate – The following presents the City’s proportionate share of the net OPEB liability (asset) calculated using the discount rate of 4.09%, as well as what the City’s proportionate share of the net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (3.09%) or 1-percentage-point higher (5.09%) than the current rate: 1% Decrease to Current 1% Increase to Discount Rate Discount Rate Discount Rate (3.09%) (4.09%) (5.09%) City's Proportionate Share of the Net OPEB Liability (Asset) 118,783$ 837,012$ 619,881$ Payable to the OPEB Plan At December 31, 2025, the City reported a payable of $0 for the outstanding amount of contribution to the Plan required for the year ended December 31, 2025. Page 103 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (76) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) K. Fund Balance Nonspendable Fund Balance In the fund financial statements, portions of the governmental fund balances are amounts that cannot be spent because they are either 1) not in spendable form or 2) legally or contractually required to be maintained intact. At December 31, 2025, nonspendable fund balance was as follows: General Fund: Nonspendable: Inventories and Prepaid Items 194,449$ Noncurrent Portion of Cash Advances 405,869 Total Nonspendable Fund Balance 600,318$ Restricted Fund Balance In the fund financial statements, portions of governmental fund balances are not available for appropriation or are legally restricted for use for a specific purpose. At December 31, 2025, restricted fund balance was as follows: Special Revenue Funds: Restricted for: Housing Rehabilitation Revolving Loans 13,341$ Community Development Block Grant 611,832 Strong Neighborhoods Program 602,737 Park Development 218,456 Library Endowment 525,468 Hattie Minor Scholarship 13,815 Public Safety Donations 46,116 Park and Recreation Donations 83,413 Menasha 2000 5,079 Senior Center Fundraising 17,684 Debt Service Fund 164,104 Capital Projects Fund: Restricted for: Tax Incremental District No. 8 81,766 Tax Incremental District No. 10 79,648 Total Restricted Fund Balance 2,463,459$ Page 104 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (77) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) K. Fund Balance (Continued) Committed Fund Balance In the fund financial statements, portions of governmental fund balances are committed by Common Council action. At December 31, 2025, committed fund balance was as follows: Special Revenue Funds: Committed for: Recycling 39,734$ Assigned Fund Balance Portions of governmental fund balances have been assigned to represent tentative management plans that are subject to change. At December 31, 2025, fund balance was assigned as follows: General Fund: Children's Urgent Dental Treament Needs 11,868$ NOTE 4 OTHER INFORMATION A. Tax Incremental Financing Districts The City currently maintains separate special revenue and capital project funds to account for seven Tax Incremental Districts (TID) created in accordance with Section 66.1105 of the Wisconsin Statutes. At the time the Districts were created, the property tax base within each District was "frozen" and increment taxes resulting from increases to the property tax base are used to finance District improvements, including principal and interest on general obligation debt issued by the City to finance such improvements. Page 105 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (78) NOTE 4 OTHER INFORMATION (CONTINUED) A. Tax Incremental Financing Districts (Continued) Since creation of the above Districts, the City has provided various financing sources to each TID and has also recorded eligible TID project costs in other funds of the City. The foregoing amounts are not recorded as liabilities in the District but can be recovered by the City from future excess tax increment revenues. Detail of the amounts recoverable by the City as of December 31, 2025, from future excess tax increment revenues and maximum life follows: TID No.4 TID No. 7 TID No. 8 TID No. 10 Recoverable/(Recovered) Costs (4,619)$ 540,700$ (22,217)$ (79,646)$ Creation Date 5/19/1997 7/4/2003 11/15/2004 6/5/2006 Maximum Life 5/19/2024 7/4/2030 11/15/2031 6/5/2033 TID No. 11 TID No. 12 TID No. 13 Recoverable Costs 982,961$ 1,317,186$ 1,756,790$ Creation Date 7/16/2007 5/16/2011 7/6/2015 Maximum Life 7/16/2034 5/16/2031 7/6/2042 The intent of the City is to recover the above amounts from future TID surplus funds, if any, prior to termination of the respective Districts. The City Council passed a resolution to close TID No. 8 with its final year of tax increment to be received in 2026. TID No. 4 was closed in 2025 and final accounting closure to be complete in 2026. B. Tax Abatements The City has created tax incremental financing districts (the Districts) in accordance with Wisconsin State Statute 66.1105, Tax Increment Law. As part of the project plan for the Districts, the City entered into agreements with developers for a creation of tax base within the Districts. The agreements require the City to make annual repayments of property taxes collected within the Districts to the developers, based upon the terms of the agreements. As tax abatements, those developer payments and the related property tax revenues are not reported as revenues or expenditures in the financial statements. For the year ended December 31, 2025, the City abated property taxes totaling $899,957 under this program, which included the following tax abatement agreements:  A property tax abatement of $563,040 to a developer within Tax Incremental District No. 13.  A property tax abatement of $336,916 to a developer within Tax Incremental District No. 12. Page 106 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (79) NOTE 4 OTHER INFORMATION (CONTINUED) C. Risk Management The Utilities are part of the City of Menasha’s self-funded insurance program with claims processed by the City’s and Utility’s of Mutual Insurance Company (CVMIC) on behalf of the City. CVMIC is a municipal insurance company established on September 19, 1987 under Section 611.23 of the Wisconsin Statutes. CVMIC provides liability insurance coverage above the self-insured limit to cities and utilities which make up the membership. The City is exposed to various risks of loss related to torts; theft, damage or destruction of assets; errors or omissions; injuries to employees; or acts of God. The City has chosen to retain a portion of the risks through self-insurance programs and has also purchased insurance to transfer other risks to outside parties. Payments of premiums for these policies are recorded as expenditures or expenses in various funds of the City. Insurance settlements have not exceeded insurance coverage in any of the past three years nor has there been any significant reduction in insurance coverage compared to the prior year. The amount of actual settlements has not exceeded the insurance coverage amounts in any of the three most recent years. A description of the City's risk management programs follows. Property and Liability Insurance During 1987, the City, together with certain other units of government within the state of Wisconsin, created the Cities and Villages Mutual Insurance Company (CVMIC), a joint venture, to provide liability insurance services to its members. The City is partially self- insured for liability insurance and pays premiums to CVMIC for its excess liability insurance coverage. The actuary for CVMIC determines premium charges to its members required to pay the expected claims and loss adjustment expenses. CVMIC's ongoing operational expenses, other than loss adjustment expenses, are apportioned pro rata to each member. CVMIC provides general liability, police and nurses professional liability, public official’s liability and vehicle liability coverage for the City. The City's self-insured retention limit is $25,000 for each occurrence with a maximum limit of $100,000 annually. Premiums paid to CVMIC for insurance coverage are recorded in a self-insurance internal service fund. The self-insurance internal service fund charges various City departments and operations for their portion of insurance coverage for the year. Page 107 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (80) NOTE 4 OTHER INFORMATION (CONTINUED) C. Risk Management (Continued) Property and Liability Insurance (Continued) The claims liability reported in the fund at December 31, 2025, is based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the basic purpose financial statements indicates that it is probable that a liability has been incurred at the date of the basic financial statements and the amount of the loss can be reasonably estimated. On December 31, 2025, the property and liability insurance internal service fund has available $28,900. Changes in the fund's claim liability amount for 2024 and 2025, are as follows: Current Year Claims and Liability Changes in Claims Liability January 1 Estimates Payments December 31 2024 -$ 3,911$ 3,911$ -$ 2025 - 13,796 5,015 8,781 HRA Health Insurance Fund In prior years the City increased deductible amounts for its commercial health insurance plan and created an HRA health insurance fund to offset a portion of the increased deductible to covered members. Funding is provided by charges to City departments. Fund expenses consist of payments to a third-party administrator for reimbursement of deductibles and administrative fees. On December 31, 2025, the HRA health insurance fund reported a claims liability of $80,108. Changes in the fund’s claims liability amount for 2024 and 2025, are as follows: Current Year Claims and Liability Changes in Claims Liability January 1 Estimates Payments December 31 2024 64,698$ 92,028$ 71,107$ 85,619$ 2025 85,619 60,427 65,938 80,108 Page 108 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (81) NOTE 4 OTHER INFORMATION (CONTINUED) C. Risk Management (Continued) Dental Self-Insurance Fund City employees, COBRA employees, retirees and employee dependents are eligible for dental benefits from a dental insurance internal service fund. Funding is provided by charges to City departments, employees and retirees. Fund expenses consist of payments to a third-party administrator for dental claims and administrative fees. The claims liability of $0 reported in the fund at December 31, 2025, is based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the basic financial statements indicates that it is probable that a liability has been incurred at the date of the basic financial statements and the amount of the loss can be reasonably estimated. On December 31, 2025, the dental insurance internal service fund has available $173,567 for future unreported claims. Changes in the fund's claims liability amount for 2024 and 2025, are as follows: Current Year Claims and Liability Changes in Claims Liability January 1 Estimates Payments December 31 2024 -$ 98,703$ 98,703$ -$ 2025 - 126,717 126,717 - Page 109 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (82) NOTE 4 OTHER INFORMATION (CONTINUED) D. Segment Information Menasha Utilities Menasha Utilities consist of four utility operations: Electric Distribution, Water Utility, Energy Services, and Telecommunications. Presented below are two operations that require segment information to be reported. Electric Distribution Water Utility Utility CONDENSED STATEMENT OF NET POSITION ASSETS Current 10,678,895$ 1,429,163$ Restricted 2,355,845 3,982,452 Noncurrent: Net Capital Assets 17,848,649 22,970,527 Other Assets 790,748 - Total Assets 31,674,137 28,382,142 DEFERRED OUTFLOWS OF RESOURCES 1,050,133 709,281 LIABILITIES Current 5,088,176 1,655,884 Noncurrent: Long-Term 3,186,731 4,288,922 Total Liabilities 8,274,907 5,944,806 DEFERRED INFLOWS OF RESOURCES 1,385,108 395,420 NET POSITION Net Investment in Capital Assets 13,982,364 18,319,364 Restricted: Debt Service 248,714 - Depreciation Reserve 925,782 3,542,062 Water Tower - 87,486 Unrestricted 7,907,395 802,285 Total Net Position 23,064,255$ 22,751,197$ Page 110 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (83) NOTE 4 OTHER INFORMATION (CONTINUED) D. Segment Information (Continued) Menasha Utilities (Continued) Electric Distribution Water Utility Utility CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION OPERATING REVENUES Charges for Services 38,947,166$ 6,649,331$ Other 224,781 87,369 Total Operating Revenues 39,171,947 6,736,700 OPERATING EXPENSES Operation and Maintenance 36,134,610 3,096,199 Depreciation and Amortization 1,425,482 1,094,657 Taxes 178,198 83,211 Total Operating Expenses 37,738,290 4,274,067 OPERATING INCOME 1,433,657 2,462,633 NONOPERATING INCOME (EXPENSES) Interest Revenue 428,329 162,416 Merchandising and Jobbing 9,653 1,883 Other Income Deductions - (167) Interest and Fiscal Charges (44,167) (102,650) Miscellaneous (11,501) - Total Nonoperating Income (Expenses) 382,314 61,482 INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 1,815,971 2,524,115 Customer Contributions 277,877 52,869 Transfers Out (592,362) (622,576) CHANGE IN NET POSITION 1,501,486 1,954,408 Net Position - Beginning of Year 21,562,769 20,796,789 NET POSITION - END OF YEAR 23,064,255$ 22,751,197$ Page 111 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (84) NOTE 4 OTHER INFORMATION (CONTINUED) D. Segment Information (Continued) Menasha Utilities (Continued) Electric Water Utility Utility CONDENSED STATEMENT OF CASH FLOWS NET CASH PROVIDED (USED) BY: Operating Activities 2,492,704$ 3,512,250$ Noncapital Financing Activities (489,501) (674,437) Capital and Related Financing Activities (2,868,047) (2,311,098) Investing Activities 453,866 285,397 CHANGE IN CASH AND CASH EQUIVALENTS (410,978) 812,112 Cash and Cash Equivalents - Beginning of Year 6,996,879 3,143,298 CASH AND CASH EQUIVALENTS - END OF YEAR 6,585,901$ 3,955,410$ E. WPPI Energy Contract – Menasha Utilities The Utilities purchase their electric requirements from WPPI Energy (WPPI). WPPI is a municipal electric company and political subdivision of the state of Wisconsin created by contract by its members on September 5, 1980 pursuant to the Municipal Electric Company Act, Sec. 66.0825 of the Wisconsin Statutes (the Act). WPPI’s purposes include providing an adequate, economical, and reliable supply of electric energy to its members. The Utilities are one of 51 members of WPPI located throughout the States of Wisconsin, Michigan, and Iowa. On December 31, 1989, each of WPPI’s members, including the City of Menasha, commenced purchasing electric services from WPPI under a new Long-term Power Supply Contract for Participating Members (the Long- term Contract) under which WPPI has agreed to sell and deliver to each member, and each member has agreed to take and pay for, the electric power and energy requirements to the members for an initial 35-year term. The contract was amended during 2016 to extend the term of the contract through 2055. Under the Long-term Contract, the Utilities and other members of WPPI are required to pay for all power and energy requirements supplied or made available by WPPI at rates sufficient to cover all of WPPI’s revenue requirements which include power supply costs, administrative expenses, and debt service on outstanding bonds. WPPI’s subsequent year’s rates and operating budget are approved annually by its board of directors, which consists of representatives from each member municipality. The Utilities have agreed to charge rates to retail ratepayers of its electric system sufficient to meet its obligations to WPPI. The Long-term Contract provides that all payments to WPPI under the Contract constitute operating expenses of the Utilities’ electric system payable from any operating and maintenance fund established by the Utilities. Page 112 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (85) NOTE 4 OTHER INFORMATION (CONTINUED) E. WPPI Energy Contract (Continued) The Long-term Contract may be terminated by either party upon five years prior written notice effective at the end of the initial 35-year term, or at any time thereafter, provided that no WPPI bonds are outstanding at the time of the proposed termination and certain other contract provisions are met. The electric operation purchases power through WPPI Energy for distribution to its customers. Total purchases under this arrangement amounted to approximately $33.04 million in 2025. F. Contingencies 1. The City's valuation and taxing power secure a portion of the outstanding long-term debt of the Neenah-Menasha Sewerage Commission, a joint venture created by the City and six other municipalities. The City would be liable in the unlikely event that the Commission defaulted on the debt. 2. The City participates in a number of federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Accordingly, the City's compliance with applicable grant requirements will be established at some future date. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the City expects such amounts, if any, to be immaterial. 3. From time to time, the City is party to other various pending claims and legal proceedings. Although the outcome of such matters cannot be forecast with certainty, it is the opinion of management and the City attorney that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the City's financial position or results of operations except as indicated below. G. Construction Commitments The City has active construction projects as of December 31, 2025. W ork has been completed on these projects but not yet paid for (including contract retainage) is reflected in accounts payable and expenditures. The City has approximately $681,000 in open contracts at year end. H. Subsequent Program Closure In 2026, the City was notified by the Wisconsin Department of Administration (DOA) that their request to discontinue the Community Block Grant Program Revolving Loan Housing Program was accepted. The program is being defederalized and will no longer be supported through future grants. I n May 2026, the City returned $389,241 in restricted cash to DOA. The City also has approximately $663,741 in outstanding loan receivables related to this program and is required to submit future collections on those receivables to DOA yearly. Page 113 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (86) NOTE 4 OTHER INFORMATION (CONTINUED) I. Enterprise Funds – Significant Customers During 2025, the City’s electric utility billed one customer $16,065,109, and one customer $4,987,732. This represents 41% and 13% of electric utility operating revenue, respectively. In addition, the water utility billed one customer $1,035,913. Which represents 15% of water utility operating revenue, respectively. No other utility customer accounted for more than 10% of operating revenue. J. CVMIC CVMIC is a municipal mutual insurance company established on September 14, 1987 under Section 611.23 of the Wisconsin Statutes. CVMIC provides liability insurance coverage to the cities and villages which make up the membership of the WMIC that was established under Section 66.30 of the Wisconsin Statutes governing intergovernmental cooperation commissions. CVMIC insures the municipalities up to $5,000,000 per occurrence above the self- insured retention amount selected by each individual city or village. CVMIC also provides excess insurance of $5,000,000 over the CVMIC layer thru a group purchase program paid proportionately by members for a total limit of $10,000,000 per occurrence. Members pay premiums based on their self-insured retention amount, claims experience and population. Management of CVMIC and WMIC consists of a board of directors and officers elected by the membership from each class of participants based on population. The board of directors hires the company executive director who in turn hires the management staff of CVMIC. The City does not exercise any control over the activities of CVMIC and WMIC beyond the election of the officer and board. Financial statements of CVMIC can be obtained directly from CVMIC’s offices. The City’s Mutual Member Participation Calculation is calculated at 1.192%. This calculation is based on premiums, claims and self-insured retention of the city as compared to the entire membership. Upon dissolution, the City would be entitled to a lump sum payment from CVMIC that may vary significantly from the amount of its deposit referred to above, based on the then financial condition of CVMIC. WMIC is not required to have an audit. Page 114 of 174 CITY OF MENASHA, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (87) NOTE 4 OTHER INFORMATION (CONTINUED) K. Accounting Changes Change in Fund Presentation from Major to Nonmajor The Tax Incremental District No. 12 previously met the criteria to be reported as a major governmental fund. Effective January 1, 2025, the fund now meets the criteria to be reported as a nonmajor fund and is reported as such for the fiscal year ended December 31, 2024. The effect of that change to or within the financial reporting entity is shown in the table below: Change to or December 31, 2024, Within the as Previously Financial December 31, 2024, Reported Reporting Entity As Adjusted Governmental Funds: Major Funds: General 4,010,752$ -$ 4,010,752$ Debt Service (195,701) - (195,701) Tax Incremental District No. 12 (2,002,314) 2,002,314 - Capital Improvements (654,688) - (654,688) Nonmajor Funds (611,735) (2,002,314) (2,614,049) Total Governmental Funds 546,314$ -$ 546,314$ Page 115 of 174 (88) REQUIRED SUPPLEMENTARY INFORMATION Page 116 of 174 CITY OF MENASHA, WISCONSIN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) WISCONSIN RETIREMENT SYSTEM (LAST 10 FISCAL YEARS) See accompanying Notes to Required Supplementary Information. (89) Proportionate Share of the Net Plan Fiduciary Proportionate Pension Liability Net Position as a Proportion of Share of the Covered (Asset) as a Percentage of the Measurement the Net Pension Net Pension Payroll Percentage of Total Pension Period Liability (Asset) Liability (Asset) (Plan Year) Covered Payroll Liability (Asset) 12/31/15 0.10109236% 1,642,731$ 11,573,366$ 14.19% 98.20% 12/31/16 0.10211180% 841,645 12,001,896 7.01% 99.12% 12/31/17 0.10417775% (3,093,160) 12,190,485 25.37% 102.93% 12/31/18 0.10639829% 3,783,530 12,380,712 30.56% 96.45% 12/31/19 0.10718823% (3,456,237) 12,689,422 27.24% 102.96% 12/31/20 0.10840654% (6,767,970) 12,837,250 50.23% 105.26% 12/31/21 0.10819433% (8,720,661) 13,233,113 65.90% 106.02% 12/31/22 0.10843803% 5,744,725 13,670,378 42.02% 95.72% 12/31/23 0.10755385% 1,599,116 14,469,173 11.05% 98.85% 12/31/24 0.10663408% 1,752,174 14,898,410 11.76% 98.79% SCHEDULE OF CONTRIBUTIONS WISCONSIN RETIREMENT SYSTEM (LAST 10 FISCAL YEARS) Contributions in Relation to the Contributions Contractually Contractually Contribution Covered as a Percentage Fiscal Required Required Deficiency Payroll of Covered Year Ending Contributions Contributions (Excess) (Fiscal Year) Payroll 12/31/16 990,244$ 990,244$ -$ 12,001,896$ 8.25% 12/31/17 1,090,278 1,090,278 - 12,190,485 8.94% 12/31/18 1,103,434 1,103,434 - 12,380,712 8.91% 12/31/19 1,116,797 1,116,797 - 12,689,422 8.80% 12/31/20 1,254,954 1,254,954 - 12,837,250 9.78% 12/31/21 1,243,276 1,243,276 - 13,233,113 9.40% 12/31/22 1,265,433 1,265,433 - 13,670,378 9.26% 12/31/23 1,816,432 1,816,432 - 14,469,173 12.55% 12/31/24 1,537,004 1,537,004 - 14,898,410 10.32% 12/31/25 1,595,367 1,595,367 - 15,184,599 10.51% Page 117 of 174 CITY OF MENASHA, WISCONSIN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) LOCAL RETIREE LIFE INSURANCE FUND (LAST 10 FISCAL YEARS) See accompanying Notes to Required Supplementary Information. (90) Proportionate Share of the Net OPEB Liability Plan Fiduciary Proportionate (Asset) as a Net Position as a Proportion of Share of the Percentage of Percentage of the Measurement the Net OPEB Net OPEB Covered-Employee Covered-Employee Total OPEB Period Liability (Asset) Liability (Asset) Payroll Payroll Liability (Asset) 12/31/18 0.21311900% 549,919$ 12,380,712$ 4.44% 48.69% 12/31/19 0.20536400% 874,480 12,689,423 6.89% 37.58% 12/31/20 0.21145800% 1,163,172 12,837,250 9.06% 31.36% 12/31/21 0.20819000% 1,230,480 12,350,000 9.96% 29.57% 12/31/22 0.21197000% 807,569 12,690,000 6.36% 38.81% 12/31/23 0.21496700% 988,988 13,189,000 7.50% 33.90% 12/31/24 0.21394600% 837,012 13,050,000 6.41% 37.20% SCHEDULE OF CONTRIBUTIONS LOCAL RETIREE LIFE INSURANCE FUND (LAST 10 FISCAL YEARS) Contributions in Relation to the Contributions Contractually Contractually Contribution as a Percentage of Fiscal Required Required Deficiency Covered-Employee Covered-Employee Year Ending Contributions Contributions (Excess) Payroll Payroll 12/31/19 3,441$ 3,441$ -$ 12,689,423$ 0.03% 12/31/20 3,491 3,491 - 12,837,250 0.03% 12/31/21 3,523 3,523 - 12,350,000 0.03% 12/31/22 4,261 4,261 - 13,670,378 0.03% 12/31/23 3,694 3,694 - 13,450,242 0.03% 12/31/24 3,921 3,921 - 14,898,410 0.03% 12/31/25 3,906 3,906 - 15,184,599 0.03% Page 118 of 174 CITY OF MENASHA, WISCONSIN SCHEDULE OF CHANGES IN OPEB LIABILITY AND RELATED RATIOS (LAST 10 FISCAL YEARS*) See accompanying Notes to Required Supplementary Information. (91) 2025 2024 2023 2022 2021 2020 2019 2018 TOTAL OPEB LIABILITY Service Cost 79,443$ 88,193$ 78,941$ 87,266$ 86,775$ 63,597$ 58,649$ 60,092$ Interest 34,463 38,650 35,372 23,703 21,298 37,497 48,515 42,333 Differences Between Expected and Actual Experience (8,040) (226,099) (457) (48,000) (5,190) (342,042) (99,097) - Change of Assumptions 45,035 (16,821) 56,445 (250,036) (9,315) 142,760 58,033 (49,299) Benefit Payments (31,064) (41,284) (26,858) (47,913) (42,587) (97,995) (104,220) (99,732) NET CHANGE IN TOTAL OPEB LIABILITY 119,837 (157,361) 143,443 (234,980) 50,981 (196,183) (38,120) (46,606) Total OPEB Liability - Beginning of Year 741,129 898,490 755,047 990,027 939,046 1,135,229 1,173,349 1,219,955 TOTAL OPEB LIABILITY - END OF YEAR 860,966$ 741,129$ 898,490$ 755,047$ 990,027$ 939,046$ 1,135,229$ 1,173,349$ * The amounts presented for each fiscal year were determined as of the current fiscal year-end. Amounts for prior years were not available. Page 119 of 174 CITY OF MENASHA, WISCONSIN NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2025 (92) NOTE 1 PENSION Wisconsin Retirement System Changes of benefit terms: There were no changes of benefit terms for any participating employer in WRS. Changes of assumptions: Based on a three-year experience study conducted in 2024 covering January 1, 2021 through December 31, 2023, the ETF Board adopted assumption changes that were used to measure the total pension liability beginning with the year ended December 31, 2024, including the following:  Raising the seniority/merit inflation rate from 0.1%-5.6% to 0.1%-5.7% Based on a three-year experience study conducted in 2021 covering January 1, 2019 through December 31, 2020, the ETF Board adopted assumption changes that were used to measure the total pension liability beginning with the year ended 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 wage inflation rate 3.2% to 3.0% • 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 transition 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 transition from the Wisconsin 2012 Mortality Table to the Wisconsin 2018 Mortality Table. The amounts reported for each fiscal year were determined as of the calendar year-end that occurred within the prior fiscal year. The City is required to present the last 10 fiscal years of data; however accounting standards allow the presentation of as many years as are available until 10 fiscal years are presented. Page 120 of 174 CITY OF MENASHA, WISCONSIN NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2025 (93) NOTE 2 OTHER POSTEMPLOYMENT BENEFITS Single-Employer Defined Postemployment Benefit Plan There have been no substantive plan provision changes in the valuation, which was for the fiscal year ending December 31, 2025. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. The City is required to present the last ten fiscal years of data; however, accounting standards allow the presentation of as many years as are available until ten fiscal years are presented. Local Retiree Life Insurance Fund (LRLIF) Changes of benefit terms: There were no changes of benefit terms for any participating employer in the LRLIF. Changes of assumptions: Based on a three-year experience study conducted in 2021 covering January 1, 2019 through December 31, 2020, the ETF Board adopted assumption changes that were used to measure the December 31, 2021, total OPEB liabilities, including the following: • Lowering the price inflation rate from 2.5% to 2.4% • Mortality assumptions were changed to reflect updated trends by transition 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 December 31, 2018 total OPEB liabilities, including the following: • Lowering the long-term expected rate of return from 5.00% to 4.25% • Lowering the wage inflation rate from 3.2% to 3.0% • Lowering the price inflation rate from 2.7% to 2.5% • Mortality assumptions were changed to reflect updated trends by transition from the Wisconsin 2012 Mortality Table to the Wisconsin 2018 Mortality Table. The amounts reported for each fiscal year were determined as of the calendar year-end that occurred within the prior fiscal year. The City is required to present the last 10 fiscal years of data; however accounting standards allow the presentation of as many years as are available until 10 fiscal years are presented. Page 121 of 174 (94) SUPPLEMENTARY INFORMATION Page 122 of 174 CITY OF MENASHA, WISCONSIN SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL – DEBT SERVICE YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2024) (95) Variance Final Budget - Budget Positive 2024 Original Final Actual (Negative) Actual REVENUES Taxes 1,500,000$ 1,500,000$ 1,500,000$ -$ 1,300,000$ Special Assessments 91,000 91,000 220,613 129,613 61,395 Intergovernmental 225,000 225,000 225,000 - 225,000 Miscellaneous 994,757 994,757 1,270,232 275,475 1,118,202 Total Revenues 2,810,757 2,810,757 3,215,845 405,088 2,704,597 EXPENDITURES Debt Service: Principal 2,886,514 2,886,514 2,720,770 165,744 2,696,934 Interest and Fiscal Charges 1,094,251 1,094,251 1,203,351 (109,100) 1,044,652 Total Expenditures 3,980,765 3,980,765 3,924,121 56,644 3,741,586 EXCESS OF REVENUES UNDER EXPENDITURES (1,170,008) (1,170,008) (708,276) 461,732 (1,036,989) OTHER FINANCING SOURCES (USES) Premium on Debt Issued - - 128,043 128,043 173,239 Transfers In 1,177,634 1,177,634 985,038 (192,596) 951,428 Transfers out (45,000) (45,000) (45,000) - (45,000) Total Other Financing Sources (Uses) 1,132,634 1,132,634 1,068,081 (64,553) 1,079,667 NET CHANGE IN FUND BALANCE (37,374) (37,374) 359,805 397,179 42,678 Fund Balance - Beginning of Year (195,701) (195,701) (195,701) - (238,379) FUND BALANCE - END OF YEAR (233,075)$ (233,075)$ 164,104$ 397,179$ (195,701)$ Page 123 of 174 CITY OF MENASHA, WISCONSIN SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL – CAPITAL IMPROVEMENT FUND YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2024) (96) Variance Final Budget - Budget Positive 2024 Original Final Actual (Negative) Actual REVENUES Special Assessments -$ -$ -$ -$ 231,285$ Intergovernmental 3,457,992 3,457,992 580,828 (2,877,164) 405,872 Intergovernmental Charges Miscellaneous 725,000 725,000 305,677 (419,323) 85,942 Total Revenues 4,182,992 4,182,992 886,505 (3,296,487) 723,099 EXPENDITURES Current: General Government 39,300 39,300 48,061 (8,761) - Public Safety 710,340 710,340 437,771 272,569 140,553 Public Works - - 129,974 (129,974) 2,612,111 Health and human services 35,000 35,000 - 35,000 - Culture and Recreation 1,936,000 1,936,000 1,516,593 419,407 3,421,389 Capital Outlay 6,779,051 6,779,051 1,959,116 4,819,935 - Total Expenditures 9,499,691 9,499,691 4,091,515 5,408,176 6,174,053 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (5,316,699) (5,316,699) (3,205,010) 2,111,689 (5,450,954) OTHER FINANCING SOURCES (USES) Long-Term Debt Issued 5,316,699 5,316,699 3,664,000 (1,652,699) 5,121,081 Transfers out - - (115,294) (115,294) (190,111) Total Other Financing Sources (Uses) 5,316,699 5,316,699 3,548,706 (1,767,993) 4,930,970 NET CHANGE IN FUND BALANCE - - 343,696 343,696 (519,984) Fund Balance - Beginning of Year (654,688) (654,688) (654,688) - (134,704) FUND BALANCE - END OF YEAR (654,688)$ (654,688)$ (310,992)$ 343,696$ (654,688)$ Page 124 of 174 CITY OF MENASHA, WISCONSIN NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2025 (97) SPECIAL REVENUE FUNDS Special revenue funds are used to account for the proceeds of specific revenue sources (other than major capital projects or expendable trust) that are legally restricted to expenditures for specific purposes. The City utilizes special revenue funds to record financial transactions pertaining to the following activities: Housing Rehab To account for activity of loans made to local homeowners that were originally financed by an economic development grant received by the City from the Wisconsin Department of Development. Community Development Block Grant To account for grant proceeds received by the City from the Wisconsin Department of Administration to be used to make loans to local homeowners. Marina Operations To account for collections from the City marina used to finance related disbursements for personnel, supplies and improvements. Strong Neighborhoods Program To account for tax incremental funds received as part of the “Affordable Housing Extension” to help increase the attractiveness and affordability of Menasha’s housing stock. Park Development To account for grants received and other collections to be used for the development of City parks. Recycling To account for the property taxes levied and intergovernmental grants received to finance the City’s recycling activities. Library Endowment To account for funds held by the City library. Hattie Minor Scholarship To account for funds held by the City for the purposes of providing scholarships from investment income. Public Safety Donations To account for donations received by the City. Page 125 of 174 CITY OF MENASHA, WISCONSIN NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) DECEMBER 31, 2025 (98) SPECIAL REVENUE FUNDS (CONTINUED) Park and Recreation Donations To account for donations received by the City. Menasha 2000 To account for donations dedicated to improvements to Menasha’s downtown and waterfront, including Curtis Reed Square, the City Hall Mural, and the Trestle Trail. Senior Center Fundraising To account for donations received for use at the City’s Senior Center. Local Fiscal Recovery Funds To account for revenues collected in conjunction with the federal COVID funding and the applicable expenditures claims on the grant program. EPA Brownfield To account for revenues collected in conjunction with a federal EPA grant and the applicable assessment expenditures related to the grant program. Neighborhood Improvement Grant To account for revenues from a Neighborhood Improvement grant. This fund has been closed in 2026 and has no activity reported in 2025. CAPITAL PROJECTS FUNDS Capital project funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds. The City utilizes capital projects funds to record financial transactions pertaining to the following activities: Tax Incremental Districts (TID’s) To account for the activity of TID No. 4, No. 7, No. 8, No. 10, No. 11, 12 and No. 13. Page 126 of 174 CITY OF MENASHA, WISCONSIN COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2024) (99) Special Revenue Community Strong Housing Development Marina Neighborhoods Park Library Rehab Block Grant Operations Program Development Recycling Endowment ASSETS Cash and Investments 13,341$ 238,478$ -$ 106,071$ 218,456$ 216,709$ -$ Restricted Cash and Investments - 373,354 - - - - 525,468 Receivables: Taxes and Special Charges - - - - - 209,223 - Accounts - - 9 - - 599 - Special Assessments - - - - - - - Loans 9,165 994,827 - - - - - Due from Other Funds - - - 500,000 - - - Due from Other Governments - - - - - - - Inventories and prepaid items - - - - - - - Total Assets 22,506$ 1,606,659$ 9$ 606,071$ 218,456$ 426,531$ 525,468$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable -$ -$ 852$ 3,334$ -$ 935$ -$ Accrued and Other Current Liabilities - - 488 - - 5,267 - Advances from Other Funds - - 109,849 - - - - Unearned Revenues - - - - - - - Total Liabilities - - 111,189 3,334 - 6,202 - DEFERRED INFLOWS OF RESOURCES Property Taxes Levied for Subsequent Year - - - - - 380,595 - Special Charges Assessed - - - - - - - Unavailable Grant Revenue - - - - - - - Loans Receivable 9,165 994,827 - - - - - Special Assessments - - - - - - - Total Deferred Inflows of Resources 9,165 994,827 - - - 380,595 - FUND BALANCES Restricted 13,341 611,832 - 602,737 218,456 - 525,468 Committed - - - - - 39,734 - Assigned - - - - - - - Unassigned - - (111,180) - - - - Total Fund Balances 13,341 611,832 (111,180) 602,737 218,456 39,734 525,468 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 22,506$ 1,606,659$ 9$ 606,071$ 218,456$ 426,531$ 525,468$ Page 127 of 174 CITY OF MENASHA, WISCONSIN COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2024) (100) Park and Hattie Minor Public Safety Recreation Menasha Senior Center Local Fiscal EPA Scholarship Donations Donations 2000 Fundraising Recovery Funds Brownfield ASSETS Cash and Investments 13,815$ 47,116$ 81,010$ 5,079$ 17,684$ 60,976$ -$ Restricted Cash and Investments - - - - - - - Receivables: Taxes and Special Charges - - - - - - - Accounts - - 2,873 - - - - Special Assessments - - - - - - - Loans - - - - - - - Due from Other Funds - - - - - - - Due from Other Governments - - - - - - - Inventories and prepaid items - - - - - - - Total Assets 13,815$ 47,116$ 83,883$ 5,079$ 17,684$ 60,976$ -$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable -$ 1,000$ 470$ -$ -$ 60,976$ -$ Accrued and Other Current Liabilities - - - - - - - Due to Other Funds - - - - - - - Unearned Revenues - - - - - - - Total Liabilities - 1,000 470 - - 60,976 - DEFERRED INFLOWS OF RESOURCES Property Taxes Levied for Subsequent Year - - - - - - - Special Charges Assessed - - - - - - - Unavailable Grant Revenue - - - - - - - Loans Receivable - - - - - - - Special Assessments - - - - - - - Total Deferred Inflows of Resources - - - - - - - FUND BALANCES Restricted 13,815 46,116 83,413 5,079 17,684 - - Committed - - - - - - - Assigned - - - - - - - Unassigned - - - - - - - Total Fund Balances 13,815 46,116 83,413 5,079 17,684 - - Total Liabilities, Deferred Inflows of Resources, and Fund Balances 13,815$ 47,116$ 83,883$ 5,079$ 17,684$ 60,976$ -$ Special Revenue Page 128 of 174 CITY OF MENASHA, WISCONSIN COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2024) (101) Tax Tax Tax Tax Incremental Incremental Incremental Incremental District No. 4 District No. 7 District No. 8 District No. 10 ASSETS Cash and Investments 114,585$ -$ 118,013$ 122,029$ Restricted Cash and Investments - - - - Receivables: Taxes and Special Charges 60,038 81,074 47,853 55,931 Accounts - - - - Special Assessments - - - - Loans - - - - Due from Other Funds - - - - Due from other governments 12,818 - - - Inventories and prepaid items - - - - Total Assets 187,441$ 81,074$ 165,866$ 177,960$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable 81,924$ -$ -$ 15$ Accrued and Other Current Liabilities - - - - Due to Other Funds - 381,208 - - Unearned Revenues - - - - Total Liabilities 81,924 381,208 - 15 DEFERRED INFLOWS OF RESOURCES Property Taxes Levied for Subsequent Year 105,515 142,484 84,100 98,297 Special Charges Assessed - - - - Unavailable Grant Revenue - - - - Loans Receivable - - - - Special Assessments - - - - Total Deferred Inflows of Resources 105,515 142,484 84,100 98,297 FUND BALANCES Restricted - - 81,766 79,648 Committed - - - - Assigned - - - - Unassigned 2 (442,618) - - Total Fund Balances 2 (442,618) 81,766 79,648 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 187,441$ 81,074$ 165,866$ 177,960$ Capital Projects Page 129 of 174 CITY OF MENASHA, WISCONSIN COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF DECEMBER 31, 2024) (102) Totals Tax Tax Tax Incremental Incremental Incremental District No. 11 District No. 12 District No. 13 2025 2024 ASSETS Cash and Investments -$ -$ -$ 1,373,362$ 2,314,281$ Restricted Cash and Investments - - - 898,822 707,723 Receivables: Taxes and Special Charges 117,140 836,268 468,101 1,875,628 1,112,100 Accounts - - - 3,481 361,024 Special Assessments - 55,963 - 55,963 - Loans - - - 1,003,992 1,066,290 Due from Other Funds - - - 500,000 866,480 Due from Other Governments - - - 12,818 120,877 Inventories and prepaid items - - - - 3,617 Total Assets 117,140$ 892,231$ 468,101$ 5,724,066$ 6,552,392$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable -$ -$ -$ 149,506$ 327,410$ Accrued and Other Current Liabilities 279 1,069 538 7,641 4,445 Due to Other Funds 492,304 161,218 1,361,290 2,505,869 2,776,271 Unearned Revenues - - - - 1,604,152 Total Liabilities 492,583 162,287 1,361,828 2,663,016 4,712,278 DEFERRED INFLOWS OF RESOURCES Property Taxes Levied for Subsequent Year 205,869 1,718,672 822,670 3,558,202 1,615,225 Special Charges Assessed - - - - - Unavailable Grant Revenue - - - - 61,645 Loans Receivable - - - 1,003,992 1,066,290 Special Assessments - 55,963 - 55,963 - Total Deferred Inflows of Resources 205,869 1,774,635 822,670 4,618,157 2,743,160 FUND BALANCES Restricted - - - 2,299,355 1,935,543 Committed - - - 39,734 95,530 Assigned - - - - 151,126 Unassigned (581,312) (1,044,691) (1,716,397) (3,896,196) (3,085,245) Total Fund Balances (581,312) (1,044,691) (1,716,397) (1,557,107) (903,046) Total Liabilities, Deferred Inflows of Resources, and Fund Balances 117,140$ 892,231$ 468,101$ 5,724,066$ 6,552,392$ Capital Projects Page 130 of 174 CITY OF MENASHA, WISCONSIN COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) (103) Special Revenue Community Strong Housing Development Marina Neighborhoods Park Library Rehab Block Grant Operations Program Development Recycling Endowment REVENUES Taxes -$ -$ -$ -$ -$ 342,187$ -$ Special Assessments - - - - - - - Intergovernmental - - - - - 70,335 - Licenses and Permits - - - - 15,950 - - Public Charges for Services - - 158,937 - - 5,584 - Intergovernmental Charges for Services - - - - - 96 - Miscellaneous 1,220 52,993 - 50 8,689 10,495 89,955 Total Revenues 1,220 52,993 158,937 50 24,639 428,697 89,955 EXPENDITURES Current: General Government - - - - - - - Public Safety - - - - - - - Public Works - - - - - 462,516 - Health and Human Services - - - - - - - Culture and Recreation - - 166,333 - - - 41,510 Conservation and Development 10,000 - - 28,766 - - - Capital Outlay - - - - - - - Total Expenditures 10,000 - 166,333 28,766 - 462,516 41,510 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (8,780) 52,993 (7,396) (28,716) 24,639 (33,819) 48,445 OTHER FINANCING SOURCES (USES) Transfers In - - - - - - - Transfers Out - - (5,000) - - - - Total Other Financing Sources (Uses) - - (5,000) - - - - NET CHANGE IN FUND BALANCES (8,780) 52,993 (12,396) (28,716) 24,639 (33,819) 48,445 Fund Balances - Beginning of Year, as Originally Reported 22,121 558,839 (98,784) 631,453 193,817 73,553 477,023 Change Within Financial Reporting Entity Major to Nonmajor Fund - - - - - - - Fund Balances - Beginning of Year, as Adjusted 22,121 558,839 (98,784) 631,453 193,817 73,553 477,023 FUND BALANCES - END OF YEAR 13,341$ 611,832$ (111,180)$ 602,737$ 218,456$ 39,734$ 525,468$ Page 131 of 174 CITY OF MENASHA, WISCONSIN COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) (104) Park and Hattie Minor Public Safety Recreation Menasha Senior Center Local Fiscal EPA Scholarship Donations Donations 2000 Fundraising Recovery Funds Brownfield REVENUES Taxes -$ -$ -$ -$ -$ -$ -$ Special Assessments - - - - - - - Intergovernmental - - - - - 200,869 124,993 Licenses and Permits - - - - - - - Public Charges for Services - - - - - - - Intergovernmental Charges for Services - - - - - - - Miscellaneous 583 12,528 20,849 - 9,214 5,646 - Total Revenues 583 12,528 20,849 - 9,214 206,515 124,993 EXPENDITURES Current: General Government - - - - - 169,901 - Public Safety - 6,209 - - - - - Public Works - - - - - - - Health and Human Services - - - - 751 - - Culture and Recreation 1,000 - - - - - - Conservation and Development - - 11,825 - - - 124,248 Capital Outlay - - 5,346 - - 202,958 - Total Expenditures 1,000 6,209 17,171 - 751 372,859 124,248 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (417) 6,319 3,678 - 8,463 (166,344) 745 OTHER FINANCING SOURCES (USES) Transfers In - 3,000 - - - - - Transfers Out - - - - - - - Total Other Financing Sources (Uses) - 3,000 - - - - - NET CHANGE IN FUND BALANCES (417) 9,319 3,678 - 8,463 (166,344) 745 Fund Balances - Beginning of Year, as Originally Reported 14,232 36,797 79,735 5,079 9,221 166,344 (745) Change Within Financial Reporting Entity Major to Nonmajor Fund - - - - - - - Fund Balances - Beginning of Year, as Adjusted 14,232 36,797 79,735 5,079 9,221 166,344 (745) FUND BALANCES - END OF YEAR 13,815$ 46,116$ 83,413$ 5,079$ 17,684$ -$ -$ Special Revenue Page 132 of 174 CITY OF MENASHA, WISCONSIN COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED DECEMBER 31, 2025 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2024) (105) Tax Tax Tax Tax Incremental Incremental Incremental Incremental District No. 4 District No. 7 District No. 8 District No. 10 REVENUES Taxes 99,149$ 146,396$ 84,301$ 71,874$ Special Assessments - - - - Intergovernmental 25,635 - 832 42,710 Licenses and Permits - - - - Public Charges for Services - - - - Intergovernmental Charges for Services - - - - Miscellaneous 53,709 4,001 4,069 2,753 Total Revenues 178,493 150,397 89,202 117,337 EXPENDITURES Current: General Government - 150 - - Public Safety - - - - Public Works - - - - Health and Human Services - - - - Culture and Recreation 7,000