Village Packet 10.07.2026

Kurt Handrick, Jr. Village President Cassie Lang Village Clerk / Deputy Treasurer PUBLIC VIRTUAL ACCESS Join Teams Meeting: https://www.microsoft.com/en-us/microsoft-teams/join-a-meeting Meeting ID: 229 434 982 56 Passcode: 832Rn6k4 311 Walnut Street | P .O. Box 487 Marathon City, WI 54448 Tel: 715-443-2221 www.marathoncitywi.gov VILLAGE BOARD OF TRUSTEES OFFICIAL NOTICE & AGENDA Wednesday, October 7, 2026 6:00 pm – Marathon Municipal Center 1. CALL TO ORDER ROLL CALL: K. HANDRICK, M. AHRENS, K. SORENSON, K. PAUL, B. PARLIER, J. LAWRENCE, A. CABRERA 2. PLEDGE OF ALLEGIANCE 3. RECOGNITION OF VISITORS a) Virtual Meeting Guidelines This meeting will be recorded and available upon request b) Public Participation at Government Meetings 4. APPROVAL OF SEPTEMBER 16, 2026 REGULAR VILLAGE BOARD MEETING MINUTES 5. REVIEW OF LICENSE APPLICATIONS a) New Operator License Applications for Kwik Trip 6. ADMINISTRATOR’S REPORT a) Village Permits Approved in September b) Fire Department and First Responder Calls for September c) Administration Department Activity in September d) Police Department Activity in September e) Public Works/Utility Departments Activity in September • STH 107 • N. Industrial PKWY • County Materials Sports Complex • CIPP • Well #5 f) Administrators Activities & Plans for October 7. UNFINISHED BUSINESS a) Discuss 2027 General Fund Draft Budget – Debt Levy & Equipment Replacement Fund Proposal 8. NEW BUSINESS a) Discuss and Approve Equipment Replacement Fund Policy b) Discuss and Approve KerberRose (2026 Audit) – Engagement Contract 9. REVIEW AND APPROVAL OF BILLS 10. RESOLUTIONS AND ORDINANCES a) Discuss and Approve Resolution 2026-10-07 A – Compensation of Village Trustees b) Discuss and Approve Resolution 2026-10-07 B - Establishing the Village Equipment Replacement Fund and Fund Policy 11. FUTURE SCHEDULED MEETINGS: a) Regular Village Board Meeting – Wednesday, November 4, 2026 – 6:00 pm b) Special Village Board – As Needed 12. ADJOURNMENT VILLAGE BOARD OF TRUSTEES MINUTES Wednesday, September 16, 2026 1. CALL TO ORDER at 6:00 pm ROLL CALL: K. HANDRICK-Present, M. AHRENS-Present, K. SORENSON-Present, K. PAUL-Present, B. PARLIER-Present, J. LAWRENCE-Absent, A. CABRERA-Absent 2. PLEDGE OF ALLEGIANCE 3. RECOGNITION OF VISITORS a) Virtual Meeting Guidelines This meeting will be recorded and available upon request b) Public Participation at Government Meetings In Person Attendance: Brad & Ashley Schulz, Jason Guralski, Jon Kleinschmidt Virtual Attendance: Kevin O’Brien – Record Review, Morgan Romenesko – Marathon County Health Dept 4. APPROVAL OF AUGUST 5, 2026 REGULAR VILLAGE BOARD MEETING MINUTES MOTION – Approve August 5, 2026 Village Board Minutes Motion made by Ahrens second by Paul. Motion passed by voice vote. 5. REVIEW OF LICENSE APPLICATIONS a) Operator Licenses for Elizabeth Larson– GPM Southeast, LLC (R-Store) Elizabeth Larson passed background check and turned in required paperwork and fees. Recommended for approval. MOTION – Approve Operator License for Elizabeth Larson – GPM Southeast (R-Store) Motion made by Paul second by Ahrens. Motion passed by voice vote. b) Temporary Liquor License – Breast Cancer Awareness Truck Show This is the 3rd year for the Breast Cancer Awareness Truck Show but the first year of applying for a Temporary Liquor (Picnic) License. All required paperwork was turned in and fees paid. MOTION – Approve Temporary Liquor License for the Breast Cancer Awareness Truck Show Motion made by Parlier second by Sorenson. Motion passed by voice vote. c) Temporary Operator License – Nathan Karlen Nathan Karlen turned in required application and paid fees due. Passed background check. This is in association with the Breast Cancer Awareness Truck Show. MOTION – Approve Temporary Operator License for Nathan Karlen Motion made by Paul second by Ahrens. Motion passed by voice vote. 6. ADMINISTRATOR’S REPORT a) Village Permits Approved in August 2026 b) Fire Department and First Responder Calls c) Administration Department Activity in August d) Police Department Activity in August e) Public Works/Utility Departments Activity in August • STH 107 • N. Industrial PKWY • County Materials Sports Complex • Veterans Park • CIPP • Well #5 f) Administrators Activities Cherek updated the Board with the daily activities of the Village staff for August and upcoming activities/projects for September. His full Administrators Report can be found in the Agenda Packet. 7. UNFINISHED BUSINESS 8. NEW BUSINESS a) Discuss and Approve Conditional Use Permit for St. Matthews Church On August 3rd the Board of Appeals granted a variance for an electronic sign to be installed at St Matthew’s Church. The Plan Commission reviewed and approved a CUP for the 4’x8’ electronic sign. The CUP details time and illumination restrictions. MOTION – Approve Conditional Use Permit for St Matthew’s Church Motion made by Sorenson second by Parlier. Motion passed by voice vote. b) Discuss and Possible Action on Naloxone Box installed at the Marathon City Library and/or Village Hall *Moved to after Item 8e The Marathon City Branch Library reached out to Cherek stating the County Health Department requested installation of a naloxone box on library premises. Since the Village owns the building, the Village Board would be required to approve installation. Romenesko explained naloxone is used to help treat cases of drug overdose and would be available for residents free of charge. The intent of the dispensary is to make the medication available in cases of accidental overdose. Stratford, Athens and Mosinee Branch Libraries all agreed to have them installed. Board members questioned the location of the library with limited hours of access and thought maybe a location in the Municipal Building could be more beneficial. They inquired whether a box like this would bring more drugs into the village and ultimately decided to wait a year to determine how the other library locations have seen use. MOTION – Reevaluate Naloxone Boxes in a Year to Determine if it Would Be a Good Fit to Install in the Village Hall Motion made by Ahrens second by Parlier. Motion passed by voice vote. c) Set Trick-Or-Treating Hours for 2026 MOTION – Set Trick-or-Treat Hours for Saturday, October 31, 2026 from 4:00 – 6:00 pm. Motion made by Sorenson second by Ahrens. Motion passed by voice vote. d) Possible Action on New Cadet for Fire Department – Dylan Behnke Chief Hall interviewed Behnke for a Cadet position with the Fire Department and recommends him for approval. MOTION – Approve Dylan Behnke as a Cadet with the Marathon Fire Department Motion made by Ahrens second by Paul. Motion passed by voice vote. e) Discuss and Possible Action on South Road Rodent Population *Moved to after Item 3 Residents living on and near South Road have expressed issues with rats again this year from the south ditch on South Road. Cherek noted the Village hired an exterminator years ago to address the issue. The property south of the ditch is in the Town of Marathon. Board members and residents discussed possibly spraying weeds, cutting the ditch back or having the Fire Dept potentially do a controlled burn to help eliminate the habitat for the rats. Cherek will meet with an excavator and the Town of Marathon land owner to discuss the best possible option to eliminate the rats. f) Discuss and Approve Cooperative Waste Reduction, Reuse and Recycling Education Program Agreement Administrator Cherek submitted the 2027 Recycling Grant application to the DNR. Part of the Grant Application includes participating in the Marathon County Recycling Cooperative Waste Reduction & Education Agreement other municipalities. This would be a renewal Agreement for the Village. MOTION – Approve the Cooperative Waste Reduction, Reuse and Recycling Education Program Agreement Motion made by Sorenson second by Parlier. Motion passed by voice vote. g) Appointment of Open Position on Board of Appeals – Keith Marks With 2 open spots on the Board of Appeals, Keith Marks expressed interest in filling one of those spots. MOTION – Appoint Keith Marks to Board of Appeals Motion made by Ahrens second by Paul. Motion passed by voice vote. h) Discuss and Approve Temporary Hunting Application for Matthew Kroepfl Matthew Kroepfl turned in a temporary hunting application to bow hunt on his parcels off of North Ridge Road. (151-2806-061-1009 & 151-2806-061-1036) MOTION – Approve Temporary Hunting Application for Matthew Kroepfl Motion made by Ahrens second by Parlier. Motion passed by voice vote. i) Discuss and Approve STH 107 and 4th Street Intersection “No Parking Zone” Cherek explained that during the DOT Highway 107 Project final walkthrough he noted No Parking signs on 4th St from the 107 corner to the east alley that he was unaware would be there. After looking through the original contract and plans it was designed to be there but overlooked. The land owner expressed concerns over parking for their clients which typically utilized 4th St. The DOT agreed to allow the Village to move the east-most No Parking sign back to the west 64’, freeing up about 3 parking spots from the alley. The land owner was ok with this compromise. MOTION – Approve the Village Street Dept to Move the 4th St No Parking Sign to the West from the Alley 64’, Freeing up 3 Parking Spots on 4th St. Motion made by Sorenson second by Ahrens. Motion passed by voice vote. j) Discuss 2027 General Fund Draft Budget – Draft Cherek’s draft GF Budget reflects a shortfall of $17,629. He noted some factors for the shortfall: - A goal in the 2025 Capital Improvement Plan was to get to $120,000 cash funded street projects. The 2026 Budget split the $120,000 between Street Maintenance and Projects. The Draft 2027 Street budget shows $120,000 for Street Projects and $35,500 for Street Maintenance, including salt and snow removal. - Interest Revenue has always been allocated to the General Fund. While working with the PSC Audit for the water rate increase, Cherek learned the Village may need to allocate interest earnings between the General, Utility and TID Funds, further causing stress on the GF. - The Administrator payroll shifted significantly to the TIDs between 2019-2024 where budget issues were noticed in TID 2. Cherek began allocating off the TIDs to the GF and Utility Funds in 2025 & 2026. His draft 2027 budget shows payroll allocation of 40% to the General Fund, 25% to Water, 25% to Sewer and 10% to the TIDs. This distribution still reflects 208 hours in the TIDs. Cherek’s goal is to remove Administrator Payroll from the TIDs. - Statutorily, the debt levy can be at the level of debt taken. In years past, the Village has increased their debt service for projects/equipment but has kept the debt levy constant at $50,000. The Village pays for approximately $263,000 of debt services via the General Fund. Increasing the Debt Levy could help with the strain on the GF. k) Discuss 2027 CIP Projects and the CIP ‘28-‘29 Future Funding Plan as it relates to ‘27 General Fund Budget - The 2025 Capital Improvement Plan had Market St from 4th to 8th Streets to be done in 2027. At the time, Cherek estimated cost of project to be around $350,000 to be funded locally and by a state grant. During engineer review with the grant submittal, it was determined the storm sewer is failing and needing to be replaced increasing the project total to around $491,000. The Village was awarded an MSID grant with 50/50 match, putting the Village funded portion around $246,000, up from the $175,000 originally laid out in CIP. - The Village was awarded $35,295 in an LRIP grant to replace a section of 4th St from Pheasant to Thornapple. Cherek estimated the cost of this project to be around $135,000, the Village’s portion to be around $99,000. With budget review, he determined this project to be expensive. The LRIP grant allows for 1 substitution. Cherek, along with Vierbicher Engineering, feel switching to a section of 5th St between Chestnut and East St would be more worthwhile. Cost for 5th St is estimated to be around $87,500 with the Village portion being just over $52,000. - Matt from Vierbicher suggests finding a way to put $15,000 in 2027 towards chip sealing newer roads to prolong their life. - Total local funds needed for 2027 street projects is around $313,000. Cherek’s proposed funding includes $54,648 remaining from the 2025 Bonding for Market St, $120,000 from the 2027 CIP General Fund cash (given the budget can get to that amount) and 2027 Street Maintenance budget of $15,000. The Village would need to borrow $124,500 to finance the remainder of costs, which would get lumped in with the future 2028-2029 CIP Bonding. MOTION – Approve LRIP Switch from 4th St to 5th St and Move Forward with Market St & 5th St Projects Borrowing $124,500 Motion made by Paul second by Sorenson. Motion passed by voice vote. 9. REVIEW AND APPROVAL OF BILLS Board members questioned the following bill payments: Check 49795 – Bassett Mechanical – Library furnace Check 49801 – Marathon Plumbing Service – Library water heater MOTION – Approve Payment of Bills Motion made by Ahrens second by Sorenson. Motion passed by voice vote. Cassie Lang Village Clerk / Deputy Treasurer 10. RESOLUTIONS AND ORDINANCES a) Discuss and Approve Amending Ordinance Article 2, Section 2.2.4 Entitled “Salaries” Board salaries are established by ordinance. Cherek provided a draft ordinance amendment changing Board salary establishment to be set via resolution going forward. Setting/changing Board salaries by resolution is common practice. MOTION – Approve Amending Ordinance Article 2, Section 2.2.4 Entitled “Salaries” Motion made by Sorenson second by Paul. Motion passed by voice vote. 11. VILLAGE BOARD WILL GO IN CLOSED SESSION PER WIS. STAT. 19.85 (1)(c) “CONSIDERING EMPLOYMENT, PROMOTION, COMPENSATION OR PERFORMANCE EVALUATION DATA OF ANY PUBLIC EMPLOYEE OVER WHICH THE GOVERNMENTAL BODY HAS JURISDICTION OR EXERCISES RESPONSIBILITY.” a) 2026 Employee Wages & Compensation MOTION – Go into Closed Session at 8:29 pm Motion made by Sorenson second by Ahrens. Motion passed by roll call vote. ROLL CALL: AHRENS-Yes, SORENSON-Yes, PAUL-Yes, PARLIER-Yes, HANDRICK-Yes 12. VILLAGE BOARD WILL RETURN TO OPEN SESSION BY ROLL CALL VOTE MOTION – Return to Open Session at 8:46 pm Motion made by Sorenson second by Paul. Motion passed by roll call vote. ROLL CALL: SORENSON-Yes, PAUL-Yes, PARLIER-Yes, HANDRICK-Yes, AHRENS-Yes 13. TAKE ACTION ON CLOSED SESSION ITEM(S) No action taken from closed session. 14. FUTURE SCHEDULED MEETINGS: a) Regular Village Board Meeting – Wednesday, October 7, 2026 – 6:00 pm b) Special Village Board – As Needed 15. ADJOURNMENT at 8:47 pm Motion to adjourn made by Sorenson second by Ahrens. Motion passed by voice vote. 311 Walnut Street | P .O. Box 487 | Marathon City, WI 54448 Tel: 715-443-2221 | www.marathoncitywi.gov NEW OPERATOR LICENSE APPLICATIONS FOR THE 2026-2027 YEAR DATE: 10/5/2026 MEETING APPROV AL DATE: 10/7/2026 LOCATION FIRST NAME LAST NAME RECOMMENDATION KWIK TRIP ABBIGAIL HOLT YES KWIK TRIP SCHREINER MAKAYLA YES KWIK TRIP ANGELA KRAMAS YES KWIK TRIP ASHLEY CHUZLES YES KWIK TRIP TROY SCHMITT YES KWIK TRIP RUSSELL TESKE YES Village Administrator’s Report | September 2026 | 1 Administrator’s Report – October 2026 1) Permits Building Permits – Administrator Permits (2) • 216 Main St – Siding, Windows, Roof • 616 Washington St – Shed Sign Permits (1) • 314 Main St – Bank First (Peoples State Bank) U tility Permits (2) • WPS – 704 6th St – New Gas Line • WPS – 1101 Vitello Ln – New Power & Gas Line (new home construction) • Frontier Fiber Optic – Pending review 2) F ire Department – September • First Responder: 19 calls - 4 Town Sections and 15 Village • Fire: 7 calls - 1 Town Sections and 15 Village, 3 Mutual Aid 3) A dministration The Administration Office remained busy throughout September. Major items included developing residential subdivision requirements, capital equipment replacement plan and funding proposals, and preparation of the 2027 Budget. Overall, significant progress was made on several ongoing Village priorities. 4) Police Department The Police Department had is currently be assisting the Wisconsin DNR with enforcement of the Weisenberger Site Access Warrant as the DNR begins the grant-funded site investigation. They are also working on day to day operations, keeping busy. 5) Public Works/Utility Public Works and Utility staff continued daily operations while completing several projects. Staff is sending out tree cutting notices and is targeting ½ the village this year and next year plan to do the other ½ . Harley Lang is scheduled to work with our street department and do the cutting while we are chipping behind this year. Major Project Updates • STH 107: This project is almost completed. They still have to fix a portion of 2 nd street intersection and the sidewalk on the 400 block turn lane. The solar power crosswalk Village Administrator’s Report | September 2026 | 2 flashing signs arrived and will be installed by Menzner Hardwoods crosswalk in October/November. • N. Industrial Parkway: There are several smaller projects still to be completed, or part way finished. Within the next few weeks we will be completing the driveway access, fence line and in spring planting trees. • County Materials Sports Complex: The church signed the parking lot agreement and payment was turned in for it. The pickleball courts were painted and looking good. • Veterans Park: American Legion-funded electrical and lighting improvements continue. I am not sure when they plan on completing this, but it is now looking more scheduled for next year. • CIPP Project: The project continues to progress. The area on 2 nd street to be dug was reviewed and we no longer need to dig as it was tree roots causing the issue not breaks in the line. We should see them starting back up soon with doing more sewer lines. • Well #5: Planning and review continue. Staff are working with Ehlers and the PSC on the rate study and project financing requirements. 6) Administrator’s Activities & Plans • Continue working with Ehlers on the PSC rate study for Well #5. • Continue coordination of current capital, infrastructure, and grant-funded projects. • Kerber Rose – 2026 interim Audit scheduled the week of October 19th. Steven Cherek Village Administrator Monthly Report- Sept. 2026 Fire Calls-7 Calls Village of Marathon-3 Calls Town of Cassel-1 Call Mutual Aid-Edgar-1 Call Mutual Aid-Hamburg-1 Call Mutual Aid-SAFER Fire-1 Call EMS Calls- 19 calls Village of Marathon-15 Calls Town of Cassel-2 Calls Town of Marathon-1 Call Town of Stettin-1 Calls Training/School-3 members in EMR class at NTC. Public Relations- Fun Days weekend events. (Open house, bartending, 5K run, parade) 9/11 Silent Walk. Battle of the Badges. Upcoming Events- Fire Prevention week Oct. 6-12. Fire prevention classes at the station for MAES. Will have Trucks #48 and #49 at Little Lions Harvest Fest (Trunk or Treating) on 10/16. Will have Truck #40 out handing out candy for Trick or Treating 10/31. Upcoming Meetings/Drills- Officer Meeting. Wed. 10/14 @ 6:30 PM Fire Meeting and Drill. Wed. 10/14 @ 7:00 PM EMS Meeting and Drill. Wed. 10/21 @6:30 PM State/County Activity-Awarded DNR Forest Fire Protection grant. Truck Report- Truck #50 Will be put into service on Oct. 15. I want to train one more time on it before placing into service. Waiting on some fittings which will be here soon. Truck #46 (Current unusable Engine)-On auction site. VILLAGE OF MARATHON CITY October 5, 2026 PROPOSED 2027 GENERAL FUND BUDGET Draft ADOPTED REVENUES AS OF PROJECTED YEAR-END ADOPTED ADOPTED YOY Percent REVENUES 2025 BUDGET 9/16/2026 2026 2026 BUDGET 2027 BUDGET Change LOCAL TAXES 930,712.00$ 948,381.07$ 948,381.07$ 948,381.00$ 957,465.00$ 0.96% SPECIAL ASSESSMENTS 103,316.88$ 107,501.77$ 107,501.77$ 106,375.62$ 110,110.44$ 3.51% INTERGOVERNMENTAL REVENUES 505,135.94$ 223,578.29$ 529,834.39$ 529,590.40$ 545,793.74$ 3.06% LICENSES AND PERMITS 33,318.00$ 30,555.04$ 41,859.37$ 33,034.00$ 39,821.00$ 20.55% FINES & FORFEITURES 7,800.00$ 7,803.48$ 10,203.08$ 7,500.00$ 10,185.00$ 35.80% PUBLIC CHARGES FOR SERVICES 7,150.00$ 10,522.21$ 27,077.47$ 29,785.60$ 33,621.59$ 12.88% INTERGOVERNMENTAL CHARGES 139,484.31$ 149,980.49$ 149,980.49$ 148,312.84$ 148,609.93$ 0.20% MISCELLANEOUS REVENUE 100,596.00$ 102,634.23$ 146,376.75$ 131,720.00$ 134,820.00$ 2.35% PROCEEDS FROM BORROWING -$ -$ -$ -$ -$ SUB-TOTAL REVENUE 1,827,513.13$ 1,580,956.58$ 1,961,214.39$ 1,934,699.46$ 1,980,426.70$ 2.36% PROCEEDS FROM FUND BALANCE -$ -$ 13,696.24$ -$ -$ TOTAL REVENUE 1,827,513.13$ 1,580,956.58$ 1,974,910.63$ 1,934,699.46$ 1,980,426.70$ 2.36% ADOPTED Expenses as of PROJECTED YEAR-END ADOPTED ADOPTED YOY Percent EXPENDITURES 2025 BUDGET 9/16/2026 2026 2026 BUDGET 2027 BUDGET Change GENERAL GOVERNMENT 293,645.00$ 212,245.10$ 280,952.61$ 280,841.20$ 302,149.19$ 7.59% PUBLIC SAFETY 674,681.61$ 396,628.23$ 685,999.60$ 700,894.27$ 653,323.28$ -6.79% PUBLIC WORKS 328,818.03$ 224,260.34$ 343,886.99$ 315,302.28$ 336,953.76$ 6.87% HEALTH & HUMAN SERVICES 107,087.64$ 72,921.80$ 110,106.90$ 109,761.94$ 114,100.29$ 3.95% PARKS, CULTURE & RECREATION 53,384.83$ 55,710.20$ 67,142.00$ 67,490.48$ 63,817.21$ -5.44% CONSERVATION & DEVELOPMENT 1,000.00$ 4,452.00$ 4,452.00$ 3,000.00$ 1,850.00$ -38.33% MISCELLANEOUS 2,000.00$ 1,811.49$ 1,811.49$ 2,000.00$ 2,000.00$ 0.00% SUB-TOTAL OPERATIONS 1,460,617.11$ 968,029.16$ 1,494,351.59$ 1,479,290.17$ 1,474,193.73$ -0.34% Capital Project Fund Transfer -$ 86,500.00$ 123,500.00$ 96,500.00$ 152,215.24$ 57.74% Debt Service Fund Transfer 365,683.43$ -$ 357,059.04$ 357,059.04$ 353,457.14$ -1.01% PROCEEDS TO FUND BALANCE 1,212.59$ 526,427.42$ -$ 1,850.25$ 560.59$ -69.70% TOTAL EXPENDITURES 1,827,513.13$ 1,580,956.58$ 1,974,910.63$ 1,934,699.46$ 1,980,426.70$ 2.36% 2027 Budget - 7,000 to Annual Equipment Fund VILLAGE OF MARATHON CITY October 5, 2026 2027 GENERAL FUND BUDGET Draft Page 2 ADOPTED REVENUES AS OFPROJECTED YEAR-ENDADOPTED ADOPTED YOY Percent REVENUES 2025 BUDGET 9/16/2026 2025 REVENUES 2026 BUDGET 2027 BUDGET Change GENERAL PROPERTY TAXES LOCAL PROPERTY TAXES 930,712.00$ 948,381.07$ 948,381.07$ 948,381.00$ 957,465.00$ 0.96% TOTAL TAXES 930,712.00$ 948,381.07$ 948,381.07$ 948,381.00$ 957,465.00$ 0.96% SPECIAL ASSESSMENTS & CHARGES SPECIAL ASSESSMENTS 899.00$ 899.00$ -$ -$ INTEREST ON SPECIAL ASSESSMENTS 125.61$ 125.61$ -$ -$ GARBAGE & RECYCLING CHARGES 103,316.88$ 106,477.16$ 106,477.16$ 106,375.62$ 110,110.44$ 3.51% TOTAL SPECIAL ASSESSMENTS 103,316.88$ 107,501.77$ 107,501.77$ 106,375.62$ 110,110.44$ 3.51% INTERGOVERNMENTAL REVENUES STATE SHARED REVENUE 181,315.69$ 31,276.92$ 181,858.33$ 181,858.33$ 180,388.58$ -0.81% STATE COMPUTER AID 6,669.94$ 6,669.94$ 6,669.94$ 6,669.94$ 6,669.94$ 0.00% STATE HIGHWAY AIDS 162,627.62$ 140,144.04$ 186,858.73$ 186,858.73$ 204,287.83$ 9.33% STATE RECYCLING GRANT 11,082.40$ 11,047.10$ 11,047.10$ 11,043.11$ 11,047.10$ 0.04% Video Provider AIDS 2,973.10$ 2,973.10$ 2,973.10$ 2,973.10$ 2,973.10$ 0.00% STATE PERSONAL PROPERTY AID 31,467.19$ 31,467.19$ 31,467.19$ 31,467.19$ 31,467.19$ 0.00% STEWARDSHIP GRANT-COUNTY -$ -$ -$ -$ FEDERAL GRANTS / Fire Truck -$ -$ -$ -$ UTILITY DEPT. TAX EQUIVALENT 108,000.00$ -$ 108,000.00$ 108,000.00$ 108,000.00$ 0.00% LAW ENFORCEMENT STATE AIDS 1,000.00$ -$ 960.00$ 720.00$ 960.00$ 33.33% TOTAL INTERGOVERNMENTAL REVENUES 505,135.94$ 223,578.29$ 529,834.39$ 529,590.40$ 545,793.74$ 3.06% LICENSES AND PERMITS MOBILE HOME TAX 8,200.00$ 9,989.83$ 13,013.87$ 8,200.00$ 13,400.00$ 63.41% CABLE FRANCHISE FEE 7,008.00$ 4,679.71$ 6,230.00$ 7,008.00$ 6,200.00$ -11.53% BUS. & OCCUPATIONAL FEES 5,970.00$ 4,025.00$ 7,745.00$ 7,595.00$ 7,740.00$ 1.91% LIQUOR LICENSES 5,090.00$ 5,040.00$ 5,050.00$ 4,520.00$ 5,050.00$ 11.73% LICENSES PUBLICATION FEE 200.00$ 200.00$ 200.00$ 180.00$ 200.00$ 11.11% DOG LICENSES 450.00$ 720.50$ 720.50$ 731.00$ 731.00$ 0.00% BUILDING PERMITS 5,000.00$ 3,550.00$ 3,600.00$ 3,000.00$ 3,000.00$ 0.00% UTILITY PERMITS 600.00$ 1,850.00$ 2,800.00$ 800.00$ 2,000.00$ 150.00% SIGN PERMITS 800.00$ 500.00$ 2,500.00$ 1,000.00$ 1,500.00$ 50.00% TOTAL LICENSES & PERMITS 33,318.00$ 30,555.04$ 41,859.37$ 33,034.00$ 39,821.00$ 20.55% LAW & ORDINANCE VIOLATIONS 7,000.00$ 6,823.48$ 8,923.08$ 6,000.00$ 8,760.00$ 46.00% PARKING VIOLATIONS 800.00$ 980.00$ 1,280.00$ 1,500.00$ 1,425.00$ -5.00% FINES AND FORFEITURES 7,800.00$ 7,803.48$ 10,203.08$ 7,500.00$ 10,185.00$ 35.80% PUBLIC CHARGES FOR SERVICES CLERK'S SERVICE INCOME 1,900.00$ 2,326.67$ 2,771.67$ 1,750.00$ 2,550.00$ 45.71% POLICE SERVICE INCOME 1,000.00$ 892.00$ 1,025.00$ 1,000.00$ 1,080.00$ 8.00% CHARGES - GARBAGE STICKERS 750.00$ 535.00$ 535.00$ 750.00$ 550.00$ -26.67% CHARGES - RECYCLING FEES 1,500.00$ 875.00$ 1,100.00$ 1,500.00$ 1,100.00$ -26.67% STREETS MAT. & SERVICES INCOME 1,500.00$ 918.75$ 918.75$ 1,500.00$ 2,800.00$ 86.67% PARKS REVENUE 500.00$ 4,974.79$ 19,227.05$ 21,785.60$ 24,041.59$ 10.36% SAFETY FUND INCOME - DARE -$ -$ 1,500.00$ 1,500.00$ 1,500.00$ TOTAL PUBLIC CHARGES FOR SERVICES 7,150.00$ 10,522.21$ 27,077.47$ 29,785.60$ 33,621.59$ 12.88% October 5, 2026 Page 3 ADOPTED REVENUES AS OFPROJECTED YEAR-ENDADOPTED ADOPTED YOY Percent REVENUES 2025 BUDGET 9/16/2026 2025 REVENUES 2026 BUDGET 2027 BUDGET Change INTERGOVERNMENTAL CHARGES FIRE CALLS -$ -$ -$ -$ FIRE INS. DUES 17,327.05$ 21,376.73$ 21,376.73$ 19,709.08$ 21,376.73$ 8.46% FIRE SECTION FEES 113,202.78$ 112,566.98$ 112,566.98$ 112,566.98$ 114,856.58$ 2.03% FIRST RESPONDER SECTION CHARGES 8,954.48$ 16,036.78$ 16,036.78$ 16,036.78$ 12,376.62$ -22.82% TOTAL INTERGOVERNMENTAL CHARGES 139,484.31$ 149,980.49$ 149,980.49$ 148,312.84$ 148,609.93$ 0.20% MISCELLANEOUS REVENUE OTHER INCOME - F.D. 5,816.23$ 5,816.23$ -$ -$ DIVIDENDS & INTEREST 39,000.00$ 57,672.07$ 81,544.00$ 68,400.00$ 76,000.00$ 11.11% RENTAL REVENUE 35,096.00$ 23,521.65$ 37,861.69$ 37,320.00$ 37,820.00$ 1.34% LIBRARY REVENUE 10,000.00$ 6,484.30$ 9,374.39$ 10,000.00$ 10,000.00$ 0.00% PARK SPONSORSHIP & DONATIONS 5,500.00$ 500.00$ 2,500.00$ 1,500.00$ 2,500.00$ 66.67% DONATIONS - PD 4,477.44$ 4,477.44$ -$ 4,500.00$ DONATIONS - ADMIN 1,000.00$ -$ -$ 1,000.00$ -$ -100.00% MISC. RECEIPTS & REIMBURSEMENTS 1,500.00$ 3,803.00$ 4,303.00$ 3,000.00$ 3,500.00$ 16.67% SALES OF GOODS & PROPERTY 8,000.00$ -$ -$ 10,000.00$ -$ -100.00% Other MISC Rev 500.00$ 359.54$ 500.00$ 500.00$ 500.00$ 0.00% TOTAL MISCELLANEOUS REVENUE 100,596.00$ 102,634.23$ 146,376.75$ 131,720.00$ 134,820.00$ 2.35% PROCEEDS FROM DEBT PROCEEDS FROM DEBT -$ -$ -$ -$ -$ PROCEEDS FROM DEBT - FD -$ TOTAL DEBT REVENUES -$ -$ -$ -$ -$ SUB-TOTAL 1,827,513.13$ 1,580,956.58$ 1,961,214.39$ 1,934,699.46$ 1,980,426.70$ 2.36% PROCEEDS FROM FUND BALANCE -$ -$ 13,696.24$ -$ -$ TOTAL REVENUES 1,827,513.13 $ 1,580,956.58$ 1,974,910.63$ 1,934,699.46$ 1,980,426.70$ 2.36% October 5, 2026 Page 4 ADOPTED Expenses as ofPROJECTED YEAR-ENDADOPTED ADOPTED YOY Percent EXPENDITURES 2025 BUDGET 9/16/2026 2026 2026 BUDGET 2027 BUDGET Change GENERAL GOVERNMENT BOARD SALARIES & EXPENSE 14,360.00$ 11,481.04$ 14,141.75$ 12,408.75$ 16,313.75$ 31.47% ADMIN STAFF WAGES & SALARIES 77,637.59$ 64,037.86$ 91,516.79$ 90,871.30$ 101,493.30$ 11.69% ADMIN STAFF BENEFITS 32,745.96$ 27,621.35$ 40,486.64$ 40,593.46$ 42,894.45$ 5.67% PUBLICATIONS & DUES 3,100.00$ 707.60$ 2,150.00$ 3,100.00$ 3,100.00$ 0.00% OFFICE SUPPLIES & SERVICES 31,751.30$ 23,873.68$ 29,566.43$ 33,650.00$ 33,000.00$ -1.93% VILLAGE HALL MAINTENANCE 3,400.00$ 2,686.81$ 3,000.00$ 3,400.00$ 2,900.00$ -14.71% ELECTIONS 2,834.00$ 1,619.64$ 2,649.98$ 2,932.69$ 2,932.69$ 0.00% LEGAL & PROFESSIONAL SERVICES 90,866.15$ 46,829.15$ 59,250.00$ 58,700.00$ 61,000.00$ 3.92% AUDIT -$ -$ -$ -$ VILLAGE HALL UTILITIES 9,700.00$ 6,737.53$ 9,877.68$ 10,700.00$ 10,700.00$ 0.00% ASSESSMENT OF PROPERTY -$ -$ -$ -$ MOBILE HOME TAX $ 3,250.00 $ 2,328.08 $ 3,990.98 $ 3,000.00 $ 4,000.00 33.33% INSURANCE AND BONDS 24,000.00$ 24,322.36$ 24,322.36$ 21,485.00$ 23,815.00$ 10.84% TOTAL GENERAL GOVERNMENT 293,645.00$ 212,245.10$ 280,952.61$ 280,841.20$ 302,149.19$ 7.59% PUBLIC SAFETY EMPLOYEE WAGES & SALARIES 213,150.78$ 161,236.21$ 233,205.60$ 232,123.97$ 249,631.59$ 7.54% EMPLOYEE BENEFITS 102,533.01$ 68,451.88$ 100,640.84$ 100,105.75$ 104,455.81$ 4.35% LEGAL FEES 2,000.00$ 1,164.51$ 1,500.00$ 3,000.00$ 3,000.00$ 0.00% OPERATIONS 48,579.00$ 27,755.65$ 47,755.34$ 48,623.00$ 47,900.00$ -1.49% INSURANCE AND BONDS 12,300.00$ 11,277.68$ 11,277.68$ 8,448.00$ 11,500.00$ 36.13% IT SW, HW, SUPPORT 16,100.00$ 16,015.63$ 18,741.91$ 20,139.00$ 20,050.00$ -0.44% CROSSING GUARDS 7,836.92$ 4,588.79$ 8,069.56$ 8,111.22$ 8,357.52$ 3.04% SUBTOTAL - POLICE DEPT. 402,499.71$ 290,490.35$ 421,190.93$ 420,550.94$ 444,894.92$ 5.79% FIRE DEPT. OPERATIONS 131,878.96$ 62,175.74$ 127,965.87$ 136,366.46$ 142,181.49$ 4.26% FIRST RESPONDER OPERATIONS 42,872.95$ 22,605.36$ 42,256.02$ 43,833.87$ 43,833.87$ 0.00% INSURANCE AND BONDS 16,000.00$ 10,443.78$ 10,443.78$ 16,000.00$ 11,500.00$ -28.13% AMBULANCE SERVICE 8,200.00$ 10,913.00$ 10,913.00$ 10,913.00$ 10,913.00$ 0.00% HYDRANT RENTAL 73,230.00$ -$ 73,230.00$ 73,230.00$ -$ -100.00% SUBTOTAL - FIRE DEPT. 272,181.91$ 106,137.88$ 264,808.67$ 280,343.33$ 208,428.36$ -25.65% TOTAL PUBLIC SAFETY 674,681.62$ 396,628.23$ 685,999.60$ 700,894.27$ 653,323.28$ -6.79% October 5, 2026 Page 5 ADOPTED Expenses as ofPROJECTED YEAR-ENDADOPTED ADOPTED YOY Percent 2025 BUDGET 9/16/2026 2026 2026 BUDGET 2027 BUDGET Change PUBLIC WORKS EMPLOYEE WAGES & SALARIES 108,675.45$ 84,933.86$ 123,876.38$ 116,695.84$ 128,310.50$ 9.95% EMPLOYEE BENEFITS 44,520.58$ 36,881.23$ 53,913.91$ 53,631.44$ 56,079.26$ 4.56% GARAGE UTILITIES 8,432.00$ 5,886.69$ 9,819.38$ 9,292.00$ 10,800.00$ 16.23% VEHICLES OPERATION & MAINTENANCE 20,500.00$ 17,660.54$ 20,231.44$ 20,500.00$ 20,500.00$ 0.00% GARAGE OPERATION & MAINTENANCE 28,490.00$ 27,961.84$ 36,236.35$ 28,490.00$ 33,000.00$ 15.83% CAPITAL EXPENSE - EQUIPMENT INSURANCE AND BONDS 16,200.00$ 9,156.60$ 9,156.60$ 9,193.00$ 10,764.00$ 17.09% STREET MAINTENANCE 60,000.00$ 19,632.28$ 57,807.75$ 35,500.00$ 35,500.00$ 0.00% STREET LIGHTING 40,000.00$ 21,227.72$ 31,045.18$ 40,000.00$ 40,000.00$ 0.00% TRAFFIC CONTROL 2,000.00$ 919.58$ 1,800.00$ 2,000.00$ 2,000.00$ 0.00% TOTAL PUBLIC WORKS 328,818.03$ 224,260.34$ 343,886.99$ 315,302.28$ 336,953.76$ 6.87% HEALTH & HUMAN SERVICES REFUSE COLLECTION $ 69,732.12 $ 45,029.82 $ 73,859.91 $ 73,420.02 $ 70,405.36 -4.11% RECYCLING $ 37,055.52 $ 27,891.98 $ 36,246.99 $ 36,241.92 $ 43,594.93 20.29% RECYCLING SUPPLIES $ 300.00 $ - $ - $ 100.00 $ 100.00 0.00% SUBTOTAL - SANITATION 107,087.64$ 72,921.80$ 110,106.90$ 109,761.94$ 114,100.29$ 3.95% CEMETERY -$ -$ -$ TOTAL HEALTH & HUMAN SERVICES 107,087.64$ 72,921.80$ 110,106.90$ 109,761.94$ 114,100.29$ 3.95% PARKS, CULTURE & EDUCATION LIBRARY WAGES & OPERATION & MAINTENANCE6,014.20$ 5,964.18$ 5,985.07$ 6,119.70$ 5,714.43$ -6.62% LIBRARY EMPLOYEE BENEFITS -$ -$ -$ -$ LIBRARY UTILITIES 6,100.00$ 3,092.68$ 5,380.42$ 6,000.00$ 6,000.00$ 0.00% PARKS EMPLOYEE WAGES & BENEFITS 29,145.63$ 25,859.56$ 30,737.86$ 33,797.03$ 30,042.78$ -11.11% PARKS UTILITIES 4,500.00$ 5,696.52$ 9,369.02$ 10,424.59$ 11,160.00$ 7.05% PARK OPERATION & MAINTENANCE 6,000.00$ 14,527.63$ 15,100.00$ 10,149.16$ 10,400.00$ 2.47% PARKS INSURANCE & BONDS 625.00$ -$ -$ -$ -$ #DIV/0! SPECIAL EVENTS 1,000.00$ 569.63$ 569.63$ 1,000.00$ 500.00$ -50.00% TOTAL PARKS, CULTURE & EDUCATION 53,384.83$ 55,710.20$ 67,142.00$ 67,490.48$ 63,817.21$ -5.44% CONSERVATION & DEVELOPMENT PLANNING & ZONING PROF. SERVICES 1,000.00$ 4,452.00$ 4,452.00$ 3,000.00$ 1,850.00$ -38.33% ECONOMIC DEVELOPMENT -$ -$ -$ -$ -$ TOTAL CONSERVATION & DEVELOPMENT 1,000.00$ 4,452.00$ 4,452.00$ 3,000.00$ 1,850.00$ -38.33% October 5, 2026 Page 6 ADOPTED Expenses as ofPROJECTED YEAR-ENDADOPTED ADOPTED YOY Percent 2025 BUDGET 9/16/2026 2026 2026 BUDGET 2027 BUDGET Change MISCELLANEOUS RENTAL PROPERTY MAINTENANCE $ 1,811.49 $ 1,811.49 $ 2,000.00 $ 2,000.00 MICSELLANEOUS -$ -$ -$ -$ -$ TOTAL MISCELLANEOUS -$ 1,811.49$ 1,811.49$ 2,000.00$ 2,000.00$ CAPITAL OUTLAY Fire Departmetn Capital Outlay -$ -$ 37,000.00$ 12,000.00$ 16,715.24$ Streets Department Capital Outlay -$ 84,500.00$ 84,500.00$ 84,500.00$ 120,000.00$ Equiptment Replacement Fund (Parks, PD, Public Works)-$ 2,000.00$ 2,000.00$ -$ 7,000.00$ PD Capital Outlay - Small Equiptment -$ -$ -$ -$ 8,500.00$ ADMIN - Capital Outlay -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Land Acquisition -$ -$ -$ TOTAL CAPITAL OUTLAY -$ 86,500.00$ 123,500.00$ 96,500.00$ 152,215.24$ DEBT SERVICE ADMIN - DEBT SERVICE 316,861.43$ -$ 316,157.65$ 316,157.65$ 313,207.14$ -0.93% FD - DEBT SERVICE 48,822.00$ -$ 40,901.39$ 40,901.39$ 40,250.00$ -1.59% TOTAL DEBT SERVICE $ 365,683.43 $ - $ 357,059.04 $ 357,059.04 $ 353,457.14 -1.01% EXPENDITURE SUMMARY GENERAL GOVERNMENT 293,645.00$ 212,245.10$ 280,952.61$ 280,841.20$ 302,149.19$ 7.59% PUBLIC SAFETY 674,681.61$ 396,628.23$ 685,999.60$ 700,894.27$ 653,323.28$ -6.79% PUBLIC WORKS 328,818.03$ 224,260.34$ 343,886.99$ 315,302.28$ 336,953.76$ 6.87% HEALTH & HUMAN SERVICES 107,087.64$ 72,921.80$ 110,106.90$ 109,761.94$ 114,100.29$ 3.95% PARKS, CULTURE & EDUCATION 53,384.83$ 55,710.20$ 67,142.00$ 67,490.48$ 63,817.21$ -5.44% CONSERVATION & DEVELOPMENT 1,000.00$ 4,452.00$ 4,452.00$ 3,000.00$ 1,850.00$ -38.33% MISCELLANEOUS 2,000.00$ 1,811.49$ 1,811.49$ 2,000.00$ 2,000.00$ 0.00% SUBTOTAL OPERATIONS 1,460,617.11$ 968,029.16$ 1,494,351.59$ 1,479,290.17$ 1,474,193.73$ -0.34% DEBT SERVICE 365,683.43 $ - $ 357,059.04$ 357,059.04$ 353,457.14$ -1.01% CAPITAL OUTLAY -$ 86,500.00$ 123,500.00$ 96,500.00$ 152,215.24$ SUB-TOTAL OPERATIONS1,826,300.54$ 1,054,529.16$ 1,974,910.63$ 1,932,849.21$ 1,979,866.11$ 2.43% PROCEEDS TO FUND BALANCE 1,212.59$ 526,427.42$ -$ 1,850.25$ 560.59$ -69.70% TOTAL EXPENDITURES $ 1,827,513.13 $ 1,580,956.58 $ 1,974,910.63 $ 1,934,699.46 $ 1,980,426.70 2.36% Village of Marathon CityEquipment Replacement Fund ProposalVillage Board Discussion & DirectionPlanning Horizon:2027-2047Prepared by: Steve Cherek, Village Administrator Why are We Discussing This?Current Situation•The 2025 Capital Improvement Plan identified the need to increase annual General Fund Contributions for capital replacement. •Street Project Replacement funding has increased from approximately $40,000 (2023) to $120,000 annually (2027)•The Village continues to budget approximately $35,500 annually for street maintenance, snow removal, and minor repairs. •The Village now uses a blended cash and debt financing strategy for street projects. Remaining Challenges•Equipment replacement has not received similar funding commitment. •Most Equipment purchases continue to rely Heavily on borrowing. •The 2027 budget attempted to increase equipment funding, but available levy capacity was insufficient to address equipment replacement needs along with preserving street projects. Discussion QuestionShould the Village establish an Equipment Replacement fund similar to the street project funding strategy? Current Equipment Annual Funding Gap of $112,866How Was the Need Determined?The Village's annual equipment replacement need was developed through the Capital Improvement Planning process by:•Identifying major equipment replacement costs.•Establishing useful life cycles.•Applying inflation assumptions.•Annualizing replacement costs over each asset's expected service life.•Annualizing Resale and Interest earnings along with reserve balance. Results: Replacement CyclePlanned Replacement YearsEquipment8 Years27, 31, 35, 39, 43, 47Police Vehicles (2)10 Years30, 31, 40, 411-Ton Dump / Plow Pickups (2)10 Years26, 28, 36, 38, 46Ventrac-Utility Tractor (2)8 Years28, 36, 44Zero Turn Lawn Mower (Cub Cadet) (1)20 Years2032Loader & Snowblower System (1)15 Years2040Street Sweeper (1)20 Years27, 36, 47Single Axle Plow Truck (2)VariesVariousChipper & Small Equipment Major Equipment Included in study AmountMeasure$119,866Annual Equipment Replacement Need$7,000Current 2027 Annual Equipment Funding$112,866Annual Funding GapKey Observation: Current Funding address less than 6% of identified annual equipment replacement needs What Is Being Proposed?Establish an Equipment Replacement FundA dedicated fund would work similar to the Street Project Replacement Fund that would:• Build annual equipment reserves• Reinvest equipment sale proceeds• Reduce future borrowing• Reduce future debt levy pressure• Improve long-term planning• Create a sustainable replacement strategy for future Village BoardsSimilar To Streets•The Street Project Replacement Fund was built gradually over several years.•This proposal applies the same philosophy to equipment replacement. How The Fund Is BuiltFunding SourcesFunding PhilosophyThe goal is not to eliminate borrowing.The goal is to move from:Borrow First → Pay Later (Higher future borrowing and greater potential debt levy pressure) toSave Some → Borrow Less → Pay Less Later (Reduce unnecessary borrowing and future debt levy pressure)Similar to Street Project StrategyThe Village increased annual Street project Replacement Fund contributions by utilizing available levy capacity and reducing reliance on some general obligation debt over time. Long-Term Strategy / Expected ResultsAs debt obligations decline and levy capacity becomes available: Equipment Fund Contributions Equipment Fund Balance Borrowing Requirements Future Equipment Replacement Debt Levy PressureEnd GoalCreate a sustainable hybrid financing modelutilizing both reserve funding and borrowing for major equipment replacements. Annual General Fund Contributions to Equipment FundInterest Earnings within Equipment Fund BalanceEquipment Sale Proceeds go back to the Equipment FundDebt Levy Capacity Redirected to Equipment Reserves Street Funding & Interest AllocationAnnual FundingProgram$120,000Street Project Replacement Fund$119,600Equipment Replacement Goal$239,600Total Capital Funding GoalInterest Allocation CorrectionAmountYear$25,0002027$12,4002028$37,400TotalStreet Funding Remains IntactHistorically, Utility and TID cash balances generated investment earnings that partially supported General Fund operationsStreet funding remains at $120,000 annuallyEquipment funding is added, not substitutedPreserves current street replacement strategyBenefits No reduction to Street Project funding Improved financial transparency Better aligns investment earnings with fund ownership Stronger Utility and TID reporting Auditor’s Recommendation Board Funding OptionsOption A –Accelerated Funding Strategy – Two-YearReach Equipment Funding Goal in 2028Results•Faster reserve growth•Lower future borrowing (~$86,837 Less)•Lower future debt levy pressure (-$2,878,031)Option B – Three-Year Phase-In StrategyReach Equipment Funding Goal in 2029Results•Lower annual implementation impact•Slower reserve growth•Higher Future borrowing (~$86,837 More)•Higher future debt levy pressure 20282027Funding Source$75,000$75,000GO Debt Payments Shifted to Debt Levy $12,400$25,000Interest Allocation Correction$112,600$50,000Equipment Fund Contribution202920282027Funding Source$50,000$50,000$50,000GO Debt Payments Shifted to Debt Levy $0$12,400$25,000Interest Allocation Correction$112,600$50,000$25,000Equipment Fund ContributionKey Difference:Option A accelerates reserve growth by shifting approximately $75,000 annually over two years.Option B spreads the transition over three years by shifting approximately $50,000 annually. Taxpayer Impact & Mill Rate ContextOption A – Accelerated Funding Option B – Three-Year Phase-In2028+2027Home Value$108$54$150,000$144$72$200,000$180$90$250,000$216$108$300,0002029+20282027Annual Impact (2027–2029)Home Value$108$72$36$36$150,000$144$96$48$48$200,000$180$120$60$60$250,000$216$144$72$72$300,000 Key Tax Levy Consideration:The proposed Equipment Replacement Fund would increase the Village mill rate by approximately 0.72 mills, implemented over: •Two years under Option A, or•Three years under Option BKey Board Consideration:The proposed increase is intended to build equipment replacement reserves today, reducing current and future borrowing needs, manage long-term debt levy pressure, and maintain reliable Village services.Marathon City's current mill rate is near the middle of this comparison group; implementation of either funding option would move the Village up one position based on current rates. Future levy decisions by neighboring municipalities may affect these rankings over time. vs Option Comparison & Long-Term ResultsKey TakeawayThe goal of both options is to create a sustainable equipment replacement program that reduces future borrowing and supports reliable Village services.Both options ultimately reach the same long-term funding goal. The primary difference is timing: Option A Builds reserve and reduces borrowing sooner, while Option B phases in the transition over an additional year and relies more heavily on borrowing in the interim. Future Annual Contribution Allocation once funding Goal ReachedUsing the long-term funding goal of approximately $119,600 annually:Option BOption A Current ApproachMeasure20292028Not AchievedEquipment Funding Goal Reached$119,600$119,600$7,000Annual Equipment Funding~$98,814~$116,133$0Lowest Fund Balance~$134,513~$152,631$0Ending Fund Balance (2047)Higher ~$905,040~$818,204Highest~$3,556,235Estimated BorrowingLow overall but slightly higherLowHighestFuture Debt Levy PressurePrimarily Reserve FundedPrimarily Reserve FundedBudget/Borrowing DependentSmall Equipment ReplacementsHybrid Reserve + Debt FundingHybrid Reserve + Debt FundingPrimarily Debt FundedLarge Equipment Replacements60% Reserve / 40% Debt75% Reserve / 25% DebtFuture Debt LikelyStreet Sweeper Funding (2040)100% Reserve Funded100% Reserve FundedFuture Debt LikelySingle Axle Plow Truck Funding (2036 & 2047)Annual AmountFund Allocation~$102,700Streets / Public Works Equipment~$16,900Police Vehicle Replacement$119,600Total Annual Contribution Goal Year Equipment Replaced/ Deposits Contribution Interest Earned Est Sale Proceeds Est Reserve Participation Estimated Debt Fund Balance 2027General Fund Yearly Transfer $57,000.00 $1,425.00 $0.00 $0.00 $0.00 $58,425.00 20271996 Internationl Plow Truck $8,390.28 $279,676.00 $66,815.28 2027Police Vehicle (2019) $11,250.00 $75,000.00 $78,065.28 2028General Fund Yearly Transfer $119,600.00 $197,665.28 20282019 Cub Cadet $1,967.00 $19,670.00 $179,962.28 20282014 Ventrac $9,854.00 $49,274.00 $140,542.28 2028*EST Interest Deposit $3,513.56 $144,055.84 2029General Fund Transfer $119,600.00 $263,655.84 2029*EST Interest Deposit $6,591.40 $270,247.23 2030General Fund Transfer $119,600.00 $389,847.23 20302020 1-Ton Dump/Plow Pickup $10,954.00 $73,029.00 $327,772.23 2030*EST Interest Deposit $8,194.31 $335,966.54 2031General Fund Transfer $119,600.00 $455,566.54 20312021 1-Ton Dump/Plow Pickup $11,283.00 $75,220.00 $391,629.54 20312023 Police Vehicle $12,662.10 $84,414.00 $319,877.64 2031*EST Interest Deposit $7,996.94 $327,874.58 2032General Fund Transfer $119,600.00 $447,474.58 20321990 Loader-Mounted Snowblower $10,143.00 $101,436.50 $101,436.50 $356,181.08 20322002 Loader with Snowblower Hydraulics Package $43,472.00 $217,364.00 $217,364.00 $182,289.08 2032*EST Interest Deposit $4,557.23 $186,846.31 2033General Fund Transfer $119,600.00 $306,446.31 2033*EST Interest Deposit $7,661.16 $314,107.46 2034General Fund Transfer $119,600.00 $433,707.46 2034*EST Interest Deposit $10,842.69 $444,550.15 2035General Fund Transfer $119,600.00 $564,150.15 20352027 Police Vehicle $14,251.20 $95,008.00 $483,393.35 20351990 Chipper - Brush and branch $1,266.00 $25,336.00 $459,323.35 2035*EST Interest Deposit $11,483.08 $470,806.43 2036General Fund Transfer $119,600.00 $590,406.43 2036Trailer $103.00 $2,063.00 $588,446.43 20362028 Cub Cadet / Zero Turn Lawn Mower $2,491.00 $24,918.00 $566,019.43 20362026 Ventrac $12,483.00 $62,419.00 $516,083.43 20362016 Freightliner Plow Truck $29,193.12 $364,914.00 $180,362.55 2036*EST Interest Deposit $4,509.06 $184,871.62 2037General Fund Transfer $119,600.00 $304,471.62 2037*EST Interest Deposit $7,611.79 $312,083.41 2038General Fund Transfer $119,600.00 $431,683.41 20382028 Ventrac Replacement $13,244.00 $66,221.00 $378,706.41 2038*EST Interest Deposit $9,467.66 $388,174.07 2039General Fund Transfer $119,600.00 $507,774.07 Option A - Fund Balance by Year and Equiptment Replaced 20392031 Police Vehicle $16,040.10 $106,934.00 $416,880.17 2039*EST Interest Deposit $10,422.00 $427,302.17 2040General Fund Transfer $119,600.00 $546,902.17 20402030 1-Ton Dump/Plow Pickup $14,721.00 $98,145.00 $463,478.17 20402025 Street Sweeper $86,836.50 $434,182.50 $144,727.50 $116,132.17 2040*EST Interest Deposit $2,903.30 $119,035.48 2041General Fund Transfer $119,600.00 $238,635.48 20412031 1-Ton Dump/Plow Pickup $15,163.00 $101,090.00 $152,708.48 2041*EST Interest Deposit $3,817.71 $156,526.19 2042General Fund Transfer $119,600.00 $276,126.19 2042*EST Interest Deposit $6,903.15 $283,029.34 2043General Fund Transfer $119,600.00 $402,629.34 20432035 Police Vehicle $18,053.10 $120,354.00 $300,328.44 2043*EST Interest Deposit $7,508.21 $307,836.66 2044General Fund Transfer $119,600.00 $427,436.66 20442036 Cub Cadet / Zero Turn Lawn Mower $3,156.00 $31,566.00 $399,026.66 2044*EST Interest Deposit $9,975.67 $409,002.32 2045General Fund Transfer $119,600.00 $528,602.32 2045*EST Interest Deposit $13,215.06 $541,817.38 2046General Fund Transfer $119,600.00 $661,417.38 20462036 Ventrac Replacement $16,777.00 $83,886.00 $594,308.38 2046*EST Interest Deposit $14,857.71 $609,166.09 2047General Fund Transfer $119,600.00 $728,766.09 20472039 Police Vehicle $20,319.15 $135,461.00 $613,624.24 20472027 Plow Truck Replacement $40,410.08 $505,126.00 $148,908.32 2047*EST Interest Deposit $3,722.71 $152,631.03 Estimated Totals after 20 Years $2,449,000.00 $157,179.40 $424,482.63 $2,878,031.00 $818,204.00 Year Equipment Replaced/ Deposits Contribution Interest Earned Est Sale Proceeds Est Reserve Participation Estimated Debt Fund Balance 2027 General Fund Yearly Transfer $32,000.00 $800.00 $0.00 $0.00 $0.00 $32,800.00 2027 1996 Internationl Plow Truck $8,390.28 $279,676.00 $41,190.28 2027 Police Vehicle (2019) $11,250.00 $75,000.00 $52,440.28 2028 General Fund Yearly Transfer $69,600.00 $122,040.28 2028 2019 Cub Cadet $1,967.00 $19,670.00 $104,337.28 2028 2014 Ventrac $9,854.00 $49,274.00 $64,917.28 2028*EST Interest Deposit $1,622.93 $66,540.21 2029 General Fund Transfer $119,600.00 $186,140.21 2029*EST Interest Deposit $4,653.51 $190,793.72 2030 General Fund Transfer $119,600.00 $310,393.72 2030 2020 1-Ton Dump/Plow Pickup $10,954.00 $73,029.00 $248,318.72 2030*EST Interest Deposit $6,207.97 $254,526.69 2031 General Fund Transfer $119,600.00 $374,126.69 2031 2021 1-Ton Dump/Plow Pickup $11,283.00 $75,220.00 $310,189.69 2031 2023 Police Vehicle $12,662.10 $84,414.00 $238,437.79 2031*EST Interest Deposit $5,960.94 $244,398.73 2032 General Fund Transfer $119,600.00 $363,998.73 2032 1990 Loader-Mounted Snowblower $10,143.00 $101,436.50 $101,436.50 $272,705.23 2032 2002 Loader with Snowblower Hydraulics Package $43,472.00 $217,364.00 $217,364.00 $98,813.23 2032*EST Interest Deposit $2,470.33 $101,283.56 2033 General Fund Transfer $119,600.00 $220,883.56 2033*EST Interest Deposit $5,522.09 $226,405.65 2034 General Fund Transfer $119,600.00 $346,005.65 2034*EST Interest Deposit $8,650.14 $354,655.79 2035 General Fund Transfer $119,600.00 $474,255.79 2035 2027 Police Vehicle $14,251.20 $95,008.00 $393,498.99 2035 1990 Chipper - Brush and branch $1,266.00 $25,336.00 $369,428.99 2035*EST Interest Deposit $9,235.72 $378,664.72 2036 General Fund Transfer $119,600.00 $498,264.72 2036 Trailer $103.00 $2,063.00 $496,304.72 2036 2028 Cub Cadet / Zero Turn Lawn Mower $2,491.00 $24,918.00 $473,877.72 2036 2026 Ventrac $12,483.00 $62,419.00 $423,941.72 2036 2016 Freightliner Plow Truck $29,193.12 $364,914.00 $0.00 $88,220.84 2036*EST Interest Deposit $2,205.52 $90,426.36 2037 General Fund Transfer $119,600.00 $210,026.36 2037*EST Interest Deposit $5,250.66 $215,277.02 2038 General Fund Transfer $119,600.00 $334,877.02 2038 2028 Ventrac Replacement $13,244.00 $66,221.00 $281,900.02 2038*EST Interest Deposit $7,047.50 $288,947.52 Option B - Fund Balance by Equipment Replaced by year 2039 General Fund Transfer $119,600.00 $408,547.52 2039 2031 Police Vehicle $16,040.10 $106,934.00 $317,653.62 2039*EST Interest Deposit $7,941.34 $325,594.96 2040 General Fund Transfer $119,600.00 $445,194.96 2040 2030 1-Ton Dump/Plow Pickup $14,721.00 $98,145.00 $361,770.96 2040 2025 Street Sweeper $86,836.50 $347,346.00 $231,564.00 $101,261.46 2040*EST Interest Deposit $2,531.54 $103,792.99 2041 General Fund Transfer $119,600.00 $223,392.99 2041 2031 1-Ton Dump/Plow Pickup $15,163.00 $101,090.00 $137,465.99 2041*EST Interest Deposit $3,436.65 $140,902.64 2042 General Fund Transfer $119,600.00 $260,502.64 2042*EST Interest Deposit $6,512.57 $267,015.21 2043 General Fund Transfer $119,600.00 $386,615.21 2043 2035 Police Vehicle $18,053.10 $120,354.00 $284,314.31 2043*EST Interest Deposit $7,107.86 $291,422.17 2044 General Fund Transfer $119,600.00 $411,022.17 2044 2036 Cub Cadet / Zero Turn Lawn Mower $3,156.00 $31,566.00 $382,612.17 2044*EST Interest Deposit $9,565.30 $392,177.47 2045 General Fund Transfer $119,600.00 $511,777.47 2045*EST Interest Deposit $12,794.44 $524,571.91 2046 General Fund Transfer $119,600.00 $644,171.91 2046 2036 Ventrac Replacement $16,777.00 $83,886.00 $577,062.91 2046*EST Interest Deposit $14,426.57 $591,489.48 2047 General Fund Transfer $119,600.00 $711,089.48 2047 2039 Police Vehicle $20,319.15 $135,461.00 $595,947.63 2047 2027 Plow Truck Replacement $40,410.08 $505,126.00 $0.00 $131,231.71 2047*EST Interest Deposit $3,280.79 $134,512.50 $2,374,000.00 $127,224.37 $424,482.63 $2,791,194.50 $905,040.50Totals Immediate Equipment Need and Debt reduction Equipment Replacements – within next CIP Funding funding cycle (2027-2030), Final approvals spring 2027Reality$354,676 (table to the Left) purchases will require borrowing regardless of the option selected because reserves do not currently exist. CostReplacement YearEquipment$279,67620271996 Single Axle Plow Truck$75,00020272019 Police Vehicle$354,676Total Debt Financed within next CIP Cycle2027 – 2030 Replacements that can avoid $232,663 additional debt financing for the next CIP Cycle if proposed annual funding is started in 2027 CostReplacement YearEquipment$49,27420282014 Ventrac Utility tractor$19,67020282019 Cub Cadet$73,02920302020 1-Ton Dump/Plow Pickup$232,663Total Cash Financed within next CIP Cycle 2027 – 2030 – CIP Debt Funding with and without Equipment Replacement FundWith Equipment Replacement Fund Without Replacement Fund2027 to 2030 CIP Proposed Funding - Under Option A or B$124,500.002027 Streets - (Market & 5th)$279,676.001996 International Plow Truck Replacement(2027/28)$75,000.002019 Police Vehicle (2027)$479,176.00Total 2027 GO Note2027 to 2030 CIP Proposed Funding - Using Current Approach$124,500.002027 Streets - (Market & 5th)$279,676.001996 International Plow Truck Replacement (2027/28)$75,000.002019 Police Vehicle (2027)$19,670.002019 Cub Cadet (2028)$49,274.002014 Ventrac (2028)$73,029.002020 1-Ton Dump/Plow Pickup$621,149.00Total Debt Financing Needed Conclusion & Board DirectionWhat Both Options Accomplish Establish an Equipment Replacement Fund Preserve the Street Project Replacement Fund Correct interest allocation practices Create a sustainable equipment replacement strategy Reduce future borrowing requirements Support reliable Village services Preserve financial flexibility for future Village BoardsLong-Term PerspectiveThis proposal is not intended to fund only the next equipment purchase. It is intended to establish a long-term funding strategy that allows the Village to replace equipment in a planned and predictable manner while reducing reliance on borrowing and preserving future debt capacity for major infrastructure and legacy projects.Board Policy QuestionWhich implementation strategy best balances current taxpayer impacts with the Village's long-term financial sustainability goals?Requested Board Direction1. Review the Equipment Replacement Fund proposal.2. Select Option A or Option B.3. Direct staff to incorporate the selected strategy into future budget planning.4. Consider adoption of the Equipment Replacement Fund Policy.Final ThoughtBoth options move the Village from a primarily debt-funded equipment replacement model toward a more sustainable reserve-funded strategy that supports reliable services and responsible long-term financial planning APPENDIX A – 2027 to 2047 EQUIPMENT REPLACEMENT PLAN Long-Term Replacement Schedule and Funding Assumptions Purpose This appendix documents the equipment replacement schedule, planning assumptions, and funding strategy used to establish the Equipment Replacement Fund. The schedule is intended for planning purposes and should be reviewed and updated periodically by the Village Board as equipment conditions, costs, and service needs change. Equipment Replacement Schedule Year Equipment Replaced 2027 1996 Internationl Plow Truck 2027 Police Vehicle (2019) 2028 2019 Cub Cadet 2028 2014 Ventrac 2030 2020 1-Ton Dump/Plow Pickup 2031 2021 1-Ton Dump/Plow Pickup 2031 2023 Police Vehicle 2032 1990 Loader-Mounted Snowblower 2032 2002 Loader with Snowblower Hydraulics Package 2035 2027 Police Vehicle 2035 1990 Chipper - Brush and branch 2036 2016 Freightliner Plow Truck 2036 Trailer 2036 2028 Cub Cadet / Zero Turn Lawn Mower 2036 2026 Ventrac 2038 2028 Ventrac 2039 2031 Police Vehicle 2040 2025 Street Sweeper 2040 2030 1-Ton Dump/Plow Pickup 2041 2031 1-Ton Dump/Plow Pickup 2043 2035 Police Vehicle 2044 2036 Cub Cadet / Zero Turn Lawn Mower 2046 2036 Ventrac 2047 2027 Plow Truck 2047 2039 Police Vehicle Equipment Replacement Cycle Equipment Years Police SUVs (2) 8 Cub Cadet / Zero Turn Lawn Mower (1) 8 1-Ton Dump/Plow Pickups (2) 10 Utility Tractors (2 Ventrac) 10 Street Sweeper (1) 15 Dump/Plow Trucks (2) 20 Loader-Mounted Snowblower (1) 20 Loader with Snowblower Hydraulics Package (1) 20 Chipper - Brush and branch chipping 20? Equipment Funding Strategy The Equipment Replacement Fund is intended to support a hybrid reserve and debt financing approach. Small Equipment The following assets are generally intended to be primarily reserve funded: • Police Vehicles (2) • Pickups – 1-ton Dump/Plow Pickup (2) • Utility Tractors (2 Ventrac) • Cub Cadet / Zero Turn Lawn Mower (1) • Chipper • Small Equipment (Ball Park attachments) Major Equipment Major equipment may utilize a combination of reserve funding and borrowing. Major Equipment Funding Assumptions Equipment Reserve Funding Borrowing Loader & Snowblower (2032) 50% 50% Street Sweeper (2040) 75% 25% Single Axle Plow Truck (2036 & 2047) 100% 0% Annual Equipment Replacement Funding Target Department Annual Planning Target Police Department ~$16,900 Public Works Department ~$102,700 Total Annual Funding Goal ~$119,600 Planning Horizon This replacement schedule represents a 20-Year+ Equipment Replacement Strategy extending through 2047. The Equipment Replacement Fund is intended to continue beyond the current planning period, allowing reserve balances to rebuild following major equipment purchases and providing funding capacity for future replacement cycles beginning around 2052 and beyond. VILLAGE OF MARATHON CITY EQUIPMENT REPLACEMENT FUND POLICY Adopted by Resolution No. 2026-10-07 B Effective Date: 10/07/2026 1. PURPOSE The purpose of the Equipment Replacement Fund is to establish a dedicated and sustainable funding source for the replacement of Village vehicles, equipment, and other approved capital assets necessary to provide reliable municipal services. The Equipment Replacement Fund is intended to: • Reduce future borrowing requirements. • Reduce long-term debt costs. • Stabilize future capital funding needs. • Support timely equipment replacement. • Maintain reliable Village services. • Improve long-term financial planning. • Preserve financial flexibility for future Village Boards. The objective of this policy is to reduce borrowing, not necessarily eliminate borrowing. 2. FUND ESTABLISHMENT The Village shall maintain an Equipment Replacement Fund and separate from the General Fund and separate from the Street Project Replacement Fund and Fire Department Replacement Fund. The Equipment Replacement Fund shall be used solely for approved equipment replacement and capital equipment purposes authorized by the Village Board. 3. FUNDING SOURCES The Equipment Replacement Fund may receive revenues from: Annual Contributions • General Fund contributions approved through the annual budget process. Additional Revenues • Interest earnings. • Equipment sale proceeds. • Trade-in values. • Insurance settlements related to equipment losses. • Grants or other revenues designated by the Village Board. All revenues deposited into the Equipment Replacement Fund shall remain within the fund and be used for future equipment replacement purposes unless otherwise authorized by the Village Board 4. ELIGIBLE USES Equipment Replacement Fund resources may be used for: • Police vehicles. • Public Works vehicles. • Plow trucks. • Pickups. • Utility Tractors and Attachments. • Street sweepers. • Loader and Snowblower Attachments. • Snowblowers. • Chippers. • Trailers. • Other Village equipment approved by the Village Board. Routine maintenance, small repairs, fuel, operating supplies, and personnel expenses are not eligible expenditures. 5. EQUIPMENT FUNDING STRATEGY The Village shall utilize a hybrid financing strategy for major equipment replacements. The Equipment Replacement Fund is intended to reduce borrowing requirements while maintaining sufficient reserves to support future replacements. Major equipment purchases may utilize: • Equipment Replacement Fund reserves. • Debt financing. • Grants and other funding sources. The percentage of reserve participation should be determined based on: • Fund balance levels. • Equipment replacement needs. • Borrowing costs. • Overall Village financial conditions. • Future capital obligations. 6. EQUIPMENT FUND RESERVE PARTICIPATION GUIDELINES The following guidelines are intended to assist future Boards when considering equipment fund reserve participation in major equipment purchases: Fund Balance Suggested Reserve Participation Less than $100,000 0%-25% $100,000-$200,000 25%-50% $200,000-$400,000 50%-75% Greater than $400,000 75%-100% These guidelines are advisory and may be modified by the Village Board based upon individual circumstances. 7. EQUIPMENT SALE PROCEEDS Proceeds received from the sale, trade-in, or disposal of Village equipment shall be deposited into the Equipment Replacement Fund. The Village Board recognizes that reinvesting sale proceeds helps reduce future borrowing requirements and supports long-term replacement funding 8. LONG-TERM PLANNING The Equipment Replacement Fund shall be managed using a long-term capital planning approach. The Village shall maintain and periodically update an equipment replacement schedule identifying: • Equipment age. • Replacement cost estimates. • Replacement cycles. • Expected replacement years. • Funding needs. The Village recognizes that equipment replacement planning is a continuous process that extends beyond any single planning horizon. 9. FUTURE BORROWING CAPACITY One objective of this policy is to preserve future borrowing capacity for major infrastructure, utility, economic development, and legacy projects. By funding a portion of equipment replacements through reserves, the Village can reduce future debt obligations and maintain flexibility to address future community needs. 10. ANNUAL REVIEW The Village Board shall review the Equipment Replacement Fund annually as part of the budget process. The review should consider: • Fund balance levels. • Replacement schedules. • Inflation assumptions. • Borrowing assumptions. • Equipment condition. • Future capital needs. Adjustments may be made to funding levels, replacement schedules, or reserve participation strategies as determined appropriate by the Village Board. 11. POLICY OBJECTIVE The Village of Marathon City recognizes that responsible equipment replacement planning is essential to maintaining reliable municipal services and long-term financial sustainability. This policy is intended to create a permanent Equipment Replacement Fund that provides future Village Boards with a predictable and sustainable strategy for replacing critical equipment while reducing borrowing requirements, managing debt levy pressures, and preserving financial flexibility for future generations of Village residents 12. POLICY ADOPTION AND AMENDMENT This Equipment Replacement Fund Policy shall become effective upon adoption by the Village Board of the Village of Marathon City. The Village Board reserves the right to amend, modify, suspend, or repeal this policy by resolution as financial conditions, equipment needs, capital improvement priorities, or other Village objectives change over time. The Village Board further recognizes that this policy is intended to serve as a long-term planning framework and that future Boards retain the authority to adjust funding levels, reserve participation strategies, replacement schedules, and other policy provisions as deemed necessary and appropriate. ADOPTION Adopted by the Village Board by Resolution 2026-10-07B of the Village of Marathon City, Wisconsin, on the 7 day of October, 2026. CERTIFICATION I, Cassie Lang, Clerk of the Village of Marathon City, Wisconsin, hereby certify that the foregoing Equipment Replacement Fund Policy was duly adopted by the Village Board on the date indicated above. ____________________________ Cassie Lang Village Clerk Date: _____________________ September 18, 2026 Steve Cherek Village Administrator Village of Marathon City 311 Walnut Street Marathon City, WI 54448 We are pleased to confirm our understanding of the services we are to provide Village of Marathon City (the “Village”) for the years ended December 31, 2026. Audit Scope and Objectives We will audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, which collectively comprise the basic financial statements of Village of Marathon City as of and for the years ended December 31, 2026. Accounting standards generally accepted in the United States of America (GAAP) provide for certain required supplementary (RSI), such as management’s discussion and analysis (MD&A), to supplement Village of Marathon City’s basic financial statements. Such 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 operation, economical, or historical context. As part of our engagement, we will apply certain limited procedures to the Village’s RSI in accordance with auditing standards generally accepted in the United States of America (GAAS). These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will 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. The following RSI is required by GAAP and will be subjected to certain limited procedures, but will not be audited: 1. Schedule of Employer's Proportionate Share of the Net Pension Liability (Asset) and Employer Contributions - Wisconsin Retirement System 2. Schedules of Employer's Proportionate Share of the Net OPEB Liability and Employer Contributions - Other Post-Employment Benefits Other Than Pensions - Cost-Sharing Plan 3. Schedule of Budgetary Comparison – General Fund 4. Notes to Required Supplementary Information We have also been engaged to report on supplementary information other than RSI that accompanies the Village’s financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with GAAS, and we will provide an opinion on it in relation to the financial statements as a whole in a report combined with our auditors’ report on the financial statements: 1. Schedule of Water and Sewer Utility Operating Revenues and Expenses In connection with our audit of the basic financial statements, we will read the following other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 1. Schedule of Detailed Budgetary Comparison – General Fund Village of Marathon City September 18, 2026 Page 2 The objectives of our audit are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error; issue an auditors’ report that includes our opinion about whether your financial statements are fairly presented, in all material respects, in conformity with GAAP; and report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment of a reasonable user made based on the financial statements. Auditors’ Responsibilities for the Audit of the Financial Statements We will conduct our audit in accordance with GAAS and will include tests of your accounting records and other procedures we consider necessary to enable us to express such opinions. As part of an audit in accordance with GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. We will also evaluate the overall presentation of the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is an unavoidable risk that some material misstatements may not be detected by us, even though the audit is properly planned and performed in accordance with GAAS. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management of any material errors, fraudulent financial reporting, or misappropriation of assets that comes to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the government’s ability to continue as a going concern for a reasonable period of time. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and certain assets and liabilities by correspondence with selected customers, creditors, and financial institutions. We may also request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. We may from time to time, depending on the circumstances, use third-party service providers in serving your account, some of whom may be cloud-based. We may share confidential information about you with these service providers, but remain committed to maintaining the confidentiality and security of your information. Accordingly, we maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, we will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be asked to provide your consent prior to sharing of your confidential information with the third-party service provider. Furthermore, we will remain responsible for the work provided by any such third-party service providers. Village of Marathon City September 18, 2026 Page 3 Although we will use our best efforts to make the sharing of your information with such third parties secure from unauthorized access, no completely secure system for electronic data transfer exists. As such, by your signature below, you understand that the firm makes no warranty, expressed or implied, on the security of electronic data transfers. Our audit of the financial statements does not relieve you of your responsibilities. Audit Procedures - Internal Control We will obtain an understanding of the government and its environment, including the system of internal control, sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinions. 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, misrepresentation, or the override of internal control. An audit is not designed to provide assurance on internal control or to identify deficiencies in internal control. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards. Audit Procedures - Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of Village of Marathon City’s compliance with the provisions of applicable laws, regulations, contracts, and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Responsibilities of Management for the Financial Statements Our audit will be conducted on the basis that you acknowledge and understand your responsibility for designing, implementing, and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, including monitoring ongoing activities; for the selection and application of accounting principles; and for the preparation and fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America with the oversight of those charged with governance. Management is responsible for making drafts of financial statements, all financial records, and related information available to us and for the accuracy and completeness of that information (including information from outside of the general and subsidiary ledgers); and for the evaluation of whether there are any conditions or events, considered in the aggregate, that raise substantial doubt about the government’s ability to continue as a going concern for the 12 months after the financial statements date or shortly thereafter (for example, within an additional three months if currently known). You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, identification of all related parties and all related-party relationships and transactions, and other matters; (2) additional information that we may request for the purpose of the audit; and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. At the conclusion of our audit, we will require certain written representations from you about the financial statements and related matters. Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements of each opinion unit taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, Village of Marathon City September 18, 2026 Page 4 grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws and regulations. You are responsible for the preparation of the supplementary information in conformity with accounting principles generally accepted in the United States of America. You agree to include our report on the supplementary information in any document that contains, and indicates that we have reported on, the supplementary information. You also agree to make the audited financial statements readily available to users of the supplementary information no later than the date the supplementary information is issued with our report thereon. Your responsibilities include acknowledging to us in the representation letter that (1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. Other Services We will also prepare the PSC report, Department of Revenue Municipal Report Form C, depreciation schedules, assist with implementation of GASB standards as well as the annual financial report of the Village of Marathon City in conformity with accounting principles generally accepted in the United States of America based on information provided by you. We will perform the services in accordance with applicable professional standards. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. You agree to assume all management responsibilities for the PSC report, Department of Revenue Municipal Report Form C, depreciation schedules, assist with implementation of GASB standards as well as the annual financial report and any other non-attest services we provide; oversee the services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of the services; and accept responsibility for them. Engagement Administration, Fees, and Other We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any documents selected by us for testing. The audit documentation for this engagement is the property of KerberRose SC and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to any regulatory body or its designee. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of KerberRose SC personnel. Furthermore, upon request, we may provide copies of selected audit documentation to any regulatory body or its designee. The regulatory body or its designee may intend or decide to distribute the copies or information contained therein to others, including other governmental agencies. Greg Pitel, CPA is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. Our fee for services will be at our standard hourly rates plus out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including expenses, will not exceed $27,250. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes 90 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. Village of Marathon City September 18, 2026 Page 5 The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Reporting We will issue a written report upon completion of our audit of Village of Marathon City’s financial statements. Our report will be addressed to management and those charged with governance of the Village of Marathon City. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions or add an emphasis-of-matter or other-matter paragraph to our auditors’ report, or if necessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or withdraw from this engagement. We appreciate the opportunity to be of service to Village of Marathon City and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the attached copy and return it to us. Very truly yours, KerberRose SC KerberRose SC Certified Public Accountants Green Bay, Wisconsin RESPONSE: This letter correctly sets forth the understanding of the Village of Marathon City. By: _________________________________________________________ Title: _________________________________________________________ Date: _________________________________________________________ VILLAGE OF MARATHON CITY, MARATHON COUNTY, WISCONSIN RESOLUTION NO. 2026-10-07 A A RESOLUTION REGARDING COMPENSATION OF VILLAGE TRUSTEES WHEREAS, Wisconsin Stat. §§ 61.32 and 66.0505 require that the compensation of elected Village officials be established prior to the commencement of the term for which the compensation is to be paid; and WHEREAS, the Village Board has reviewed the compensation paid to elected officials and finds it appropriate to adjust the compensation paid to Village Trustees in recognition of the time and responsibilities associated with service on the Village Board; and WHEREAS, the Village Board desires to maintain the established compensation structure for the Village President consisting of an annual salary and a meeting stipend for meetings attended in excess of one meeting per calendar month. NOW, THEREFORE, BE IT RESOLVED by the Village Board of the Village of Marathon City, Marathon County Wisconsin, as follows: Section 1. Village Trustee Compensation: Effective for all terms of office commencing in the Spring of 2027 and thereafter and in accordance with Wis. Stat. §61.32, Village Trustee’s shall receive a meeting stipend of One Hundred and No/100 Dollars ($100.00) for each Village Board m eeting, committee meeting, special meeting, or other authorized municipal meeting attended by said Trustee in their official duties as a Village Trustee. Section 2. Village President Compensation: Effective for all terms of office commencing after the current term of office and in accordance with Wis. Stat. §61.32, the Village President shall receive an annual salary of Two Thousand Five Hundred and No/100 Dollars ($2,500.00). In addition to the annual salary, excluding the first meeting attended during a calendar month, the Village President shall receive a meeting stipend of One Hundred and No/100 Dollars ($100.00) for each Village Board meeting, committee meeting, special meeting, or other authorized municipal meeting attended by the Village President in his/her official duties as Village President. The foregoing Resolution was duly adopted by the Village Board of the Village of Marathon City by a vote of ____ in favor and ____ against, on this ___ day of October, 2026. VILLAGE OF MARATHON CITY _____________________________ Kurt Handrick Jr. Village President ATTEST: ____________________________ Cassandra Lang Village Clerk VILLAGE OF MARATHON CITY, MARATHON COUNTY, WISCONSIN RESOLUTION NO. 2026-10-07B A RESOLUTION ESTABLISHING THE VILLAGE EQUIPMENT REPLACEMENT FUND AND ADOPTING THE EQUIPMENT REPLACEMENT FUND P OLICY WHEREAS, the Village Board of the Village of Marathon City recognizes the importance of planning for the replacement of Village vehicles and equipment in a financially responsible manner; and WHEREAS, the Village Board recognizes that these assets require regular replacement to maintain reliable service levels and operational efficiency; and WHEREAS, the Village's Capital Improvement Planning process has identified an annual equipment replacement funding need of approximately $119,866; and WHEREAS, the Village currently provides approximately $7,000 annually toward equipment replacement, resulting in continued reliance on borrowing for many equipment purchases; and WHEREAS, the Village Board has reviewed the proposed Equipment Replacement Fund Policy and finds that the policy promotes long-term financial planning, reduces future borrowing requirements, and supports the continued delivery of reliable Village services. NOW, THEREFORE, BE IT RESOLVED by the Village Board of the Village of Marathon City, Marathon County Wisconsin, as follows: Section 1. Policy Adoption: The Village Board hereby adopts the Village of Marathon City Equipment Replacement Fund Policy attached hereto and incorporated by reference into this Resolution. Section 2. Fund Administration: Village staff is authorized and directed to administer the Equipment Replacement Fund in accordance with the adopted policy and future budget actions approved by the Village Board. Section 3. Future Amendments: The Village Board reserves the authority to amend, modify, or repeal the Equipment Replacement Fund Policy as future conditions and priorities warrant. Section 3. Effective Date: This Resolution shall take effect immediately upon adoption. The foregoing Resolution was duly adopted by the Village Board of the Village of Marathon City, on this ___ day of October, 2026. VILLAGE OF MARATHON CITY _____________________________ Kurt Handrick Jr. Village President ATTEST: ____________________________ Cassandra Lang Village Clerk