Joint Village-Utility Packet 07.20.2026

Kurt Handrick, Jr. Village President Andrew Berens. Utility Commission Chair Cassie Lang Village Clerk / Deputy Treasurer 311 Walnut Street P .O. Box 487 Marathon City, WI 54448 Tel: 715-443-2221 www.marathoncitywi.gov JOINT VILLAGE BOARD/UTILITY COMMISSION OFFICIAL NOTICE & AGENDA Monday, July 20, 2026 - 4:00 pm Marathon Municipal Center PUBLIC VIRTUAL ACCESS Join Teams Meeting: https://www.microsoft.com/en-us/microsoft-teams/join-a-meeting Meeting ID: 228 799 277 309 664 Passcode: ic7sA6FH 1. CALL TO ORDER VILLAGE ROLL CALL: K. HANDRICK JR., M. AHRENS, J. LAWRENCE, K. PAUL, B. PARLIER, A. CABRERA, K. SORENSON UTILITY ROLL CALL: A. BERENS, B. BOHR, M. TELFORD, D. SEILER 2. PLEDGE OF ALLEGIANCE 3. RECOGNITION OF VISITORS a. Virtual Meeting Guidelines i. This meeting will be recorded and available upon request b. Public Participation at Government Meetings 4. PSC WATER RATE STUDY PRESENTATION WITH EHLERS FINANCIAL 5. SCHEDULED MEETINGS a. Regular Utility Commission Meeting: Wednesday, July 29, 2026 – 4:00 pm b. Regular Village Board Meeting: Wednesday, August 5, 2026 – 6:00 pm c. Special Meetings as Needed 6. ADJOURNMENT Village of Marathon City, WI 2026 Water Rate Study Phase 2: PSC CRC Application & Updated LRCFA July 20th, 2026 Joint Utility and Village Board Meeting 2 Why are we here? Phase 1 presented May 27th, 2026: Conventional Rate Case necessary to address catch-up increase prior to additional Well related project costs being taken into consideration. Proceeding with a rate case now with ease the burden on residents as it will allow for more incremental increases. May 27th, 2026: Phase 2 was approved and since then Ehlers completed PSC CRC Application with assistance from Village staff. Original increase estimated at 38.02%. Tonight: Ehlers to present initial results of application and seek consensus to file application as presented, or with any discussed changes. 3 Water Rate Application Initial Results • Current Benchmark ROR is 6.4% • Final projected rate increase is 27.34% 4 Water LRCFA w/ PSC Application 5 Water Impact on Avg. Res. Bill 6 • Sorted by 12 kgal consumption column • PFP not included Water Rate Comparison – By County 7 • Chart on the right shows all completed rate cases in the state between 12/1/25 and 3/1/26 • Ehlers is planning to file a total of 20 rate cases by July 31 • Last Village CRC was 27% Are other Utilities doing this? 8 Rate Structure Changes: Public Fire Protection • CRC allows for tariff changes, and one common change is converting PFP from levy charge to water bill • Currently charge is a municipal charge of 73,230 and a direct charge of approximately 73,230 (collect more revenue due to rate assessment change) • Due to levy limits GF Expenditures > GF Revenues  There is a solution to reduce GF Expenditures  By moving the remainder of PFP to water bill it eliminates GF expenditure line item and free up about 73k to GF budget  Must change as a part of or within five years of a Conventional Rate Case • During the CRC process the PSC will conduct a Cost-of-Service Study which will divide the overall increase into the different revenue categories • The Public Fire Protection Fee will likely be increased during the COS Study and may increase by as much, more or less than the anticipated overall increase. • Do have option to change charge methodology  Currently charge based on assessment  Could change to meter size or other 9 PFP cost (146,460) could increase during a CRC Equivalent Meter EM 339 89.4% Equivalent Service ES 16 4.2% Square Footage of Improvemen SQ 3 0.8% Alternate Method (unique) ALT 4 1.1% Valuation PV 16 4.2% Uknown UNK 1 0.3% Count by Direct Charge (in whole or in part) Type 10* 5/8” or ¾” meter using 12,000 gallons/quarter PFP Conversion Impact to Sample RES Water Bills (Assessment) • PFP Notice only shows water bill change and not total cost of water change • Assumes PFP conversion to direct charge assessment method. • 5/8” or ¾” meter PSC assumes 12,000 Gallons/quarter as average residential usage. • ^Levy PFP based on PFP Mill Rate applied to approx. $275,000 Residential Property 11 Final PFP Conversion Estimated Impact • For residential customers the difference between what they were paying ($97.99+$118.72 = $216.71) and what their future estimate is ($138.21), is a $78.50 annual savings based on current values. • Subject to changes for PFP costs reviewed during CRC 12* 5/8” or ¾” meter using 12,000 gallons/quarter PFP Impact to Sample Resident Water Bills • PFP Notice only shows water bill change and not total cost of water change • Assumes PFP conversion to direct charge assessment method. • 5/8” or ¾” meter PSC assumes 12,000 Gallons/quarter as average residential usage. • ^Levy PFP based on PFP Mill Rate applied to approx. $275,000 Residential Property 13 Other Considerations (Monthly Billing) • The CRC process is an opportunity to make other changes. One change discussed is a change from a quarterly to monthly billing frequency  Con: Increase to administrative burden  Pro: Easier for residents to budget • File CRC Application for Test Year 2026 • PSC CRC Rate Proceedings Estimated Timeline from Application Filing  Audit: 2-3 months  Public Hearing: 4-5 months  Implementation: 6 months  Subject to PSC timing • Customer Communication  Best practice to notify customers of requested rate increase at time of filing PSC application (only statutory requirement is once public hearing is scheduled)  Upon PSC’s acceptance of application, Ehlers will send suggested language 14 Recommendations TONIGHT’s ACTION: Approval to file PSC CRC application. 15 Questions? 16 Important Disclosures Ehlers is the joint marketing name of the following affiliated businesses (collectively, the “Affiliates”): Ehlers & Associates, Inc. (“EA”), a municipal advisor registered with the Municipal Securities Rulemaking Board (“MSRB”) and the Securities and Exchange Commission (“SEC”); Ehlers Investment Partners, LLC (“EIP”), an SEC registered investment adviser; and Bond Trust Services Corporation (“BTS”), a holder of a limited banking charter issued by the State of Minnesota. Where an activity requires registration as a municipal advisor pursuant to Section 15B of the Exchange Act of 1934 (Financial Management Planning and Debt Issuance & Management), such activity is or will be performed by EA; where an activity requires registration as an investment adviser pursuant to the Investment Advisers Act of 1940 (Investments and Treasury Management), such activity is or will be performed by EIP; and where an activity requires licensing as a bank pursuant to applicable state law (paying agent services shown under Debt Issuance & Management), such activity is or will be performed by BTS. Activities not requiring registration may be performed by any Affiliate. This communication does not constitute an offer or solicitation for the purchase or sale of any investment (including without limitation, any municipal financial product, municipal security, or other security) or agreement with respect to any investment strategy or program. This communication is offered without charge to clients, friends, and prospective clients of the Affiliates as a source of general information about the services Ehlers provides. This communication is neither advice nor a recommendation by any Affiliate to any person with respect to any municipal financial product, municipal security, or other security, as such terms are defined pursuant to Section 15B of the Exchange Act of 1934 and rules of the MSRB. This communication does not constitute investment advice by any Affiliate that purports to meet the objectives or needs of any person pursuant to the Investment Advisers Act of 1940 or applicable state law.