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City of Lino Lakes <br />Water Fund Budget to Actual (Unaudited) <br />For the Quarter Ended September 30, 2025 <br />Prior Year <br />Budget Actuals Prior Year Variance - <br />Annual Thru Thru Thru Favorable <br />Budget 09/30/2025 09/30/2025 09/30/2024 (Unfavorable) <br />Revenues <br />Water Hook Up Charge 41,250$ 30,938$ 25,760$ 23,750$ 2,010$ <br />Water Meter Sales 85,000 63,750 67,113 62,607 4,506 <br />Irrigation Controller Sales 5,000 3,750 1,620 2,880 (1,260) <br />Interest On Investments 60,000 45,000 110,307 111,348 (1,041) <br />Change in FV of Investments - - 126,189 146,892 (20,703) (A) <br />Miscellaneous Revenue 1,800 1,350 6,025 6,404 (379) <br />Flat Water Charge 768,700 576,525 578,004 446,070 131,934 (B) <br />Water Sales 1,538,774 1,154,081 1,066,767 811,304 255,463 (C) <br />Penalty 40,000 30,000 17,838 34,325 (16,487) <br /> Total Revenues 2,540,524 1,905,393 1,999,623 1,645,580 354,043 <br />Expenditures <br />Personal Services 439,852 329,889 284,172 278,357 (5,815) <br />Supplies 438,000 328,500 252,253 278,722 26,469 (D) <br />Services & Charges 549,285 411,964 401,865 223,807 (178,058) (E) <br />Contractual Services 12,995 9,746 19,675 17,159 (2,516) <br />Capital Outlay 741,000 555,750 35,495 64,742 29,247 (F) <br />Debt Service & Interest Expense - - 368,147 - (368,147) (G) <br />Transfers Out 888,700 666,525 - - - (H) <br /> Total Expenditures 3,069,832 2,302,374 1,361,607 862,787 (498,820) <br />Revenues Over <br />(Under) Expenditures (529,308)$ (396,981)$ 638,016$ 782,793$ (144,777)$ <br />Item Explanation of items with variance greater than $20,000 <br />(A)Interest rates and unrealized gains are favorable and surpassing budget expectations, but are slightly behind Q3 2024. <br />(B)Increase in water rates combined with an increase in accounts. The Flat Water Charge increased from $20/Quarter/REU to <br />$25/Quarter/REU in 2025 due to financing the Water Treatment Plant. In addition, there are 97 more water accounts <br />at the end of Q3 2025, compared to Q3 2024. <br />(C)Approximately 21% increase in water consumption through Q3 2025 vs 2024, with the remaing revenue increase due to the <br />increased number of billed accounts, and rate increase. <br />(D)Supplies variance to Q1 2024 is due to $40,000 less in Water Meters purchased in 2025, timing differences in purchases. <br />Water meter inventory is purchased on a periodic basis to anticipate new connections and replacement needs, <br />supply chain/availability issues have persisted in recent years. <br />(E)Approximately $100K in 2025 expenses for well and pump rehabs, and watermain repairs, no similar activity through Q2 2024. <br />(F)Two Vehicles purchased in 2024, whereas only one vehicle purchase made through Q3 2025. <br />(G)2025 Budget anticipated Water Treatment Plant debt service occurring in Fund 406, but will actually occur in Water Fund. <br />(H)2025 Budget anticipated Transfer-Out for debt service to Fund 406, however, no transfer out will occur due to servicing the WTP <br />Debt within Water Fund. <br />Page 322 of 406