MARSHALL — Members of the Marshall Municipal Utilities Commission approved a 2025 budget for the utility this week.

While the budget didn’t include changes in water and electric rates, there were some adjustments to items like the fees charged for use of MMU equipment.

MMU Finance Manager Kevin Lee said the proposed 2025 operating budget was “relatively straightforward for both electric and water.”

Proposed budget documents for 2025 included an electric department operating budget with about $38.44 million in total revenue, and total operating expenses of about $38.3 million. The electric department’s 2025 capital improvement budget included about $5.99 million in capital expenses. Capital expenses included items like electric transmission, streetlights, transformers and equipment.

The proposed 2025 operating budget for MMU’s water department included about $7.4 million in total revenue, and total operating expenses of about $6.3 million. The water department’s 2025 capital improvement budget included about $3.57 million in capital expenses. Capital expenses included items at the water treatment facility, as well as equipment, meter and technology costs.

Across all departments, 65% of MMU’s 2025 operating expenses would go toward purchased power and water, and transmission, budget documents said.

The capital budgets for the MMU electric and water departments outlined projects planned in the coming year. In the electric department, MMU is looking at construction of a generator plant to replace the utility’s current turbine generator, which is 55 years old.

The projected total cost of the plant is about $18 million, and the plant is scheduled to be completed by December 2026. Some of the other electric projects planned in 2025 included the replacement of a load management system that is over 30 years old, and replacement of underground lines and streetlights along part of College Drive when MnDOT reconstructs the street.

In the water department, replacement of infrastructure along College Drive was also planned in 2025 and 2026. According to budget documents, more than 6,400 feet of water main will need to be replaced through the College Drive project area. The MMU budget included about $2.75 million to replace water mains. Other capital projects included upgrades to computer systems and equipment at the water plant.

Some of the budget changes MMU staff went over included adjusted rates for labor fees and equipment rental fees, MMU staff said. Rental fees for the use of some equipment, including a dump truck, reel trailer or mower, were increased.