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Home My WebLink About2026 Mid-Year Action Plan Report 202 6 Mid -Year Update Action Plan Page 2 of 32 Contents Report Overview ................................................................................................................................................ 3 Action Plan Progress ......................................................................................................................................... 3 Action Plan Details ............................................................................................................................................ 4 Priority 1: Economic Resilience .............................................................................................................. 5 Goal 1.1: Economic Development Strategy ................................................................................ 5 Goal 1.2: Tourism Strategy ......................................................................................................... 6 Goal 1.3: Service & Asset Optimization ...................................................................................... 8 Priority 2: Housing Access ..................................................................................................................... 9 Goal 2.1: Owner-Occupied Housing ........................................................................................... 9 Goal 2.2: Vital Neighborhoods .................................................................................................. 10 Goal 2.3: Housing Stability Resources...................................................................................... 12 Goal 2.4: Service & Asset Optimization .................................................................................... 13 Priority 3: Inclusive Growth Management ............................................................................................. 14 Goal 3.1: Integrated Transportation .......................................................................................... 14 Goal 3.2: Integrated Land Use Planning ................................................................................... 15 Goal 3.3: Infill & Transit-Oriented Development ........................................................................ 16 Goal 3.4: Service Optimization ................................................................................................. 17 Priority 4: Responsible Environmental Stewardship ............................................................................. 19 Goal 4.1: Transportation Emissions Reduction ......................................................................... 19 Goal 4.2: Building Energy Efficiency ......................................................................................... 20 Goal 4.3: Natural Resource Stewardship .................................................................................. 21 Goal 4.4: Service & Asset Optimization .................................................................................... 22 Priority 5: Transformational Capital Projects ......................................................................................... 24 Goal 5.1: Project Delivery Excellence ....................................................................................... 24 Goal 5.2: Future Project Planning ............................................................................................. 30 Goal 5.3: Service Optimization ................................................................................................. 31 Page 3 of 32 Report Overview The City of Rochester's Action Plan, first implemented in 2021, serves as our roadmap for success. It outlines current initiatives that advance City Council's Strategic Priorities. The Strategic Priorities are listed alphabetically and do not indicate order of importance or priority. • Economic Resilience • Housing Access • Inclusive Growth Management • Responsible Environmental Stewardship • Transformational Capital Projects Benefits of the Action Plan include: • Shared Vision • Communication & Collaboration • Accountability & Transparency Action Plan Progress Work continues across every Strategic Priority, with implementation progressing on the majority of Action Plan initiatives. Most projects remain on schedule, while completed initiatives continue to grow throughout the year. A small number of initiatives are experiencing schedule impacts due to factors such as permitting timelines, external partner coordination, or funding considerations. These projects remain active, and mitigation strategies are underway where appropriate. Page 4 of 32 Action Plan Details The following sections provide a detailed overview of the City's Action Plan initiatives organized by Strategic Priority, Goal, and Tactic. Each Goal supports a Strategic Priority established by the City Council. Within each Goal, individual Tactics identify specific actions, projects, programs, or initiatives that advance the City's objectives. For each Tactic, the report includes: • Description – A summary of the initiative and its intended purpose. • Timeline – The anticipated start and end dates for the work. • Status – The current implementation status of the initiative: o Not Started o On Target o Off Target o Delayed o Complete • Update – A summary of recent accomplishments, progress, challenges, or next steps. The Action Plan is intended to be a living document. Timelines, tactics, and implementation approaches may evolve as projects advance, new opportunities emerge, and community needs change. Regular updates help ensure transparency, accountability, and alignment with City Council priorities. Page 5 of 32 Priority 1: Economic Resilience Rochester will foster a dynamic economy by supporting local businesses and attracting new investments while preserving our core economic base. Goal 1.1: Economic Development Strategy Rochester will develop a cohesive city economic development strategy and staffing model that complements key economic development partners. Tactic 1.1.a: Role & Staffing • Description: Clarify the City’s economic development role and explore staffing that supports the City’s role. Review how we can enhance collaboration with Rochester's existing economic development ecosystem, including Destination Medical Center, Rochester Area Economic Development Inc., Small Business Development Center, Collider, the emerging biolab, Mayo Clinic Accelerator, Discovery Square, and others. • Timeline: 11/03/2025 – Ongoing • Status: On Target • Update: City teammates completed a comprehensive mapping of Rochester's economic development ecosystem, documenting partner roles, existing programs, and opportunities for collaboration. An overview of the ecosystem and the City's evolving role was presented to City Council during the July 20, 2026 study session. Tactic 1.1.b: Regulatory Commitment • Description: Evaluate existing and future regulations and licensing to reflect community needs, support the City’s strategic priorities, and encourage investment in Rochester. • Timeline: 10/01/2025 – Ongoing • Status: On Target • Update: Implementation of the Administrative Fee Ordinance strengthened regulatory enforcement, supporting consumer protection and a fair and equitable business environment. The Film Permit Ordinance was adopted in March 2026, and an efficient permitting process was established to ensure Rochester is prepared to support future film productions. Tactic 1.1.c: Business Retention & Expansion • Description: Develop a proactive business retention strategy focused on small, minority and locally owned businesses. • Timeline: 10/01/2025 – Ongoing • Status: On Target • Update: Staff continues developing a citywide Economic Development Strategy to strengthen business retention and expansion, entrepreneurship, and workforce development. Business surveys, partner engagement, and ecosystem mapping have identified service gaps and opportunities for greater collaboration. Insights from the Regulatory Justice Initiative and Economic Mobility Grant are helping shape the strategy. A City Council study session is planned to gather feedback on the proposed framework. Page 6 of 32 Tactic 1.1.d: Equitable Economic Development • Description: Implement recommendations from the Disparity Study with a focus on actions that will increase small, minority and locally-owned business participation that is more reflective of contractor availability. Continue to evaluate city procurement goals and policies to address contracting disparity. • Timeline: Ongoing • Status: On Target • Update: We implemented the eComply and B2GNow software platforms to improve contractor compliance tracking and reporting. We also completed process mapping, updated forms, and incorporated new language into Finance policies to strengthen compliance and support implementation of the Disparity Study recommendations. Goal 1.2: Tourism Strategy Rochester will implement a tourism strategy that enhances evening and weekend economic activity. Tactic 1.2.a: Events • Description: Support free and inclusive cultural experiences that bring people together, strengthen Rochester’s evening and weekend economy, and foster community vitality. Continuously refine event offerings to ensure strong public engagement and activation of community spaces. • Timeline: Ongoing • Status: On Target • Update: We are midway through the 2026 Public Music summer season, with free, inclusive events continuing across parks and community spaces. We continue to refine programming, partnerships, accessibility, and the overall event experience to encourage strong public participation and support Rochester's evening and weekend economy. Tactic 1.2.b: Trails • Description: Develop a strategy to plan, prioritize, fund, construct and maintain local and regional trail connections. • Timeline: 04/01/2026 – 12/01/2026 • Status: Delayed • Update: We completed the City's street pavement condition ratings and are awaiting a proposal from a vendor to assess trail conditions throughout the community. The trail condition assessment will help prioritize future maintenance and investment. Page 7 of 32 Tactic 1.2.c: Park Development & Investment • Description: Complete an update to the Parks Master Plan that prioritizes park features and amenities that enhance positive user experiences for community members and visitors. Review parkland dedication to ensure sustainable park and trail investment and other financing options that allow investment in parks to support implementation of the plan. Review existing partnerships and policies with different associations to ensure community access, sliding fee schedules, and a balanced financial partnership. Evaluate programmatic gaps and solutions for meeting those gaps in new or existing facilities. • Timeline: 06/01/2026 – 12/31/2027 • Status: On Target • Update: We will develop the project scope for the Parks and Recreation System Plan update during the fall and winter of 2026, keeping the project on schedule for a request for proposals in early 2027. Tactic 1.2.d: Regional Sports and Recreation Assets • Description: Develop final cost estimates and financing options for Phase Two of the Regional Sports and Recreation Complex. Evaluate utilization and renovation needs of existing assets such as the Rec Center, Sports Center located at RCTC, National Volleyball Center, and others to maximize community and visitor use concurrent with progress on the new complex. • Timeline: 12/08/2025 – Ongoing • Status: On Target • Update: We have continued to see increased participation in Parks & Recreation drop-in programs. Information on funding options for indoor recreation expansion was presented to City Council. RCTC continues to expand community access through additional drop-in programming, including pickleball and basketball, and we are supporting these efforts through a joint awareness campaign. Tactic 1.2.e: Marketing • Description: Consider expanding destination marketing efforts through our Destination Marketing Organization. Evaluate the best approach to market sports centric tourism and passive recreation- based tourism, emphasizing Rochester's historic district. • Timeline: TBD • Status: Not Started • Update: Internal coordination is underway to develop a clear plan and timeline for advancing this work. Discussions are focused on defining next steps, roles, and milestones to support effective implementation. Tactic 1.2.f: Chateau • Description: Develop final strategy for needed renovations, programmatic evolution, and preferred approach to operations needed to support this goal. • Timeline: 10/01/2025 – 01/31/2027 • Status: On Target • Update: Experience Rochester has developed three potential operating models for the facility, along with a capital improvement needs assessment identifying the building investments required to support each option. These materials will be presented to the City Council at an August 10, 2026 Study Session to gather feedback and direction on the preferred operating approach. Page 8 of 32 Goal 1.3: Service & Asset Optimization Rochester will optimize City services and assets to support Economic Resilience. Tactic 1.3.a: Bio Business Center • Description: Evaluate the long-term future of the Bio Business Center for economic resilience or potential adaptive reuse. • Timeline: 02/01/2026 – 09/01/2026 • Status: On Target • Update: Dialect has completed a strategic review of the BioBusiness Center and continues to advise the City on its long-term future. The facility is nearing full occupancy, with current efforts focused on lease renewals, tenant extensions, and potential expansions. A competitive RFP process resulted in the recommendation to continue property management services with Paramark Corporation while long- term planning remains underway. Tactic 1.3.b: Economic Vitality Investments • Description: Ensure that the Economic Vitality Fund investments targeted toward economic development support the Economic Resilience strategic priority. Focus partner investment efforts on economic diversification. • Timeline: 08/06/2025 – Ongoing • Status: On Target • Update: We provided City Council with an update on Rochester's economic development ecosystem on July 20, 2026. The findings will help inform development of a citywide economic development strategy and future investment priorities. Page 9 of 32 Priority 2: Housing Access Rochester will promote policies that support access to a range of housing types to meet the needs of all residents. Goal 2.1: Owner-Occupied Housing Rochester will promote construction of owner-occupied homes. Tactic 2.1.a: Regulatory Environment • Description: Continue to evaluate regulatory alignment around single family home construction to mitigate cost while still ensuring neighborhood quality. Initial areas of evaluation include boulevard trees, connection charges, and other items learned as part of the affordable single family home initiative in Northwest Rochester. • Timeline: 09/18/2025 – Ongoing • Status: On Target • Update: Permit review timelines remain strong: o 77% of residential permit reviews were completed in two weeks or less o 83% of commercial permit reviews were completed in three weeks or less • The number of residential permits has increased from 155 in January to 334 in May. The volume of residential permits has resulted in a slight decline in review times in under 2 weeks, specifically in May and June. Tactic 2.1.b: Home Ownership Innovation • Description: Explore condos and small-scale ownership models as alternatives to traditional single- family homes. Support efforts to construct multigenerational housing within newly constructed single- family homes. • Timeline: 03/01/2026 – 03/01/2027 • Status: Not Started • Update: Housing outcomes for this period include: o 0 condominium units constructed by the private sector o 0 multigenerational housing units financially supported • 37 for-sale townhome units constructed by the private sector Tactic 2.1.c: Legislative Environment • Description: Pursue state legislative solutions that align state and local priorities for housing with state investment in local infrastructure. Engage legislatively to reduce tax disincentives to platting lots. • Timeline: 06/02/2025 – Ongoing • Status: On Target • Update: We secured $13.2M in state bonding funding for the East Zumbro sewer and water expansion. We also engaged in state discussions on housing and zoning authority, supporting legislative goals while retaining local control over downtown design standards. Bills addressing tax disincentives for platting lots were not heard in committee. Page 10 of 32 Goal 2.2: Vital Neighborhoods Rochester will ensure vital neighborhoods that support infill, adaptive reuse, and accessible housing. Tactic 2.2.a: Accessory Dwelling Units: • Description: Reevaluate Accessory Dwelling Unit (ADU) program requirements and barriers (e.g., connection fees, owner occupancy). • Timeline: 01/01/2026 – 01/01/2027 • Status: On Target • Update: We have begun discussions with Coalition for Rochester Area Housing (CRAH) members regarding ADUs and potential barriers. o 0 new ADU units constructed by private sector o 0 ADUs financially supported Tactic 2.2.b: Short Term Rentals • Description: Evaluate existing short term rental requirements including geographic dispersion, tax classification, lodging tax contribution, and other areas while balancing economic and neighborhood impacts. • Timeline: 06/01/2026 – 12/31/2026 • Status: On Target • Update: We completed a mapping tool to visualize the geographic distribution of short-term and single- family rentals and analyze corporate and non-local ownership patterns. Metrics from the mapping tool: o 264 registered single family, short-term rentals (more exist that are non-registered) o 4.7k registered single-family rentals o Short-term rentals account for 5.1% of total single-family rentals. o 37% of single family rentals are under corporate ownership. o 11.9% of single family rentals are owned by a non-local company. Tactic 2.2.c: TIF Policy & Accessible Housing • Description: Align Tax Increment Financing (TIF) policy and related incentives to encourage the development of accessible housing. Create a framework for reliably classifying and tracking accessible units. • Timeline: 09/01/2025 – Ongoing • Status: On Target • Update: Staff and Ehlers presented preliminary TIF policy and funding recommendations at the June 22, 2026, City Council study session, including strategies to better align TIF with housing, redevelopment, and long-term economic development goals. Staff is preparing final policy recommendations, including approaches to encourage accessible housing and establish a framework for tracking accessible units, for future City Council consideration. Page 11 of 32 Tactic 2.2.d: Rental Inspections and Code Enforcement: • Description: Evaluate the potential for proactive code enforcement, integrated code enforcement, efficiency in rental inspections, tall grass and weeds policy, and other innovations. • Timeline: 06/01/2026 – Ongoing • Status: On Target • Update: Since February 2026, we have engaged community organizations on proactive code compliance, including RNeighbors, neighborhood associations, Rochester Public Schools, ACHLA, Pamoja Women, RPD, and the Center for Community Progress. Outreach has included community events, educational materials, and development of a social media campaign. Rental licenses are currently distributed across inspection cycles: o 1-Year Cycle: 268 licenses (4.41%) o 2-Year Cycle: 2,096 licenses (34.47%) o 3-Year Cycle: 1,067 licenses (17.55%) o 4-Year Cycle: 2,650 licenses (43.58%) Tactic 2.2.e: Lead Service Line Replacement • Description: Continue implementation of the Lead Service Line Replacement Program to help homeowners replace lead service lines and reduce potential lead exposure in drinking water. • Timeline: 01/06/2025 – 11/10/2028 • Status: On Target • Update: Phase one was completed in June 2026, replacing 36 lead service lines. Phase two is underway and will investigate approximately 70 properties and replace an estimated 40 lead or galvanized service lines. Approximately 1.0% of water services remain identified as lead or galvanized and 4.6% as unknown. Planning for the 2027 project is underway. Tactic 2.2.f: Wastewater Lateral Replacement: • Description: Explore programs similar to service assured that take into account the complexities of sewer system liability. • Timeline: 09/01/2024 – 12/31/2026 • Status: On Target • Update: The draft report is substantially complete. Staff is awaiting information from OnCourse Home Solutions to evaluate options for establishing a program in Rochester. Tactic 2.2.g: Housing Financing • Description: Better understand micro- and macro-level financing challenges as it relates to the purchase, renovation, and construction of housing. Identify relevant solutions that can be implemented locally. • Timeline: 05/01/2026 – 01/31/2027 • Status: Not Started • Update: Work has not yet begun. Staff will first establish key market data metrics, including interest rates, average home prices, renovation costs, construction costs, and lending trends. Page 12 of 32 Goal 2.3: Housing Stability Resources Rochester will support County and non-profit efforts to effectively provide resources to persons experiencing housing instability. Tactic 2.3.a: Facilities • Description: Support County and non-profit service provider efforts to align services and thoughtfully locate facilities. • Timeline: 09/08/2025 – Ongoing • Status: On Target • Update: The Public Space Solutions workgroup that the City facilitates provided recommendations to Any Path Home on considerations for a 24/7 shelter. No formal location or proposal has been reviewed. Tactic 2.3.b: Public Safety • Description: Focus on the City’s role as a public safety provider to create a safe and welcoming community for all to support Housing Access, Economic Resilience, and Inclusive Growth Management. • Timeline: Ongoing • Status: On Target • Update: Targeted outreach to individuals experiencing homelessness who have the most frequent contact with police continues to show positive results. From January 2025 through May 2026, 81 individuals cycled through the monthly Top 10 most-contacted list, with nearly 67% transitioning off the list within one month through the efforts of the Homeless Outreach Navigator and Community Action Team. Tactic 2.3.c: Support Individual Housing Stability Efforts • Description: Provide options to mitigate housing instability through utility programs, housing rehab, engagement in Any Path Home, Housing Coalition, HRA, and related efforts. • Timeline: 09/18/2025 – Ongoing • Status: On Target • Update: Any Path Home continues collecting By Name List data to understand housing inflow and outflow, identify barriers, and assess resource gaps. Minnesota Assistance Council for Veterans (MAC- V) has joined the initiative, with discussions focused on data quality, funding, and strategic planning. The Public Space Solutions workgroup is developing mitigation strategies for impacts along pedestrian routes to Riverside Elementary. Year to date, we completed six single-family rehabilitation loans and supported the creation or preservation of 123 housing units through Housing Coalition funding. Page 13 of 32 Goal 2.4: Service & Asset Optimization Rochester will optimize City services and assets to support Housing Access. Tactic 2.4.a: City Parcels • Description: Evaluate city parcels for disposition that supports economic resilience and housing access. Key parcels include the Regional Sports and Recreation Center (north outlot for residential, South outlots for commercial), various Riverfront properties, Badger Farms, Silver Lake Power Plant, and the Traffic Operations Building. • Timeline: 07/14/2025 – 05/01/2028 • Status: On Target • Update: The excess land at Fire Station No. 2 continues to be marketed for sale by North Rock Partners. We also released an RFP for the Durand Subdivision and Hilmer's High View Acres properties and will present development proposals and recommendations to City Council on August 3. Evaluation of future disposition strategies continues for other priority City-owned properties, including the Regional Sports and Recreation Center outlots, Riverfront properties, Badger Farms, the Silver Lake Power Plant, and the Traffic Operations Building. Tactic 2.4.b: Permitting • Description: Focus on continuous improvement to streamline enterprise-wide permitting, inspections, licensing, development review, housing construction, and business navigation. • Timeline: 10/20/2025 – Ongoing • Status: On Target • Update: We continue improving the permitting process by converting forms and applications to meet WCAG 2.1 AA accessibility standards within Laserfiche and Accela. We also implemented improvements to housing inspection workflows that support more efficient re-inspections and faster processing of documentation. Tactic 2.4.c: Economic Vitality Investments • Description: Ensure that the Economic Vitality Fund investments focused on housing support the Housing Access strategic priority. • Timeline: 09/18/2025 – Ongoing • Status: On Target • Update: Year to date, we supported an additional 96 housing units through Economic Vitality Fund investments. A total of 702 housing units have been supported through the program. Page 14 of 32 Priority 3: Inclusive Growth Management Rochester will guide growth responsibly by balancing economic development and infrastructure planning with community needs. Goal 3.1: Integrated Transportation Rochester will integrate active transportation, transportation, and transit efforts to support Inclusive Growth Management. Tactic 3.1.a: Staffing • Description: Work to build transportation planning capacity and coordination within the Development Services and Infrastructure Team. Utilize 311 and the community survey to better understand resident transportation needs and perceptions. • Timeline: 11/01/2025 – Ongoing • Status: On Target • Update: We developed a transportation context checklist and GIS-based planning tools to help staff consider walking, bicycling, transit, and broader transportation needs earlier in the development review process. Community survey results will be reviewed with 311 requests and other data to identify recurring transportation needs and trends. Tactic 3.1.b: Mode Shift and Travel Demand Management • Description: Focus on coordination with Mayo Clinic to ensure that the goals of LINK Rapid Transit are realized. Develop a travel demand management framework in partnership with Mayo Clinic that can be extended to other employers. • Timeline: 01/01/2026 – 09/30/2026 • Status: On Target • Update: We convened a monthly working group of public and private partners to advance transportation demand management. The City was also awarded MnDOT Active Transportation Planning Assistance to develop a coordinated framework, including strategies, performance measures, and partnerships with Mayo Clinic and other major employers. Tactic 3.1.c: Transit Optimization • Description: Evaluate and prioritize our existing transit services in the context of significant post- pandemic ridership decline, declining external funding, ability to influence Greenhouse Gas (GHG) emissions, and promote inclusive growth management. Ensure that this optimization is reflected in future Transit Development Plan updates and the forthcoming request for proposals for transit operations. • Timeline: Ongoing • Status: On Target • Update: Unlinked Passenger Trips (UPTs) increased from 6 to 6.5 rides per trip, reflecting positive ridership growth. Trends also indicate a 10% increase in rides compared with this time last year. The Transit team continues to reduce Capital Improvement Plan (CIP) costs while maintaining timely and efficient service. Page 15 of 32 Tactic 3.1.d: ADA Transition Plan • Description: Update the 2013 Americans with Disabilities Act (ADA) Transition Plan to align with this strategic priority. • Timeline: 09/01/2025 – 07/15/2026 • Status: Delayed • Update: Citywide asset data collection has been completed. Staff is developing the Transition Plan for presentation to City Council on November 23, 2026. Goal 3.2: Integrated Land Use Planning Rochester will ensure strategic investments are integrated with inclusive land use planning to support development that is land, tax, and service efficient. Tactic 3.2.a: Infrastructure • Description: Annually review and align electric, water, sewer, storm sewer, and transportation infrastructure to ensure that investments are maximized and construction impact is minimized. Prioritize investments in the East and West Zumbro Sewer Areas. Advocate for the state bonding request for the East Zumbro Sewer Area. • Timeline: 09/01/2025 – 07/01/2027 • Status: On Target • Update: We secured $13.2 million in state bonding for critical sewer and water infrastructure in the East Zumbro Sewer Area. Coordination between the City and RPU continues to align water, sanitary sewer, and other infrastructure investments as project planning advances. Tactic 3.2.b: Growth Areas • Description: Regularly review and assess growth areas to inform land use and infrastructure investments. • Timeline: 09/01/2025 – 12/31/2026 • Status: On Target • Update: We continue coordinating with property owners on development opportunities within the Urban Service Area and the timing of utility service. Based on these discussions, no major changes to the Growth Management Map or growth area designations have been identified. Tactic 3.2.c: Annexation • Description: Develop annexation priorities that align with existing market need and approved plans. Evolve existing or develop new orderly annexation agreements with surrounding townships. • Timeline: 12/01/2025 – 02/01/2027 • Status: On Target • Update: We initiated discussions with the Kalmar Township to extend its Orderly Annexation Agreement and adjust the Urban Service Area boundary to align with our updated Growth Management Map. Page 16 of 32 Tactic 3.2.d: Financial • Description: Discuss and evaluate tools to help the community understand the fiscal and service impacts of development. • Timeline: 10/01/2025 – 12/01/2026 • Status: Complete • Update: Urban3 presented the results of the fiscal and revenue analysis to City Council during the June 22, 2026, study session, providing additional insight into the fiscal impacts of development patterns. Tactic 3.2.e: Services • Description: Develop a plan to finance, construct, and operate Fire Station 6, provide final direction on the implementation of the Library’s Master Plan, and address deferred maintenance on existing police training facilities with a focus on shared training spaces. • Timeline: 07/01/2025 – Ongoing • Status: On Target • Update: Following adoption of the Library Master Plan, we are working with CRW Architects to develop conceptual designs and cost estimates for future library renovations. Tactic 3.2.f: Maintenance • Description: Consider ongoing and one-time investments to support the maintenance of existing infrastructure particularly for City facilities, public spaces, and streets. • Timeline: Ongoing • Status: On Target • Update: We continued to allocate lodging tax revenue beyond operating commitments for additional capital improvements at the Mayo Civic Center. Over the past two years, we have also allocated additional funds to the Holistic Budget Stability Account to support facility investments when fund balance allows. Finally, we purchased the Heartland Gun Club to address existing deficiencies and community impacts associated with our outdoor range. Goal 3.3: Infill & Transit-Oriented Development Rochester will support Infill and Transit-Oriented Development. Tactic 3.3.a: Incentives and Policies • Description: In addition to aligning the TIF policy, create additional financial and non-financial incentives to help prioritize infill and transit oriented development. Evaluate other policies that prioritize development in areas with existing infrastructure (e.g. parking minimums). • Timeline: 04/01/2026 – 12/31/2026 • Status: On Target • Update: We provided City Council with an update on existing TIF districts and received direction to develop updated TIF policies for consideration in the fourth quarter of 2026. Page 17 of 32 Tactic 3.3.b: Maximize Link Investment • Description: Prioritize development in and around LINK stations including the West Transit Village and East Terminus. Ensure that existing and future development are effectively connected to the stations. Review the potential for an updated traffic study two years after the project is implemented to assess any future improvements needed. • Timeline: 01/01/2026 – 12/31/2026 • Status: Not Started • Update: This project has not yet started. Goal 3.4: Service Optimization Rochester will optimize City services to support Inclusive Growth Management. Tactic 3.4.a: One Water, One Team • Description: Consider further integration of water reclamation, sewer collection, water treatment, water distribution, flood control, and stormwater services into one team. • Timeline: 01/01/2027 – Ongoing • Status: Not Started • Update: This project has not yet started. Tactic 3.4.b: Integrated Utility Planning • Description: Ensure ongoing planning and collaboration to ensure that power supply planning, sewer, wastewater, and water supply planning maximizes investments and ensures efficient future growth. • Timeline: 09/01/2025 – 12/31/2026 • Status: On Target • Update: Coordination across departments continues to align utility planning efforts. Construction of the coordinated sewer and water extension along Country Club Road SW is anticipated to begin in late summer 2026. Tactic 3.4.c: Organizational Services • Description: Align and integrate organizational services such as Finance, Information Technology, Communications, Facilities, Safety, GIS, Fleet, and similar functions across the enterprise. The focus will be on enhancing services provided to the public; making the best use of public dollars; reducing duplicative or low-impact work; increasing clarity and consistency across departments; and allowing departments to focus more on strategy and people. • Timeline: Ongoing • Status: Off Target • Update: Evaluations were conducted to explore opportunities for greater alignment of Information Technology services between the City and RPU. While the assessment identified potential areas for collaboration, leadership alignment was not achieved to support moving forward with implementation. At this point, work is paused in this area pending leadership alignment and policy direction. Page 18 of 32 Tactic 3.4.d: Toolkit Optimization • Description: Move toward full use and integration of the change management, project management, and communications & engagement tool kits within the organization. • Timeline: 01/01/2026 – 12/31/2026 • Status: Delayed • Update: The Organizational Toolkit Optimization Survey was distributed to gather employee feedback on toolkit awareness, usage, and opportunities for improvement. Survey results will help identify barriers to adoption, inform enhancements to existing resources, and guide future efforts to increase toolkit integration and utilization across the organization. Implementation of changes is on hold during the ERP project. Page 19 of 32 Priority 4: Responsible Environmental Stewardship Rochester will strive to protect our natural resources, integrate environmental responsibility in all City operations, and promote responsible environmental action throughout the community. Goal 4.1: Transportation Emissions Reduction Rochester will reduce greenhouse gas emissions associated with transportation. Tactic 4.1.a: Active Transportation • Description: Encourage the use of active transportation options for both commuting and recreational trips. Create support facilities to help meet the needs of active commuters. Continue to refine the framework for the responsible use of private scooters and Lime Scooters including designated corrals in the Downtown area. Evaluate a variety of financial strategies to invest in trails including reviewing our park dedication ordinance to allow investments in both park and trail development. • Timeline: 12/01/2025 – Ongoing • Status: On Target • Update: We continued integrating active transportation into City roadway and capital projects to support a connected, low-stress transportation network. Work also continued on shared scooter and e- bike management, with funding and priority locations identified for downtown scooter corrals. Installation has been delayed by staffing, procurement, and implementation capacity. Tactic 4.1.b: City Fleet Electrification • Description: Identify resources and implementation strategies to electrify the City’s fleet while ensuring the financial viability of the Equipment Revolving Fund. • Timeline: 09/01/2025 – 12/31/2026 • Status: On Target • Update: We continue to advance the City’s fleet electrification strategy while protecting the Equipment Revolving Fund. Progress includes leveraging $40,000 in federal grant funds to acquire a Chevrolet Equinox EV, implementing charging station access fobs for cost tracking, and testing Blazer and Silverado EVs with RPD to evaluate law enforcement feasibility. Tactic 4.1.c: Community Transportation Electrification • Description: Work to encourage private Electric Vehicle (EV) charging infrastructure solution to make charging convenient. Monitor the implementation and adjust as public and private vehicle electrification infrastructure evolves. • Timeline: 09/01/2025 – 12/31/2026 • Status: On Target • Update: EV charge rate policy is being successfully implemented. City Fleet continues to expand EV vehicles and charging stations have been added to the new Public Works and Parks Building. City fleet charging plan has been created for the Development Services & Infrastructure Center (DSIC) to ensure adequate charging for the expansion of EVs in the fleet. Page 20 of 32 Goal 4.2: Building Energy Efficiency Rochester will reduce greenhouse gas emissions associated with building energy consumption. Tactic 4.2.a: Power Supply Resource Plan • Description: Monitor and support the implementation of the RPU 100% Net Renewable Energy by 2030 resource plan goal. Determine acceptable risk mitigation measures that might be necessary with the changing tax credit environment; evolving financial viability; and ability to build or contract enough locally produced renewable energy to meet the community’s needs. • Timeline: 07/29/2024 – 12/31/2030 • Status: On Target • Update: We continue advancing our 2030 renewable energy goal. The Mid-Continent Independent System Operator issued an interconnection agreement for the 46 MW Mt. Simon Station, and renewable energy deliveries and Renewable Energy Certificates (RECs) have begun from the Adams Wind Farm. We are addressing market and federal permitting challenges affecting the Dodge Center and Iowa wind projects while developing a Request for Proposals for additional renewable energy resources, with results anticipated in late 2026. Tactic 4.2.b: Energy Savings • Description: Continue to explore energy efficiency and decarbonization projects that have a reasonable return on time and capital. • Timeline: Ongoing • Status: On Target • Update: The Thermal Energy Network is operational, with commissioning and system optimization continuing and full energy savings expected in 2027. Tactic 4.2.c: Advanced Metering • Description: Successfully complete the implementation of advanced metering. Facilitate training and education on how customers can best use the information to manage their energy footprint. • Timeline: Through 06/01/2029 • Status: On Target • Update: The project remains on track for budget and schedule. The pilot deployment successfully validated system performance, customer experience, security, and communications. Mass deployment began in June 2026, with approximately 7,800 of 61,000 electric meters and 3,194 of 37,000 water meters installed to date. Tactic 4.2.d: Commercial Benchmarking • Description: Continue to refine the data collection and dissemination for commercial buildings over 50,000 square feet. • Timeline: 01/02/2026 – 07/01/2026 • Status: Complete • Update: 100 customers participated in the benchmarking requirement using RPU’s MyMeter platform to report energy usage in ENERGY STAR Portfolio Manager, with additional customers potentially reporting directly. RPU’s grant ended July 31, 2026, but RPU will continue to annually promote the State’s requirement and assist customers with compliance. Page 21 of 32 Tactic 4.2.e: Commercial and Residential Energy Efficiency and Beneficial Electrification • Description: Maximize programming and direct investments through RPU’s Energy Advisors in alignment with the MN Eco Act, Sustainability Division, and City partners to support carbon free options including geothermal, heat pumps, and energy efficient appliances. • Timeline: 01/02/2026 – 12/31/2026 • Status: On Target • Update: At mid-year, RPU achieved 9,748,049 kWh in energy savings, approximately 57% of its annual goal of 16,991,977 kWh. These results have been driven by strong participation in Conserve & Save rebate programs supported by RPU Energy Advisors, including incentives for heat pumps, geothermal systems, and energy-efficient appliances. Tactic 4.2.f: City Facilities • Description: Integrate B3 and Energy Star standards during new construction or material renovation of City facilities to the maximum extent possible. Ensure that projects are designed in conjunction with the facilities team to ensure that building automation, energy efficiency, and other standards are reflected. • Timeline: Ongoing • Status: On Target • Update: Maintenance Center building systems are scheduled to come online in August 2026, followed by Fire Station 3’s fully electrified systems in fall 2026. City standards now require electrified, energy- efficient systems for all applicable projects. Goal 4.3: Natural Resource Stewardship Rochester will enhance and effectively maintain our natural resources. Tactic 4.3.a: Urban Forest • Description: Implement options to maintain our urban tree canopy through accelerated pruning, empowering property owners to maintain trees, rethinking boulevard trees, and substantial tree planting initiatives. • Timeline: Ongoing • Status: Delayed • Update: Recruiting certified arborists remains challenging due to funding constraints and private-sector competition, delaying implementation of planned urban forestry initiatives. Tactic 4.3.b: Air Quality • Description: Ensure real-time air quality data continues to be publicly available, monitored, and is actionable. • Timeline: 09/01/2025 – 12/31/2026 • Status: On Target • Update: Air quality data continues to be published on the public website. Quality assurance and quality control activities have been completed to ensure the data continues to meet established standards. Page 22 of 32 Tactic 4.3.c: Water Quality • Description: Finalize the Comprehensive Surface Water Master plan and prioritization of its recommendations. • Timeline: N/A • Status: Complete • Update: The Comprehensive Surface Water Master Plan was approved by City Council in June 2026. Tactic 4.3.d: Drinking Water Supply & Water Quality • Description: Finalize the RPU Groundwater Management Study and RPU Water System Master Plan. As we continue to better understand the regulatory landscape and our municipal water supply, explore the need and costs for additional water appropriation and treatment. • Timeline: 07/22/2025 – 04/05/2027 • Status: On Target • Update: We are partnering with a consulting firm to develop a Request for Proposals, with responses anticipated in the fourth quarter of 2026. We continue monitoring project risks while evaluating long- term water supply options to support future system needs. Goal 4.4: Service & Asset Optimization Rochester will optimize City services and assets to support Environmental Stewardship. Tactic 4.4.a: Natural Gas Franchise Fee • Description: Explore the implementation of a natural gas franchise fee to fund the adopted strategic priorities and foundational principles. • Timeline: 09/01/2025 – 12/31/2027 • Status: On Target • Update: We presented the public engagement results to City Council in May 2026. We are now developing a pilot program to evaluate potential initiatives that could be supported through franchise fee funding. Tactic 4.4.b: Waste Management • Description: Monitor Olmsted County’s development and construction of a material recovery facility (MERF). As county level waste and material management becomes clearer, discuss options to evolve organizational recycling, residential collection, organics, yard waste, and woody waste. Study peer- implemented best practices for single use plastic bags. • Timeline: 09/01/2025 – 06/01/2027 • Status: On Target • Update: Construction began in April 2026 with grading and site preparation. Site preparation continued through June while final building and equipment plans were completed. Page 23 of 32 Tactic 4.4.c: Data Informed Decision-Making • Description: Launch a public-facing dashboard tracking emissions, waste, water, and city fleet. • Timeline: 09/01/2025 – 06/30/2026 • Status: Complete • Update: This is being marked complete because the core focus areas have been complete. Sustainability is working on expanding the dashboards to include additional focus areas and create one consolidated dashboard. The final proposed dashboard will be implemented in 2027 using 2026 and incorporates the Web Content Accessibility Guidelines (WCAG) 2.1 Level AA standards. Page 24 of 32 Priority 5: Transformational Capital Projects Rochester will deliver on major investments and infrastructure projects that will enhance our quality of life for generations to come. Goal 5.1: Project Delivery Excellence Rochester will focus on excellence in the delivery of transformational capital projects. Tactic 5.1.a: Neighborhood Impact • Description: Deliver transformational projects in a context-sensitive manner using co-design, business forward, neighborhood engagement, and effective project communication. • Timeline: Ongoing • Status: On Target • Update: We continue to expand our Business Forward approach through proactive, one-on-one outreach to businesses impacted by construction, including regular project updates, business spotlights, wayfinding and business signage, newsletters, and social media communications. We are also developing a communications plan for the Link Bus Rapid Transit project and documenting lessons learned to create a scalable, tiered Business Forward program that can be applied to future City construction projects. Tactic 5.1.b: Reporting • Description: Use tracking tools and regular reports to ensure project timelines, budgets, and dependencies stay on track. Provide an integrated quarterly report reflecting the status of the projects above to the City Council. • Timeline: • Status: On Target • Update: We implemented recurring coordination meetings for downtown infrastructure, individual projects, right-of-way closures, and budget review with DMC and City staff. This has improved visibility into schedules, budgets, and dependencies, supported earlier issue resolution, and provided more integrated updates to City Council and the Destination Medical Center Corporation (DMCC). Tactic 5.1.c: Timely & Effective Projects • Description: Ensure that the following projects are delivered on time and on budget, with risks and challenges effectively managed and outcomes the community can be proud of. Project: 18th Avenue SW Reconstruction • Description: Reconstruct the road from Mayowood Road SW to 40th St SW to address deteriorating pavement and calm traffic. • Timeline: 05/01/2024 – 11/30/2027 • Status: Delayed • Update: Federal aid plan review has delayed the project start. Bidding is anticipated in fall 2026, with construction planned for 2027–2028 within the secured federal funding window. Page 25 of 32 Project: 4th Street Roundabout • Description: Construct a roundabout in place of the current intersection to increase safety for all roadway users, act as a traffic calming device, and improve current traffic flow conditions at the intersection. • Timeline: 07/13/2022 – 06/17/2026 • Status: Complete • Update: Construction was completed, and the new roundabout opened to traffic in May 2026, improving safety and traffic flow at the intersection. Project: 6th Street Bridge, Roadway Safety, and Riverfront Improvements • Description: Construct a bridge over the Zumbro River that connects East and West 6th Street South to improve access to neighborhoods, riverfront, and key destinations and redevelop the existing flood control system into an accessible riverfront space. • Timeline: 08/21/2023 – 03/10/2028 • Status: Off Target • Update: Final design plans were submitted to MnDOT in April 2026 and are under review. MnDOT approvals and right-of-way certification are required by September 1, 2026, to execute the $19.9 million RAISE Grant agreement and maintain federal funding. Railroad agreements and state and federal environmental permits are expected to be completed in the coming months, with bidding anticipated in October 2026. Project: Airport Runway Expansion • Description: Reconstruct and upgrade Runway 2/20 and associated airfield infrastructure at Rochester International Airport to ensure safe, reliable, 24/7 operations for air ambulance providers, cargo carriers transporting medical supplies, and patient travelers. This multi-year project will replace aging infrastructure, enhance safety and efficiency, and maintain uninterrupted air access critical to the region’s healthcare and economic needs. • Timeline: 05/01/2021 – 03/31/2028 • Status: Delayed • Update: The project is slightly behind initial projections but remains on track for completion by early 2028. The runway designation has been updated from 02/20 to 03/21 to reflect changes in magnetic declination since the project began. Project: Downtown Building Energy Transition • Description: Transition from Olmsted County Waste to Energy Steam to a sustainable, renewable geothermal central plant system and thermal energy network to serve the heating and cooling needs of 5 downtown public Facilities (City Hall, Rochester Public Library, Mayo Civic Center, Rochester Civic Theatre and Rochester Art Center) as well as support for future private connection to the thermal energy network. • Timeline: 01/01/2022 – 12/31/2026 • Status: On Target • Update: The geothermal thermal energy network has been fully operational since December 2025 and continues to provide heating and cooling for the identified downtown public facilities. Commissioning is ongoing, with final project closeout expected in fall 2026. Page 26 of 32 Project: Downtown Waterfront Project • Description: Redevelop underused riverfront land into a vibrant mixed-use district, positioning the riverfront-adjacent area as a vibrant, connected, and accessible space with interim site activations and improved public access to natural and cultural amenities. • Timeline: Ongoing • Status: On Target • Update: We continue advancing development opportunities across key riverfront sites. An Exclusive Negotiation Agreement was executed with Landmark Development for Silver Lake, Civic Center North received a 70-day extension, and Mayo Field and Parks Maintenance sites are undergoing small area planning. We also received a $500,000 EPA Brownfields Assessment Grant to support future redevelopment. Project: East and West Zumbro Trunk Sewer Projects • Description: Increase sanitary sewer capacity and extend trunk mains into newly developable areas, enabling future growth and supporting the City's industrial, commercial, and housing development objectives. • Timeline: 07/01/2023 – 01/01/2030 • Status: On Target • Update: We secured more than $13 million in state funding in addition to the previously awarded $1 million in federal funding to support the East Zumbro Trunk Sewer Project. We are working with the U.S. EPA and the Minnesota Public Facilities Authority to satisfy funding requirements for procuring a consulting engineering firm, with consultant selection anticipated in 2026 and design expected to begin in 2027. Project: Economic Vitality Sales Tax Investments • Description: Support investments that address the shortage of middle- and low-income housing, preserve existing affordable options in neighborhoods, and develop workforce programs that create more job opportunities for residents. • Timeline: 09/18/2025 – 12/31/2026 • Status: On Target • Update: We continued supporting housing and preservation efforts through Economic Vitality Sales Tax investments. Current metrics include: o 96 new for-sale units supported through Economic Vitality funding o 3 Community Land Trust homes supported through Economic Vitality funding o 123 rental units supported through Coalition/Economic Vitality funding o 2 historic properties supported through Economic Vitality funding Page 27 of 32 Project: Enterprise Resource Planning (ERP) Software Conversion • Description: Implement a new ERP system to modernize business processes, including tracking and issuing payments, human capital management, payroll, project accounting, work orders, capital assets, etc. • Timeline: 01/01/2026 – 12/31/2027 • Status: On Target • Update: We are evaluating a transition from a two-phase implementation approach to a single-phase implementation to improve project delivery. The project remains on schedule for completion in August 2027, with the SAP S/4HANA system expected to go live at that time. Project: LINK Bus Rapid Transit • Description: Implement a 2.8-mile transit option along 2nd Street that will connect downtown Rochester, Mayo Civic Center, Mayo Clinic campuses, and the Downtown Waterfront Southeast area, enhancing mobility, easing congestion, and supporting the continued growth of Rochester. • Timeline: • Status: On Target • Update: Link construction projects are collectively 48% complete. Work is underway on vertical circulators and the pedestrian tunnel at St. Marys, with major 2026 construction focused near St. Marys, along 6th Avenue SW and 2nd Street SW, 2nd Avenue SW and 2nd Street SW, and at the West Transit Village. The new Link bus fleet is expected in the second half of 2026. Project: Maintenance Center • Description: Establish a new Maintenance Center for Parks & Forestry that will strengthen collaboration between Parks & Forestry and Public Works teams. • Timeline: 01/01/2024 – 01/31/2027 • Status: On Target • Update: We remain on schedule to begin relocating Parks & Forestry and Public Works operations to the new Maintenance Center in late August 2026. Final commissioning and punch list activities are expected to be completed in fall 2026. Project: Martin Luther King Park Renovations • Description: Enhance park facilities, including restrooms, a splash pad water playground, basketball courts, playground, picnic shelters, and community gardens. • Timeline: 10/01/2025 – 06/01/2027 • Status: On Target • Update: Construction is underway on the Martin Luther King Park renovations and remains on schedule. Page 28 of 32 Project: North Broadway Park and Ride • Description: Construct a new park-and-ride facility to reduce congestion, lower emissions, and support better land use. • Timeline: 05/18/2026 – 12/31/2026 • Status: On Target • Update: We issued the Notice to Proceed on April 21, 2026, following a preconstruction meeting on April 8. Construction began in May and is progressing as planned. Project: North Broadway Phase 2 • Description: Reconstruct Broadway Ave N from Silver Lake Bridge to Elton Hills Drive NW to improve traffic operations and safety, upgrade transit facilities, increase accessibility, and improve access to recreational opportunities along the river. • Timeline: 03/01/2026 – 12/31/2026 • Status: On Target • Update: The project reached substantial completion ahead of the contract deadline. We are completing final punch list items before project closeout. Project: Public Improvements associated with Mayo Bold Forward Unbound • Description: As Mayo Clinic plans and initiates its transformative private Bold Forward Unbound, coordinate with DMC on public infrastructure improvements to ensure maximum public benefit with minimum public disruption. • Timeline: 07/01/2025 – 03/01/2030 • Status: On Target • Update: We continue coordinating with Mayo Clinic to align public infrastructure improvements with Bold Forward Unbound construction and minimize disruption. Several projects are advancing through the $38 million DMC public realm investment: 5th Avenue is scheduled for completion in September 2027; Mayo North Arrival Building improvements are nearing final design; and Reimagine 6th Avenue reached 30% design, with construction planned for March 2027. We are also advancing the Public Realm Plan and consultant selection for the 3rd and 4th Avenues Reconstruction Project. Project: Regional Sports and Recreation Complex • Description: Develop a regional sports destination that remains accessible to the entire Rochester community. • Timeline: 11/07/2023 – 06/30/2028 • Status: On Target • Update: Construction is underway on the Regional Sports and Recreation Complex, with ongoing coordination among project partners. Phase 1, including the south outdoor amenities, remains on track to open in June 2027, with Phase 2, including the north outdoor amenities, scheduled to open in June 2028. Page 29 of 32 Project: RPU Power Supply Resource Plan Investments • Description: Develop and enter into contracts for firm dispatchable generation, energy storage, wind and solar projects to help achieve greenhouse gas reduction goals. • Timeline: 01/01/2024 – 12/31/2030 • Status: On Target • Update: We continue advancing toward our 2030 renewable energy goal. An interconnection agreement was issued for the 46 MW Mt. Simon Station, and renewable energy deliveries and Renewable Energy Certificates (RECs) have begun from the Adams Wind Farm. We are addressing market and federal permitting challenges affecting the Dodge Center and Iowa wind projects and developing an RFP for additional renewable energy resources, with results anticipated in late 2026. Project: Silver Lake Dam Modification and Replacement • Description: Dredge the lake, modify the dam, and implement trail connections to reduce long-term operation and maintenance costs associated with the dam, improve safety and accessibility, improve fish habitat, and enhance recreational opportunities. • Timeline: 01/01/2023 – 07/01/2027 • Status: On Target • Update: We obtained all required U.S. Army Corps of Engineers permits and received a Certificate of Appropriateness from the City's Historic Preservation Commission. The remaining permit from the Minnesota Department of Natural Resources is undergoing final agency review. We anticipate advertising the project for construction bids in August 2026 and returning to City Council for final action in September 2026. Project: South Broadway Planning • Description: Redesign South Broadway Avenue between 4th and 9th Streets and upgrade the intersection to improve safety and mobility. • Timeline: 07/01/2025 – 07/01/2028 • Status: On Target • Update: We responded to all draft grant agreement comments from the Federal Highway Administration, and the City Council authorized the Mayor to execute the agreement once the final version is received. Following execution of the agreement, planning and design will advance, with 70% design plans anticipated by January 2029. Project: Water Reclamation Plan • Description: Upgrade equipment and update the treatment process to meet higher standards and reduce operational demands. • Timeline: 01/01/2024 – 12/31/2026 • Status: Off Target • Update: Construction is approximately four months behind schedule due to equipment delivery delays. Despite the delay, the facility continues to meet state permit requirements and operate successfully throughout construction. The contractor has advanced other work while awaiting critical equipment to help minimize schedule impacts. Page 30 of 32 Project: West Transit Village • Description: Develop a mixed-use community and Link Bus Rapid Transit hub to provide retail, housing, parking, and other park amenities. • Timeline: 06/01/2025 – 08/01/2027 • Status: On Target • Update: Construction of the West Transit Village utilities, roadway, and Link Bus Rapid Transit station is approximately 40% complete. Construction of the drivers facility and public restrooms is scheduled to begin in August 2026. Project: Willow Creek Trail & Safety Connection • Description: Establish a trail and underpass beneath Highways 52/63 to connect Gamehaven Regional Park with the broader City trail system, improving access and safety for pedestrians and cyclists. • Timeline: 01/01/2025 – 07/01/2028 • Status: On Target • Update: We completed the feasibility study and will present the findings to City Council on August 3, 2026. Final design and plan preparation will continue through spring 2027, with construction anticipated to begin in 2027 and project completion expected in June 2028. Goal 5.2: Future Project Planning Rochester will selectively prioritize projects where planning now will ensure potential funding delivery post 2030. Tactic 5.2.a: Effective Planning • Description: Explore early planning, engagement and financing strategies for Civic Center Drive Reconstruction, South Broadway Reconstruction and Phase 2 Bus Rapid Transit Planning. • Timeline: Ongoing • Status: Not Started • Update: We were not successful in securing a RAISE planning grant, which delayed the start of planning activities. We will continue to pursue future funding opportunities and coordinate with project partners as they become available. Tactic 5.2.b: Connected Parks & Trails • Description: Explore options for additional park and trail investments. Provide a specific evaluation of enhancing the Park Levy focused on additional investment and indexing with inflation. • Timeline: 11/07/2025 – 12/01/2027 • Status: Delayed • Update: Additional evaluation of park and trail investment options has been delayed and requires further coordination with City Administration. Page 31 of 32 Tactic 5.2.c: DMC 2.0 • Description: Begin discussion on evolving the Destination Medical Center legislation to consider what options might exist beyond the 20-year project duration. • Timeline: TBD • Status: On Target • Update: We continue collaborating with Destination Medical Center partners on the 10-year update and five-year implementation plan. These efforts will provide the framework for future discussions regarding the long-term direction of the DMC initiative and help inform potential legislative considerations beyond the original 20-year authorization. Goal 5.3: Service Optimization Rochester will optimize City services to effectively deliver and support transformational capital projects. Tactic 5.3.a: Optimize Services • Description: Replicate an internally focused process similar to predevelopment for City projects. • Timeline: 10/01/2026 – 07/01/2027 • Status: Not Started • Update: This project has not yet started. Tactic 5.3.b: Talent Attraction • Description: Recruit and retain employees that have strong implementation strengths, leveraging new technologies and approaches. • Timeline: 01/01/2026 – 12/31/2027 • Status: On Target • Update: We implemented a new assessment software platform that enables us to evaluate candidates’ skill levels across key technical areas, including Microsoft Office applications, accounting, and customer service. In addition, we continue to use behavioral-based interview questions to assess candidates’ execution and implementation strengths. Tactic 5.3.c: Financial Management • Description: Update the City’s financial policies to ensure project accountability and efficiency. • Timeline: Ongoing • Status: Complete • Update: We updated the City's Financial Policies, and the Common Council adopted the revised policies on June 15, 2026. Page 32 of 32 Tactic 5.3.d: Project Efficiency • Description: Develop systems and strategies to ensure that to the maximum extent possible we “dig once.” Ensure that we effectively communicate construction and mitigate the impact to the maximum extent possible within the resources provided. • Timeline: • Status: On Target • Update: We continue to strengthen coordination across the City’s transformational infrastructure projects through regular collaboration among the City, Mayo Clinic, DMC, and project consultants. Agreements such as the UPUI Agreement and Mayo Clinic/City Cost Allocation Agreement support coordinated decision-making, the City’s “dig once” strategy, and proactive management of schedules, budgets, and community impacts. This coordination also supports quarterly reporting to the DMCC Board and regular City Council updates. Tactic 5.3.e: Optimize Operationalization • Description: Balance programmatic objectives on transformational projects with a long-term stewardship perspective. • Timeline: Ongoing • Status: On Target • Update: Recent construction projects including the Maintenance Center and Sportsplex have made an effort to balance programmatic needs with operational efficiency. Tactic 5.3.f: Visualize Project Impact • Description: Evolve the existing project mapping framework to the multi-year Capital Improvement Plan • Timeline: 05/01/2026 – 11/01/2027 • Status: On Target • Update: We began integrating Capital Improvement Plan data from JDE with GIS to support project visualization. Next steps include collaborating with Public Works to identify the most effective visualization approach and evaluate Esri solutions that will enhance long-term planning and decision- making. Tactic 5.3.g: Glidepath • Description: As project charters are developed and Action Plan updates are completed, clearly articulate an inclusive decision making strategy and specific points of community engagement. Articulate specific project milestones, City Council updates, and City Council approvals that allow for time for policy input and evolution. • Timeline: TBD • Status: Not Started • Update: Internal coordination is underway to develop a clear plan and timeline for advancing this work. Discussions are focused on defining next steps, roles, and milestones to support effective implementation.