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cp09-24-24HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, SEPTEMBER 24, 2024 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff' committees and boards. Many decisions regarding agenda items are based upon this information as well as: Citypolicy andpractices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 5:30 P.M. (a) Approve the Council agenda and any agenda additions and/or corrections 2. INVOCATION — River of Hope ('The invocation is a voluntary expression of the private citizen, to and for the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 15772 — Resolution Accepting $500.00 Donation from Walt & Lynne Clay for Future Equipment Purchases at Hutchinson Police Services (b) Resolution No. 15773 — Resolution Accepting $2,000.00 Donation from Tyriina Kalenberg for a Sensory Panel at Shady Ridge Park PUBLIC COMMENTS (This is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. If you have a question, concern or comment, please ask to be recognized by the mayor —state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of September 10, 2024 (b) Budget Workshop of September 10, 2024 CONSENT AGENDA (The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed) 7. APPROVAL OF CONSENT AGENDA I (a) Affirmation of Board Reappointments 1. Reappointment of Kyle Wendling to PRCE Advisory Board to August 2027 2. Appointment of Andrew Hedin to Airport Commission to September 2025 3. Appointment of Tara Oberg to Sustainability Advisory Board to May 2026 (b) Consideration for Approval of Service Line Repair Program Changes (c) Consideration for Approval of Issuing Short -Term Gambling License to Upper Midwest A-C Club on July 27, 2025, at McLeod County Fairgrounds CITY COUNCIL AGENDA —September 24, 2024 (d) Consideration for Approval of Resolution No. 15769 — Resolution Adopting Findings of Fact and Reasons for Approval of a Preliminary Plat for Danielson Addition With Favorable Planning Commission Recommendation (e) Consideration for Approval of Resolution No. 15770 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit for a Tattoo Establishment in a C-3 Zoning District Located at 225 Main Street South With Favorable Planning Commission Recommendation (f) Consideration for Approval of Resolution No. 15775 — Resolution Accepting Petition and Approving Annexation Under Orderly OA-1197 Between City of Hutchinson and Township of Lynn With Favorable Planning Commission Recommendation (g) Claims, Appropriations and Contract Payments — Register A 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B PUBLIC HEARINGS — NONE purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. !des items like monthly or annual reports and communications from other entities.) UNFINISHED BUSINESS NEW BUSINESS 9. APPROVE/DENY RESOLUTION NO. 15771 — RESOLUTION RELATING TO THE ISSUANCE OF GENERAL OBLIGATION STREET RECONSTRUCTION AND IMPROVEMENT BONDS, SERIES 2024A 10. APPROVE/DENY RESOLUTION NO. 15774 - A RESOLUTION PROVIDING FOR AN ALLONGE TO SENIOR HOUSING FACILITY REVENUE BOND OF 2019 (PRINCE OF PEACE PROJECT) AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATED THERETO 11. APPROVE/DENY DEVELOPMENT AGREEMENT WITH CADOTT HOLDINGS, LLC 12. APPROVE/DENY FIRST ADDENDUM TO LETTER OF INTENT FOR HUTCHINSON EVENT CENTER 13. APPROVE/DENY RESOLUTION NO. 15766 — APPROVING THE 2025 HRA PRELIMINARY TAX LEVY 14. APPROVE/DENY RESOLUTION NO. 15767 — APPROVING THE 2025 EDA PRELIMINARY TAX LEVY 2 CITY COUNCIL AGENDA -September 24, 2024 15. APPROVE/DENY RESOLUTION NO. 15768 — APPROVING THE 2025 GENERAL FUND & DEBT SERVICE PRELIMINARY TAX LEVIES 16. APPROVE/DENY SETTING STRATEGIC PLANNING SESSION FOR OCTOBER 22, 2024, AT 3:45 P.M. (GOOD GOVERNMENT) 17. APPROVE/DENY SETTING TRUTH IN TAXATION HEARING FOR DECEMBER 3, 2024, AT 6:00 P.M. GOVERNANCE (The purpose of this portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 18. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Library Board Minutes from July 22, 2024 �b) Parks/Recreation/Community Education Board Minutes from August 5, 2024 c) Planning Commission Minutes from August 20, 2024 (d) City of Hutchinson Financial Report and Investment Report for August 2024 MISCELLANEOUS 19. STAFF UPDATES 20. COUNCIL/MAYOR UPDATE ADJOURNMENT CITY OF HUTCHINSON RESOLUTION NO. 15772 RESOLUTION ACCEPTING DONATION WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17; and WHEREAS, the following persons or entities have offered to contribute the cash amounts set forth below to the city: Name of Donor Amount Donation Date Walter & Lynne Clay $500.00 9/10/2024 WHEREAS, such a donation has been contributed to the City of Hutchinson Police Department towards future equipment purchases. WHEREAS, the City Council finds that it is appropriate to accept the donation offered. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: THAT, the donation described above is hereby accepted by the City of Hutchinson. Adopted by the City Council this 24th day of September 2024. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor CITY OF HUTCHINSON RESOLUTION NO. 15773 RESOLUTION ACCEPTING DONATION WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17; and WHEREAS, the following persons or entities have offered to contribute the cash amounts set forth below to the city: Name of Donor Amount Donation Date Tyriina Kalenberg $2,000.00 9/11/2024 WHEREAS, such a donation has been contributed to the City of Hutchinson Parks Department towards a sensory panel at Shady Ridge Park. WHEREAS, the City Council finds that it is appropriate to accept the donation offered. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: THAT, the donation described above is hereby accepted by the City of Hutchinson. Adopted by the City Council this 24th day of September 2024. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, SEPTEMBER 10, 2024 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff' committees and boards. Many decisions regarding agenda items are based upon this information as well as: Citypolicy andpractices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 5:30 P.M. (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Burley, second by Sebesta, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — A moment of silence was held in lieu of an invocation. (The invocation is a voluntary ex ression of the private citizen, to and for the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 15763 - Resolution Accepting Donation from Joyce Hochsprung (Varieties of Daylilies to Parks Department) (b) Resolution No. 15764 — Resolution Accepting $6402.50 Donation from Meeker McLeod Sibley Community Health Services for City Bike Fleet (c) Resolution No. 15765 — Resolution Accepting $20,000 Donation from Hutchinson Hockey Association for Locker Room Upgrades at Burtch Arena Motion by May, second by Sebesta, to approve Resolution Nos. 15763, 15764 and 15765. Motion carried unanimously. PUBLIC COMMENTS is is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. If you have a question, concern or comment, please ask to be recognized by the mayor —state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL Doug Hanneman and Debra Siemsen from the United Way of McLeod presented before the Council. Mr. Hanneman and Ms. Siemsen spoke of the importance of Welcoming Week and the event being held this Sunday, Belonging Begins With Us. Mr. Hanneman and Ms. Siemsen thanked the mayor and City Council for proclaiming Welcoming Week and provided details of the Belonging Begins With Us event being held Sunday, September 15, 2024, at Masonic West River Park. 6. APPROVAL OF MINUTES (a) Regular Meeting of August 27, 2024 (b) Budget Workshop of August 27, 2024 Motion by Czmowski, second by May, to approve the minutes as presented. Motion carried unanimously. CITY COUNCIL MINUTES — September 10, 2024 CONSENT AGENDA (The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed) 7. APPROVAL OF CONSENT AGENDA (a) Affirmation of Board Reappointments 1. Reappointment of Tracy Marquardt to Bicycle/Pedestrian Advisory Committee to August 2027 2. Reappointment of Janean Sorrell to Public Arts Commission to August 2027 3. Reappointment of Andrew Webster to Public Arts Commission to August 2027 4. Reappointment of Matt Beilke to Police Commission to May 2027 (b) Consideration for Approval of Resolution No. 15762 — Authorization to Execute MnDOT Grant Agreement for Airport Improvement (c) Consideration for Approval of Revised Subdivision Agreement with Top 10 Options of Hutchinson (d) Consideration for Approval of Private Airport Hanger Lease with Troy Pullis (e) Consideration for Approval of Water Meter Replacement Phase 2 (f) Consideration for Approval of Spooky Sprint Event on October 26, 2024 (g) Claims, Appropriations and Contract Payments Motion by Czmowski, second by Burley, to approve consent agenda. Motion carried unanimously. PUBLIC HEARINGS — NONE purpose of this portion of the agen a is to provi e the Counci with information necessary to craft wise policy. !des items like monthly or annual reports and communications from other entities.) UNFINISHED BUSINESS 8. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 24-848 - AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA VACATING DRAINAGE AND UTILITY EASEMENT LOCATED IN SECOND ADDITION TO THE MEADOWS Dan Jochum, Planning Director, presented before the Council. Mr. Jochum noted that the applicant's request is to vacate a drainage and utility easement located along the interior property line of lots 1 and 2, Block 3 of Second Addition to the Meadows. The proposed structure is a duplex so an easement isn't needed on the interior property line as the duplex will be built up to the interior property line on each side. In addition, a structure cannot be built on an easement. The first reading of this ordinance was held at the last Council meeting and no changes have been made to it. Motion by Czmowski, second by Burley, to approve second reading and adoption of Ordinance No. 24- 848. Motion carried unanimously. 2 CITY COUNCIL MINUTES — September 10, 2024 NEW BUSINESS 9. APPROVE/DENY SETTING ANNUAL CITY RECOGNITION EVENT FOR NOVEMBER 7, 2024, AT 5:30 P.M. AT HUTCHINSON EVENT CENTER Motion by Czmowski, second by May, to approve setting annual city recognition event for November 7, 2024, at 5:30 p.m. Motion carried unanimously. GOVERNANCE (The purpose of this portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 10. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Planning Commission Minutes from July 16, 2024 MISCELLANEOUS 11. STAFF UPDATES Mike Stifter — Mr. Stifter noted that a chip seal project is starting tomorrow — Century Avenue, School Road and 5'h Avenue — with sweeping and seal coating finishing next week. Mr. Stifter also spoke about the water meter replacement project and noted that, although several notices were distributed, some residences will need to have water shut off tomorrow to complete first phase of the project. Mr. Stifter also noted that Airport Road is expected to open within the next couple of days. Dan Jochum — Mr. Jochum spoke about single-family and duplex-type/twin-home construction that has occurred this year. He also noted that there has been interest from developers for future platting for new construction. Marc Sebora — Mr. Sebora noted that he attended G. Barry Anderson's retirement reception today and Judge Anderson sincerely appreciated the proclamation approved at the last City Council meeting proclaiming Barry Anderson Day. Matt Jaunich — Mr. Jaunich noted that Fall Clean Up (white/hard good pick up) is Saturday September 28, 2024. 12. COUNCIL/MAYOR UPDATE Tim Burley — Council Member Burley thanked staff and council members for open discussion during budget time. He also mentioned the Arts & Crafts Festival being held this weekend. ADJOURNMENT Motion by Czmowski, second by Sebesta, to adjourn at 5:50 p.m. Motion carried unanimously. HUTCHINSON CITY COUNCIL REVIEW OF 2025 PRELIMINARY BUDGET MINUTES TUESDAY, SEPTEMBER 10, 2024, AT 4:00 PM CITY CENTER — COUNCIL CHAMBERS 1. Call to Order Mayor Gary Forcier called the workshop to order at 4:00 p.m. Members present were Tim Burley, Pat May, Chad Czmowski and Dave Sebcsta. Others present were: Matt Jaunich, City Administrator, and other City directors REVIEW OF 2025 PRELIMINARY BUDGET 2. 2025 Preliminary Budget Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that today's agenda will include a review and reminders, the state budget impact, preliminary levy and past levies, general fund revenue and expenses, proposed staff changes, enterprise funds revenue and expenses, debt management plan and next steps. Mr. Jaunich also reviewed the City's mission statement, vision statement, the seven core areas of focus, the City's strategic plan, and five long- term goals the Council should consider every budget season. Those goals include: 1. What should future tax levies look like? 2. What levels of services should the City perform and provide in the future? 3. What is an acceptable level of debt? 4. What is our level of investment in technology and equipment, and what period of payback is acceptable? 5. What are our future infrastructure needs (roads, utilities, buildings, etc.) and how are we going to pay for them? Mr. Jaunich reminded the Council that the City Charter requires staff to submit an annual budget by September 1st. The City Charter also requires the Council to act on the preliminary budget by the second regular meeting in September. After the preliminary levy is set, it can only be lowered, not raised. The Council will need to set the date and time of its Truth -in -Taxation hearing at the second meeting in September and provide a phone number and mailing address that taxpayers may call/contact if they have questions related to the City's property tax levy/budget. The hearing is usually held in early December. The budget will be adopted in mid -late December. Mr. Jaunich commented on the State budget situation which in February 2024 showed a budget surplus projected to beat $3.7 billion. The next projection will come out in November. Early estimates expect a slight surplus, perhaps $142 billion. At this point, nothing is pointing towards any state financial issues that should impact the City's 2025 budget planning. Staff is proposing to increase the general fund levy by 8.7% and the debt fund levy by 3.1%, with a 3.3% increase in the EDA tax levy and a 3.0% increase in the HRA tax levy, with a total tax impact of 6.9%. Mr. Jaunich provided an overview of past tax levies from 2017 to the present. Mr. Jaunich provided the Council four options for the Council to consider for the preliminary tax levy. The first option would hold both levies flat; the second option would see a 3% increase in the general fund levy and a 3.1% increase to the debt levy; the third option would increase the general fund levy by 5.0% and the debt levy by 3.1 %; and the fourth option would increase the general fund levy by 8.6% and the debt levy by 3.1 %. The fourth option, or a 7.1 % total levy increase, would mean a 3.259% change in tax rate or a $181 annual increase on a median home value of $275,000. Mr. Jaunich spoke about changes to the homestead exclusion in 2025 whereby the State adjusted the Homestead Market Value Exclusion amounts upwards to address rising residential property values. Mr. Jaunich also reviewed a 10-year tax rate trend. He also provided information on a tax rate comparison from 2023 of Hutchinson to other regional centers, state- wide and county -wide cities which shows that Hutchinson is basically at the mid -point yet lower than other regional centers and other cities state-wide and county -wide. He noted that the average tax levy increase amongst cities in 2024 was 7.5% and the preliminary 2025 levy increases for other cities is averaging 10.78%. Mr. Jaunich provided a market value history which is a 3.3% increase from 2023 to 2024. Mr. Jaunich reviewed general fund revenues and how they are proposed to be increased and decreased, with an average of a 4.6% increase. Mr. Jaunich commented items to note for the general fund include that general fund revenues include an 8.6% tax levy increase ($25,000 of the levy is allocated to the Uponor tax abatement); there is a very minor increase in the LGA amount to the general fund; no PILOT payment increase from HUC; increasing engineering fees factored in; increase in civic arena rental revenue; most other revenues are at 2024 budgeted amounts; and a 1% tax levy increase in the general fund is equivalent to $63,586. Mr. Jaunich spoke to the LGA allocation with 50% of the LGA in 2025 being allocated to the general fund and 50% going to the capital fund; this is the fourth straight year of a 50%/50% split; originally when LGA was split in 2011 the split was 60%/40%; LGA was significantly increased in 2024; there is a minor increase in 2025; and $201,733 is undesignated for future capital needs. Property taxes see an increase of 8.6%; other taxes see a 3% decrease; licenses & permits increase 0.6%; intergovernmental revenue increase 0.1%; charges for service increase of 4.8%; no increase in fines & forfeitures, increase of 5.2% in miscellaneous revenue, and no increase in transfers -in. General fund expenses are proposed to increase 4.6%. Wages & benefits are increased 5.78%, supplies increased 2.3%, services & charges increased 3.2%, miscellaneous expenses decreased 1.2%, transfers -out and capital outlay remain flat. Mr. Jaunich noted that the largest impact on the City's general fund expenses is associated with wages and benefits which includes costs for general performance increases, union impacts and staff timing/allocation changes and minor shifts. A 4% increase in health insurance is budgeted for next year. New positions budgeted for 2025 include a new DMV full-time employee with reduced part-time hours, new proposed fire inspector position and an engineering position for a full year vs. a half year as in 2024. The additions also include $25,000 for Uponor tax abatement, inflationary factors have been factored into the budget, and software & licensing increases with the Microsoft 365 conversion are a large part of the increase. The preliminary budget is currently balanced. Mr. Jaunich then reviewed expenditures from 2024 to 2025, historical general fund budget information and staffing levels. Mr. Jaunich reviewed the enterprise funds and their proposed increases/decreases. Mr. Jaunich noted that fund numbers include depreciation. He noted that the liquor fund continues to do very well. There will be the second of three rate increases for garbage (three-year plan) — no increases had been made since 2018. The City is in the third year of new water and wastewater rates which are based off of the 2021 rate study recommendation and didn't have a significant impact on revenue. There is a slight rate increase in the stormwater rates. There is a decrease in fund balances due to capital needs with a high need in wastewater. The enterprise fund balances are healthy. Additional budget factors include a $12.1 million capital improvement plan, no major changes in services, 2 %2 new positions added in the preliminary budget (full year of Engineering position, new DMV employees, new Fire Inspector position), staffing costs and capital needs are the biggest driver of the city's general fund budget with staffing costs being the biggest reason behind the request of a tax levy increase within the general fund, no new revenue increases for 2025 including a 0% increase in the HUC PILOT payment, staff is expecting building permit revenue to remain steady and the general fund balance continues to remain healthy. Mr. Jaunich then briefly reviewed the debt management plan. The big impact was the new police station. 2022 was the first increase in the City's debt levy since 2016. The 2025 increase is preliminarily set at 3.1%. Increased interest rates have or will impact future debt decisions. Rising project costs have put pressure on increasing the debt tax levy. The debt levy has not kept up with inflation when it comes to projects. Special assessment rates need to be reviewed. The City will still have future debt needs for heavy equipment and fire trucks. Mr. Jaunich noted that increasing the debt limit would increase the city's project load throughout the community. Adding $200,000 to the debt plan would increase yearly taxes by $8.00 in 2026 to $34.00 in 2037. Adding $400,000 to the City's debt plan would increase yearly taxes by another $12.00 in 2026 to $35.00 in 2037. Estimated debt related to the new ladder truck in 2027 will add another $35.00 per year starting in 2026 to $59.00/year in 2037. Mr. Jaunich reviewed the following considerations: a 1% levy increase is equal to $88,360, staff is proposing a preliminary City tax levy increase of 7.1% (8.6% increase in general fund), combined with the EDA and HRA tax levy increases, the preliminary total tax impact to Hutchinson residents will be the equivalent to a 6.9% increase, the current budget is balanced, the budget includes year 2 of 3 of a rate increase to garbage rates, and the current proposed tax levy increase would increase the City's tax rate for the second straight year, and the increase in the market value exclusion has pushed tax rates up and shifted the tax burden to non-residential properties. Mr. Jaunich noted that there are still a lot of decisions that need to be made between now and the end of December. He also noted that staff will be following the Financial Management Plan when it comes to property tax increases and will be evaluating other policy options in an effort to lower the tax burden. General discussion was held regarding the proposed positions of Fire Inspector and the Engineering position. Council Member Burley expressed that the City really needs to keep things in control with all of the increases/mandates from other entities. Again, staff is proposing a 7.1% increase to the preliminary levy which on average is an increase of $181/year. Overall council members are comfortable with a 7.1% increase preliminarily with the hope that it can be reduced by final adoption. Formal action of the preliminary budget will be taken at the September 24, 2024, Council meeting. 3. Adjournment Motion by May, second by Czmowski, to adjourn the workshop at 5:05 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator PURPOSE,A CITY ON BOARDS/COMMISSION INTEREST FORM www. ci. hutchi nson. mm us Hutchinson City Center, 111 Hassan St. SE, Hutchinson MN Name: Tara Oberg Address: 19984 Ulm Ave Hutchinson, MN 55350 Fax # (320) 234-4240 Phone # (320) 587-5151 Home Phone #: 320-234-3714 Work Phone #: 320-455-4044 Cell Phone #: 320-296-5736 Email Address: tloberg@mmm.com Occupation: _ Environmental Engineer Place of Employment: 3M Educational Background: Environmental and Occupational Health M.S. University of MN Number of years as Hutchinson Resident: 17 I am interested in serving on the following City Board or Commission: ❑ Airport,Commission (5 yr. term) ❑ Bicycle/Pedestrian Advisory Committee (3 yr. term) ❑ Charter Commission (4 yr.. term) ❑ HRA Board (5 yr. term) ❑ EDA Board (6 yr. term) ❑ Library Board (3 yr. term) ❑ Park/Rec/Comm Ed Board (3 yr. term) ❑ Planning Commission (5 yr. term) a Police Civil Service Commission (3 yr. term) ❑ Public Arts Commission (3 yr. term) ❑ Senior Advisory Board (3 yr. term) d -` Sustainability i4dvisory Board-(3�yr. term){ o Utilities Commission (5 yr. term) -OVER- Explain why you are interested in this board/commission: I would like to serve on the Sustainability Advisory Board because it fills both my interest in learning more about Hutchinson's environmental policies including sustainability efforts as well as my desire to find a new local volunteer opportunity. I can bring a strong science and analytical background to the team as well as an open mind to learning and discussing new environmental matters. If I am chosen to serve, I am committed to spend the time necessary to meet the responsibilities of the Board. Please describe any prior/current experience that may relate to serving on this board/commission: Please List Other Municipal Boards and/or Commission you may have served. Years Served 1.) to 2.) to 3.) to 4.) to Please return completed form to Melissa Starke at City Center, 111 Hassan Street SE, if you are interested in serving on any of the above boards/commissions. We thank you for your interest. This form will be placed on file and we will refer to the file as openings occur. n TIC I A CITY ON PURPOSE. BOARDS/COMMISSION INTEREST FORM www.ci.hutchinson.mmus Fax # (320) 234-4240 , Hutchinson City Center,.111 Hassan St. SE, Hutchinson MN Phone* •(320) 587-5151, ' Name: H in I H P& Home Phone #: Cell -Phone #: � - o Occupation: Place of Employment: Educational Background: J1:. Number of years as Hutchinson 0 �,(n,( A30ig3 Work Phone CP S Email Address: 'gan,,z p 1!.27 I.am interested'in serving on the following'City Board or Commission: o� Airport Commission (5 yr. term) ❑ Bicycle/Pedestrian Advisory Committee (3 yr. term) ❑ - Charter Commission (4 yr. term) ❑ HRA Board (5 yr. term) ❑ EDA Board (6 yr. term) ❑ Library Board (3 yr. term) ❑ Park/Rec/Comm Ed Board (3 yr. term) ❑ Planning Commission (5 yr. term) ❑ Police Civil Service Commission (3 yr. term)• ❑ Public Arts Commission (3 yr. term) ❑ Senior Advisory Board (3 yr. term) ❑ Sustainability Advisory Board (3 yr. term) ❑ Utilities Commission (5 yr. term) -OVER- Explain why you are interested in this board/ omm fission on; 1 x „� AA jt 'Off- O✓�d � I_loui0 � 1 �i� ���� 1Y�Q �i1-�O�:n c�11� Q,,a j A e3ur r04nma n ,+!j - 1. Please describe any prior/current experience that may relate to serving on this •+% Please List Other Municipal Boards and/or Commissiomyou• may have served. - - Years Served 1.) to 2.) to 3,} to 4.) to Please return completed form to Melissa Starke at City Center, 111 Hassan Street SE, if you are interested in serving on any of the above boards/commissions. We thank you for your interest. This form will be placed on file and we will refer to the file as openings occur. _ HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Procedural Changes to the Sewer/Water Service Repair Program Agenda Item: Department: Public Works LICENSE SECTION Meeting Date: 9/24/2024 Application Complete N/A Contact: Mike Stifter Agenda Item Type: Presenter: Mike Stifter Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: The sewer/water service program is proving to be a valuable asset for Hutchinson residents experiencing sewer and water service issues. The volume of applicants, especially on the sewer side, is necessitating that we adhere more strongly to certain qualifiers for the program to ensure that funds are properly distributed. The following points are recommended at this time: -Contact with city staff needs to be made before any work starts. There will be no retroactive payments as part of the program. -Residents need to have clear visual evidence of line failure. The failing line needs to be cleaned of roots and televised before funds can be approved. Roots in the line are not clear evidence of failure as just about every clay pipe in town has roots in it. A failure can be a pipe separation, a clearly visible break in the pipe, or a pipe misalignment with separation. The key with this point is that there needs to be a clear camera image of the failure point. -There needs to be a cost estimate provided to city staff before work starts. City staff will not control who does the work but may provide a contractor list. -Sidewalks, curb, and driveways are the only hard surfaces that will be covered under the program for restoration. -Landscape restoration beyond returning the site to a finish grade will be the responsibility of the resident and needs to be on a separate invoice. BOARD ACTION REQUESTED: Approval to make policy adjustments in the sewer water repair program. Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A u HUTCHINSON A CITY ON PURPOSE. Water and Wastewater Service Repairs Account Policy (Policy) January 1, 2023 Purpose The City of Hutchinson (City) hereby establishes the Water and Wastewater Services Repair Account (Account). This Policy intends to define use of Account funds in a manner that supports the City's mission, programs and ongoing operations. The Account provides a funding source for a variety of activities related to maintenance, repair and/or replacement of water and sewer services. Utilization of the Account outlined in this Policy is subject to other strategic, operational, governance and financial policies of the City. Water and Wastewater Service Repair Account The Account provides a source of funding for maintenance, repair and/or replacement of water and sewer services that are privately owned, that are not a part of City -owned infrastructure and that are not included in water and wastewater maintenance budgets. At the City Council's discretion, the Account may supplement other City funds in situations where there is a sudden increase in expenses, one-time unbudgeted expenses, unanticipated loss of funding or uninsured loss. The City Council establishes, maintains or eliminates the Account. The Account consists of a designated account within the City's Water Fund. The City Council approves Account funding sources when adopting the City's annual budget and fee schedule. Use of funds is intended to take place within reasonably short time periods. Expenditures may not exceed the beginning balance plus the revenues in any given year. Excess funds carry over from year to year and uncommitted amounts carried over may be spent on other water and wastewater expenses, as recommended by the Public Works Director and approved by the City Administrator. Accounting The Public Works department identifies and reviews service maintenance, repair and/or replacement projects. Projects are presented to the Public Works Director for approval. The Public Works department prepares, manages and delivers approved projects. The Finance department assigns funds into the Account in accordance with the approved annual budget. The Finance department and Public Works department report expenditures to the City Administrator. The Finance department provides an annual reconciliation of funding sources and project expenditures at the end of each calendar year. Account Funding Sources The Account receives funds from related fees included in water and wastewater utility billings. Revenues may also be allocated from other sources identified in the City's annual budget. The City Council may from time to time direct that a specific source of revenue be set aside in the Account. Examples could include one-time revenues, grant revenues or other surplus funds. Use of Account Funds The Public Works Director identifies maintenance, repair and/or replacement projects. Use of Account resources typically includes work not accounted for in water and wastewater maintenance budgets because they affect only privately -owned services including, but not limited to: a. Water services. Necessary maintenance, repair and/or replacement projects from the water main to approximately four feet (4') from the building foundation, including installation, repair and/or replacement of water services, curb stops and other necessary repairs or replacements of service pipes and equipment. Water services containing lead and/or constructed of galvanized service pipes requiring replacement will be replaced. b. Wastewater services. Necessary maintenance, repair and/or replacement projects from the sewer main to approximately four feet (4') from the building foundation, including installation, repair and/or replacement of sewer services, cleanouts and other necessary repairs or replacements of service pipes and equipment. Authority to use Account. The Public Works department shall report projects to the Finance department. Projects shall identify location and nature of maintenance, repair and/or replacement of service pipes, the current available balance, budgeted transfers into the Account for the year, estimate of project costs and the anticipated ending balance in the Account. 2 Expenditures of funds shall be in accordance with the City's finance policies. Based on available funds, actual costs incurred or because of unforeseen circumstances, the Public Works department may modify project requests. The Public Works department shall report modifications to the Finance department as soon as practicable after they are known. Reporting and monitoring. The Public Works department and Finance department coordinate oversight of the Account to ensure its use complies with this Policy and the Water and Wastewater Service Repair policy. The Public Works Director receives periodic reports of activity in the Account. Based upon information provided by the Public Works department, the Finance department prepares billings to property owners for expenses exceeding the maximum coverage. The Finance Department provides an annual reconciliation report, made available with other year-end reports. Review of Policy The City Administrator, Finance Director and Public Works Director shall review this Policy from time to time. The Policy shall be reviewed as warranted by internal or external changes or events, but at least once every three years. Recommended changes shall be presented for adoption by the City Council. 3 Water and Wastewater Service Repairs Policy City of Hutchinson Public Works December 27, 2022 Repair of Leaks and Equipment City Code clearly indicates that it is the responsibility of the consumer or owner to maintain the service pipe and related equipment from the main into the house or other building. City Code (WATER) § 52.02 REPAIR OF LEAKS AND EQUIPMENT. It is the responsibility of the consumer or owner to maintain the service pipe from the main into the house or other building, including, but not limited to, the stand pipe or curb stop and all equipment associated with the service line, stand pipe or curb stop. In case of failure upon the part of any consumer or owner to repair any leak or any service line, stand pipe or curb stop, within 24 hours after oral or written notice has been given the owner or occupant of the premises, the water may be shut off and will not be turned on until a reconnection charge has been paid and the water service has been repaired. When the waste of water is great or when damage is likely to result from the leak, the water will be turned off if the repair is not proceeded with immediately. Following notice as provided by this chapter, at the sole option of the city, the city may repair the leak and the service pipe, stand pipe or curb stop and all equipment associated with the service line, stand pipe or curb stop and assess the cost for the repair against the property benefitted. The costs to be so assessed may include, but are not limited to, material, labor and professional fees and expenses incurred in the repair. City Code (WASTEWATER) § 53.023 SEWER LINE; OWNER RESPONSIBILITY. The property owner shall be responsible for the sewer line from the building to the main sewer line. Service Policy for Water and Wastewater Service Repairs The services described herein are provided at the City's discretion and do not relieve property owners of their responsibilities under City Code provisions. The City Council retains the right to suspend activity under this policy at any time and for any reason. It shall be the City's policy to repair water and wastewater services, except for those determined to have been misused or have been compromised by means under the owner's direct control. Repairs to services will be funded by monthly fees paid by customers. The City will cover service repair costs up to a maximum limit identified in the City's fee schedule. Fees for service repairs and coverage cost limits may be amended from time to time. Property owners shall be responsible for costs to repair water and wastewater services that exceed the maximum limit identified in the City's fee schedule. These charges shall be considered a current service charge and may be assessed to properties if any balance remains. Water and Wastewater Service Repair Provisions General Property owners shall retain the right and responsibility to make repairs to their services. For repairs initiated by property owners, the City will consider covering expenses incurred by property owners, to the limit indicated in the City's fee schedule, provided the City is notified of the repairs and given the opportunity to certify the work prior to restoring service. The customer must enter into a separate agreement with the City prior to the City conducting repairs for service lines located on private property. This agreement shall identify the rights and responsibilities of both the property owner and the City. In any case, the City reserves the right to initiate service repairs if the service leak is causing or is likely to cause property damage or if the service leak presents any other life -health -safety hazard. Water services are defined as the pipe, fixtures and equipment between the water main and the foundation of the building, defined as to within approximately four feet (4') of the outside wall of the foundation. Wastewater services are defined as the pipe, fixtures and equipment between the sewer main and the foundation of the building, defined as to within approximately four feet (4') of the outside wall of the foundation. Water service to the property may be turned off until repairs to service lines are certified by the City. Water In all cases, water service lines containing lead or galvanized water service lines in need of replacement will be disconnected and replaced with a new private water service line to establish a non -lead service line from the water main to the building foundation. Customers may notify the City or be notified by the City of a service leak. Notice will be given first by attempting verbal notification, then by information delivered to the property and finally by letter. The City will attempt to stop the leak by closing the stand pipe valve or curb stop. • If the service leak can be stopped by closing the valve at the stand pipe or curb stop, the customer must repair or enter into a separate agreement with the City to have the City repair any leak in the service line between the building and the valve at the stand pipe or curb stop. • If the service leak cannot be stopped by closing the valve at the stand pipe or curb stop, the City will initiate repair of the service; however, the City will not extend repairs onto private property without a separate agreement with the property owner. During repairs for water services completed by the City or under contract by the City, proper operations of a service stand pipe valve or curb stop will be verified. This may include installing, repairing or replacing the service stand pipe valve or curb stop. 2 Wastewater Customers may notify the City or be notified by the City of a service issue. Notice will be given first by attempting verbal notification, then by information delivered to the property and finally by letter. When customers notify the city, they must provide evidence of failure by televising the sewer line to be eligible for the program. Every attempt must be made to restore flow to the line to get the clearest images possible. The cost of televising is the responsibility of the homeowner until they are determined to be eligible for the program. At that point the televising cost can be invoiced along with the sewer repair to the program. If a sewer cleanout is not present, one must be installed as part of the program. Customers may choose their own contractor but must provide a repair estimate to city staff before work starts. City staff may make contractor recommendations if requested to do so by customers. Landscape restoration (sod/turf, shrubs, hardscaping) will be the responsibility of the homeowner. The work area will be restored to a finish grade as part of the project by the contractor. Trees removed as part of the project that are on the right of way will be replaced by the city if the site is suitable. Private trees will not be replaced as part of the program. Street, driveway, sidewalk, and curb repair will be covered under the program. Carriageway (non -city sidewalk), retaining walls, entryway steps, and other hardscaping will not be covered as part of the program. • If the service issue can be addressed by verifying the condition of the pipe between the sewer main and the cleanout, the City will initiate operations to reinstate the function of the service or make necessary repairs to the service; however, the City will not extend repairs onto private property without a separate agreement with the property owner. If the service issue cannot be addressed by verifying the condition of the pipe between the sewer main and the cleanout or if a cleanout is not present, the customer must repair the service line or enter into a separate agreement with the City to repair the service line between the sewer main, to include installation of a sewer cleanout. During repairs for wastewater services completed by the City, proper operations of a cleanout will be verified. This ff�ay will include installing, repairing or replacing the cleanout. 3 fl HUTCHINSON CITY COUNCIL Request for Board Action Short -Term Gambling License - Upper Midwest Allis Chalmers Club Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 9/24/2024 Application Complete Yes Contact: Melissa Starke Agenda Item Type: Presenter: Melissa Starke Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency No Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The Upper Midwest A-C Club has submitted a short-term gambling license application into administration for review and processing. The application is for a raffle drawing the organization is holding on July 27, 2025, at the McLeod County Fairgrounds during the annual Orange Spectacular. The applicant has completed the appropriate application in full and all pertinent information has been received. BOARD ACTION REQUESTED: Approve issuing short-term gambling license to Upper Midwest A-C Club on July 27, 2025. Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A C HU'-vCHINS A CITY ON PURPOSE. 111 Hassan Street Southeast Hutchinson, MN 55350 (320) 587-5151 Fax: (320) 234-4240 City of Hutchinson APPLICATION FOR GAMBLING DEVICES LICENSE In provisions of the City of Hutchinson Ordinance Chapter 114 and Minnesota Statutes Chapter 349 All applications are to be received at least 30 days before event in order to be considered Application Type Short Term Date(s) 07/27/2025 — 07/27[2025 _ Fee: $30.00 Month Da Year — MonthlDaylYear Organization Information I Upper Midwest A-C Club 612-719-3955 Name Phone Number 840 Century Ave SW Hutchinson MN 55350 Address where regular meeting are held City State Zip Federal or State ID: 41-1811031 Day and time of meetings? Saturdays when all board members can attend. _ Is this organization organized under the laws of the State of M N Wyes I] no yRHow q0 How long has the organization been in existence? many members in theorganization. What is the purpose of the organization? Preserve Agricultural History, specifically Allis 111461k In whose custody will organization records be kept? Lori A. Miller, Secrete 612-483-2712 Name Phone Number 13615 Hartungs Oaks Rd Cologne MN 55322 Address City state zip Duly Authorized Officer of the Organization Information Norman Grams, President 507-276-8597 True Name Phone Number 105 E. 101' St. Winthrop MN 55396 Residence Address City State Zip Place of Birth: XXXXXx Date of Birth: Month day/year Have you ever been convicted of any crime other than a traffic offense? I] yes If yes, explain: city _. . Xno_ 'S ' City of Hutchinson Application for Gambling Devices License Page 2 of 3 Todd E. Grams, Treasurer & Gambling Manager Tile Name 13615 Hartungs Oaks Rd Cologne Residence Address City Date of Birth: _ XXX)O=X)O=XX Place of Birth: Month/day/year Have you ever been convicted of any crime other than a traffic 612-719-3955 Phone Number MN 55322 State Zip XXXXX XX _ City State ❑ yes ><no If yes, explain: How long have you been a member of the organization? cn10rS _ Game Information Location #1 612-719-3955 Mcleod County Fairgrounds - Name of location where game will be played 3 Phone Number 840 Century Ave., Hutchinson MN 55350 Address of location where game will be played City State zip Date(s) and/or day(s) gambling devices will be used: 07/27/2025 _ through 07/27/2025 8AM AM Hours of the day gambling devices will be used: From _ PM L To SpM Maximum number of players: r/A__ n Will prizes be paid in money or merchandise?— money �mer+chandise Vf��1�IGR'q Will refreshments be served during the time the gambling devices will be used? ❑ yes `<no If yes, will a charge be made for such refreshments? ❑ es no L!6 Game Information Location #2 Name of location where game will be played Address of location where game will be played City Date(s) and/or day(s) gambling devices will be used: through AM Hours of the day gambling devices will be used: From PMTo Maximum number of player: Will prizes be paid in money or ❑ money ❑ merchandise Will refreshments be served during the time the gambling devices will be used? If yes, will a charge be made for such refreshments? ❑ es ❑ no Phone Number State zip AM ❑ yes ❑ no ' City of Hutchinson Application for Gambling Devices License raelol Officers of the Organization ffnecessgy, list additional names on separate sheet) SEE ATTACHED Name Residence Address Name Residence Address Name Residence Address Title City State Zip City Title State Zip Title State zip Officers or Other Persons Paid for Services Information Iifnecessaq, list additional names on separate sheet) Name Title Residence Address City State Zip Name Title Residence Address City State Zip Name Title Residence Address City State Zip Have you (Gambling Manager and Authorized Officer) read, and do you thoroughly understand the provisions of all laws, ordinances, and regulations governing the operation and use of gambling devices (as outlined in City of Hutchinson Ordinance 114.20 and Minnesota Statutes Chapter 349)? Gambling Manager ❑ no 00OF� Authorized Officer yes ❑ &e6 Todd E. Grams In:t:aI Norman Grams Initial I declare that the information I have provided-orrtiris application is truthful, and I authorize the City of Hutchinson to investigate the information submitted. Also, I have received from the City of Hutchinson a copy of the City Ordinance No. 114.20 relating to gambling and I will familiarize myself with the contents thereof. Worwm6rams., Pyesi&4 941/ /,:2 Signature of authorized officer of organization Date A Signature ofgambling manager of organization Date Internal Use Only City Council ❑ approved ❑ denied Notes: cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration of a Preliminary Plat for Danielson Addition. Agenda Item: Department: Planning LICENSE SECTION Meeting Date: 9/24/2024 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The Danielson Addition is a three -lot preliminary plat located off Hilltop Drive NE and Garden Avenue NE. A single-family home is currently located on this parcel and the current size of the lot is .72 acres. The applicant proposes leaving the current home on the middle lot and selling the other two lots as developable lots. Nobody from the public spoke regarding this request. The Planning Commission asked where current utility service came into property. Staff noted they believe it comes in from Hilltop Drive NE. The Planning Commission commented on how they think this is a great project to add a few lots to an area already serviced by municipal utilities. The Planning Commission voted unanimously (5-0) to recommend approval of this project to the City Council. BOARD ACTION REQUESTED: Approval of Preliminary Plat Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA RESOLUTION NO. 15769 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF A PRELIMINARY PLAT FOR DANIELSON ADDITION. FACTS 1. Steve Danielson is the owner of 45 Garden Rd NE; and, 2. The subject properties are legally described as: 250' x 126.27' in SW Corner of W 3/4 of S lh SE'/4 Except RR, .72 Acres, Section 21-117-29, North Half City of Hutchinson. Full Legal; That part of the South Half of the Southeast Quarter of Section 32, Township 117 North, Range 29 West, of the Fifth Principal Meridian, McLeod County, Minnesota, described as beginning at a point on the Easterly extension of the North line of Block 2, Clifton heights, distant 5.00 feet East of the Northeast corner of said Block 2, thence continuing Easterly along the extension of said North line, a distance of 250.00 feet; thence South parallel to the East line of said Block 2, a distance of 123.73 feet to the Northerly right-of-way line a distance of 250.00 feet; thence North parallel with the East line of said Block 2, a distance of 126.27 feet, to the point of beginning. 3. Steve Danielson has applied for a three -lot preliminary plat, located at 45 Garden Rd NE, Hutchinson, MN, to be known as Danielson Addition. 4. The Planning Commission met on September 17, 2024 and held a public hearing on the request and considered the effects of the proposal on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and consistency with the Comprehensive Plan, and hereby recommends approval of the request subject to the following findings and conditions: a. Existing garage needs to be removed prior to final plat recording. b. Applicant is responsible for all utility connections to street and any required work to repair the street to City standards. The applicant will pay all costs for this work. c. Building permit surveys must include elevations and grades to ensure proper drainage. d. New lots are subject to SAC/WAC, Park and Playground and all other City fees for new homes per the City fee schedule. 5. The City Council of the City of Hutchinson reviewed the request at its meeting on September 24, 2024 and has considered the recommendation and findings of the Planning Commission and hereby does recommend approval of the preliminary plat of Danielson Addition subject to the following findings and conditions: a. Existing garage needs to be removed prior to final plat recording. b. Applicant is responsible for all utility connections to street and any required work to repair the street to City standards. The applicant will pay all costs for this work. c. Building permit surveys must include elevations and grades to ensure proper drainage. d. New lots are subject to SAC/WAC, Park and Playground and all other City fees for new homes per the City fee schedule. Findings of Fact — Resolution # 15769 Preliminary Plat — Danielson Addition Page 2 APPLICABLE LAW 6. The preliminary plat request meets the following standards as required in Sections 153.050 of the City of Hutchinson Municipal Code. CONCLUSIONS OF THE LAW 7. The requested plat is consistent with the comprehensive plan and applicable ordinances. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the preliminary plat for Danielson Addition is approved. Adopted by the City Council this 24th day of September, 2024. ATTEST: Matthew Jaunich City Administrator Gary T. Forcier Mayor u DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan Jochum, AICP Date: September 13, 2024 for September 17, 2024 Planning Commission Meeting Application: Consideration of Danielson Addition Preliminary Plat Applicant: Steve Danielson PRELIMINARY PLAT FOR DANIELSON ADDITION The Danielson Addition is a three -lot preliminary plat located off Hilltop Drive NE and Garden Avenue NE. A single-family home is currently located on this parcel and the current size of the lot is .72 acres. The applicant proposes leaving the current home on the middle lot and selling the other two lots as developable lots. Indicates property described in this notice _ N Z o HILLTOP DR NE Z w 0 45 JF 1 LUCE LINE TRAIL GENERAL INFORMATION Existing Zoning: R-2 Medium Density Residential Property Location: 45 Garden Road NE Existing Land Use: Single-family home on large lot Adjacent Land Use And Zoning: R-2 Comprehensive Land Use Plan: Medium Density Residential Zoning History: None Applicable Regulations: Section 153.050 Hutchinson City Code Preliminary Plat Analysis: As noted above, this plat will take a large lot and split it into three smaller lots with the existing home remaining on the middle lot. The existing garage on the middle lot will need to be removed prior to filing of the final plat. Also, the applicant is responsible for making the utility connections to the lots and any required street work/patches, as well as all curb, gutter and driveway approach work. The City will not be completing any of this work. All costs are the responsibility of the applicant. Since there isn't a grading plan for this plat, each survey for building permit will need to have building elevations and grades noted so that City Staff can ensure proper drainage of this area. The two proposed lots that currently do not have a home on them will be subject to Sewer and Water Availability Charge, parks and playground fees, and all other fees typically charged when a new home is built per the City fee schedule. Recommendation: Staff recommends approval of this request. If Planning Commission feels this Preliminary Plat is acceptable the following conditions should be applied to the preliminary plat approval: 1. Existing Garage needs to be removed prior to final plat recording 2. Applicant is responsible for all utility connections to street and any required work to repair the street to City standards. The Applicant will pay all costs for this work. 3. Building permit surveys must include elevations and grades to ensure proper drainage. 4. New lots are subject to SAC/WAC, Park and Playground and all other City fees for new homes per the City fee schedule. Preliminary Plat of DANIELSON ADDITION I I i I I wrlY z+®rn I 3'xn' I I I wreiYl""0'w I I I I I I L------------- __________________ 11 rnr� L $ j. \Lon i iy II ___x.a_,r- gll LoTj il! ro sl /I 3i0c I I BLOCKit �1j �------,mranmwnl.ermly � �---------- Imo_____ I I____ of J I - L ______ ___I — � J ,,X1 -1:C IRI JA --7,V Rti6R�+::l m ®©© m©�7 II:TT�Of�Jfrl - RAG ----- Surveyed Dawnption e:�� mr�awll.nwarw>almlw..au.rrmrrrse. vawm++Ys�w I a.r+rlYlYm nr I I I Zonilg Infpnnetion I I m� a...rawwYr I I I I "r+.4ti jtir' � mw..wrrm.ry I Yzw.wzw�wz I I I ,meo.Yaww.merm. :::J aUMByDre Wptee .r.w..wYow —___ z,lww•swar 11�olnwls rYw NCM91Y 1NP - S3y IMP 111, RNOSY _ - - - ^ LEGEND wr.lw U ®�wre�� did M E _— aw�pwY m ee�nw`r 5 e rOw O0 ~ �4e.e�.nr 9 wrwll. 4w 8wm1l,.1 f"j GRAPHIC SCALE Yti eorroarwie �x rEEr El �� Z owwowlw s.ee cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration of a Conditional Use Permit for a tattoo establishment in a C-3 Agenda Item: Zoning district located at 225 Main St S. Department: Planning LICENSE SECTION Meeting Date: 9/24/2024 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The applicant, Catherine Fasching, is requesting a conditional use permit to allow a tattoo establishment in the C-3 (Central Commercial) district located at 225 Main Street South. The business will be located within a salon and will be in a small space. Nobody from the public spoke regarding this request. The Planning Commission did not have any questions about the application. The Planning Commission voted unanimously (5-0) to recommend approval of the Conditional Use Permit. BOARD ACTION REQUESTED: Approval of Conditional Use Permit Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA RESOLUTION NO. 15770 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF CONDITIONAL USE PERMIT FOR A TATTOO EXTABLISHMENT IN A C-3 ZONING DISTRICT LOCATED AT 225 MAIN ST S. FACTS 1. Schramm Properties LLC is the owner of a parcel of land located at 225 Main St S, Hutchinson Minnesota; and, 2. The subject property is legally described as: N 1/3 of Lot 8, Block 27, Townsite of Hutchinson South Half 3. Catherine Fasching has applied to the City for a conditional use permit for a tattoo establishment in a C-3 zoning district located at 225 Main St S. 4. The Planning Commission met on September 17, 2024, and held a public hearing on the request and considered the effects of the proposal on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and consistency with the Comprehensive Plan, and hereby recommends approval of the request subject to the following findings and conditions: a. The proposal would meet the standards for granting a conditional use permit, subject to the conditions stated. b. The business must remain in accordance with MN State Statues and meet all health standards for tattooing, piercing, body art, or similar services per the State of Minnesota and/or City of Hutchinson regulations. c. The applicant must apply for City of Hutchinson license to operate a tattoo establishment within the City. d. Any signage for the business will require a sign permit. e. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. 5. The City Council of the City of Hutchinson reviewed the requested conditional use permit at its meeting on September 24, 2024, and has considered the recommendation and findings of the Planning Commission and hereby does recommend approval of the conditional use permit, subject to the following findings and conditions: a. The proposal would meet the standards for granting a conditional use permit, subject to the conditions stated. b. The business must remain in accordance with MN State Statues and meet all health standards for tattooing, piercing, body art, or similar services per the State of Minnesota and/or City of Hutchinson regulations. c. The applicant must apply for City of Hutchinson license to operate a tattoo establishment within the City. d. Any signage for the business will require a sign permit. Findings of Fact — Resolution # 15770 225 Main St S Conditional Use Permit Page 2 e. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. APPLICABLE LAW 6. The conditional use permit request meets the following standards as required in Sections 154.063 of the City of Hutchinson Municipal Code: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. CONCLUSIONS OF THE LAW 7. The requested conditional use permit is consistent with the comprehensive plan. The proposed use will not have a substantial or undue adverse effect upon adjacent property, character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare. 9. The proposed use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the application to issue a conditional use permit for a tattoo establishment in a C-3 zoning district located at 225 Main St S, Hutchinson MN is approved. Adopted by the City Council this 24th day of September, 2024. ATTEST: Matthew Jaunich City Administrator Gary T. Forcier Mayor u „....f" DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan Jochum, AICP and City of Hutchinson Planning Staff Date: September 13, 2024 for September 17, 2024 Planning Commission Meeting Application: CONDITIONAL USE PERMIT TO ALLOW A TATTOO ESTABLISHMENT IN THE C-3 (CENTRAL COMMERCIAL) 225 MAIN ST SOUTH Applicant: Catherine Fasching CONDITIONAL USE PERMIT: The applicant, Catherine Fasching, is requesting a conditional use permit to allow a tattoo establishment in the C-3 (Central Commercial) district located at 225 Main Street South. l Indicates I described in this notice A -2HD AVE SE 3RDAVESE Y —mix• � +�+� � Existing Zoning: Property Location: Existing Land Use: Adjacent Land Use And Zoning: Comprehensive Land Use Plan: GENERAL INFORMATION C-3(Central Commercial) 225 Main Street South Retail C-3 (Central Commercial) District Downtown Commercial Zoning History: The zoning ordinance was amended on July 10, 2012, to allow tattoo establishments by conditional use permit in the C-3 District. There have been at least four other CUP's for tattoo business since 2012. Applicable Regulations: Section 154.063, Hutchinson City Code Analysis and Recommendation: Staff believes that the proposed application is an appropriate use for this zoning district. Approval of a conditional use permit (CUP) is required in order to allow a tattoo establishment in the C-3 (Central Commercial) District. A CUP shall be granted only if evidence is presented to establish the following: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. Staff finds that the request would meet the requirements of granting a conditional use permit (Section 154.063) and recommends approval subject to the findings and conditions listed in the draft Resolution, including these specific conditions: 1. The proposal would meet the standards for granting a conditional use permit, subject to the conditions stated. 2. The business must remain in accordance with MN State Statues and meet all health standards for tattooing, piercing, body art, or similar services per the State of Minnesota and/or City of Hutchinson regulations. 3. The applicant must apply for City of Hutchinson license to operate a tattoo establishment within the City. 4. Any signage for the business will require a sign permit. 5. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. c� HUTCHINSON CITY COUNCIL Request for Board Action A CITY ON PURPOSE. Resolution Approving Orderly Annexation of Property from Township of Lynn per Agenda Item: OA - 1197 Department: Planning LICENSE SECTION Meeting Date: 9/24/2024 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The School District is considering building a new bus garage to accommodate the bus fleet. Building code requirements for a bus garage will require it to have a fire sprinkler system installed. It is much easier and more cost effective to have a fire sprinkler system supplied by City water versus having a well and pressure tank, thus the request for annexation. Additionally, schools and related facilities are typically more city/urban uses and typically these types of uses are found within a municipality versus a rural area. Nobody from the public spoke regarding this request. The Planning Commission asked if there were water and sewer infrastructure close by. Staff noted those utilities are on the north side of South Grade Road adjacent to the property. The Planning Commission unanimously (5-0) voted to recommend approval of the annexation request to the City Council. The City has an orderly annexation agreement with Lynn Township (see attached) and this annexation is subject to that agreement. BOARD ACTION REQUESTED: Approval of resolution approving petition for annexation. Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A RESOLUTION NO. 15775 RESOLUTION ACCEPTING PETITION AND APPROVING ANNEXATION UNDER ORDERLY OA-1197 BETWEEN CITY OF HUTCHINSON AND TOWNSHIP OF LYNN WHEREAS, The City of Hutchinson and Township of Lynn are parties to an orderly annexation agreement by the Municipal Boundary Adjustment Unit as OA-1197; and WHEREAS, in OA-1197, the Town and the City mutually stated that the agreement set forth all the conditions for annexation of the area designated for orderly annexation and that no consideration by the Municipal Boundary of Adjustments is necessary. The Municipal Boundary Adjustment Unit may review and comment but shall, within (30) day, order annexation in accordance with the terms and conditions of this agreement; and WHEREAS, petition for annexation was filed with the City of Hutchinson on July 29, 2024; and WHEREAS, the petition was signed by 100% of the affected property owners; and WHEREAS, the petition was presented to the City Planning Commission for their review and a public hearing at a regular meeting held on September 17, 2024; and WHEREAS, the petition was presented to the City Council for their review at a regular meeting held on September 24, 2024; and WHEREAS, quantity of land included within the area described in the petition and bounded herein is 9.42 acres, more or less in size, no part of which is included within the limits of any other incorporated city; WHEREAS, the land described is included in an existing orderly annexation agreement (OA-1197). WHEREAS, as a result of this annexation the population of the City of Hutchinson will not increase. WHEREAS, the City of Hutchinson will remit property taxes to the Township of Lynn per agreement OA-1197. NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: That the City Council hereby determines that the annexation will be in the best interest of the City and of the territory affected; that the territory described herein does abut upon the City limits and is urban or suburban in character, or about to become so; and that none of said territory is now included within the limits of any incorporated city. BE IT ALSO RESOLVED: That the Town and City state per agreement OA-1197 that the agreement sets forth all of the conditions for annexation of the area designated herein for orderly annexation and that no consideration by the Municipal Boundary Adjustments is necessary. The Municipal Boundary Adjustment Unit may review and comment but shall, within thirty (30) days, order annexation in accordance with the terms and conditions of this agreement. BE IT FUTHER RESOLVED: Any property annexed into the City of Hutchinson is zoned R-1 Low Density Residential District per Hutchinson City Code Section 154.041, until an amendment to the zoning ordinance shall place annexed land into a different zoning district. BE IT FUTHER RESOLVED: That the following described property in Exhibit A is hereby annexed to the City of Hutchinson, Minnesota, the same as if it had originally been made a part thereof: ADOPTED BY THE HUTCHINSON CITY COUNTIL THIS 24Tu DAY OF SEPTEMBER 2024. ATTEST: Matthew Jaunich City Administrator THIS INSTRUMENT DRAFTED BY: City of Hutchinson 111 Hassan St SE Hutchinson, MN 55350 320-587-5151 Gary T. Forcier Mayor EKNIBIT SHOWING AREA TO BE ANNEKED INTO THE CITY OF HUTCHINSON, MN -for- Independent School District 423, Hutchinson, MN Public Schools Part of- E 1/2- NE 1/4, Sec.11, TA16, R.30, McLeod Co., MN 0 N89°44'17'W .o _ 1329.79 -- - - - ------'S89*44'17 E 741.00 . ._ NORTH 1/4 CORNER m ��U__�U---�}pIU dal SEC.11-116-30 SO N_� s�ORTH LINE -NE 1/4 , . i -.I SEC.11-116-30 AREA TO BE ANNEXED �" °° 1 ata„N.„„,„n INTO THE CITY OF G"s°"`0YN0 HUTCHINSON, MN o 9.42 ACRES 4 °b. I _ 3.8 O�.,-" FIELD DIVISION LINE ` J In o0 Ln h 9° --- — -L- 741.0 I GRR E-- - EN n I A1 1 HOUSE -_ 149.5 -- I ®wa SHED u 113.4 QOUNSET I I S89-44'17"E 588.79 f1 NORTH NORTHEAST CORNEE� 5EC.11-116-30 GRAPHIC SCALE � 100 I 0 50 100 200 I h ry SCALE rN FEET ko e / O DENOTES IRON MONUMENT SET, MARKED RLS# 45356152705 t/J ^ WEST LINE-E 1/2-NE 1/4, SEC.11-116-30 ___ 10 DENOTES MCLEOD COUNTY SECTION CORNER LINE PARALLEL WITH THE �J L 00 LINE PARALLEL WITH THE " WEST DNE-E E 1/9, - DENOTES GUY WIRE rDx DENOTES POWER POLE ,^ NORTH DNE-NE 1/4, I SEC.11-116-30 9° I SEC.11-1.11-116-30 DENOTES SIGN / —ONI1— DENOTES OVERHEAD LMUTY S89*44'17"E 741.00 F_ — __' DENOTES BITUMINOUS SURFACE L — _ J DESCRIPTION OF AREA TO BE ANNEXED INTO THE CITY OF HUTCHINSON, MN NOTES The North 554.00 feet of the West 741.00 feet (as measured perpendicular to and parallel with the north and west lines) of the East Half of the Northeast Quarter of Section 11, Township 116, Range 30, McLeod County, Minnesota. Field survey was completed by E.G. Rud and Sons, Inc. an 07/23/24. This tract contains 9.42 acres and is subject to any and all easements of record. Bearings shown are based on the McLeod County Coonl. Sys. NA083 (96 adj.). BEARING DATUM: Assumed SCALE: 1' = )DC I hereby oerclfy that this plan, survey or report was prepared by RUN � Q��� �� Parcel ID Number: 090111200. me or under my direct supervision and that I am a duly Licensed 10B NO. 24XXXXHS ON& IN.a,! r, Lana surveyor under the laws of NeAe Minnesota. REVISIONS - Professional Land Surveyors This survey was prepared without the benefit of title work. Additional //l/�/ DATE: xx-xx-2a 990 5th Ave SE, Suite 2 easements, restrictions and/or encumbrances may exist other than those shown BY' DRAWN BY: XXX Hutchinson, MOW e 2 hereon. ou Surve b'ect to revision upon receipt of a current title commitment or Minn.o a se No. 45356 Y su I Po P Ted. (aaal5ah""' an attornev's tithe nuu.n. Dated 24th day of JUN"Iv. 2024. ,,,, nnae I oescnenax av CREW: TBD .eorutl.c4m L-e By SAP 1 9 2005 County of McLeod State of Minnesota City of Hutchinson Resolution No. 2' and Township of Lynn JOINT RESOLUTION OF THE CITY OF HUTCHINSON AND THE TOWNSHIP OF LYNN AS TO THE ORDERLY ANNEXATION OF PROPERTY WHEREAS, the City of Hutchinson ("City") and the Township of Lynn ("Township") desire to enter into an agreement allowing for the orderly annexation of certain property, pursuant to Minnesota Statute 414.0325, Subdivision 1; and WHEREAS, the City and the Township are in agreement concerning the annexation of the property identified in Exhibit A (also identified as the staged growth plan attached as a map); and WHEREAS, the area identified was based on the City's capacity to provide sewer services to areas; WHEREAS, it is in the best interest of the City, the township and their respective residents to agree to an orderly annexation in furtherance of orderly growth and the protection of the public health, safety and welfare; and WHEREAS, the parties hereto desire to set forth the terms and conditions of such orderly annexation by means of this Resolution; NOW, THEREFORE, BE IT RESOLVED by the City of Hutchinson, McLeod County, Minnesota, that the following terms, conditions and agreements shall become binding upon the City and the Township: Upon approval by the respective governing bodies of the City and the Township, this joint resolution shall confer jurisdiction upon Minnesota Planning — Municipal Boundary Adjustments (hereinafter "Minnesota Planning") to accomplish the orderly annexation of the lands described in the attached Exhibit A in accordance with the terms of this joint resolution. 2. Pursuant to Minnesota Statutes 414.0325, subdivision 1, the parties do hereby designate the area described in the attached Exhibit A as an Orderly Annexation Area in need of orderly annexation. The described Orderly Annexation Area consists of approximately 1427 ac,res. Orderly Annexation Agreement Lynn Township Resolution No. k l fs Page 2 BY ku p SEP 19 2005 3. The City covenants and agrees that it will preserve the drainage functions of all drain tiles located within the Orderly Annexation Area by designing and constructing a municipal storm sewer system and allocating the costs thereof as described in this resolution, to the extent that the future development of properties within the Annexation area shall not significantly adversely impact existing drainage in the areas of the Township outside the orderly Annexation Area as such drainage exists at the time of the signing of this agreement. 4. For all property annexed pursuant to this Joint Resolution, the City shall remit to the Township, property taxes as follows: a. Property taxes payable on the annexed area for the year in which the annexation becomes effective shall be paid to the Township. Thereafter, property taxes shall be paid to the city but shall be apportioned as listed below, and the City shall make a cash payment to the Township yearly in the following amounts: 1. In the first year following the year in which the land was annexed, 95% of the property taxes paid to the Township in the year the land was annexed; 2. In the second year following the year in which the land was annexed, 85% of the property taxes paid to the Township in the year the land was annexed; 3. In the third year following the year in which the land was annexed, 65% of the property taxes paid to the Township in the year the land was annexed; 4. In the fourth year following the year in which the land was annexed, 45% of the property taxes paid to the Township in the year the land was annexed; 5. In the fifth year following the year in which the land was annexed, 25% of the property taxes paid to the Township in the year the land was annexed. b. Thereafter all property taxes from the described property shall be paid to the City. BY Orderly Annexation Agreement R� SEP 1 9 2005 Lynn Township Resolution No. tae i 8 Page 3 6. This Joint Resolution may be amended from time to time by the City and the Township upon such terms as are mutually acceptable to the parties. 7. The City and the Township mutually state that no alteration by Minnesota Planning to the boundaries as described on Exhibit A ("the orderly annexation area") is appropriate or permitted. 8. Having designated the area described on Exhibit A as in need of orderly annexation, and having provided for all of the conditions of its annexation within this document, the parties to this agreement agree that no further consideration by Minnesota Planning is necessary. As such, Minnesota Planning may review and comment, but shall, within thirty (30) days of the date of receipt of this Joint Resolution for Orderly Annexation, order the immediate annexation of the properties and land described in the attached Exhibit A in accordance with the terms of this Joint Resolution. ADOPTED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON THIS �3"d DAY OF Ow u.a* , 2005 �) G4 Steven W. Cook Mayor Gary D. P tz City Administrator ADOPTED Y THE n f) TOWNSHIP BOARD THIS DAY OF ��-=. 5 Chair Ll n Township Clerk n✓) Township Orderly Annexation Agreement Lynn Township Resolution No. Q-SS L O Page 4 Exhibit A The NE 1/4 and SE 1/4 of Section 3, T116N, R30W. East 1/2 of Section 10, T116N, R30W. The W 1/2 of NW 1/4 of Section 2, T116N, R30W. The N 1/2 of the NE 1/4 of Section 15, T116N, R30W. The NW 1/4 of the NW 1/4 of Section 14, T116N, R30W. Section 11, T116N, R30W. The SW 1/4 of Section 12, T116N, R30W. The N 1/2 of the NW 1/4 of Section 13, T116N, R30W. 4 3 Staging Plan -New -July, 2005 Awma TWp. HulchinaonT Hassan Valle Tw. o1a 0 403 5n310 1020 E22Q �FM2ffl 314.3 537.E 410.4 Totals 989.4 1222.8 921.6 I I I I , I I I 30 I I I I I I I I I 36 31 3 � I r � I I CJ e I 1 I I } e Mp I I —"f—F 7A A 1. e � - J City of -4 A jr, AD - Alf 1 1 I I I I of I .I i I I I 1 I I Orderly Annexation Map City of Hutchinson Hassan Valley Lynn Township Hutchinson Township Acoma Township July, 2005 Staged Growth Year 2005-2010 2010-2015 2015-2020 Joint Planning Boundary 19 2005 WE s u _ A CITY ON PUP " ' DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan Jochum, AICP Date: September 13, 2024 for September 17, 2024 Planning Commission Meeting Application: Ordinance to Consideration of Property for Annexation — Located in Lynn Township, Section 11. Applicant: Independent School District 423 REQUEST FOR ANNEXATION: The property owners are requesting annexation of property pursuant to Minnesota Statutes 414.003, Subdivision 2 (3). The purpose of the annexation is to have land for a bus garage. Due to utility requirements the bus garage needs to be located within City limits to have access to the utility services. ' Indicates property described in Ns not SOUTH GRADE ROAD SW I �-� CURRENT GTY LIMITS 2 PARCEL NO. 09.011.1200 bI GENERAL INFORMATION Existing Zoning: Agricultural Property Location: South Grade Road Existing Land Use: Agricultural Adjacent Land Use And Zoning: Agricultural and Commercial Comprehensive Land Use Plan: n/a — Outside of City Limits Zoning History: Agricultural located in Lynn Township Applicable Regulations: MN Statutes 414 Analysis: The School District is considering building a new bus garage to accommodate the bus fleet. Building code requirements for a bus garage will require it to have a fire sprinkler system installed. It is much easier and more cost effective to have a fire sprinkler system supplied by City water versus having a well and pressure tank, thus the request for annexation. Additionally, schools and related facilities are typically more city/urban uses and typically these types of uses are found within a municipality versus a rural area. Recommendation: Staff supports the request for annexation and recommends it move forward through the annexation process. EXHIBIT SHOWING AREA TO BE ANNEXED INTO THE CITY OF HUTCHINSON, MN -for- Independent School District 423, Hutchinson, MN Public Schools -Part of- E 1/2 - NE 1/4, Sec.11, TA16, R.30, McLeod Co., MN 0 N89"44'17"W W 589°44'17"E NORTH _ 1329.79 �.-----S89"44'17"E 741.00 f _ 588.79 m I NORTH 1/4 CORNER � SEC.1111630 m � aU- M39a U -� OIU � CI 1NORTH LINE -NE 1/4, p g SEC.11-116-30 NORTHEAST CORNER AREA TO BE ANNEXED = oEa�ao��o INTO THE CITY OF ; `° LINE HUTCHINSON, MN o o 100 GRAPHIC RPHso S 00 LE 200 kO 9.42 ACRES ko�L -9Oo Ln I A oo SCALE IN FEET Ln 741.0 A GREEN A I I i HOUSE .r e 3.8 113.4 FIELD DIVISION LINE � � QOUNSET LEGEND O DENOTES IRON MONUMENT SET, MARKED RLSt 45356152705 WEST LINE 1/2-NE 1/4, j _ I� �' - DENOTES MCLEOD COUNTY SECTION CORNER SEC.I1-116-30 I DENOTES GUY WIRE p LINE PARALLEL WITH THE LINE PARALLEL WITH THE ° WEST LINE-E I/2-NE 114, — 1 7 s DENOTES POWER POLE i- NORTH LINE -NE 114, '?'° I SEC.11-116-30 1 SEC.11-116-30 / — DENOTES SIGN rtT I —pal— DENOTES OVERHEAD llTiLil1' S8944'17"E 741.00 — DENOTES BITUMINOUS SURFACE DESCRIPTION OF AREA TO BE ANNEXED INTO THE CITY OF HUTCHINSON, MN NOTESThe North 554.00 feet of the West 741.00 feet (as measured perpendicular to and parallel with the north and west lines) of the East Half L of the Northeast Quarter of Section 11, Township 116, Range 30, McLeod County, Minnesota. Field survey was completed by E.G. Rud and Sons, Inc. an 07/23/24. This tract contains 9.42 acres and is subject to any and all easements of record. Bearings shown are based on the McLeod County Coord. Sys. NAD83 (96 adj.), BEARING DATUM: Assumed SCALE: 1" = XX' I hereby certify that this plan, survey or report was prepared se E c. Roo 8 SONS. INC. - Parcel ID Number: 090111200. La or under r u direct supervision and that I am a duly licensed REVISIONS JOB NO. 24XXXXHS Land Surveyor under the laws of thae stace.of Minnesota. Professional Land Surveyors This survey was Prepared without the benefit of may work. Additional ��1/!�%,{ p / DATE: xx-xx-24 990 Sth Ave SE Suite 2 easements, Survey subject and/or eon upon noes may exist otherthanc those shown By Il/L DRAWN BY: XXX Hutchinson, MN 55350 hereon. Surve b-act to revision upon recei f a current title commitment or Minnes se No. 45356 an attomev's title oolnion. Po Pt o Dated day f ly 2024. rsarc,mrax �, T�I. I3 d...-Y026 L-B 24tB Y a _ ]y CREW: TBO CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE 9/24/24 Check Date Check # Name Description Amount 9/6/2024 EFT EFTPS Payroll Report 8/18/24 - 8/31/24 73,496.65 9/6/2024 EFT MN Dept of Revenue Payroll Report 8/18/24 - 8/31/24 14,921.58 9/6/2024 EFT MNDCP Payroll Report 8/18/24 - 8/31/24 325.00 9/6/2024 EFT Child Support Payroll Report 8/18/24 - 8/31/24 1,079.82 9/6/2024 EFT UNUM Voluntary Insurance Payroll Report 8/18/24 - 8/31/24 341.77 9/6/2024 EFT PERA Payroll Report 8/18/24 - 8/31/24 62,526.20 9/6/2024 EFT Further HSA Payroll Report 8/18/24 - 8/31/24 16,505.16 9/6/2024 EFT Mission Square Payroll Report 8/18/24 - 8/31/24 5,002.91 9/6/2024 EFT VOYA Payroll Report 8/18/24 - 8/31/24 260.00 9/6/2024 117214 Manual Employee Check Payroll Report 8/18/24 - 8/31/24 51.72 9/6/2024 117215 Manual Employee Check Payroll Report 8/18/24 - 8/31/24 39.48 9/6/2024 117216 HART Payroll Report 8/18/24 - 8/31/24 499.02 9/6/2024 117217 NCPERS Payroll Report 8/18/24 - 8/31/24 192.00 9/24/2024 117218 A. W. R. PROPERTIES LLC/AL RESMEN UB REFUND 51.49 9/24/2024 117219 FANDRICH, FAY UB REFUND 21.38 9/24/2024 117220 HINZE, KIERSTEN UB REFUND 224.21 9/24/2024 117221 JENSEN, CHRIS & RENEE UB REFUND 43.15 9/24/2024 117222 LELUK PROPERTIES LLC UB REFUND 132.95 9/24/2024 117223 RICH WESTLUND PROPERTIES UB REFUND 35.23 9/24/2024 117224 SCHMELING, LEROY & RENAE UB REFUND 37.69 9/24/2024 117225 SELLER, MARVIN UB REFUND 141.65 9/24/2024 117226 SELLER, MARVIN UB REFUND 48.35 9/24/2024 117227 4 SEASONS CONSTRUCTION INC LANDSCAPING RESTORATION 712 SHADY RIDGE - WWTP 1,037.00 9/24/2024 117228 AARP AARP INSTRUCTION- SR CTR 445.00 9/24/2024 117229 ACE HARDWARE - 1315 REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 285.90 9/24/2024 117230 ACE HARDWARE - 1790 REPAIR & MAINT SUPPLIES - FIRE 272.10 9/24/2024 117231 ACE HARDWARE - 1825 REPAIR & MAINT SUPPLIES - POLICE 74.00 9/24/2024 117232 ADVANCED ENGINEERING & ENVIRONMENTA SCADA MAINTENANCE - WATER/WWTP 2,229.50 9/24/2024 117233 AEM MECHANICAL SERVICES INC DRAIN CLEANING SD -SR DINING 359.55 9/24/2024 117234 ALLEGION ACCESS TECHNOLOGIES LLC HANDICAP DOOR SERVICE - EVENT CTR 240.00 9/24/2024 117235 ALTERNATIVE BUSINESS FURNITURE OFFICE CHAIR- BLDG INSPECTIONS 209.30 9/24/2024 117236 AMERICAN BOTTLING CO COST OF GOODS SOLD - LIQUOR HUTCH 372.72 9/24/2024 117237 AMERICAN PRESSURE INC 0-RINGS, COUPLERS - WWTP 330.50 9/24/2024 117238 AMPLIFY FOR CHANGE SUPPORT TOMPCAGRANT- CREEKSIDE 700.00 9/24/2024 117239 ANDERSON, JOHN & DIANA UB REFUND 35.03 9/24/2024 117240 ANIMAL MEDICALCENTER ON CROW RIVER ANIMAL IMPOUNDS - POLICE 1,025.00 9/24/2024 117241 ANTIL, BARB REFUND: CANCELLED RESERVATION - PARKS 120.00 9/24/2024 117242 APEX ENGINEERING GROUP INC WATER PLANT STUDY 1,932.48 9/24/2024 117243 ARLYN'S PHOTOS STAFF PHOTOS -AQUATIC CENTER 96.00 9/24/2024 117244 ARROWHEAD FORENSICS EVIDENCE COLLECTION SUPPLIES - POLICE 353.73 9/24/2024 117245 ARTISAN BEER COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 386.60 9/24/2024 117246 AUTO-CHLOR SYSTEM DISH WASHER AGREEMENT - SR DINING 668.39 9/24/2024 117247 B & C PLUMBING & HEATING INC REPAIR & SUPPLIES - MULTIPLE DEPTS 1,518.74 9/24/2024 117248 BARGEN INC CRACK SEALING - STREETS 90,995.00 9/24/2024 117249 BELLBOY CORP COST OF GOODS SOLD - LIQUOR HUTCH 4,526.62 9/24/2024 117250 BENEFIT EXTRAS INC COBRAADMIN FEES 37.50 9/24/2024 117251 BERNICK'S COST OF GOODS SOLD - LIQUOR HUTCH 1,011.89 9/24/2024 117252 BOBBING BOBBER BREWING CO COST OF GOODS SOLD - LIQUOR HUTCH 626.43 9/24/2024 117253 BREAKTHRU BEVERAGE MN WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 18,192.05 9/24/2024 117254 C & L DISTRIBUTING COST OF GOODS SOLD - LIQUOR HUTCH 39,284.65 9/24/2024 117255 CARD SERVICES SUPPLIES - MULTIPLE DEPTS 139.29 9/24/2024 117256 CARS ON PATROL SHOP LLC MAINT & REPAIRS- MULTIPLE DEPTS 3,007.09 9/24/2024 117257 CENTRAL HYDRAULICS CARWASH SUPPLIES 261.51 9/24/2024 117258 CENTRAL MCGOWAN SUPPLIES - MULTIPLE DEPTS 220.44 9/24/2024 117259 CINTAS CORPORATION SUPPLIES & SERVICE - MULTIPLE DEPTS 427.69 9/24/2024 117260 CLARKE ENVIRONMENTAL MOSQUITO MGMT AUGUST MOSQUITO SPRAYING -STREETS 13,464.89 9/24/2024 117261 COKER COMPOSTING AND CONSULTING SUPPORT TO COMPOST IT RIGHT MPCA GRANT- CREEKSIDE 100.00 9/24/2024 117262 COMMON CENTS EMS SUPPLY AED BATTERIES, QUICK RESPONSE PKG - FIRE 5,869.00 9/24/2024 117263 CONFITREK INC CERTIFIED CRIME FIGHTER RENEWAL- POLICE 2,496.00 9/24/2024 117264 COOL AIR MECHANICAL INC MAINT, PARTS - ARENA 1,812.00 9/24/2024 117265 CORE & MAIN LP TRANSMITTERS, C2 FOR TAP BLDG - WATER 12,525.18 9/24/2024 117266 CREEKSIDE SOILS DOG PARK IMPROVEMENTS - PARKS 202.58 9/24/2024 117267 CROW RIVER FLORAL & GIFTS FLOWERS BURMIS - POLICE 58.00 9/24/2024 117268 1 CROW RIVER OFFICIALS ASSN SOCCER & FOOTBALL OFFICIALS - REC 3,510.00 9/24/2024 117270 CROWN LIFT TRUCKS MAINT, OIL, FILTERS-CREEKSIDE 162.67 9/24/2024 117271 DAHLHEIMER BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 43,020.46 9/24/2024 117272 DAKOTA SHED HAULERS LLC MOVE CASP SYSTEM SHED ON SITE - CREEKSIDE 850.00 9/24/2024 117273 DANIELS SHARPSMART INC SHARPS SERVICES - SAFETY COMMITTEE 308.79 9/24/2024 117274 DETECTACHEM INC DRUG TESTS - POLICE 55.78 9/24/2024 117275 DSC COMMUNICATIONS PAGER BATTERY & REPAIRS - FIRE 291.81 9/24/2024 117276 E2 ELECTRICAL SERVICES INC VARIOUS REPAIRS & SUPPLIES - MULTIPLE DEPTS 9,983.88 9/24/2024 117277 EMERGENCY APPARATUS MAINT ANNUAL SERVICE & REPAIRS- FIRE 1,977.96 9/24/2024 117278 EWERT BROS INC CAMERA INSPECTION - WWTP 531.00 9/24/2024 117279 FASTENALCOMPANY MISC OPERATING SUPPLIES - PARKS 682.46 9/24/2024 117280 FIRST ADVANTAGE LNS OCC HEALTH SOLU FIRST ADVANTAGE DRUG TESTING 478.60 9/24/2024 117281 FLOORCOAT MIDWEST LLC MANHOLE LINING - WWTP 14,725.00 9/24/2024 117282 FORUM COMMUNICATIONS PRINTING FALL 2024 PRCE BROCHURE - PRCE 3,272.09 9/24/2024 117283 FURTHER HSA/FSAADM FEES 336.50 9/24/2024 117284 GALLS LLC BAG, BELT, POUCH, NAMETAGS - POLICE 287.29 9/24/2024 117285 GAVIN, JANSSEN, STABENOW & MOLDAN LTD PROSECUTIONS - LEGAL 7,400.00 9/24/2024 117286 GLOBAL RESERVE DISTRIBUTION COST OF GOODS SOLD - LIQUOR HUTCH 462.00 9/24/2024 117287 GRAINGER REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 256.35 9/24/2024 117288 GREEN EARTH LAWN CARE INC LAWN SERVICE - EDA 403.13 9/24/2024 117289 HANSEN GRAVEL INC 4" RIP RAP, MEMORIAL BENCH - MULTIPLE DEPTS 335.00 9/24/2024 117290 HAUG IMPLEMENT CO JOHN DEERE 4720 REPAIRS - PARKS 1,286.18 9/24/2024 117291 HAWKINS INC SODIUM HYPOCHLORITE -WATER 3,476.88 9/24/2024 117292 HEALTHPARTNERS INC MEDICAL INSURANCE 143,813.11 9/24/2024 117293 HEIMAN FIRE EQUIPMENT ENGINE 2 ATTIC LADDER BRACKET- FIRE 174.41 9/24/2024 117294 HERALD JOURNAL PUBLISHING ADVERTISING - MULTIPLE DEPTS 534.40 9/24/2024 117295 HILLYARD/ HUTCHINSON CLEANING SUPPLIES- MULTIPLE DEPTS 678.97 9/24/2024 117296 HJERPE CONTRACTING REPAIRS- WATER 5,640.00 9/24/2024 117297 HOFFMAN, TAYLA PICKLEBALL INSTRUCTOR PAY- REC 49.00 9/24/2024 117298 HOISINGTON KOEGLER GROUP INC DOWNTOWN PLAN UPDATE 6,986.25 9/24/2024 117299 HOLT-PETERSON BUS OCTOBER SENIOR BUS TRIP 925.00 9/24/2024 117300 HOME CITY ICE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 719.56 9/24/2024 117301 HOMETOWN SPORTS & APPAREL T-SHIRTS - REC 2,780.00 9/24/2024 117302 HORIZON COMMERCIAL POOLSUPPLY REPAIR & MAINT SUPPLIES - WATERPARK 123.74 9/24/2024 117303 HUTCHINSON AREA CHAMBER OF COMMERCE HUTCHINSON LEADERSHIP INSTITUTE - POLICE 550.00 9/24/2024 117304 HUTCHINSON CO-OP FUEL & SUPPLIES - MULTIPLE DEPTS 12,103.36 9/24/2024 117305 HUTCHINSON FARMERS MARKET GRANT FOR FARMERS MARKET 2,000.00 9/24/2024 117306 HUTCHINSON FIGURE SKATING ASSOC SKATE INSTRUCTOR PAY (AVA PAULSON) - REC 112.00 9/24/2024 117307 HUTCHINSON UTILITIES UTILITIES - MULTIPLE DEPTS 88,832.54 9/24/2024 117308 HUTCHINSON WHOLESALE #1550 EQUIPMENT PARTS - MULTIPLE DEPTS 338.36 9/24/2024 117309 HUTCHINSON WHOLESALE #1551 AIR HOSE, POWER HOSE -CREEKSIDE 219.09 9/24/2024 117310 HUTCH I NSON, CITY OF WATER BILL-MULTIPLEDEPTS 7,241.96 9/24/2024 117311 HYDROCORP LLC WATER METER REPLACEMENT PROJECT 69,415.00 9/24/2024 117312 INGSTAD BROADCASTING ADVERTISING - LIQUOR HUTCH 229.00 9/24/2024 117313 INTERNATIONAL CODE COUNCIL INC CODE BOOKS - BLDG INSPEC 142.50 9/24/2024 117314 JMS CONCRETE RPR CROSS GUTTER - STREETS 3,250.00 9/24/2024 117315 JOHNSON BROTHERS LIQUOR CO COST OF GOODS SOLD - LIQUOR HUTCH 14,926.11 9/24/2024 117316 JOHNSON CONTROLS FIRE PROTECTION LP REPAIR -ALARM AND DETECTION - EVENT CTR 528.50 9/24/2024 117317 JUUL CONTRACTING CO SEWER, WATER, CURB REPAIRS - MULTIPLE DEPTS 8,106.90 9/24/2024 117318 KERI'S CLEANING & HANDYMAN SERVICES CLEANING - MULTIPLE FACILITIES 4,539.06 9/24/2024 117319 KRE RE, JANETA INSTRUCTOR PAY FOR PICKLEBALL- REC 21.00 9/24/2024 117320 L & P SUPPLY CO REPAIRS, PARTS - PARKS 502.32 9/24/2024 117321 LEAGUE OF MN CITIES -INS TRUST Q4 WORKER COMP PREMIUM, INSURANCE PREMIUMS 168,924.00 9/24/2024 117322 LOGIS LOGIS CONSULTING - MULTIPLE DEPTS 1,345.00 9/24/2024 117323 LYNDE & MCLEOD INC COMPOST BULK-CREEKSIDE 478.38 9/24/2024 117324 MACQUEEN WW022W NOZZLE - WWTP 351.07 9/24/2024 117325 MARCO TECHNOLOGIES LLC PRINTING CONTRACTS - MULTIPLE DEPTS 315.36 9/24/2024 117326 MARCO TECHNOLOGIES LLC NW 7128 PRINTING CONTRACTS - MULTIPLE DEPTS 1,503.19 9/24/2024 117327 MCLEOD COUNTY AUDITOR -TREASURER 1164 BENJAMIN AVE - PROPERTY TAXES 8,650.00 9/24/2024 117328 MCLEOD COUNTY HHW RECYCLE - POLICE 8.75 9/24/2024 117329 MCLEOD COUNTY RECORDER RECORDING - P/Z 92.00 9/24/2024 117330 MCRAITH, RENEE INSTRUCTOR PAY FOR PICKLEBALL- REC 155.00 9/24/2024 117331 MENARDS HUTCHINSON REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 1,638.70 9/24/2024 117332 MESSNER, KEITH REIMB: SAFETY FOOTWEAR - ENG 209.95 9/24/2024 117333 MIDWEST MACHINERY CO MW524XFILTERS -STORMWATER 115.19 9/24/2024 117334 MINI BIFF PORTATOILETRENTALS - PARKS 469.20 9/24/2024 117335 MINNESOTA CIT OFFICERS ASSN TRAINING -POLICE 17,900.00 9/24/2024 117336 MINNESOTA DEPT OF LABOR & INDUSTRY BOILER LICENSES, PRESSURE VESSELS - MULTIPLE DEPTS 30.00 9/24/2024 117337 1 MINNESOTA DEPT OF MOTOR VEHICLE 12025 RAM 1500 TITLE & REG - WATER 2,684.97 9/24/2024 117338 MINNESOTA VALLEY TESTING LAB LAB SAMPLE TESTING - MULTIPLE DEPTS 530.40 9/24/2024 117339 MTI DISTRIBUTING INC MOWER REPAIR PARTS LABOR - PARKS 566.45 9/24/2024 117340 MUNSELL, BEAU UB REFUND 7.61 9/24/2024 117341 MUSCO SPORTS LIGHTING LLC LIGHT MATERIALS FOR VMF BALL FIELD LIGHTS 185,000.00 9/24/2024 117342 MYGUY INC HATS BLENDCO TANK-55 GAL 30.00 9/24/2024 117343 NARTEC INC NARTEC METH AMPULES - POLICE 249.90 9/24/2024 117344 NERO ENGINEERING LLC VAROUS PROJECTS- WWTP 28,810.00 9/24/2024 117345 NORTH CENTRAL INTERNATIONAL MS972TCHAMBER/CLAMP RING -STREETS 272.98 9/24/2024 117346 NORTH CENTRAL LABORATORIES ALUMINUM WEIGHING DISHES - WWTP 270.29 9/24/2024 117347 NORTHERN SMOKE BBQ COST OF GOODS SOLD - LIQUOR HUTCH 240.00 9/24/2024 117348 NOTHING BUT HEMP COST OF GOODS SOLD - LIQUOR HUTCH 675.00 9/24/2024 117349 NUVERA PHONE SERVICES - MULTIPLE DEPTS 5,415.33 9/24/2024 117350 ODRA LLC MW496X SENSOR/CONVEYOR - STORMWATER 630.53 9/24/2024 117351 OLD DOMINION BRUSH CO INC MW524X LEAF VAC RPR PARTS - STORMWATER 4,045.18 9/24/2024 117352 O'REILLY AUTO PARTS SHOP SUPPLIES - FIRE 55.08 9/24/2024 117353 OVERHEAD HOIST & CRANE SPECIALISTS INSPECTIONS - EDA 1,475.00 9/24/2024 117354 PAAPE DISTRIBUTING COMPANY BURICH ARENA HVAC 392.95 9/24/2024 117355 PATROL PC RHINOTAB - POLICE 5,874.62 9/24/2024 117356 PAUSTIS WINE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 5,769.50 9/24/2024 117357 PAVEMENT RESOURCES PAVEMENT REPAIR, PATCHING -STREETS 4,500.00 9/24/2024 117358 PEOPLEREADY INC CREEKSIDE TEMP STAFFING 6,634.88 9/24/2024 117359 PHILLIPS WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 19,020.73 9/24/2024 117360 PLUNKETTS PEST CONTROL PEST CONTROL - LIQUOR HUTCH 828.46 9/24/2024 117361 POMP'S TIRE SERVICE INC WR984R TIRES -WATER 518.72 9/24/2024 117362 VOID VOIDED CHECK - 9/24/2024 117363 PRECISION UTILITIES 539 GLEN SEWER REPAIR 11,463.00 9/24/2024 117364 PREMIUM WATERS WATER SERVICE FEE - PARKS 10.00 9/24/2024 117365 PRO AUTO MN INC VEHICLE SERVICING - MULTIPLE DEPTS 1,234.72 9/24/2024 117366 R & R EXCAVATING VARIOUS PROJECTS - WWTP 6,765.63 9/24/2024 117367 RAH PAINTING & CONTRACTING LLC SUMMER CLEANUP & WEEDING - MULTIPLE DEPTS 1,295.00 9/24/2024 117368 RED BULL DISTRIBUTION COMPANY INC COST OF GOODS SOLD - LIQUOR HUTCH 126.00 9/24/2024 117369 RUNNING'S SUPPLY REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 442.73 9/24/2024 117370 S&STRUCKING LLC FLATBED TRUCKING FOR BAGGED PRODUCTS-CREEKSIDE 1,100.00 9/24/2024 117371 SCHLUETER, TIMOTHY REFUND: COACHING - REC 50.00 9/24/2024 117372 SCOTT'S LAWN SERVICE TALL GRASS/WEEDS COMPLIANCE - STORMWATER 90.00 9/24/2024 117373 SEDERLUND, CORY REIMB: SAFETY FOOTWEAR - POLICE 179.50 9/24/2024 117374 SERVICEMASTER PROFESSIONAL SERVICES WATER DAMAGE @ EOC 16,498.39 9/24/2024 117375 SHAW, KAREN YOGA INSTRUCTION - SR CTR 120.00 9/24/2024 117376 SHIPPERS SUPPLY INC ADHESSIONINKSUPPLIES-CREEKSIDE 595.14 9/24/2024 117377 SIMONSON LUMBER CO LOCKS FOR RESTROOM - PARKS 800.52 9/24/2024 117378 SKYLINE AGGREGATE WASHED SAND -CREEKSIDE 2,517.18 9/24/2024 117379 SOUTHERN WINE & SPIRITS OF MN COST OF GOODS SOLD - LIQUOR HUTCH 18,468.11 9/24/2024 117380 STANDARD PRINTING-N-MAILING POSTAGE - MULTIPLE DEPTS 586.39 9/24/2024 117381 STANDARD WATER PERMIT REFUND - P/Z 52.62 9/24/2024 117382 STAPLES ADVANTAGE OFFICE SUPPLIES-MULTIPLEDEPTS 540.47 9/24/2024 117383 STATE OFWISCONSIN TONNAGE/LICENSE - CREEKSIDE 209.53 9/24/2024 117384 STOTZ, REBECCA UB REFUND 28.19 9/24/2024 117385 STREICH TRUCKING PEAT FREIGHT IN - CREEKSIDE 3,500.00 9/24/2024 117386 SYSCO WESTERN MN CONCESSIONS - REC 558.49 9/24/2024 117387 TALL SALES COMPANY AUG COMMISSIONS - CREEKSIDE 1,012.21 9/24/2024 117388 TARGET PEST CONTROL PEST CONTROL LIBRARY 110.00 9/24/2024 117389 THOMPSON EXCAVATING LLC REED SEDGE PEAT-CREEKSIDE 1,960.00 9/24/2024 117390 THOMSON REUTERS-WEST SUPPLIES/SUBSC- MULTIPLE DEPTS 1,466.12 9/24/2024 117391 TIDY TIGHTWADS/HUTCHFIELDSERVICES HATS JANITORIAL SERVICE 1,485.75 9/24/2024 117392 TITAN MACHINERY REPAIRS, MAINT- MULTIPLE DEPTS 3,091.16 9/24/2024 117393 TM TRUCKS LLC TANDEM DUMP TRUCK -STREETS 113,900.00 9/24/2024 117394 TOWMASTER INC HOLOMATROTOOLSMOUNTING- STREETS 349.32 9/24/2024 117395 TRI COUNTY WATER COMMERCIAL WATER SOFTENER - CIVIC ARENA 7,900.65 9/24/2024 117396 UNITED FARMERS COOP HATS DIESEL FUEL 18,524.91 9/24/2024 117397 UNUM LIFE INSURANCE CO OFAMERICA INSURANCE 3,178.47 9/24/2024 117398 USA BLUE BOOK LAB REAGENTS, CONNECTORS - MULTIPLE DEPTS 383.84 9/24/2024 117399 VIKING BEER COST OF GOODS SOLD - LIQUOR HUTCH 14,055.05 9/24/2024 117400 VIKING COCA COLA COST OF GOODS SOLD - LIQUOR HUTCH 752.40 9/24/2024 117401 VINOCOPIA INC COST OF GOODS SOLD - LIQUOR HUTCH 2,427.75 9/24/2024 117402 VOS CONSTRUCTION INC CASP SYSTEM PROGRESS BILLING -CREEKSIDE 170,035.75 9/24/2024 117403 WAHL REBUILD & REPAIR INC NEW ATTIC LADDERS - FIRE 200.00 9/24/2024 117404 WASTE MANAGEMENT OF WI -MN REFUSE TAKEN TO LANDFILL 14,070.57 9/24/2024 117405 IWATER CONSERVATION SERVICE INC LEAK LOCATE OTTER ST - WATER 1,374.45 9/24/2024 117406 WELCOME NEIGHBOR ADVERTISING - LIQUOR HUTCH 60.00 9/24/2024 117407 WEST CENTRAL SANITATION INC RESIDENTIAL REFUSE 57,942.22 9/24/2024 117408 WM MUELLER & SONS 1/4 VIRGIN SAND BLACKTOP" - STREETS 696.87 9/24/2024 117409 VOID VOIDED CHECK - 9/24/2024 117410 POSTMASTER POSTAGE - MULTIPLEDEPTS 146.00 9/24/2024 117411 POSTMASTER UTILITY BILLS 1,805.00 Total - Check Register A: I I $ 1,637,154.89 Department Purchasing Card Activity - August 2024 Date Department Vendor Name Description Amount 8/13/2024 ADMIN CASH WISE FOODS Food for Primary Election 126.36 8/14/2024 ADMIN SUBWAY Food for Primary Election 365.71 8/14/2024 ADMIN CASH WISE -CARIBOU Food for Primary Election 116.17 8/15/2024 ADMIN PIZZA HUT Food for Primary Election 61.58 8/15/2024 ADMIN PIZZA HUT Food for Primary Election 67.73 8/15/2024 ADMIN PIZZA HUT Food for Primary Election 67.73 8/20/2024 ADMIN MNEFILE Filing Fee for Quiet Title Action 290.00 8/20/2024 ADMIN MNEFILE Filing Fee for Quiet Title Action 5.00 8/25/2024 ADMIN COALITION* MN Labor & Employment Relations Seminar - Kellie 60.00 8/30/2024 ADMIN GLENCOE UNHINGED PIZZA Lunch for City/County Admin/Clerk Meeting 16.00 8/2/2024 CREEKSIDE MAILCHIMP Monthly subscription for email marketing; newsletter 20.00 8/2/2024 CREEKSIDE IA DEPT OF AGRICULTURE Jan-Jun2024 fertilizer tonnage fee 153.07 8/8/2024 CREEKSIDE SPS COMMERCE July 2024 SPS fees; U H 178.82 8/8/2024 CREEKSIDE WM SUPERCENTER Kitchen scale for garden produce 17.23 8/9/2024 CREEKSIDE APPLE iCloud storage; Akosek 0.99 8/9/2024 CREEKSIDE MN NURSERY & LANDSCAPE ASSOC 2024-2025 MNLA membership renewal 1,134.00 8/16/2024 CREEKSIDE CASH WISE FOODS Coffee for breakroom 41.21 8/16/2024 CREEKSIDE CASH WISE FOODS Coffee for office 41.20 8/4/2024 EDA FACEBOOK Face Book Adverts, Enterprise Center & Childcare 129.03 8/4/2024 EDA FACEBOOK Face Book Adverts, Enterprise Center & Childcare 26.37 8/11/2024 EDA FACEBOOK Face Book Adverts, Enterprise Center & Childcare 175.00 8/13/2024 EDA CASH WISE Coffee for H-R Roundtable meeting 38.72 8/22/2024 EDA JIMMYJOHNS Finance Team lunches 113.37 8/22/2024 EDA MN DEED WF EVENTS DEED Workforce Summit 25.00 8/29/2024 EDA CASH WISE FOODS Beverages for board meetings 17.24 8/30/2024 EDA JIMMYS PIZZA HUTCHINSON Lunch for EDA Board meeting 99.47 8/7/2024 FINANCE AMAZON Bldg Insp - green cardstock paper 17.18 8/8/2024 FINANCE MN GOVT FINANCE OFFICER MNGFOA conference-A.Reid 250.00 8/30/2024 FINANCE EZBUSINESS FEE Credit Card monthly service fee 15.00 8/14/2024 FIRE CASH WISE FOODS Cases of drinking water 51.87 8/15/2024 FIRE WHOLESALE MARINE.COM Boat lights- 1/2 city, 1/2 rural 66.61 8/15/2024 FIRE WHOLESALE MARINE.COM Boat lights- 1/2 city, 1/2 rural 66.60 8/18/2024 FIRE RIGID Boat lights - 1/2 city, 1/2 rural 118.44 8/18/2024 FIRE RIGID Boat lights - 1/2 city, 1/2 rural 118.45 8/23/2024 FIRE SAFERITE SOLUTIONS 4 gas monitor to relace E-7 failed one - 1/2 city, 1/2 rural 256.21 8/23/2024 FIRE SAFERITE SOLUTIONS 4 gas monitor to relace E-7 failed one - 1/2 city, 1/2 rural 256.20 8/23/2024 FIRE AIRTANKSFORSALE CO2 fire extinguisher carring straps - 1/2 city, 1/2 rural 87.48 8/23/2024 FIRE AIRTANKSFORSALE CO2 fire extinguisher carring straps - 1/2 city, 1/2 rural 87.48 8/1/2024 IT AMAZON USB to Serial Adapter Gas 32.01 8/4/2024 IT AMAZON 10 POE switch for Water Billing 24.69 8/4/2024 IT ZOHO CORPORATION Help Desk Software 631.18 8/4/2024 IT ZOHO CORPORATION Help Desk Software 42.79 8/4/2024 IT WHO CORPORATION Help Desk Software 26.75 8/4/2024 IT ZOHO CORPORATION Help Desk Software 16.05 8/4/2024 IT ZOHO CORPORATION Help Desk Software 10.70 8/4/2024 IT WHO CORPORATION Help Desk Software 42.79 8/4/2024 IT ZOHO CORPORATION Help Desk Software 37.44 8/4/2024 IT ZOHO CORPORATION Help Desk Software 69.54 8/4/2024 IT WHO CORPORATION Help Desk Software 58.84 8/4/2024 IT ZOHO CORPORATION Help Desk Software 32.09 8/4/2024 IT ZOHO CORPORATION Help Desk Software 320.94 8/5/2024 IT AMAZON Patch Cables 91.46 8/6/2024 IT B&H PHOTO Mic for Soft Interview 194.12 8/6/2024 IT AMAZON Network Jacks PD 16.95 8/14/2024 IT AMAZON Network Jacks IT supply 98.40 8/14/2024 IT AMAZON Plotter Pen 102.90 8/14/2024 IT AMAZON Plotter Ink 96.85 8/21/2024 1T AMAZON Display port to HDMI adapter 45.27 8/21/2024 IT BCA TRAINING EDUCATION BCA Training 300.00 8/23/2024 IT AMAZON USB to DP adapter 62.90 8/25/2024 IT AMAZON Plotter Ink 194.00 8/27/2024 IT AMAZON Backup Tapes 1,928.40 8/27/2024 IT AMAZON POS receipt paper 10.49 8/27/2024 1 T AMAZON POS receipt paper 10.50 8/28/2024 IT ITARGET I ROKU for PD 37.75 Department Purchasing Card Activity - August 2024 Date Department Vendor Name Description Amount 8/29/2024 IT TARGET ROKU for PD 75.49 8/29/2024 IT AMAZON KVM and adapter cables for lab PC 87.00 8/1/2024 LIQUOR HUTCH FACEBOOK FB advertising 116.62 8/2/2024 LIQUOR HUTCH CITY HIVE Online ordering and advertising 100.30 8/7/2024 LIQUOR HUTCH AMAZON Thermal cash register receipt paper 140.20 8/7/2024 LIQUOR HUTCH AMAZON Thermal cash register receipt paper 24.22 8/8/2024 LIQUOR HUTCH AMAZON Kleenex tissue 91.86 8/11/2024 LIQUOR HUTCH MENARDS HUTCHINSON MN Cleaning supplies 63.04 8/13/2024 LIQUOR HUTCH AMAZON Printer paper 159.05 8/15/2024 LIQUOR HUTCH MENARDS HUTCHINSON MN Supplies for new aisle sign mock up 38.20 8/16/2024 LIQUOR HUTCH RITE CloudRetailer POS monthly fee 268.44 8/30/2024 LIQUOR HUTCH MENARDS HUTCHINSON MN Cleaning supplies 52.66 8/1/2024 PARK & REC AMAZON Thermal Laminating Sheets 10.55 8/1/2024 PARK & REC WM SUPERCENTER Roberts Concession Supplies 55.84 8/1/2024 PARK & REC WHEN I WORK INC Employee Scheduling Software 440.00 8/4/2024 PARK & REC WAL-MART Aquatic Center Concessions 129.08 8/4/2024 PARK & REC NORMED First Aid Supplies- Gloves, Cold Packs 217.65 8/7/2024 PARK & REC AMAZON Blank Greeting Cards 310.40 8/8/2024 PARK & REC AMAZON Football Belts 19.99 8/8/2024 PARK & REC AMAZON Iphone Case 22.95 8/9/2024 PARK & REC USA FOOTBALL USA Football Certification 40.00 8/9/2024 PARK & REC AMAZON Laminator Machine 19.20 8/9/2024 PARK & REC AMAZON 3 Ring Page Dividers 21.49 8/11/2024 PARK & REC TRACFONE Senior Trips Trac Fone - Service Plan 136.05 8/14/2024 PARK &REC CHANHASSEN DINNER THEATRE Senior Trips- Dinner Theater Tickets 340.00 8/14/2024 PARK & REC WM SUPERCENTER Concession Supplies 52.68 8/14/2024 PARK & REC WM SUPERCENTER Concessions Supplies 18.78 8/18/2024 PARK & REC AMAZON Batteries, Packing Tape, Notepads, Chair Wheels 83.62 8/25/2024 PARK & REC AMAZON Vehicle Speed Sensor Connector 23.97 8/30/2024 PARK & REC AMAZON Soccer Balls 267.00 8/14/2024 PLANNING USPS Certified mail 87.12 8/16/2024 PLANNING AMAZON Ipad power cord 23.99 8/18/2024 PLANNING SOLAR SKY LIGHTS New skylights for City Center 2,502.71 8/1/2024 POLICE AMAZON Sharpie pens 12.64 8/4/2024 POLICE AMAZON Towels 83.97 8/8/2024 POLICE EBAY AC compressor 738.94 8/11/2024 POLICE AMAZON Radio earpiece 569.94 8/11/2024 POLICE AMAZON Cables 125.10 8/15/2024 POLICE AXON Taser training 495.00 8/19/2024 POLICE AMAZON Dish soap 9.94 8/29/2024 POLICE BRANDED SOLUTIONS Uniforms 202.00 8/29/2024 POLICE BCA TRAINING EDUCATION Training mayland 300.00 8/29/2024 POLICE BCA TRAINING EDUCATION Training bock 300.00 8/1/2024 PUBLIC WORKS CUSTOMER ELATION July Monthly Dispatch Services 79.00 8/1/2024 PUBLIC WORKS CUSTOMER ELATION July Monthly Dispatch Services 79.00 8/4/2024 PUBLIC WORKS ISA Tree Risk Assessment HK ISA Tree Risk Assessment Course 825.00 8/11/2024 PUBLIC WORKS AMAZON Inspection Camera 139.99 8/14/2024 PUBLIC WORKS HOME DEPOT Self Draining Hose Bib Vacuum Breakers 1,341.00 8/18/2024 PUBLIC WORKS HOLIDAY INN DETROIT LAKE Joint Central/ NW MWOA Meeting Stay 254.99 8/18/2024 PUBLIC WORKS MCLEOD FOR TOMORROW MT Entrance Fee 612.68 8/28/2024 PUBLIC WORKS CUSTOMER ELATION August Monthly Dispatch Services 129.56 8/28/2024 PUBLIC WORKS CUSTOMER ELATION August Monthly Dispatch Services 129.56 Total P-Cards: $ 21,782.78 CHECK REGISTER B FOR CITY OF HUTCHINSON CHECK DATE 9/24/24 Check Date Check # Name Description Amount 9/24/2024 117269 CROW RIVER SIGNS SIGNS, GRAPHICS- MULTIPLE DEPTS 1,057.10 Total - Check Register B: $ 1,057.10 cR HUTCHINSON CITY COUNCIL kfiUT^H1NSCV4 Request for Board Action A CITY ON PURPOSE. Resolution 15771 Relating to General Obligation Street Reconstruction and Agenda Item: Improvement Bonds, Series 2024A Department: Finance LICENSE SECTION Meeting Date: 9/24/2024 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Nick Anhut Reviewed by Staff M New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Nick Anhut from Ehlers will review the bids received for the 2024 bond issuance. The new 15-year debt, with an estimated par value of $2,265,000, will finance the following roadway and infrastructure improvement projects: 1) Franklin Street (5th Ave to Washington Ave) 2) Washington Ave (Lynn Rd to Franklin St) 3) Oakland Ave (Echo Dr to Jefferson St) 4) Michael's Court The City's projected debt tax levy graph, following this page, is based on an estimated 2024 bond sale and will be updated after the terms of the actual bond sale are known on September 24. The levy is expected to increase moderately each year by 3% to 4% until it stabilizes in 2031. Keep in mind that rising roadway improvement costs may impact the future debt levy, along with potential debt for a new ladder truck. Our City's Standard & Poors bond rating was reaffirmed at AA- and the rating report is attached. As usual, S&P finds that our financial performance and level of reserve funds are positives in addition to our financial management policies and practices. BOARD ACTION REQUESTED: Consider and approve the issuance of an estimated $2,265,000 general obligation improvement bonds, series 2024A, by adopting resolution 15771. Fiscal Impact: $ 170,000.00 Funding Source: Debt Tax Levy FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A PROJECTED DEBT LEVY $3,500,000 $2.554.394 S2.M.v45 ,9!!!E:lli $2$9�.225 #3,004.296 UfS, f! $3,000,000'}i�UZ499 wni i7,M17T.d11� $i,5i7835 '�'P,EisS SE97.35A $2,500,000 i Sil,rie MUM �6,ZI,7t� I $2,000,000 I�Ii� i p116 ' 1 i f45 ? �q 11 i $1,500,000 iD $1,000,000 I �J — k- 1 $500,000y $0 — — _ I ' _ _ _ _ _j 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Existing Levy ®Proposed Future Issues =New Police Facility —Total Debt Levy S&P Global Ratings RatingsDirect @ Summary: Hutchinson, Minnesota; General Obligation; Non -School State Programs Primary Credit Analyst: Brenea Gordon, Chicago +1 3122337048; brenea.gordon@spglobal.com Secondary Contact: Emma Drilias, Madison (1) 312-233-7132; emma.drilias@spglobal.com Table Of Contents Credit Highlights Outlook Related Research WWW.STANDABDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 17, 2024 1 Summary: Hutchinson, Minnesota; General Obligation; Non -School State Programs Credit Profile US$2.265 mil GO street reconstruction & imp bnds ser 2024A due 02/01/2040 Long Term Rating AA -/Stable New Hutchinson GO Long Term Rating AA -/Stable Affirmed Hutchinson GO bnds Long Term Rating AA -/Stable Affirmed Hutchinson GO imp bnds Long Term Rating AA -/Stable Affirmed Credit Highlights • S&P Global Ratings assigned its 'AA-' rating to Hutchinson, Minn.'s $2.265 million series 2024 street reconstruction and improvement bonds, based on the application of its "Methodology For Rating US. Governments," published Sept. 9, 2024, on RatingsDirect. • At the same time, S&P Global Ratings affirmed its 'AA-' rating on the city's general obligation (GO) debt outstanding. • The outlook is stable. Security The bonds are secured by the city's full -faith -and -credit pledge and ability to levy unlimited ad valorem property taxes. Officials intend to pay debt service with special assessments and ad valorem property taxes, but the rating is based on the unlimited ad valorem tax pledge. Proceeds will be used to finance road improvement projects. Credit overview In our view, the city's history of healthy financial performance and robust reserves supports its general creditworthiness but is offset by its debt burden and associated carrying costs. The GO rating also incorporates our view of the city's stable, although relatively limited, economy and steadily growing population. Operating with a $14.3 million general fund budget, the city is anticipating ending fiscal 2024 (December year-end) with a modest surplus supported by growing interest income and building permit revenue. The city is working to finalize its 2025 budget, which it expects to include an 8.6% tax levy increase to balance the budget, increased expenditures associated with software costs, and a proposed new fire -staff position. The city is currently experiencing strong housing demand and, to address this, conducted a strategy meeting that produced some developer proposals. Given the city's projected balanced operating performance over the next few years and its stable economy, we do not anticipate any near -term budgetary pressures. WWW.STANDABDANDPOOBS.COM/BATINGSDIBECT SEPTEMBER 17, 2024 2 Summary: Hutchinson, Minnesota; General Obligation; Non -School State Programs Credit fundamentals supporting the 'AA-' rating include: • Per capita gross county product and per capita personal income that are in line with similarly rated peers. We view the economy as stable, with the city expecting steady growth in the coming years driven by residential development. • Historically positive general fund operating results supported by healthy tax growth, interest earnings, building permit revenues, and interfund transfers from the water, sewer, and utility enterprise funds. The city's operations were funded primarily by property taxes (52%), followed by charges for services (21%), in fiscal 2023. • Fund balance policy that stipulates having 40% of the next year's general fund expenditures, a target the city is exceeding, and no plans to materially draw down. Available reserves include committed funds for operations, with access to a cash balance of $583,000 in municipal liquor fund cash also available for operating purposes. In fiscal 2023, the city established a stabilization fund that commits 10% of the next year's expenditures for contingencies. • Debt burden that is a credit constraint, with future medium -term debt plans that include annual $2.5 million roadway projects, a possible fire truck purchase for $2.2 million, and a new electric substation that will be financed through a revenue bond payable from electric utility funds. We view the debt burden as manageable for the city because debt is amortized rapidly and debt service costs are not materially pressuring the budget. • Manageable pension and OPEB benefits compared to the budget. We do not anticipate any major changes in pension liabilities in the near term. The city contributes to two multiple -employer defined -benefit pension plans administered by the Public Employee Retirement Association of Minnesota. The pension plans are funded at 83% and 86% as of June 30, 2023. • Conservative management team, with budgeting practices that include monthly budget -to -actual reporting to the city council with as -needed changes, five-year long-term financial and capital plans that are updated annually, and guidelines for investment and debt policies that mirror the state framework. • For more information on our institutional framework assessment for Minnesota, see "Institutional Framework Assessment: Minnesota Local Governments," published Sept. 10, 2024. Environmental, social, and governance Environmental, social, and governance factors are neutral within our credit analysis. The city's cyber security practices and policies align with those of peers. Outlook The stable outlook reflects our view that the city will continue to sustain its robust reserves and post at least balanced general fund operating results. Downside scenario We could take negative rating action if the city were to experience operating imbalances that lead to a deterioration of available reserves. Upside scenario We could take positive rating action if the city's debt burden were to moderate, and the city's economic growth resulted in per capita wealth and effective buying income levels comparable with that of higher rated peers. WWW.STANDABDANDPOOBS.COM/BATINGSDIBECT SEPTEMBER 17, 2024 3 Summary: Hutchinson, Minnesota; General Obligation; Non -School State Programs Table 1 Hutchinson,. • Institutional framework (IF) Individual credit profile (ICP) Economy Financial performance Reserves and liquidity Debt and liabilities Management Table 2 Hutchinson, Minnesota --Key credit Economy 1 2.31 4.0 2 1 3.25 1.30 metrics Most recent 2023 2022 2021 GCP per capita % of U.S. 72 72 77 County PCPI % of U.S. 88 88 88 Market value ($OOOs) 1,586,264 1,479,416 1,341,765 1,203,213 Market value per capita ($) 107,166 99,947 94,040 84,626 Top 10 taxpayers % of taxable value 9 9 11 11 County unemployment rate (%) 3.2 3.2 2.7 3.7 Local median household EBI % of U.S. 91 97 100 100 Local per capita EBI % of U.S. 91 97 98 100 Local population 14,802 14,802 14,268 14,218 Financial performance Operating fund revenues ($OOOs) 11,977 11,305 11,016 Operating fund expenditures ($OOOs) 13,774 13,869 13,435 Net transfers and other adjustments ($OOOs) 2,236 2,108 2,596 Operating result ($OOOs) 439 (456) 177 Operating result % of revenues 3.7 (4) 1.6 Operating result three-year average % 0.4 0.9 3.4 Reserves and liquidity Available reserves % of operating revenues 68.2 69.7 75.7 Available reserves($OOOs) 8,172 7,876 8,338 Debt and liabilities Debt service cost % of revenues 11.9 11.9 17.1 27.6 Net direct debt per capita ($) 2.421 2,571 2,902 2,867 Net direct debt ($OOOs) 35,843 38,053 41,412 40,769 Direct debt 10-year amortization (%) 74.0 Pension and OPEB cost % of revenues 6 6 8 8 Net pension liabilities per capita ($) 779 779 1,363 559 Combined net pension liabilities ($OOOs) 11,534 11,534 19,450 7,945 GCP--Gross county product. PCPI--Per capita personal income. EBI--Effective buying income. OPEB--Other postemployment benefits. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 17, 2024 4 Summary: Hutchinson, Minnesota; General Obligation; Non -School State Programs Related Research Through The ESG Lens 3.0: The Intersection Of ESG Credit Factors And U.S. Public Finance Credit Factors, March 2, 2022 Hutchinson GO imp bnds ser 20l lA dtd 11/02/2011 due 02/01/2013-2027 Long Term Rating AA -/Stable Affirmed Hutchinson GO imp bnds ser 2015A dtd 10/01/2015 due 02/01/2017-2024 2026 2028 2031 Long Term Rating AA -/Stable Affirmed Hutchinson GO imp bnds ser 2018A dtd 10/31/2018 due 02/01/2034 Long Term Rating AA -/Stable Affirmed Hutchinson GO rfdg bnds Long Term Rating AA -/Stable Affirmed Hutchinson GO stormwater rev bnds ser 2018B dtd 10/31/2018 due 02/01/2029 Long Term Rating AAA/Stable Current Underlying Rating for Credit Program AA -/Stable Affirmed Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. 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WWW.STANDARDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 17, 2024 6 CERTIFICATION OF MINUTES RELATING TO $[PAR] GENERAL OBLIGATION STREET RECONSTRUCTION AND IMPROVEMENT BONDS, SERIES 2024A Issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on September 24, 2024, at 5:30 o'clock p.m., in the Council Chambers at the Hutchinson City Center. Councilmembers present: Councilmembers absent: Documents Attached: Minutes of said meeting (pages): RESOLUTION NO. 15771 RESOLUTION RELATING TO $[2,265,000] GENERAL OBLIGATION STREET RECONSTRUCTION AND IMPROVEMENT BONDS, SERIES 2024A; AUTHORIZING THE ISSUANCE, AWARDING THE SALE, FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this _24th_ day of September, 2024. (SEAL) Matt Jaunich City Administrator 4892-0073-8263\3 The City Administrator reported that [_] ([_]) proposals for the purchase of the $[2,265,000] General Obligation Street Reconstruction and Improvement Bonds, Series 2024A were received prior to 10:00 A.M., Central Time today pursuant to the Preliminary Official Statement distributed to potential purchasers of the Bonds by Ehlers & Associates, Inc., municipal advisors to the City. The bids have been read and tabulated, and the terms of each have been determined to be as follows: (See Attached) 4892-0073-8263`3 Councilmember introduced the following resolution (the "Resolution") and moved its adoption, which motion was seconded by Councilmember RESOLUTION NO. 15771 RESOLUTION RELATING TO $[2,265,000] GENERAL OBLIGATION STREET RECONSTRUCTION AND IMPROVEMENT BONDS, SERIES 2024A; AUTHORIZING THE ISSUANCE, AWARDING THE SALE, FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF BE IT RESOLVED by the City Council (the "Council") of the City of Hutchinson, Minnesota (the "City"), as follows: SECTION 1. RECITALS. 1.01. Authorization. By resolution adopted on August 27, 2024, this Council determined it to be in the best interest of the City to issue and sell its General Obligation Street Reconstruction and Improvement Bonds, Series 2024A (the "Bonds"), in the approximate principal amount of $2,300,000, pursuant to Minnesota Statutes, Chapters 429 and 475 and Section 475.58, subdivision 3b (the "Street Reconstruction Act"), to finance various public improvement projects (the "Improvement Projects") and street reconstruction projects (the "Street Reconstruction Projects" and together with the Improvement Projects, the "Projects") and to pay costs of issuance of the Bonds. The portion of the Bonds in the amount of $[ (the "Improvement Bonds") that is being issued pursuant to Minnesota Statutes, Chapters 429 and 475 will be used to finance the cost of the Improvement Projects. The portion of the Bonds in the amount of $[ (the "Street Reconstruction Plan Bonds") that is being issued pursuant to Street Reconstruction Act will be used to finance the cost of the Street Reconstruction Projects described in the City's Five -Year Street Reconstruction Plan for years 2024 through 2028 (the "Street Reconstruction Plan") adopted by this Council, following a public hearing, on March 26, 2024. A petition requesting a vote on the question of issuing the Street Reconstruction Plan Bonds, signed by voters equal to five percent of the votes cast in the last municipal general election, was not filed with the City within 30 days of the public hearing. Accordingly, the issuance of the Street Reconstruction Plan Bonds is authorized without an election. Maturity Schedules for the Improvement Bonds and the Street Reconstruction Plan Bonds are included in Exhibit C attached hereto. 1.02. Sale of Bonds. The City has retained Ehlers & Associates, Inc., an independent municipal advisor ("Ehlers"), to assist the City in connection with the sale of the Bonds. The Bonds are being sold pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9), without meeting the requirements for public sale under Minnesota Statutes, Section 475.60, 4892-0073-8263\3 Subdivision 1. Pursuant to the Terms of Proposal and the Official Statement prepared on behalf of the City by Ehlers, sealed proposals for the purchase of the Bonds were received at or before the time specified for receipt of proposals. The proposals have been opened, publicly read and considered, and the purchase price, interest rates and net interest cost under the terms of each proposal have been determined. The most favorable proposal received is that of [Purchaser], of [City, State] (the "Purchaser"), to purchase the Bonds at a price of $[purchaseprice], representing the principal amount of the Bonds plus [net] original issue premium of $[premium], less underwriter's discount of $[uwdiscount], the Bonds to bear interest at the rates set forth in Section 3.02. 1.03. Award. The sale of the Bonds is hereby awarded to the Purchaser, and the Mayor and City Administrator are hereby authorized and directed to execute a contract on the part of the City with the Purchaser for the sale of the Bonds in accordance with the Terms of Proposal. The good faith deposit of the Purchaser shall be retained and deposited by the City until the Bonds have been delivered and shall be deducted from the purchase price paid at settlement. SECTION 2. FORM OF BONDS. The Bonds shall be prepared in substantially the form attached as Exhibit A hereto. SECTION 3. BOND TERMS, EXECUTION AND DELIVERY. 3.01. Issuance of Bonds. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota and City Charter to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, now existing, having happened and having been performed, it is now necessary for the Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith. 3.02. Maturities, Interest Rates, Denominations, Payment. The Bonds shall be originally dated as of the date of issuance thereof, shall be in the denomination of $5,000 each, or any integral multiple thereof, of single maturities, shall mature on February 1 in the years and amounts stated below, and shall bear interest from their date of original issue until paid or duly called for redemption at the annual rates set forth opposite such years and amounts, as follows [to come]: Year Amount Rate 2026 $ % 2027 2028 2029 2030 2031 2032 2033 Year Amount 2034 2035 2036 2037 2038 2039 2040 Rate [REVISE MATURITY SCHEDULE FOR ANY TERM BONDS] 2 4892-0073-8263\3 The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof shall be payable by check or draft issued by the Registrar described herein, provided that so long as the Bonds are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 3.08 hereof, principal and interest shall be payable in accordance with the operational arrangements of the securities depository. 3.03. Dates, Interest Payment Dates. Upon initial delivery of the Bonds pursuant to Section 3.07 and upon any subsequent transfer or exchange pursuant to Section 3.06, the date of authentication shall be noted on each Bond so delivered, exchanged or transferred. Interest on the Bonds shall be payable each February 1 and August 1, commencing August 1, 2025 (each such date, an "Interest Payment Date"), to the person in whose name the Bonds are registered on the Bond Register (as hereinafter defined) at the Registrar's close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date, whether or not such day is a business day. Interest shall be computed on the basis of a 360-day year composed of twelve 30- day months. 3.04. Redemption. Bonds maturing in 2034 and later years are each subject to redemption and prepayment at the option of the City, in whole or in part, and if in part in such order of maturity dates as the City may select and by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in multiples of $5,000 as to Bonds maturing on the same date, on February 1, 2033, and on any date thereafter, at a price equal to the principal amount thereof plus accrued interest to the date of redemption. Prior to the date specified for the redemption of any Bond prior to its stated maturity date, the City will cause notice of the call for redemption to be published if and as required by law, and, at least thirty (30) and not more than sixty (60) days prior to the designated redemption date, will cause notice of the call to be mailed by first class mail, to the registered owner of any Bond to be redeemed at the owner's address as it appears on the Bond Register maintained by the Registrar, provided that notice shall be given to any securities depository in accordance with its operational arrangements. No defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of such Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS — ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] Bonds maturing on February 1 in the years 20[ ] and 20[_] (the "Term Bonds") shall be subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements of this Section 3.04 at a redemption price equal to the stated principal amount thereof plus interest accrued thereon to the redemption date, without premium. The Registrar shall select for redemption, by lot or other manner deemed fair, on February 1 in each of the following years the following stated principal amounts of such Bonds: 3 4892-0073-8263\3 Term Bond due February 1, 20[_1 Redemption Date (February 1) *Stated Maturity Principal Amount Term Bond due February 1, 20[_1 Redemption Date (February 1) *Stated Maturity Principal Amount Notice of redemption shall be given as provided in the preceding paragraph.] 3.05. Appointment of Initial Registrar. The City hereby appoints Bond Trust Services Corporation, in Roseville, Minnesota, as the initial bond registrar, transfer agent and paying agent (the "Registrar"). The Mayor and City Administrator are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon thirty days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the Bond Register to the successor Registrar. 3.06. Registration. The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Re ig ster. The Registrar shall keep at its principal corporate trust office a bond register (the "Bond Register") in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The 4 4892-0073-8263\3 Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney duly authorized in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond lost, stolen or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. 4892-0073-8263\3 3.07. Execution, Authentication and Delivery. The Bonds shall be prepared under the direction of the City Administrator and shall be executed on behalf of the City by the signatures of the Mayor and City Administrator, provided that the signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been prepared, executed and authenticated, the City Administrator shall deliver them to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 3.08. Securities Depository. For purposes of this section the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede & Co." shall mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to the Bonds. "DTC" shall mean The Depository Trust Company of New York, New York. "Participant" shall mean any broker -dealer, bank or other financial institution for which DTC holds Bonds as securities depository. "Representation Letter" shall mean the Representation Letter pursuant to which the sender agrees to comply with DTC's Operational Arrangements. (a) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the Bond Register in the name of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Bonds under this Resolution, registering the transfer of Bonds, and for all other purposes whatsoever, and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participant, or any other person which is not shown on the Bond Register as being a registered owner of any 6 4892-0073-8263\3 Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this Resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede & Co. in accordance with DTC's Operational Arrangements, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph (e) hereof. (b) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph (d) hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph (d) hereof. (c) The execution and delivery of the Representation Letter to DTC by the Mayor or City Administrator, if not previously filed, is hereby authorized and directed. (d) In the event that any transfer or exchange of Bonds is permitted under paragraph (a) or (b) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this Resolution. In the event Bonds in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this Resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Bonds in the form of bond certificates and the method of payment of principal of and interest on such Bonds in the form of bond certificates. SECTION 4. SECURITY PROVISIONS. 4.01. General Obligation Street Reconstruction and Improvement Bonds, Series 2024A Construction Fund. There is hereby created a special bookkeeping fund to be designated as the "General Obligation Street Reconstruction and Improvement Bonds, Series 2024A Construction Fund' (the "Construction Fund'), to be held and administered by the City Finance Director separate and apart from all other funds of the City. Within the Construction Fund are established the following accounts: 7 4892-0073-8263\3 (a) Improvement Account. The Improvement Account shall be credited with $[� from the proceeds from the Improvement Bonds, representing the estimated cost of the Improvement Projects ($[) and costs of issuance of the Improvement Bonds ($[]). From the Improvement Account there shall be paid all costs and expenses related to the construction of the Improvement Projects and costs of issuance of the Improvement Bonds. After payment of all such costs and expenses, the Improvement Account shall be terminated. (a) Street Reconstruction Account. The Street Reconstruction Account shall be credited with $[ from the proceeds from the Street Reconstruction Plan Bonds, representing the estimated cost of the Street Reconstruction Projects ($[) and costs of issuance of the Street Reconstruction Plan Bonds ($[). From the Street Reconstruction Account there shall be paid all costs and expenses related to the construction of the Street Reconstruction Projects and costs of issuance of the Street Reconstruction Plan Bonds. After payment of all such costs and expenses, the Street Reconstruction Account shall be terminated. All funds on hand in the Construction Fund when terminated shall be credited to the Bond Fund described in Section 4.02 hereof, unless and except as such proceeds may be transferred to some other fund or account as to which the City has received from bond counsel an opinion that such other transfer is permitted by applicable laws and does not impair the exemption of interest on the Bonds from federal income taxes. In no event shall funds remain in the Project Fund later than October 17, 2027. 4.02. General Obligation Street Reconstruction and Improvement Bonds, Series 2024A Bond Fund. The Bonds shall be payable from a separate General Obligation Street Reconstruction and Improvement Bonds, Series 2024A Bond Fund (the "Bond Fund") of the City, which shall be created and maintained on the books of the City as a separate debt redemption fund until the Bonds, and all interest thereon, are fully paid. Within the Debt Service Account of the Bond Fund are established the following accounts: (a) Improvement Bonds Account. There shall be credited to the Improvement Bonds Account the following: (i) the amounts specified in Section 4.01(a) above, after payment of all costs of the Improvement Projects; (ii) special assessments levied and collected in accordance with this Resolution; (iii) taxes levied and collected in accordance with this Resolution and allocable to the Improvement Bonds; and (iv) any other funds appropriated by this Council for the payment of the Improvement Bonds. (b) Street Reconstruction Plan Bonds Account. There shall be credited to the Street Reconstruction Plan Bonds Account the following: (i) the amounts specified in Section 4.01(b) above, after payment of all costs of the Street Reconstruction Projects; (ii) taxes levied and collected in accordance with this Resolution and allocable to the Street Reconstruction Plan Bonds; and 4892-0073-8263\3 (iii) any other funds appropriated by this Council for the payment of the Street Reconstruction Plan Bonds. There are hereby established two accounts in the Bond Fund, designated as the "Debt Service Account" and the "Surplus Account." All money appropriated or to be deposited in the Bond Fund shall be deposited as received into the Debt Service Account. On each February 1, the City Finance Director shall determine the amount on hand in the Debt Service Account. If such amount is in excess of one -twelfth of the debt service payable from the Bond Fund in the immediately preceding 12 months, the City Finance Director shall promptly transfer the amount in excess to the Surplus Account. The City appropriates to the Surplus Account any amounts to be transferred thereto from the Debt Service Account as herein provided and all income derived from the investment of amounts on hand in the Surplus Account. If at any time the amount on hand in the Debt Service Account is insufficient to meet the requirements of the Bond Fund, the City Finance Director shall transfer to the Debt Service Account amounts on hand in the Surplus Account to the extent necessary to cure such deficiency. If the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all Bonds payable therefrom, the payment shall be made from any fund of the City which is available for that purpose, subject to reimbursement from the Surplus Account when the balance therein is sufficient, and the City covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional, statutory or charter limitation. 4.03. Pledge of TaxingPower. For the prompt and full payment of the principal of and interest on the Bonds as such payments respectively become due, the full faith, credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. In order to produce aggregate amounts which, together with the collections of other amounts as set forth in Section 4.02, will produce amounts not less than 5% in excess of the amounts needed to meet when due the principal and interest payments on the Bonds, ad valorem taxes are hereby levied on all taxable property in the City, the taxes to be levied and collected in the following years and amounts: Lever Collection Years Amount See attached schedules The taxes shall be irrepealable as long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the tax levies from other legally available funds, in accordance with the provisions of Minnesota Statutes, Section 475.61. 4.04. Levy of Special Assessments. The City hereby covenants and agrees that for payment of the cost of Improvement Projects it will do and perform all acts and things necessary for the full and valid levy of special assessments against all assessable lots, tracts and parcels of land benefited thereby and located within the area proposed to be assessed therefor, based upon the benefits received by each such lot, tract or parcel, in an aggregate principal amount not less than twenty percent (20%) of the cost of the Improvement Projects. In the event that any such assessment shall be at any time held invalid with respect to any lot, piece or parcel of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the City or this 9 4892-0073-8263\3 Council or any of the City's officers or employees, either in the making of such assessment or in the performance of any condition precedent thereto, the City and this Council hereby covenant and agree that they will forthwith do all such further acts and take all such further proceedings as may be required by law to make such assessments a valid and binding lien upon such property. The Council presently estimates that the special assessments levied for payment of the cost of the Improvement Projects shall be in the principal amount of $255,587.00 payable in not more than 10 installments, the first installment to be collectible with taxes during the year 2025. SECTION 5. DEFEASANCE. When all of the Bonds have been discharged as provided in this Section, all pledges, covenants and other rights granted by this Resolution to the Holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued from the due date to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms by depositing with the Registrar on or before that date an amount equal to the principal, redemption premium, if any, and interest then due, provided that notice of such redemption has been duly given as provided herein. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with the Registrar or with a bank or trust company qualified by law to act as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited for such purpose, bearing interest payable at such times and at such rates and maturing or callable at the holder's option on such dates as shall be required to pay all principal and interest to become due thereon to maturity or, if notice of redemption as herein required has been irrevocably provided for, to an earlier designated redemption date. If such deposit is made more than ninety days before the maturity date or specified redemption date of the Bonds to be discharged, the City must have received a written opinion of Bond Counsel to the effect that such deposit does not adversely affect the exemption of interest on any Bonds from federal income taxation and a written report of an accountant or investment banking firm verifying that the deposit is sufficient to pay when due all of the principal and interest on the Bonds to be discharged on and before their maturity dates or earlier designated redemption date. SECTION 6. REGISTRATION, CERTIFICATION OF PROCEEDINGS, INVESTMENT OF MONEYS, ARBITRAGE AND OFFICIAL STATEMENT. 6.01. Remistration. The City Administrator is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of McLeod County, together with such other information as he shall require, and to obtain from the County Auditor a certificate that the Bonds have been entered on such Auditor's bond register and that the tax required for the payment thereof has been levied and filed as required by law. 6.02. Certification of Proceedings. The officers of the City and the County Auditor of McLeod County are hereby authorized and directed to prepare and furnish to the Purchaser, and to Dorsey & Whitney LLP, Bond Counsel, certified copies of all proceedings and records of the 10 4892-0073-8263\3 City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 6.03. Covenant. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and Regulations promulgated thereunder (the "Regulations"), as such are enacted or promulgated and in effect on the date of issue of the Bonds, and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under such Code and Regulations. The Projects will be owned and maintained by the City and available for use by members of the general public on a substantially equal basis. The City shall not enter into any lease, use or other agreement with any non -governmental person relating to the use of such improvements or security for the payment of the Bonds which might cause the Bonds to be considered "private activity bonds" or "private loan bonds" within the meaning of Section 141 of the Code. 6.04. Arbitrage Certification. The Mayor and City Administrator, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code, and Section 1.148-2(b)(2) of the Regulations, stating the facts and estimates in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of said Code and Regulations. 6.05. Arbitrage Rebate. (a) It is hereby found that the City has general taxing powers, that no Bond is a "private activity bond" within the meaning of Section 141 of the Code, that 95% or more of the net proceeds of the Bonds are to be used for local governmental activities of the City, and that the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the City and all subordinate entities thereof during the year 2024 is not reasonably expected to exceed $5,000,000. Therefore, pursuant to the provisions of Section 148(f)(4)(D) of the Code, the City shall not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code. (b) Notwithstanding the provisions of paragraph (a) of this Section 6.05, if the arbitrage rebate provisions of Section 148(f) of the Code apply to the Bonds, the City hereby covenants and agrees to make the determinations, retain records and rebate to the United States the amounts at the times and in the manner required by said Section 148(f) and applicable Regulations. 6.06. Qualified Tax Exempt Obligations. The City Council hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the disallowance of interest expense for financial institutions, and hereby finds that the reasonably anticipated amount of tax-exempt governmental obligations (within the meaning of Section 265(b)(3) of the Code) which will be issued by the City and all subordinate entities during calendar year 2024 does not exceed $10,000,000. 11 4892-0073-8263\3 6.07. Official Statement. The Official Statement relating to the Bonds, prepared and distributed on behalf of the City by Ehlers & Associates, Inc., is hereby approved. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. 6.08. Reimbursement. The City certifies that the proceeds of the Bonds will not be used by the City to reimburse itself for any expenditure with respect to the Projects which the City paid or will have paid more than 60 days prior to the issuance of the Bonds unless, with respect to such prior expenditures, the City shall have made a declaration of official intent which complies with the provisions of Section 1.150-2 of the Regulations, provided that a declaration of official intent shall not be required (i) with respect to certain de minimis expenditures, if any, with respect to the financed facilities meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or (ii) with respect to "preliminary expenditures" for the financed facilities as defined in Section 1.150- 2(f)(2) of the Regulations, including engineering or architectural expenses and similar preparatory expenses, which in the aggregate do not exceed 20% of the "issue price" of the Bonds. SECTION 7. CONTINUING DISCLOSURE. (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the Purchaser and other participating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12), relating to continuing disclosure (as in effect and interpreted from time to time, the "Rule"), which will enhance the marketability of the Bonds, the City hereby makes the following covenants and agreements for the benefit of the Owners (as hereinafter defined) from time to time of the Outstanding Bonds. The City is the only obligated person in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. If the City fails to comply with any provisions of this section, any person aggrieved thereby, including the Owners of any Outstanding Bonds, may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this section constitute a default under the Bonds or under any other provision of this resolution. As used in this section, Owner or Bondowner means, in respect of a Bond, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, "Beneficial Owner" means, in respect of a Bond, any person or entity which (i) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds through nominees, depositories or other intermediaries), or (ii) is treated as the owner of the Bond for federal income tax purposes. (b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection (c) hereof, either directly or indirectly through an agent designated by the City, the following information at the following times: 12 4892-0073-8263\3 (1) on or before twelve (12) months after the end of each fiscal year of the City, commencing with the fiscal year ending December 31, 2024, the following financial information and operating data in respect of the City (the "Disclosure Information"): (A) the audited financial statements of the City for such fiscal year, prepared in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the City, noting the discrepancies therefrom and the effect thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the City; and (B) to the extent not included in the financial statements referred to in paragraph (A) hereof, the information for such fiscal year or for the period most recently available of the type contained in the Official Statement under headings: "VALUATIONS — Current Property Valuations;" "DEBT — Direct Debt;" "TAX LEVIES, COLLECTIONS AND RATES — Tax Levies and Collections;" "THE ISSUER — U.S. Census Data — Population Trend;" and "— Employment/Unemployment Data;" which information may be unaudited. Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the City shall provide on or before such date unaudited financial statements in the format required for the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt thereof, the City shall provide the audited financial statements. Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been submitted to the Municipal Securities Rulemaking Board ("MSRB") through its Electronic Municipal Market Access System ("EMMA") or to the SEC. If the document incorporated by reference is a final official statement, it must be available from the MSRB. The City shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure Information need no longer be provided if the City includes in the Disclosure Information a statement to such effect, provided, however, if such operations have been replaced by other City operations in respect of which data is not included in the Disclosure Information and the City determines that certain specified data regarding such replacement operations would be a Material Fact (as defined in paragraph (2) hereof), then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this section is amended as permitted by this paragraph (b)(1) or subsection (d), then the City shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of financial information or operating data provided. 13 4892-0073-8263\3 (2) In a timely manner not in excess of ten business days after the occurrence of the event, notice of the occurrence of any of the following events (each, a "Material Fact"): (A) Principal and interest payment delinquencies; (B) Non-payment related defaults, if material; (C) Unscheduled draws on debt service reserves reflecting financial difficulties; (D) Unscheduled draws on credit enhancements reflecting financial difficulties; (E) Substitution of credit or liquidity providers, or their failure to perform; (F) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security; (G) Modifications to rights of security holders, if material; (H) Bond calls, if material, and tender offers; (I) Defeasances; (J) Release, substitution, or sale of property securing repayment of the securities, if material; (K) Rating changes; (L) Bankruptcy, insolvency, receivership or similar event of the obligated person; (M) The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (N) Appointment of a successor or additional trustee or the change of name of a trustee, if material; (0) Incurrence of a financial obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the obligated person, any of which affect security holders, if material; and (P) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the obligated person, any of which reflect financial difficulties. For purposes of the events identified in paragraphs (0) and (P) above, the term "financial obligation" means (i) a debt obligation; (ii) a derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) a guarantee of (i) or (ii). The term "financial obligation" shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. As used herein, for those events that must be reported if material, an event is "material" if it is an event as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell a Bond or, if not disclosed, would 14 4892-0073-8263\3 significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, an event is also "material" if it is an event that would be deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. For the purposes of the event identified in (L) hereinabove, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person. (3) In a timely manner, notice of the occurrence of any of the following events or conditions: (A) the failure of the City to provide the Disclosure Information required under paragraph (b)(1) at the time specified thereunder; (B) the amendment or supplementing of this section pursuant to subsection (d), together with a copy of such amendment or supplement and any explanation provided by the City under subsection (d)(2); (C) the termination of the obligations of the City under this section pursuant to subsection (d); (D) any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and (E) any change in the fiscal year of the City. (c) Manner of Disclosure. (1) The City agrees to make available to the MSRB through EMMA, in an electronic format as prescribed by the MSRB, the information described in subsection (b). (2) All documents provided to the MSRB pursuant to this subsection (c) shall be accompanied by identifying information as prescribed by the MSRB from time to time. (d) Term, Amendments, Interpretation. (1) The covenants of the City in this section shall remain in effect so long as any Bonds are Outstanding. Notwithstanding the preceding sentence, however, the obligations of the City under this section shall terminate and be without further effect as of any 15 4892-0073-8263\3 date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the City to comply with the requirements of this section will not cause participating underwriters in the primary offering of the Bonds to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This section (and the form and requirements of the Disclosure Information) may be amended or supplemented by the City from time to time, without notice to (except as provided in paragraph (c)(3) hereof) or the consent of the Owners of any Bonds, by a resolution of this Council filed in the office of the recording officer of the City accompanied by an opinion of Bond Counsel, who may rely on certificates of the City and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement (a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity, nature or status of the City or the type of operations conducted by the City, or (b) is required by, or better complies with, the provisions of paragraph (b)(5) of the Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (b)(5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the City agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, of the change in the type of financial information or operating data being provided hereunder. (3) This section is entered into to comply with the continuing disclosure provisions of the Rule and should be construed so as to satisfy the requirements of paragraph (b)(5) of the Rule. SECTION 8. AUTHORIZATION OF PAYMENT OF CERTAIN COSTS OF ISSUANCE OF THE BONDS. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to Wells Fargo Bank, National Association on the closing date for further distribution as directed by the City's municipal advisor, Ehlers & Associates, Inc. 16 4892-0073-8263\3 Attest: Mayor City Administrator The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon, the following Councilmembers voted in favor thereof: and the following Councilmembers voted against the same: whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, which was attested by the City Administrator. 17 4892-0073-8263\3 VXHiRiT A Form of Bond UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF MCLEOD CITY OF HUTCHINSON GENERAL OBLIGATION STREET RECONSTRUCTION AND IMPROVEMENT BOND, SERIES 2024A R-15771 Interest Rate REGISTERED OWNER PRINCIPAL AMOUNT Maturity Date February 1, 20 CEDE & CO. THOUSAND DOLLARS Date of Original Issue October 17, 2024 $2,265,000 THE CITY OF HUTCHINSON, McLeod County, Minnesota (the "City"), acknowledges itself to be indebted and, for value received, hereby promises to pay to the registered owner above named, or registered assigns, the principal amount indicated above, on the maturity date specified above, with interest thereon from the date of original hereof specified above at the annual rate specified above computed on the basis of a 360-day year consisting of twelve 30-day months, payable on February 1 and August 1 in each year, commencing August 1, 2025, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest hereon and, upon presentation and surrender hereof at the principal office of the Registrar described below, the principal hereof are payable in lawful money of the United States of America drawn on Bond Trust Services Corporation, in Roseville, Minnesota, as bond registrar, transfer agent and paying agent (the "Registrar"), or its successor designated under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. This Bond is one of an issue in the aggregate principal amount of $[PAR] (the "Bonds"), all of like date and tenor except as to serial number, interest rate, redemption privilege and maturity date, issued pursuant to a resolution adopted by the City Council on September 24, 2024 (the "Resolution") to pay the cost of construction of various public improvement and street reconstruction projects in the City and is issued pursuant to and in full conformity with the provisions of the City Charter and Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475 and Section 475.58, subdivision 3b. For the full and prompt payment of the principal of and interest on the Bonds as the same become due, the full faith, credit and taxing power of the City have been and are hereby irrevocably pledged. The Bonds are issuable only in fully registered form, in the denomination of $5,000 or any integral multiple thereof, of single maturities. A-1 4892-0073-8263\3 Bonds maturing in the years 2034 and thereafter are each subject to redemption and prepayment, at the option of the City and in whole or in part and if in part, in the maturities selected by the City and by lot, assigned in proportion to their principal amount, within any maturity, on February 1, 2033 and on any date thereafter, at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. Prior to the date specified for the redemption of any Bond prior to its stated maturity date, the City will cause notice of the call for redemption to be published if and as required by law, and, at least thirty days prior to the designated redemption date, will cause notice of the call to be mailed by first class mail (or, if applicable, provided in accordance with the operational arrangements of the bond depository), to the registered owner of any Bond to be redeemed at the owner's address as it appears on the Bond Register maintained by the Registrar, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of such Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS - ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] [Bonds maturing in the years 20 and 20 shall be subject to mandatory redemption, at a redemption price equal to their principal amount plus interest accrued thereon to the redemption date, without premium, on February 1 in each of the years shown below, in an amount equal to the following principal amounts: Term Bonds Maturing in 20 Sinking Fund Payment Date *stated maturity Aggregate Principal Amount Term Bonds Maturing in 20 Sinking Fund Payment Date *stated maturity Notice of redemption shall be given as provided in the preceding paragraph.] Aggregate Principal Amount As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange, the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The Bonds have been designated as "qualified tax-exempt obligations" pursuant to Section 265(b) of the Internal Revenue Code of 1986, as amended. A-2 4892-0073-8263\3 The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Notwithstanding any other provisions of this Bond, so long as this Bond is registered in the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any other nominee of The Depository Trust Company or other securities depository, the Registrar shall pay all principal of and interest on this Bond, and shall give all notices with respect to this Bond, only to Cede & Co. or other nominee in accordance with the operational arrangements of The Depository Trust Company or other securities depository as agreed to by the City. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City according to its terms have been done, do exist, have happened and have been performed as so required; that prior to the issuance hereof the City has by the Resolution levied or agreed to levy special assessments on property specially benefitted by certain improvements and covenanted and agreed to collect and apply to payment of the Bonds ad valorem taxes levied on all taxable property in the City, which special assessments and ad valorem taxes are estimated to be collectible in years and amounts sufficient to produce sums not less than 5% in excess of the principal of and interest on the Bonds when due, and has appropriated such taxes and assessments to its General Obligation Street Reconstruction and Improvement Bonds, Series 2024A Bond Fund for the payment of such principal and interest; that if necessary for the payment of such principal and interest, additional ad valorem taxes are required to be levied upon all taxable property in the City, without limitation as to rate or amount; that all proceedings relative to the projects financed by this Bond have been or will be taken according to law and that the issuance of this Bond, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by manual signature of the authorized representative of the Bond Registrar. A-3 4892-0073-8263\3 IN WITNESS WHEREOF, the City of Hutchinson, McLeod County, State of Minnesota, by its City Council, has caused this Bond to be executed by the signatures of the Mayor and the City Administrator and has caused this Bond to be dated as of the date set forth below. CITY OF HUTCHINSON, MINNESOTA (Facsimile Signature City Administrator) (Facsimile Signature Mayor) CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. BOND TRUST SERVICES CORPORATION, as Registrar M. Authorized Representative A-4 4892-0073-8263\3 The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM --as tenants in common UTMA ................. as Custodian for .................. (Cult) (Minor) TEN ENT --as tenants by the entireties under Uniform Transfers to Minors Act ........................... (State) JT TEN --as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: NOTICE: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Registrar, which requirements include membership or participation in STAMP or such other "signature guaranty program" as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. Please insert social security or other identifying number of assignee: A-5 4892-0073-8263\3 Exhibit B PROJECTED TAX LEVIES AND ASSESSMENTS [TO COME] 4892-0073-8263\3 Exhibit C MATURITY SCHEDULES [TO COME] 4892-0073-8263\3 CERTIFICATE OF COUNTY AUDITOR AS TO REGISTRATION AND TAX LEVY I, the undersigned, being the duly qualified and acting County Auditor of McLeod County, Minnesota, hereby certify that there has been filed in my office a certified copy of a resolution adopted September 24, 2024, by the City Council of the City of Hutchinson, Minnesota, setting forth the form and details of an issue of $[PAR] General Obligation Street Reconstruction and Improvement Bonds, Series 2024A, dated as of October 17, 2024, and levying taxes for the payment thereof. I further certify that the bond issue has been entered on my bond register and the tax required by law for payment of the Bonds has been levied and filed, as required by Minnesota Statutes, Sections 475.61 to 475.63. WITNESS my hand and official seal this day of , 2024. McLeod County Auditor (SEAL) A-4 4892-0073-8263\3 HUTCHINSON CITY COUNCIL Cfty�f,0 Q4 Request for Board Action 7AZ On-7 Resolution Providing for an Allonge to Senior Housing Facility Revenue Bonds of Agenda Item: 2019 (Prince of Peace Project) Department: Finance LICENSE SECTION Meeting Date: 9/24/2024 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff M New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Conduit Bonds were issued by the City in 2019 to help fund an expansion to the Prince of Peace, multi -family senior housing facility. Essentially, the City issued the bonds and then borrowed those proceeds to Prince of Peace through a loan agreement. The City then assigned that loan agreement to Citizens Bank, which relieved the City of any responsibility or liability in the transaction. The City is not obligated in any manner to make debt service payments, even upon default by Prince of Peace. Furthermore, the bonds do not affect the City's credit rating and don't count against our statutory limitations on borrowing. The benefit of the conduit bonds is to provide tax-exempt financing to a non-profit organization, which results in a lower cost of debt than if the non-profit received private financing directly from a bank. With such financing, the City must approve any future changes to the bonds or loan agreement, which we are doing tonight at the request of Prince of Peace. A memo is attached explaining that Prince of Peace and Citizens Bank wish to make amendments to the bond. The City Council is being asked to approved the proposed amendments with the attached resolution. Representatives from Prince of Peace and Citizens Bank will be at the meeting to answer any questions. BOARD ACTION REQUESTED: Approve resolution 15774. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A Taft/ September 17, 2024 BY E-MAIL Andy Reid City Councilmembers City of Hutchinson 111 Hassan Street SE Hutchinson, MN 55350 2200 IDS Center 80 South 8th Street Minneapolis, MN 55402 Tel: 612.977.8400 1 Fax: 612.977.8650 taftlaw.com Catherine J. Courtney (612)977-8765 ccourtney@taftlaw.com Re: Amendments to Senior Housing Facility Revenue Bond of 2019 (Prince of Peace Project) Dear Councilmembers and Mr. Reid: In 2019, the City of Hutchinson (the "City") issued its $3,300,000 Senior Housing Facility Revenue Bond of 2019 (Prince of Peace Project) (the "Bond"). The proceeds of the Bond were loaned to Prince of Peace Senior Apartments, Inc. (the "Borrower") pursuant to a loan agreement (the "Loan Agreement") to finance (i) the expansion, construction, and equipping of eleven (11) additional independent living units and (ii) the construction, conversion, and equipping of two (2) existing living units into office and common space in an existing multifamily senior housing facility, totaling approximately 18,882 square feet, located at 301 Glen Street Southwest, in the City, which facilities are owned and operated by the Borrower (the "Project"). The Bond was sold to Citizens Bank & Trust Co., Hutchinson, Minn., in Hutchinson, Minnesota (the "Bank"). The City's rights (except for certain reserved rights) and obligations under the Loan Agreement were assigned to the Bank. The Borrower and the Bank have agreed to make certain amendments to the Bond. No amendments to the Loan Agreement are being made at this time. While these amendments do not have any direct effect on the City, they are of a nature that requires the City's approval. The amendments also result in what is called a "reissuance" under the federal tax code. From a tax perspective, it is like a new bond is being issued, but without all of the same necessary procedures and documentation as the original issuance. It will require the filing of a new Form 8038 with the IRS. Taft Stettinius & Hollister LLP Chicago / Cincinnati / Cleveland / Columbus / Dayton / Delaware / Denver / Indianapolis / Minneapolis / Northern Kentucky / Phoenix 134717946v2 Andy Reid September 17, 2024 Page 2 The Bond, as amended, will remain a special limited obligation of the City. It shall not be payable from or charged upon any funds other than the revenues pledged to the payment of the Bond, nor shall the City be subject to any liability on the Bond. The Bank (or any other holder) shall not have the right to compel any exercise of the taxing power of the City to pay the Bond or the interest on the Bond, or to enforce payment of the Bond against any property of the City. The Bond shall not constitute a debt of the City within the meaning of any constitutional or statutory limit. The Bond was designated as "bank qualified" in 2019. There is no need to newly designate the Bond as bank qualified in 2024. It is "deemed designated" based on the designation in 2019 and the nature of the 2024 amendments. Bank qualification gives certain favorable treatment to bank holders, like the Bank, and results in a lower interest rate for the borrowers. A city may designate only $10,000,000 of tax exempt obligations in each calendar year for its own governmental bonds and for bonds issued on behalf of 501(c)(3) organizations, like the Borrower. Because the Bond, as amended, can be deemed designated in 2024, the City's full $10,000,000 bank -qualification capacity remains available to it for other uses in 2024. Taft Stettinius & Hollister LLP, as successor by merger to Briggs and Morgan, Professional Association, as the City's Bond Counsel, has prepared the resolution that has been presented to the City Council that approves the requested amendments to the Bond. Taft has also drafted the amendment documents and drafted or reviewed other documents relevant to the transaction, on behalf of the City. Please feel free to contact me if you have any questions or comments. Very truly yours, Catherine J. Courtney CJC Enclosure 134717946v2 Extract of Minutes of Meeting of the City Council of the City of Hutchinson, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Hutchinson, Minnesota was duly held at City Hall in said City on Tuesday, September 24, 2024, at 5:30 P.M. The following Council members were present: and the following were absent: Council member resolution and moved its adoption: then introduced and read the following written Resolution No. 15774 A RESOLUTION PROVIDING FOR AN ALLOGNE TO SENIOR HOUSING FACILITY REVENUE BOND OF 2019 (PRINCE OF PEACE PROJECT) AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATED THERETO The motion for the adoption of the foregoing resolution was duly seconded by Council member , and upon vote being taken thereon the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 1346752820 RESOLUTION NO. _15774_ A RESOLUTION PROVIDING FOR AN ALLOGNE TO SENIOR HOUSING FACILITY REVENUE BOND OF 2019 (PRINCE OF PEACE PROJECT) AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATED THERETO BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota (the "City"), as follows: SECTION 1 LEGAL AUTHORIZATION AND FINDINGS. 1.1 Findings. The City hereby finds, determines and declares as follows (1) The City, pursuant to Resolution No. 15107 adopted on October 22, 2019 (the "Bond Resolution"), has previously issued its revenue bond in an original aggregate principal amount of $3,300,000 to provide funds that were loaned to Prince of Peace Senior Apartments, Inc., a Minnesota nonprofit corporation (the "Borrower"), to finance (i) the expansion, construction, and equipping of eleven (11) additional independent living units and (ii) the construction, conversion, and equipping of two (2) existing living units into office and common space in an existing multifamily senior housing facility, totaling approximately 18,882 square feet, located at 301 Glen Street Southwest, in the City, which facilities are owned and operated by the Borrower (the "Project"). (2) The City issued the Senior Housing Facility Revenue Bond of 2019 (Prince of Peace Expansion) dated November 1, 2019, (the "Bond'), pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), and sold the Note to Citizens Bank & Trust Co., Hutchinson, Minn., in Hutchinson, Minnesota (the "Lender"). (3) Pursuant to a Loan Agreement dated November 1, 2019 (the "Loan Agreement") between the City, the Borrower, and the Lender, the Borrower agreed to repay the Bond in specified amounts and at specified times sufficient to pay in full when due the principal of, premium, if any, and interest on the Bond. In addition, the Loan Agreement contains provisions relating to the expenditure of proceeds of the Bond, the maintenance and operation of the Project, indemnification, insurance, and other agreements and covenants which are required or permitted by the Act and which the City, the Borrower, and the Lender deem necessary or desirable for the financing of the Project. (4) Pursuant to a Pledge Agreement (the "Pledge Agreement") dated November 1, 2019 between the City and the Lender, the City pledged and granted a security interest in all of its rights, title, and interest in the Loan Agreement to the Lender (except for certain rights of indemnification and to reimbursement for certain costs and expenses). (5) The Lender and the Borrower have informed the City that they have agreed to certain changes in the terms of the Bond. 1 1346752820 (6) The form of Allonge to Senior Housing Facility Revenue Bond of 2019 (Prince of Peace Expansion Project), between the City, the Borrower, and the Lender, proposed to be entered into in order to document changes in the terms of the Bond has been submitted to the City Council and is on file in the office of the City Administrator (the "Allonge"). SECTION 2 AUTHORIZATION OF ALLONGE. 2.1 Approval and Execution of Allonge. (1) The Allonge is made a part of this Resolution as though fully set forth herein and are hereby approved in substantially the form presented to the City Council. The Mayor and the City Administrator are authorized and directed to execute, acknowledge, and deliver the Allonge on behalf of the City with such changes, insertions, and omissions therein as bond counsel to the City may hereafter deem appropriate, such execution to be conclusive evidence of approval of such documents in accordance with the terms hereof. (2) The Mayor and the City Administrator are authorized and directed to execute and deliver all other documents which may be required under the terms of the Allonge or by bond counsel, and to take such other action as may be required or deemed appropriate for the performance of the duties imposed thereby to carry out the purposes thereof. (3) The Mayor and the City Administrator and other officers of the City are authorized to furnish to the Lender, the Borrower, and bond counsel certified copies of all proceedings and records of the City relating to the Allonge, and such other affidavits and certificates as may be required to show the facts relating to the legality and marketability of the Bond as such facts appear from the books and records in the officers' custody and control or as otherwise known to them; and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements contained therein. (4) In the event that for any reason the Mayor or the City Administrator are unable to carry out the execution of any of the documents or other acts provided herein, any other officer of the City or member of its City Council as, in the opinion of the City's attorney, are authorized to act in that capacity and undertake such execution or acts on behalf of the City, shall without further act or authorization execute and deliver the Allonge and do all things and execute all instruments and documents required to be done or executed by such officers, with full force and effect, which executions or acts shall be valid and binding on the City. 2.2 No Liability of City. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Bond, as amended, shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property or funds of the City except the revenues and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holders of the Bond shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Bond or the interest thereon, or to enforce payment thereof against any property of the City. The Bond recites in substance that the Bond, including interest thereon, is payable solely 2 1346752820 from the revenue and proceeds pledged to the payment thereof The Bond shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. SECTION 3 BANK QUALIFIED. 3.1 Qualified Tax Exempt Obligations. In order to qualify the Bond, as amended, as a "qualified tax-exempt obligation" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), the City hereby makes the following factual statements and representations; (1) the Bond, as amended, is not treated as a "private activity bond" under Section 265(b)(3) of the Code; (2) the Bond, as amended, is deemed designated as a qualified tax-exempt obligation for purposes of Section 265(b)(3) of the Code; and (3) the aggregate face amount of the Bond, as amended, does not exceed $10,000,000 3 1346752820 Adopted by the City Council of the City of Hutchinson, Minnesota this 24th day of September, 2024. Mayor ATTEST: City Administrator 134675282v3 CERTIFICATE STATE OF MINNESOTA COUNTY OF MCLEOD CITY OF HUTCHINSON I, being the duly appointed, acting and qualified City Administrator of the City of Hutchinson, do hereby certify that I have examined the City of Hutchinson records and the Minute Book of said City for the meeting of September 24, 2024, and that the attached copy of the RESOLUTION PROVIDING FOR AN ALLOGNE TO SENIOR HOUSING FACILITY REVENUE BOND OF 2019 (PRINCE OF PEACE PROJECT) AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATED THERETO was approved and is a true and correct copy of the City Proceedings relating to said Resolution. IN WITNESS WHEREOF, I have hereunto set my hand this day of , 2024. City Administrator City of Hutchinson 1346752820 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF MCLEOD CITY OF HUTCHINSON Allonge to Senior Housing Facility Revenue Bond of 2019 (Prince of Peace Project) November 1, 2024 WHEREAS, on November 1, 2019, the City of Hutchinson, Minnesota (the "Issuer") issued its $3,300,000 Senior Housing Facility Revenue Bond of 2019 (Prince of Peace Project), (the "Original Bond"), to Citizens Bank & Trust Co., Hutchinson, Minn., in Hutchinson, Minnesota (the "Lender"), for the benefit of Prince of Peace Senior Apartments, Inc., a Minnesota nonprofit corporation (the `Borrower"); and WHEREAS, pursuant to a Loan Agreement dated as of November 1, 2019 (the "Loan Agreement"), between the Issuer and the Borrower, the Borrower agreed to repay the Original Bond in specified amounts and at specified times sufficient to pay in full when due the principal of, premium, if any, and interest on the Original Bond; and WHEREAS, pursuant to a Pledge Agreement (the "Pledge Agreement") dated as of November 1, 2019 between the Issuer and the Lender, the Issuer pledged and granted a security interest in all of its rights, title, and interest in the Loan Agreement to the Lender (except for certain rights of indemnification and to reimbursement for certain costs and expenses); and WHEREAS, the Lender and the Borrower have informed the Issuer that they have agreed to certain changes in the terms of the Original Bond; and WHEREAS, pursuant to a resolution of the Issuer adopted on September 24, 2024 (the "Resolution"), the Issuer has agreed to the requested changes to the terms of the Original Bond; and WHEREAS, this Allonge is authorized to be attached to the Original Bond to evidence the amendments made hereby. 1. The Original Bond is hereby amended by deleting the second paragraph of Paragraph 1 in its entirety and replacing it with the following: The per annum rate of interest payable hereunder shall initially be equal to 3.5% per annum. On November 1st of 2024, 2029, 2034, and 2039 (each a "Reset Date"), the interest rate on this Bond will be adjusted to a rate per annum equal to the greater of (a) the sum of (i)1.00% and (ii) the 7-Year Treasury Rate in effect as of the Reset Date, or (b) 3.00%. 2. The Original Bond is hereby amended by deleting Paragraph 7 in its entirety and replacing it with the Following: 1347098900 7. This Bond is subject to prepayment in immediately available funds on any date at the option of the Borrower, in whole or in part as provided in Section 5.1 of the Loan Agreement. The prepayment price is equal to the outstanding principal amount of this Bond to be prepaid plus accrued interest, without penalty or premium; except, that, if the prepayment is financed by a party other than the Lender, there shall be a penalty of 3% of the principal amount that is prepaid. In the event of any partial prepayment of this Bond, the Lender shall apply any such prepayment first against amounts which are neither principal nor interest, including any collection costs, late fees or prepayment or termination fees, then against the accrued interest on the Principal Balance and then against the outstanding principal amount of this Bond. The monthly payments due under Paragraph 1 hereof, shall continue to be due and payable in full until the entire Principal Balance and accrued interest due on this Bond have been paid. However, the Bond shall be reamortized by the Lender upon the request of the Borrower if the Borrower is in compliance with all terms of the Loan Agreement. All other terms and provisions of the Original Bond remain in full force and effect. 2 1347098900 IN WITNESS WHEREOF, the City of Hutchinson, Minnesota, Prince of Peace Senior Apartments, Inc., and Citizens Bank & Trust Co. have caused this Allonge to Bond to be duly executed in their names and have caused this Allonge to Bond to be dated as of the date first set forth above. CITY OF HUTCHINSON, MINNESOTA By Its Mayor By Its City Administrator [Allonge to Bond] S-1 1347098900 CONSENT OF: PRINCE OF PEACE SENIOR HOUSING, INC. By Its President [Allonge to Bond] S-2 1347098900 CONSENT OF: CITIZENS BANK & TRUST CO., HUTCHINSON, MINN. By Its Senior Vice President [Allonge to Bond] S-3 1347098900 cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. CONSIDERATION OF DEVELOPMENT AGREEMENT WITH CADOTT Agenda Item: HOLDINGS, LLC AND AUTHORIZATION FOR MAYOR AND STAFF TO SIGN Department: EDA LICENSE SECTION Meeting Date: 9/24/2024 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: none Reviewed by Staff ❑ New Business Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: A local Developer, Cadott Holdings, LLC has submitted a proposal for the redevelopment of the city -owned lot located at 135 Franklin Street North. (formerly the site of a McLeod County group home) Plans call for the construction of a four row homes on the site. Work would begin no later than .duly 1, 2025 and be complete by December 31, 2025. The city attorney has reviewed the Development Agreement and found everything to be satisfactory. The Development Agreement along with a brief staff report is ATTACHED for your review. If you have any questions or need additional information, please give me a call anytime at 234-4223. BOARD ACTION REQUESTED: Approval of development agreement and authorization for Mayor and City Staff to sign. Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A STAFF REPORT Development Proposal from CADOTT HOLDINGS, LLC for the 135 Franklin Street N. Lot ►ve. EXECUTIVE SUMMARY CADOTT HOLDINGS, LLC has submitted a proposal to redevelop the city -owned lot at 135 Franklin Street North as a four -unit row home project. If approved by the City Council, the City would sell the lot to CADOTT HOLDINGS, LLC for $1 and the rowhomes would be constructed in 2025. BACKROUND After expanding the boundaries of TIF District 4-16 to include this lot, the City purchased the former Franklin Group home at 135 Franklin Street North in 2020 in order to redevelop the site. The building itself was relocated to the Harrington -Merrill site, as it was determined to be the old Herrington -Merrill barn originally constructed in the 1800's. The EDA developed and circulated a Request for Proposals document (RFP), with the lot to be sold for $1 to the developer submitting the winning proposal. PROPOSED DEVELOPMENT CADOTT HOLDINGS, LLC is proposing to develop four rowhome units on the site. These will be two-story, with a total of 1,600 square feet (sf) of living area on two levels and a 380-sf garage. These will be mid -range to upscale 2-bedroom living units. Planned amenities will include a second -floor balcony facing the river, gas fireplace, central air-conditioning and granite countertops. Initial plans call for these to be rental units owned by CADOTT HOLDINGS,LLC, although the company may retain one or more of the units for company "guest housing." The project is estimated to cost about $1.6 million, and will have an estimated market value of about $978,000. The site is included in the boundaries of TIF District 4-16, so property taxes will be "captured" and used to reimburse the city for its costs to acquire and clear the lot. Preliminary Site Plan (subject to change) The rowhomes will be located on the northwest side of the lot, close to Franklin Street. Driveway access will be off of the north -south alley that bisects the block. No drawings of the townhomes have been developed as yet, but they will be upscale in nature and fit in well with the planned apartments to be built across the street to the west. Preliminary Unit Floorplan (subject to change) BATH OFFM BEDROOM CLOSET MECH Lif! CLOW ENTRY GARAW REQUESTED COUNCIL ACTIONS LIB DINING PANTRY BATH If Council finds the proposed development agreement satisfactory, staff requests the following: ■ Approval of the Development Agreement with CADOTT HOLDINGS, LLC Following City Council approval, the City will complete the sale of the lot at the earliest practicable date. DEVELOPMENT AGREEMENT This Development Agreement (this "Agreement"), made as of , 2024 (the "Effective Date"), is between CADOTT HOLDINGS, LLC, a Minnesota limited liability company ("Developer"), and the CITY OF HUTCHINSON, a municipal corporation and political subdivision of the State of Minnesota (the RECITALS: WHEREAS, the City currently owns certain real property, which is legally described on Exhibit A attached hereto (the "Pro e "); WHEREAS, Developer desires to, and, subject to the terms of this Agreement, agrees to, develop the Property into four (4) townhomes/rowhomes (collectively, with all improvements ancillary thereto, the "Development") in accordance with the site plan attached hereto as Exhibit B (the "Site Plan") and meeting the requirements set forth on Exhibit C (the "Minimum Requirements"); WHEREAS, to maintain and revitalize commercial activity in the City, the City has agreed to enter into this Agreement to provide for the transfer of the Property to Developer; WHEREAS, the City believes that the development activities associated with the Development pursuant to this Agreement are in the best interests of the City and comply with the applicable state and local laws and requirements under which the Development has been undertaken; and NOW THEREFORE, in consideration of the Property and the mutual covenants and agreements herein set forth, the parties do hereby covenant and agree as follows: ARTICLE I REPRESENTATIONS AND WARRANTIES Section 1.1 Representations and Warranties by Developer. Developer represents and warrants that: (a) Developer is a limited liability company organized and validly existing under the laws of the State of Minnesota. (b) Developer has duly authorized the execution of this Agreement and the performance of its obligations hereunder. Neither the execution nor delivery of this Agreement, nor the consummation of the transactions contemplated hereby, nor the fulfillment of nor compliance with the terms and conditions of this Agreement is prevented or limited by, in conflict with, or in breach of, any indebtedness, agreement or instrument of whatever nature to which Developer is now a parry or by which it is bound, or constitutes a default under any of the foregoing. (c) There are no pending or threatened legal proceedings, of which Developer has knowledge, seeking to restrain or enjoin the transactions contemplated by this Agreement or questioning the authority of Developer to execute and deliver this Agreement or the validity of this Agreement. (d) The estimated market value of the Development once completed is $ (e) To the best of Developer's knowledge and belief, the execution and delivery of this Agreement will not create a conflict of interest prohibited by Minnesota Statutes, Section 469.009, as amended. (f) Developer has obtained funding or will obtain funding in an amount sufficient to enable Developer to successfully complete the Development in accordance with this Agreement. ARTICLE II PROPERTY TRANSFER Section 2.1 Property. Subject to the terms and conditions of this Agreement, the City will convey the Property to Developer, and Developer will purchase and accept the Property from the City. The City shall not be required to remove any improvements from the Property and Developer shall take the Property in its as -is condition and, except as expressly set forth in Section 2.8 below, without any representations or warranties concerning the Property (including, without limitation, the warranties of fitness for a particular purpose, tenantability, habitability and use). Section 2.2 Closing. The closing of the sale and purchase of the Property (the "Closing") will occur on or about , 2024. Section 2.3 Purchase Price. The purchase price for the Property is $1.00 (the "Purchase Price") and is payable by Developer to the City at the Closing. Section 2.4 Title and Survey. Developer shall be responsible for performing, at Developer's sole cost and expense, any and all title and survey examination or due diligence that Developer deems prudent. Developer acknowledges and agrees that the City is not providing any representations or warranties as to the condition of title and expressly waives any claims Developer may have against the City in connection with any title defects. Section 2.5 City Closing Documents (a) City Closing Documents. The City will deliver to Developer at the Closing: (i) a quitclaim deed duly executed by the City in substantially the form attached as Exhibit F hereto; and Closing: (ii) any other items required by this Agreement for the Closing. (b) Developer Closing Documents. Developer will deliver to the City at the (i) the Purchase Price specified in Section 2.3; (ii) any other items required by this Agreement for the Closing. Section 2.6 Closing Costs and Prorations (a,) Closing Costs. Developer will be responsible for its and the City's reasonable legal, accounting and other expenses associated with the transaction contemplated by this Article 2. Developer will be responsible for any taxes required in connection with the transaction (including all deed tax), all document recording fees, fees associated with the transfer or obtaining of licenses and permits required to operate the Property, and any sales or use taxes required in connection with the transaction. Developer will pay any closing fees and escrow fees incurred in connection with this transaction. It being the intention of the parties that the City will not incur any costs in connection with the transaction contemplated by this Article 2. Taxes and Assessments. Real estate taxes and installments of special assessments with respect to the Property, if any, due and payable in the year in which the Closing occurs will be prorated as of the date of the Closing. Section 2.7 AS IS. Except as expressly set forth in Section 2.8 below, (i) the City makes no representations or warranties regarding the Property, (ii) the City hereby disclaims, and Developer hereby waives, any and all representations or warranties of any kind, express or implied, concerning the Property or any portion thereof, as to its condition, value, compliance with laws, status of permits or approvals, existence or absence of hazardous materials on site, occupancy rate or any other matter of similar or dissimilar nature relating in any way to the Property, including the warranties of fitness for a particular purpose, tenantability, habitability and use, and (iii) Developer takes the Property "AS IS", "WHERE IS" and "WITH ALL FAULTS". Section 2.8 Limited Representations. The City represents and warrants, as of the date hereof and the date of Closing, which representations and warranties shall survive for a period of three (3) months following the Closing: (a,) Wells. The City certifies and warrants that the City does not know of any "Wells" on the described Property within the meaning of Minn. Stat. § 103I. This representation is intended to satisfy the requirements of that Statute. Methamphetamine. To the actual knowledge of the City, no methamphetamine production has occurred on the Property. This representation is intended to satisfy the requirements of Minnesota Statutes Section 152.0275, Subdiv. 2(m). (c,) Sewage Treatment System Disclosure. For the purposes of satisfying any applicable requirements of Minn. Stat. § 115.55, the City discloses and certifies that, to the City's actual knowledge, no sewage is generated on the Property. Title and Conveyance. The City certifies and warrants that it has title to the Property and can convey its interest to Developer in accordance with this Agreement. The City further certifies and warrants that the undersigned is duly authorized by the City to convey title to the Developer in accordance with this Agreement. Upon request, the City shall provide documentation necessary for Developer to verify that the City has title to convey and the undersigned is authorized on behalf of the City to convey the Property. ARTICLE III DEVELOPMENT Section 3.1 Development. (a) Development and Construction Obligations. Developer will design and build the Development in accordance with the Approved Plans (as defined below). Developer shall commence physical construction, which shall be defined as at minimum preparing the Property, of the Development no later than July 1, 2025 and shall diligently pursue completion of the Development. Subject to Unavoidable Delays (as defined below), the Development shall be completed no later than December 31, 2025. Developer will perform, or cause to be performed, all construction of the Development in strict accordance with this Agreement and applicable federal, state and local laws, ordinances, rules and regulations. "Unavoidable Delays" means delays which are the result of (i) strikes or other labor troubles, (ii) material shortages, including without limitation, supplies, construction materials, equipment, delivery to the job site, or other necessary construction components, (iii) unforeseeable and unavoidable casualties to the Development, (iv) governmental actions that are not in the control of the defaulting party, or (v) severe weather, acts of God, fire or other casualty. (b) Plans. Developer shall deliver to the City all plans, specifications and working drawings for the Development (of sufficient scope detail to satisfy requirements for obtaining all necessary permits, for obtaining firm cost bids and for directing the construction of the Development) for the City's prior approval (such City -approved plans, specifications and draws are herein, the "Approved Plans"). Upon receipt of all documents necessary to obtain City approvals, the City shall not unreasonably delay, withhold or condition approval of any necessary permits or other City approvals for the Development to proceed. Developer shall not commence construction on the Development until the City has approved the plans, specifications and working drawings for the Development in accordance with this paragraph. (c) Zoning and Land Use Approvals, Building Permits; Fees. (i) Developer shall submit the appropriate application materials as required under the City municipal code. Developer shall be responsible for applying for and obtaining all land use and zoning approvals necessary for the Development. All zoning and land use approvals shall be in accordance with the ordinances of the City. (ii) Developer shall comply in all respects with all applicable City building codes and construction requirements and shall be responsible for obtaining all building permits with respect to construction of the Development. Developer shall be responsible for paying, or causing to be paid, to the City and all other governmental agencies the cost of all applicable permit fees and licenses required for construction of the Development. (iii) No approval by the City of the Approved Plans under Section 3.1(b) shall relieve Developer of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to properly construct the Development. No approval by the City shall constitute a waiver of an Event of Default. Further, Developer is not excused from the necessity of obtaining environmental, navigational, design, business or safety approvals that may be required by applicable federal, state and local laws, ordinances, rules and regulations. (d) Changes. If Developer desires to make any material change in the Approved Plans, then Developer shall submit the proposed change to the City for its approval, which approval shall not be unreasonably withheld, conditioned or delayed provided such change does not vary from the Minimum Requirements, which Minimum Requirements are set forth on Exhibit C. Changes outside of Developer's control, such as changes necessary to comply with building code requirements, environmental compliance, geotechnical reasons, or site specific conditions that must be addressed are excluded and do not require Cityqpproval to proceed, as long as Developer provides the City with reasonable notice upon the Developer's discovery or receipt of notice of requiring these changes. (e) Certificate of Completion. Developer will notify the City when it has fully completed construction of the Development. The City will promptly inspect the Development to determine whether the Development has been constructed in substantial conformity with the Approved Plans. If the City determines that the Development has not been constructed in conformity with the Approved Plans, the City shall, within ten (10) business days of its inspection, deliver a written statement to Developer indicating that the Development has not been constructed in substantial conformity with the Approved Plans and the terms of this Agreement. At such time that the City determines that the Development has been fully completed in conformity with the Approved Plans and this Agreement, the City shall promptly deliver a Certificate of Completion to Developer substantially in the form attached hereto as Exhibit D. Delivery of a Certificate of Completion by the City does not constitute a representation or warranty by the City that the Approved Plans or the Development (or any portion thereof) comply with any applicable building code, health or safety regulation, zoning regulation, or other law or regulation, or that the Development (or any portion thereof) will meet the qualifications for issuance of a certificate of occupancy, or that the Development (or any portion thereof) will meet the requirements of its users. It will be the responsibility of Developer to provide for the recording of the Certificate of Completion and the payment of any costs for such recording. (f) Progress Reports/City Access. Until a Certificate of Completion is issued, Developer shall make, in such detail as may reasonably be required by the City, and forward to the City, on a quarterly basis, a written report as to the actual progress of work on the Development. Developer agrees to permit the City and any of its officers, employees or agents access to the Development for the purpose of inspecting all work being performed in connection with the Development. ARTICLE IV INSURANCE Section 4.1 Insurance by Developer. (a) Developer will cause its contractor or subcontractors to provide and maintain, or cause to be maintained, at all times during the process of constructing the Development and, from time to time at the request of the City, will furnish the City with proof of payment of premiums on: (i) Builder's risk insurance, written on the so-called "Builder's Risk — Completed Value Basis," in an amount equal to 100% of the insurable value of the Development at the date of completion, and with coverage available in non -reporting form on the so-called "all risk" form of policy. (ii) Workers' compensation insurance, with statutory coverage. (iii) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's/Contractor's Policy, with limits against bodily injury and property damage of not less than $2,500,000 for each occurrence (to accomplish the above -required limits, an umbrella excess liability policy may be used), written on an occurrence basis. In each case the City shall be named as an additional insured to the extent of its interest, and the City shall be protected in form and content reasonably satisfactory to the City. Section 4.2 Proof of Coverage; General. All insurance required in this Article shall be taken out and maintained with responsible insurance companies which are authorized under the laws of the State of Minnesota to assume the risks covered thereby. Each policy must contain a provision that the insurer will not cancel nor modify the policy without giving written notice to the insured at least thirty (30) days before the cancellation or modification becomes effective. Not less than fifteen (15) days prior to the expiration of any policy, Developer, or its successor or assign, must renew the existing policy or replace the policy with another policy conforming to the provisions of this Article. in lieu of separate policies, Developer, or its successor or assign, may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein. ARTICLE V INDEMNIFICATION Section 5.1 City Indemnification. (a) Except for the gross negligence of the City, its governing body members, officers, servants, and employees, Developer covenants and agrees that the City and its governing body members, officers, agents, servants and employees (the "City Indemnified Parties") shall not be liable for, and Developer agrees to indemnify and hold harmless the City Indemnified Parties against, any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Development. (b) Except for the gross negligence of the City, its governing body members, officers, servants, and employees, Developer agrees to protect and defend the City Indemnified Parties, and further agrees to hold the aforesaid harmless, from any claim, demand, suit, action or other proceeding arising out of, or with respect to, the construction, installation, ownership, and operation of the Property or the Development. (c) Except for the gross negligence of the City, its governing body members, officers, servants, and employees, Developer agrees to protect and defend the City Indemnified Parties, and further agrees to hold the aforesaid harmless, from any claim, demand, suit, action or other proceeding arising out of, or with respect to, this Agreement. (d) Developer agrees to protect and defend the City Indemnified Parties, and further agrees to hold the aforesaid harmless, from any claim, demand, suit, action or other proceeding by reason of any lien or claim of lien for labor, services or materials (including allowances for interest or profit) of any general contractor, subcontractor or sub -subcontractor, materialmen or any persons whatsoever, or by reason of any equitable or statutory lien against the Development, arising by reason of, or in the course of, any construction, improvement or work of any nature, whether heretofore completed, now in progress or hereafter to be done. (e) None of the City Indemnified Parties shall be liable to Developer or to any third parry for any consequential or other damages that may arise out of delays of any kind relating to activities undertaken pursuant to this Agreement, including but not limited to delays due to environmental conditions, court challenges or elements outside the control of the City Indemnified Parties. ARTICLE VI EVENTS OF DEFAULT Section 6.1 Events of Default Defined. The following shall be "Events of Default" under this Agreement: (a) Subject to Unavoidable Delays, failure by Developer to complete construction of the Development pursuant to the terms, conditions and limitations of Article II. (b) Failure by Developer to commence physical construction, defined as at minimum preparing the Property, of the Development by the first anniversary of the Effective Date. (c) Failure by Developer to cause its contractor or subcontractors to provide and maintain any insurance required to be maintained by Article IV. (d) Failure by Developer to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement not otherwise set forth in this Section 6.1 and Developer fails to cure such failure within thirty (30) days after the City provides written notice to Developer of such failure. (e) Developer's filing of any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Code or under any similar federal or state law. (f) The making of an assignment for the benefit of Developer's creditors. (g) The making of an assignment of this Agreement or sale or transfer of the Property in violation of this Agreement. (h) Developer's admittance in writing of its inability to pay its debts generally as they become due and owing. (i) The adjudication of Developer as bankrupt or insolvent; or a petition or answer proposing the adjudication of Developer as bankrupt or its reorganization under any present or future federal bankruptcy act or any similar federal or state law which is filed in any court and such petition or answer is not discharged or denied within sixty (60) days after the filing thereof, or a receiver, trustee or liquidator of Developer, or of the Development, or part thereof, is appointed in any proceeding brought against Developer, and is not discharged within sixty (60) days after such appointment, or if Developer consents to such appointment. Section 6.2 Remedies on Default. Whenever any Event of Default referred to in Section 6_1 occurs, the City may take any one or more of the actions set forth below: (a) Suspend its performance under this Agreement until it receives assurances from Developer reasonably acceptable to the City that Developer will cure its default and continue its performance under this Agreement; (b) Cancel and terminate this Agreement; (c) Withhold the Certificate of Completion; (d) Re-enter and take possession of the Property and terminate the rights of Developer created by the Deed and this Agreement and, upon such event, the title to the Property shall revert to the City or, as applicable, to its assigns or successors in interest. Within 30 days of Developer's receipt of the City's notice exercising the City's right of reverter (the "Reverter Closing Date"), Developer will convey the Property, and all improvements thereon, to the City by limited warranty deed (the "Reverter Deed"), as follows: (i) City will pay Developer $1.00 as consideration for receiving the Reverter Deed; (ii) Developer will convey the Property, and any improvements thereon, to the City free and clear of all encumbrances, subject only to easements benefiting the City or another public entity, the easements and restrictions contemplated by this Agreement, and such other encumbrances which the City has previously approved in writing; (iii) Developer shall have no further rights to the Property or any improvements thereon; and (iv) On or before the Reverter Closing Date, Developer will execute and deliver to the City a standard "seller's affidavit" stating under oath, inter alia, that Developer has paid for all work performed or supplies ordered or delivered with respect to the Property. (e) Recover any and all costs and expenses incurred by the City for or in connection with this Agreement. (f) Take any other action, including legal, equitable or administrative action, which may appear necessary or desirable to the City, including any actions to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant to the Developer under this Agreement. Section 6.3 No Remedy Exclusive. No remedy hereunder is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity. No delay or omission to exercise any right accruing upon any default shall impair any such right or shall be construed to be a waiver thereof, but any such right may be exercised from time to time and as often as may be deemed expedient. Section 6.4 No Implied Waiver. In the event any agreement contained herein should be breached by any parry and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 6.5 City Default. The City shall be in default under this Agreement (a "Ci1y Default") in the event the City fails to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement and the City fails to cure such failure within thirty (30) days after Developer notifies the City of such failure, subject to Unavoidable Delays. Upon the occurrence of a City Default, Developer will have the right to exercise any of the following remedies: (i) seek specific performance or other equitable relief or (ii) sue for money damages. Developer shall not be entitled to terminate this Agreement. Section 6.6 Attorneys' Fees and Expenses. Each party shall pay its own attorneys' fees and expenses, even when arising any default, collection action or other dispute hereunder. ARTICLE VII ASSIGNMENT, PROPERTY TRANSFERS Section 7.1 Assignment; Property Transfers. Prior to the issuance of a Certificate of Completion for the Development, Developer shall not make, or suffer to be made, any total or partial sale, assignment, conveyance, lease, or other transfer, with respect to this Agreement, the Development or the Property, or any part thereof or any interest therein, or enter into any contract or agreement to do any of the same, without the prior written approval of the City, which may be withheld in the City's sole discretion. No transfer of, or change with respect to, ownership in the Development or the Property or any part thereof, or any interest therein, however consummated or occurring and whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the City of or with respect to any rights or remedies or controls provided in or resulting from this Agreement with respect to the Property and the completion of the Development that the City would have had, had there been no such transfer or change. No sale, assignment, conveyance, lease, or other transfer or approval by the City of the same shall be deemed to relieve Developer, or any other party bound in any way by this Agreement or otherwise with respect to the completion of the Development, from any of its obligations with respect thereto. ARTICLE VIII MISCELLANEOUS Section 8.1 Scope of Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and no statements, promises, or inducements that are not contained in this Agreement will be binding on the parties. All exhibits, schedules, or other attachments referenced in this Agreement are hereby incorporated into this Agreement by such reference and are deemed to be an integral part of this Agreement. Section 8.2 Liability. No member, official, or employee of the City shall be personally liable to Developer, or any successor in interest, in the event of any default or breach by the City, for any amount which may become due to Developer on any obligations under the terms of this Agreement. Under no circumstances shall the City be liable for any consequential or special damages in connection with this Agreement or the transactions contemplated herein. Section 8.3 Amendments. The parties to this Agreement may amend or modify this Agreement only by written instrument duly executed by the parties hereto. Section 8.4 Severability. If any part, term, or provision of this Agreement is held by a court to be illegal or otherwise unenforceable, such illegality or unenforceability will not affect the validity of any other part, term, or provision, and the rights of the parties will be construed as if such part, term, or provision was never part of this Agreement. Section 8.5 Agreement Binding. This Agreement shall be binding upon, and inure to the benefit of, the parties and their respective heirs, personal representatives, successors and assigns. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, and all of which together shall constitute one and the same instrument. Section 8.6 Run with the Land. The covenants and restrictions set forth in this Agreement shall run with the title to the Property and shall be binding upon all present and future owners and occupants of the Property; provided, however, that the covenants and restrictions set forth in the Agreement shall inure only to the benefit of the City and may be released or waived in whole or in part at any time, and from time to time, by the sole act of the City, and variances may be granted to the covenants and restrictions herein contained by the sole act of the City. Section 8.7 Venue and Governing Law. This Agreement shall be construed under and in accordance with the laws of the State of Minnesota. Section 8.8 Titles of Articles and Sections. Any titles of the several parts, Articles and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 8.9 Litigation. Each party will reasonably cooperate with the other with respect to any litigation commenced by third parties in connection with this Agreement. Section 8.10 No Third -Party Beneficiaries. It is the intention of the parties to this Agreement that no person who is not a party signatory to this Agreement shall, under a third -party beneficiary theory or otherwise, have any rights or interests hereunder, and no such other party shall have standing to complain of any party's or parties' exercise of, or alleged failure to exercise, its rights and obligations under this Agreement. Section 8.11 Time of the Essence. Time is of the essence of this Agreement. Section 8.12 Notice. Any notice, demand, request or other communication which may or shall be given or served by the parties shall be deemed to have been given or served on the date the same is deposited in the United States Mail, registered or certified, return receipt requested, and postage prepaid; sent by facsimile transmission; or given to a nationally recognized overnight courier service for next business day delivery and addressed as follows: If to Developer: Cadott Holdings, LLC P.O. Box 549 45 West Highland Park Drive Hutchinson, MN 55350 Attn: Eric Lipke With a copy to: Monroe Moxness Berg PA 7760 France Avenue S., Suite 700 Minneapolis, MN 55435 Attn: Matthew Duffy If to City: City of Hutchinson 111 Hassan St SE Hutchinson, MN 55350 Attn: City Administrator With a copy to: Dorsey & Whitney LLP 50 S. 6t' St, Suite 1500 Minneapolis, MN 55402 Attn: Grant Turpin The above addresses may be changed at any time by the parties by notice given in the manner provided above. The parties agree that electronically reproduced signatures, such as by facsimile transmission, are valid for execution or amendment of this Agreement and that electronic transmission/facsimile is an authorized form of notice as that term is used in this Agreement. Section 8.13 Recordation. Concurrently with the execution of this Agreement, the parties shall execute and record a memorandum of development agreement substantially in the form attached hereto as Exhibit E. Developer shall be responsible for all costs of recordation of such memorandum of development agreement. Section 8.14 No Presumption Against Drafter. This Agreement has been negotiated at arm's length and between persons sophisticated and knowledgeable in the matters dealt with herein. In addition, each party has been represented by experienced and knowledgeable legal counsel. Accordingly, this Agreement shall be interpreted to achieve the intents and purposes of the parties, without any presumption against the party responsible for drafting any part of this Agreement. Section 8.15 Payment of Costs. Developer will reimburse the City for the costs incurred by the City for its reasonable legal, financial and special consultants and advisors in connection with this Agreement, the administration hereof and the transactions contemplated herein within thirty (30) days after the City invoices the Developer for such costs. Developer's obligations under this Section shall survive any termination of this Agreement. EXECUTED ON: This day of , 2024 EXECUTED ON: This day of , 2024 CADOTT HOLDINGS, LLC. By: Name: Its: CITY OF HUTCHINSON By: Name: Its: Mayor By: Name: Its: City Administrator 13 Exhibit A Legal Description Lots 9 & 10, excepting northwesterly 1/3, Block 42, North Half of Hutchinson A-1 Exhibit B Site Plan -rhe proposed site layout with four (4) townhornej row home units is shown below. IM Exhibit C Minimum Requirements 1. Site needs to be developed as townhomes or rowhomes. 2. Development needs to be consistent with applicable zoning. 3. Development must adhere to the city's site and project approval processes. 4. Buyer is responsible for all due diligence regarding the site. C-1 Exhibit D Form of Certificate of Completion A. CADOTT HOLDINGS, LLC, a Minnesota limited liability company ("Developer"), pursuant to the Development Agreement with the CITY OF HUTCHINSON, a municipal corporation and political subdivision of the State of Minnesota (the "City"), dated , 2024 (the "Agreement"), has agreed to plan, design, finance, acquire, develop, and construct certain improvements on the property legally described on Schedule I attached hereto as more particularly described in the Agreement. B. Developer has substantially completed construction of the Development as required under the Agreement. C. The issuance of this Certificate of Completion by the City is not intended nor shall it be construed to be a warranty or representation by the City as to the structural soundness of Development, including, but not limited to, the quality of materials, workmanship or the fitness of the Development for its proposed use. NOW THEREFORE, this is to certify that all construction and other physical improvements specified to be done and made by Developer with regard to the Development have been substantially completed, and the provisions of the Agreement imposing obligations on Developer to construct the Development as required under the Agreement, are hereby satisfied and terminated, and the Recorder in and for McLeod County, Minnesota is hereby authorized to record this instrument, to be a conclusive determination of the satisfactory termination or said provisions of the Agreement. [Remainder ofpage intentionally blank.] D-1 Dated: , 20 EXECUTED ON: This day of , 2024 STATE OF MINNESOTA CITY OF HUTCHINSON By: Name: Its: Mayor By: Name: Its: City Administrator ) ss. COUNTY OF MCLEOD ) The foregoing instrument was acknowledged before me this day of , 20 , by and , the Mayor and City Administrator of the City of Hutchinson, a municipal corporation, on behalf of the municipal corporation. Notary Public D-2 SCHEDULEI Legal Description Lots 9 & 10, excepting northwesterly 1/3, Block 42, North Half of Hutchinson D-3 Exhibit E Form of Development Agreement Memorandum MEMORANDUM OF DEVELOPMENT AGREEMENT THIS MEMORANDUM OF DEVELOPMENT AGREEMENT (this "Memorandum"), is made this day of, 2024 by and between the CADOTT HOLDINGS, LLC, a Minnesota limited liability company ("Developer") and the CITY OF HUTCHINSON, a municipal corporation and political subdivision of the state of Minnesota (the "City"): WITNESSETH: WHEREAS, Developer and the City entered into that certain Development Agreement dated , 2024 (the "Agreement"), whereby Developer agreed to construct certain improvements (the "Improvements") upon the real property located in the City of Hutchinson, McLeod County, Minnesota and legally described on the attached Exhibit A (the "Property"); and WHEREAS, in accordance with the terms of the Agreement Developer has agreed to construct the Improvements; WHEREAS, the Agreement contains certain obligations, covenants and restrictions as further set forth therein; and WHEREAS, the City and Developer desire to give record notice of said Agreement. NOW, THEREFORE, in consideration of the foregoing, the City and Developer agree as follows: 1. Minimum Improvements. The Developer has agreed to construct the Improvements in accordance with the terms of the Agreement. E-1 2. Reverter. Subject to the terms of the Agreement, the City has a right of reverter with respect to the Property. 3. Effect of Memorandum. This Memorandum is intended to provide notice of the fact of the existence of the Agreement and is not intended to create a legally binding agreement, therefore in the event of a conflict between the terms of the Agreement and this Memorandum, the terms of the Agreement shall control in all respects. 4. Other Terms and Conditions. All other obligations, covenants, terms and provisions set forth in the Agreement are hereby incorporated by reference, and made a part hereof. 5. Copy of Agreement. A copy of the Agreement is on file at the offices of the City. 6. Runs with the Land. The Agreement and the covenants set forth therein shall run with title to the Property and shall be binding upon all present and future owners and occupants of the Property. [Signature pages follow.] E-2 IN WITNESS WHEREOF, the parties have executed this Memorandum as of the date set forth above. EXECUTED ON: This day of 12024 STATE OF MINNESOTA ) COUNTY OF MCLEOD ) CITY OF HUTCHINSON By: Name: Its: Mayor By: Name: Its: City Administrator MR The foregoing instrument was acknowledged before me this day of , 20 , by and , the Mayor and City Administrator of the City of Hutchinson, a municipal corporation, on behalf of the municipal corporation. Notary Public E-3 EXECUTED ON: This day of 12024 STATE OF MINNESOTA COUNTY OF MCLEOD CADOTT HOLDINGS, LLC By: Name: Its: ss. The foregoing instrument was acknowledged before me this day of , 20 , by , the of Cadott Holdings, LLC, a Minnesota limited liability company, on behalf of the limited liability company. Notary Public E-4 EXHIBIT A to Memorandum of Development Agreement Property Lots 9 & 10, excepting northwesterly 1/3, Block 42, North Half of Hutchinson E-5 Exhibit F Form of Quitclaim Deed (Attached) (Top 3 inches reserved for recording data) QUIT CLAIM DEED Business Entity to Business Entity eCRV number: DEED TAX DUE: $ DATE: , 2024 FOR VALUABLE CONSIDERATION, CITY OF HUTCHINSON, a Minnesota municipal corporation ("Grantor"), hereby conveys and quitclaims to CADOTT HOLDINGS, LLC., a Minnesota limited liability company ("Grantee"), real property in McLeod County, Minnesota, legally described as follows: Lots Nine (9) and Ten (10) in Block Forty-two (42), North Half Hutchinson, EXCEPTING THEREFROM that part of Lot Ten (10), described as follows: Beginning at the southwest corner of said Lot 10 in Block 42, North Half Hutchinson, thence Northerly along the west line of said Lot 10, for a distance of 66.00 feet to the northwest corner of said Lot 10; thence Easterly along the north line of said Lot 10, for a distance of 66 feet; thence in a southwesterly direction across said Lot 10, to the point of beginning, McLeod County, Minnesota. Check here if all or part of the described real property is Registered (Torrens) Together with all hereditaments and appurtenances belonging thereto. Check applicable box: The Seller certifies that the Seller does not know of any wells on the described real property. A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number: [... ].) ❑ I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. Paae 8 of 27 LIMITED WARRANTY DEED STATE OF MINNESOTA ) ) ss. COUNTY OF MCLEOD ) the GRANTOR: CITY OF HUTCHINSON, a Minnesota municipal corporation By: _ Name: Title: The foregoing instrument was acknowledged before me this day of , 202, by of the City of Hutchinson, a Minnesota municipal corporation. [stamp] THIS INSTRUMENT WAS DRAFTED BY: Dorsey & Whitney LLP (GT/mc) 50 South Sixth Street, Suite 1500 Minneapolis, MN 55402 Notary Public TAX STATEMENTS FOR THE REAL PROPERTY DESCRIBED IN THIS INSTRUMENT SHOULD BE SENT TO: City of Hutchinson 111 Hassan St SE Hutchinson, MN 55350 4890-6533-7315, v. 1 ssis :s HUTCHINSON CITY COUNCIL Request for Board Action A C17Y ON PUFP First Addendum Letter of Intent - Hutchinson Event Center Agenda Item: Department: PRCE LICENSE SECTION Meeting Date: 9/24/2024 Application Complete N/A Contact: Lynn Neumann Agenda Item Type: Presenter: Lynn Neumann Reviewed by Staff ❑� New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: City staff have been working continuously with representatives from Hutchinson Health Partners to reach an agreement for the future ownership of the Hutchinson Event Center. Please find attached the First Addendum to the Letter of Intent for the Hutchinson Event Center. On June 30, 2023, the City of Hutchinson and Hutchinson Health Partners entered into a Letter of Intent regarding the potential transfer of control of the Hutchinson Event Center. The original Letter of Intent was set to expire on December 31, 2024, but both parties have agreed to extend the expiration date to December 31, 2025, to allow for further negotiations and due diligence. The First Addendum to the Letter of Intent has been reviewed by the City Administrator, PRCE Director, and the City Attorney. City staff recommends moving forward with the First Addendum to the Letter of Intent and obtaining signatures. Staff is seeking City Council authorization for the Mayor and City Administrator to sign the First Addendum to the Letter of Intent on behalf of the City of Hutchinson. Once signed by the City of Hutchinson, the First Addendum to the Letter of Intent will be sent to Hutchinson Health Partners representatives for their signatures. If you have any questions or need additional information, Lynn Neumann will be available at the City Council meeting. BOARD ACTION REQUESTED: Authorization for the Mayor and City Administrator to sign the First Addendum to the Letter of Intent on behalf of the City of Hutchinson. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A First Addendum to Letter of Intent On June 30`h, 2023, the City of Hutchinson and Hutchinson Health (the Parties) entered into a Letter of Intent concerning the possible transfer of control of the Hutchinson Event Center space. That Letter of Intent had an expiration date of December 31, 2024. The Parties have agreed to extend that expiration date until December 31, 2025, so that the Parties can continue their negotiations and due diligence concerning the property. Therefore, the Parties agree that the three sections of the Letter of Intent which contain the date of December 31, 2024, shall be amended to read December 31, 2025. All other portions of the Letter of Intent remain unchanged and the Parties agree to be bound by them. The City of Hutchinson Date: By: Its By: Its: Hutchinson Health Date: M- Its cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Resolution 15766 Approving the 2025 HRA Preliminary Tax Levy Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 9/24/2024 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑� New Business Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: In accordance with State Statute, the City must certify the 2025 preliminary HRA tax levy to the County auditor by September 30th. This tax levy has a statutory limit of $287,521, however, the HRA Board is requesting only $170,000 to fund its 2025 operations. The levy amount represents a 3% increase from the 2024 levy of $165,000. The HRA's statutory levy limit is based on .0185% of the City's 2024 Estimated Market Value of $1,554,169,000. As a reminder to city council, the final levy approved in December cannot be higher than the preliminary levy, but it can be lower. BOARD ACTION REQUESTED: Approve the 2025 HRA Preliminary Tax Levy of $170,000 as recommended by the HRA Board. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A CITY OF HUTCHINSON RESOLUTION NO. 15766 CITY OF HUTCHINSON, MINNESOTA SETTING 2025 PRELIMINARY TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON REDEVELOPMENT AUTHORITY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA WHEREAS the City of Hutchinson hereby establishes a special taxing district for the purpose of Hutchinson Housing Redevelopment Authority (Hutchinson HRA) and the financing of such district as authorized under Minn. Statute 469.033. WHEREAS the Minn Stat 469.033 authorizes a levy to be set for an HRA special tax of .000185 times estimated market value of the city. AND for 2025 the authorization yields:.000185 x $1,554,169,000 = $287,521; The HRA Board requests for 2025 a levy of $170,000. THAT the City of Hutchinson hereby establishes a preliminary tax levy for the above named special taxing district of: $ 170,000 Adopted by the City Council this 24th day of September, 2024. Gary T. Forcier Mayor ATTESTED: Matthew Jaunich City Administrator cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Resolution 15767 Approving the 2025 EDA Preliminary Tax Levy Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 9/24/2024 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑� New Business Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: In accordance with State Statute, the City must certify the 2025 preliminary EDA tax levy to the County auditor by September 30th. This tax levy has a statutory limit of $281,771 and that is the amount the EDA Board is requesting to fund its 2025 operations. The levy amount represents a 3.3% increase from the 2024 levy of $272,842. The EDA's statutory levy limit is based on .01813% of the City's 2024 Estimated Market Value of $1,554,169,000 As a reminder to city council, the final levy approved in December cannot be higher than the preliminary levy, but it can be lower. BOARD ACTION REQUESTED: Approve the 2025 EDA Preliminary Tax Levy of $281,771 as recommended by the EDA Board. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A CITY OF HUTCHINSON RESOLUTION NO. 15767 CITY OF HUTCHINSON, MINNESOTA SETTING 2025 PRELIMINARY TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA WHEREAS the City of Hutchinson hereby establishes a special taxing district for the purpose of Hutchinson Economic Development Authority (Hutchinson EDA) and the financing of such district as authorized under Minn. Statute 469.107. WHEREAS the Minn Stat 469.107 authorizes a levy to be set for an EDA special tax of .0001813 times estimated market value of the city. AND for 2025 the authorization yields- .0001813 x $1,554,169,000 = $281,771; The EDA Board requests for 2025 a levy of $281,771. THAT the City of Hutchinson hereby establishes a preliminary tax levy for the above named special taxing district of: $281,771 Adopted by the City Council this 24th day of September, 2024. Gary T. Forcier Mayor ATTESTED: Matthew Jaunich City Administrator c� HUTCHINSON CITY COUNCIL RUT' HINSON Request for Board Action A CITY ON PURPOSE. Resolution 15768 Approving the 2025 General Fund & Debt Service Agenda Item: Preliminary Tax Levies Department: Finance LICENSE SECTION Meeting Date: 9/24/2024 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑� New Business Time Requested (Minutes): 3 License Contingency No Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: In accordance with State Statute, the City must certify a preliminary 2025 tax levy to the McLeod County auditor by September 30th, for the General Fund and Debt Service Funds. Staff has two levy scenarios for the city council to consider: Scenario #1: The proposed preliminary tax levy of $9,460,161 as shown at the last budget workshop, with an overall City tax levy increase of 7.1 %. This is based on an 8.6% levy increase to the General fund levy and 3.1 % increase to the Debt levy. Combined with the EDA and HRA tax levies, the Total tax levy increase is 6.9%. Scenario #2: Increased debt tax levy to account for $400,000 of additional construction costs to be funded each year by the debt levy. This does not affect the 2025 debt levy since it would apply to the 2025 project year with 2026 being the first year of debt service. This scenario also includes new debt for the fire ladder truck, with $1 M of debt issued in 2025 and another $1.2M of debt in 2026 ($2.2M estimated total). This results in a $70,000 increase to the 2025 debt tax levy. The overall City tax levy increase for this scenario is 7.9%. The General fund levy is the same as scenario #1 with an 8.6% increase, but a 5.9% increase to the Debt levy. Combined with the EDA and HRA tax levies, the Total tax levy increase is 7.6%. The General fund increase is attributed mainly to Wages & Benefits, which includes the proposed request for a new fire inspector. The budgetary increase for the employees performance -based wage adjustments amounts to a 4.37% tax levy increase. The new fire inspector wages and benefits amounts to a 1.86% tax levy increase. BOARD ACTION REQUESTED: Approve the 2025 Preliminary General fund and Debt Service tax levy for Scenario #1, Scenario #2, or other scenario per the city council. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A Scenario #1 CITY OF HUTCHINSON RESOLUTION NO. 15768 2025 PRELIMINARY TAX LEVY FOR CITY OF HUTCHINSON, MINNESOTA BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA THAT a preliminary net tax levy for the City of Hutchinson for 2025 is hereby set in the amount of: $9,460,161 The detail for this preliminary tax levy is as follows: Levy Amount General Fund $ 6,881,526 Tax Abatement $ 25,000 G.O. Improvement Special Assessment Bonds 2014 127,891 2015 141,896 2016 150,090 2017 175,038 2018 137,934 2019 193,152 2020 149,049 2021 126,455 2023 96,062 2024 172,180 1,469,747 G.O. Bonds 2021 & 2022 CIP Facility Bonds - Police 859,012 2021 Tax Abatement Bonds 43,890 2022 Street Reconstruction Bonds 180,986 1,083,888 Total Debt Tax Levy $ 2,553,635 TOTAL PRELIMINARY TAX LEVY $ 9,460,161 Adopted by the City Council this 24th day of September, 2024. Gary T. Forcier Mayor /_IN112-311:119li Matthew Jaunich City Administrator Scenario #2 CITY OF HUTCHINSON RESOLUTION NO. 15768 2025 PRELIMINARY TAX LEVY FOR CITY OF HUTCHINSON, MINNESOTA BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA THAT a preliminary net tax levy for the City of Hutchinson for 2025 is hereby set in the amount of: $9,530,010 The detail for this preliminary tax levy is as follows: General Fund Tax Abatement G.O. Improvement Special Assessment Bonds 2014 127,891 2015 141,896 2016 150,090 2017 175,038 2018 137,934 2019 193,152 2020 149,049 2021 126,455 2023 96,062 2024 172,180 1,469,747 G.O. Bonds 2021 & 2022 CIP Facility Bonds - Police 859,012 2021 Tax Abatement Bonds 43,890 2022 Street Reconstruction Bonds 180,986 2025 GO Equipment Bonds - Future Ladder Truck 69,849 1,153,737 Total Debt Tax Levy Ills] re1 NUN ;I I I �, 1101 rel:YA rem � III AVA-J Adopted by the City Council this 24th day of September, 2024. ATTESTED: Matthew Jaunich City Administrator Levy Amount $ 6,881,526 $ 25,000 $ 2,623,484 $ 9,530,010 Gary T. Forcier Mayor PRELIMINARY LEVIES FOR 2025 2024 2025 Change % Chg General Fund $6,333,436 6,881,526 $548,090 8.7% Tax Abatement 25,000 25,000 - 0.0% Total General Fund 6,358,436 6,906,526 548,090 8.6% Debt Funds 2,477,487 2,553,635 76,148 3.1 % Total City Tax Levy $8,835,923 $9,460,161 $6241238 7.1 % EDA Levy 272,842 281771 8,929 3.3% HRA Levy 165,000 170,000 5,000 3.0% TOTAL TAX IMPACT $9,273,765 $9,911,932 $638,167 6.9% Scenario #2: General Fund Tax Abatement Total General Fund Debt Funds Total City Tax 2024 2025 Change % Chg $6,333,436 6,881,526 $548,090 8.7% 25,000 25,000 - 0.0% 6,358,436 6,906,526 548,090 8.6% 2,477,487 2,623,484 145,997 5.9% $8,835,11". 91530,010 $694,087 7.9% EDA Levy 272,842 281771 8,929 3.3% HRA Levy 165,000 170,000 5,000 3.0% TOTAL TAX IMPACT $9,273,765 91981,781 $708,016 7.6% General Fund levy. Debt levy. TAX CAPACITY (Estimate) % Change Tax Levy - General Fund Tax Levy - Debt Service TOTAL LEVY Total Levy % Increase over 2024 Tax Rate Change in Tax Rate Median Home Value Homestead Exclusion Net Taxable Value Estimated City Tax Change from 2024 % Change PRELIMINARY TAX IMPACT 2025 Tax Levy Options Scenario #1 Scenario #2 Adopted 2024 Option 1 Option 2 Option 3 Option 4 Option 5 4.0% 0.0% 5.0% 8.6% 5.0% 8.6% 3.4% 0.0% 3.1% 3.1% 5.9% 5.9% $16,265,288 $16,428,914 $16,428,914 $16,428,914 $16,428,914 $16,428,914 1.0% 1.0% 1.0% 1.0% 1.0% $6,358,436 $6,358,436 $6,676,358 $6,906,526 $6,676,358 $6,906,526 2,477,487 2,477,487 2,553,635 2,553,635 2,623,484 2,623,484 $8,835,923 $8,835,923 $9,229,993 $9,460,161 $9,299,842 $9,530,010 0.0% 4.5% 7.1 % 5.3% 7.9% 54.324% 53.783% 56.181% 57.582% 56.607% 58.008% -0.541 % 1.858% 3.259% 2.283% 3.684% City Tax Impact to Median Home Value Preliminary Preliminary Adopted 2024 Option 1 Option 2 Option 3 Option 4 Option 5 $250,000 $275,000 $275,000 $275,000 $275,000 $275,000 -14,700 -21,800 -21,800 -21,800 -21,800 -21,800 $235,300 $253,200 $253,200 $253,200 $253,200 $253,200 $1,278 $1,362 $1,423 $1,458 $1,433 $1,469 $85 $145 $181 $156 $192 6.6% 11.4% 14.1% 12.2% 15.0% Scenario #1 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 UA74f? ; UMI PROJECTED DEBT LEVY i2.4G3�`&d Lyifi�39 i29ET,fli4 S3,OOB,]E6 Y'UfG.77= 52.a1y.J545547 W. - - - 0.142 #2,�5#b94 iBU.10 VU6.d1q F�irQari 196n I4�tx a # � r+i HhU S M5.h 5 MA +s.4 4 4 # a — 51 S Fi Ip,31 Wt�G ffi� 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 =;Existing Levy !`I Proposed Future Issues =JNew Police Facility —Total Debt Levy Scenario #2 PROJECTED DEBT LEVY • .�; r� � -- -ram I c� HUTCHINSON CITY COUNCIL Request for Board Action 'ON PURPOSE. Calling our Next Strategic Planning Session for 3:45 p.m. on October 22 Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 9/24/2024 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� New Business Time Requested (Minutes): 1 License Contingency N/A Attachments: No 0 BACKGROUND/EXPLANATION OF AGENDA ITEM: Staff is looking to set our next strategic planning session prior to our October 22 City Council meeting. This session will focus on "Good Government" and will be the last session prior to putting together a formal strategic plan. BOARD ACTION REQUESTED: Approval of calling our next strategic planning session workshop for Tuesday, October 22 at 3:45 p.m. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 Included in current budget: Yes 0 PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A cR HUTCHINSON CITY COUNCIL Request for Board Action A CITY ON PURPOSE. Approve Setting the Truth -in -Taxation Hearing Date and Time Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 9/24/2024 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� New Business Time Requested (Minutes): 1 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: As we certify our preliminary tax levies to the County, we must also notify the County (and the Public) of the date that we will hold our Truth -in -Taxation Hearing. This is a public meeting of which the tax levy and budget will be discussed and a forum will be given to allow the public to comment on the proposed levy/budget. This public hearing is required by state statute. The public meeting requirements are as follows: 1. The Council must set the date, time and place of the meeting at which a final budget and tax levy will be discussed. 2. Meeting must be held after November 24 and before December 30 and at or after 6:00 p.m. 3. The public will be allowed to speak at the meeting. 4. We must have a phone number available where the public can call to ask questions on the budget along with an address available where public comments can be received by mail. Generally speaking, we have held our Truth -in -Taxation Hearing on the first Tuesday in December. That first Tuesday is December 3 this year. The County Board is hosting their Truth -in -Taxation on December 5 and the School District will likely have theirs at a regular meeting date (Monday nights). If the 3rd doesn't work, I would recommend Thursday, December 5 or to conduct it during our regular council meeting on December 10. BOARD ACTION REQUESTED: Approve setting the Truth -in -Taxation Hearing date and time for Tuesday, December 3 at 6:00 p.m. in the Council Chambers at City Center Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A Library Board Meeting July 22, 2024 Members Present: Mary Christensen, Margaret Hoffman, Kay Hultgren, Dianne Wanzek, and Katy Hiltner, Ex-officio. Excused/Absent: Tim Burley, Sue Griep, Julie Lofdahl Dianne called the meeting to order. Minutes from the June 24, 2024, meeting were reviewed and approved. Old Business: 1. Program Reports: a. DNR Naturalist StoryTime and Information Table: 127 were in attendance for story time and 37 stopped by the information table later. b. Voices from the History Past with Kay Voight: 32 attended Kay's presentation on the history of the Hutchinson Public Library. c. Children's July Program Stats: 105 attended the July 11 story time, presented by Elizabeth. 49 attended on July 18, for story time with the Master Gardeners. 2. Library's Grandmother Clock: Bob Malone shared a lot of history with Katy, examined the clock, and thinks he can fix it. Katy plans to follow up with more information regarding the clock. New Business: 1. 2024 City and County Funding Requests: Pioneerland will be making a request for a 5% increase in funding from those entities. 2. Upcoming Programs: a. Voices from History Past with Bill Arndt on August 2, at 1:30, on the topic of agriculture in the area b. Jolly Pops Kid's Concert: The final Stories in the Park, 10:00 a.m., August 8. c. Youth Programs: August 1— naturalist for ST in the Park; August 3rd and 5th—escape room for ages 12-112 (will puzzle their way out of the meeting room); August 12th and 26th—Teen gaming club (ages12-18); Tween gaming club had 4 attend in July and will meet once in August; Graphic Novel Club (ages 9+) will meet Aug. 1 only. 3. Summer Reading Wrap-up: This summer's program will end on August 17 (with flexibility). 4. Fall Programming Ideas: a. DNR naturalist will be returning in September, for an adult session, with the theme of birding, in the morning; and one (same theme) in the afternoon, for the kids. b. Partnering with Hutch Health on a "story stroll" leading to the clinic. 5. Friends of the Library Book Sale: Donations of books for the sale should be made by early August, which will be during Arts and Crafts Festival, September 13-14. June 2024 Donations and Grants: Hutchinson Readers' Club (book club kit) $175.00 Total = $175.00 Next Meeting: Monday, August 26, 2024, at 4:30 p.m. Respectfully submitted, Kay Hultgren, Secretary Parks, Recreation & Community Education Advisory Board Meeting Minutes August 5, 2024 Members present were Kyle Wendling, Erin Knudtson, Mark Lansink, and Liz Stearns. Staff present Lynn Neumann, Amy Scheele, and Jody Harms. The meeting was held at Kiwanis Park shelter and called to order at 5:20 pm. Mark Lansink motioned to approve the meeting minutes dated June 3, 2024. Erin Knudtson seconded the motion. The minutes were approved. Old Business Community Education Program and Facility Coordinator Update • Amy Scheele was introduced as the Community Education Program and Facility Coordinator. Replacing Sharon Armstrong who retired May 31, 2024. • Amy has been with the Hutchinson School District since 2012. • She will be working between the School District and the Parks Office for a few months to help with the transition at the school. Aquatic Center End -of -Season Update • Last day of the open swim is Friday, August 16 (12:30-5:00 pm). • The evening fitness swim's last day is Thursday, August 15. • The last day of the morning fitness swim is Friday, August 23. VMF Project Update • The project has been slowed down due to rain/water in the outfield. • The placement of light poles has been marked. • Replacement Lighting cost is approximately $350,000. • Ebert Construction will begin grandstand construction on September 3rd, with a completion date of November 30th. New Business Fall 2024 Brochure • Due to Crow River Printing going out of business, PRCE is working with Forum Printing out of Detroit Lakes. • The brochure will be delivered to homes the week of August 12th, and registration opens on August 21 st. Library Square Fountain • Below are two options for the repair or replacement of the fountain. o Option # 1 ■ A pump house will need to be built for plumbing and power. ■ Possible placement at the flag pole site. An enclosure would be created to enclose plumbing and power items. ■ The cost is approximately $60,000. o Option #2 ■ A plaza -style splash pad. This is not a full splash pad. ■ It would be placed at the fountain site. Includes interactive fountain features for the public to use. A pump house is needed, also. The cost is approximately $500,000-$1,000,000. 2025 Proposed PRCE Fee Schedule • No change to Aquatic Center pricing for 2025. • Hutchinson Health approved a grant to cover open gym for students. • Campground pricing will remain the same. • Shelter prices will increase to $75 for shelters with more amenities and updates. Pickleball Fees and Potential Pass Options • Possible pickleball yearly pass for $200 per person. • Board members were in favor of the pickleball pass option for 2025. Board Member Items Adiournment • No meeting on September 2 (Labor Day) • Next meeting is October 7 - Location TBD A motion to adjourn was made by Kyle Wendling and Erin Knudtson seconded the motion. The meeting adjourned at 6:15 pm. u _ A CITY ON PURPOSE. MINUTES HUTCHINSON PLANNING COMMISSION Tuesday, August 20, 2024 5:30 p.m. 1. CALL TO ORDER 5:30 P.M. The August 20, 2024 Planning Commission meeting was called to order by Chairman Fahey at 5:30 p.m. Members in bold were present Chairman Fahey, Vice Chairman Hacker, Commissioner Garberg, Commissioner Wirt, Commissioner Sebesta, and Commissioner Janssen, Commissioner Kosek. Also present were Dan Jochum, City Planner, Mike Stifter, City Public Works Director, John Paulson, City Environmental Specialist, Marc Sebora, City Attorney, Andrea Schwartz, City of Hutchinson Planning and Building Specialist, Rozanne Johnson, City of Hutchinson Planning and Building Assistant. 2. OATH OF OFFICE — KARISSA KOSEK 3. PLEDGE OF ALLEGIANCE 4. CONSENT AGENDA A. CONSIDERATION OF MINUTES DATED July 16, 2024. Chairman Fahey asked for a correction of the spelling of a name. A neighbor for the public hearing on the 3M project, Jody Stoffles. Motion by Commissioner Garberg to approve July 16, 2024 meeting minutes with the correction. Second by Commissioner Hacker. Motion approved. S. PUBLIC HEARING A. CONSIDERATION OF A VACATION OF EASEMENTS LOCATED AT LOTS 1 AND 2, BLOCK 3, SECOND ADDITION TO THE MEADOWS. Dan Jochum, City Planner addressed the Commission and gave a brief overview of the project. Mr. Jochum then covered the staff report. Motion by Commissioner Hacker, second by Commissioner Garberg to close the hearing at 5:34 p.m. Motion by Commissioner Hacker to approve the Vacation of Easements with staff recommendations. Second by Commissioner Garberg. Item will be on City Council consent agenda on 08/27/2024. Minutes Hutchinson Planning Commission August 20, 2024 Page 2 6. NEW BUSINESS A. NONE 7. UNFINISHED BUSINESS A. NONE 8. COMMUNICATION FROM STAFF A. SEPTEMBER MEETING — annexation, tattoo establishment, preliminary plat B. DOWNTOWN PLAN — will be getting together Sept/Oct and hope to wrap up by end of the year 9. ADJOURNMENT Motion was made by Commissioner Hacker, second by Commissioner Garberg to adjourn the meeting, Meeting was adjourned at 5:37 p.m. cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. August 2024 Financial and Investment Reports Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 9/24/2024 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑� Governance Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: For Council review, attached are the August Financial Reports for the general fund and enterprise funds. Also attached is the August Investment Report. Feel free to contact me with any questions. Thank you. BOARD ACTION REQUESTED: Fiscal Impact: Funding Source: FTE Impact: Budget Change: Govern, Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2024 2024 2023 2024 ACTUALS 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED General Fund Taxes - 3,309,308 6,370,436 3,061,128 51.9 3,141,066 5,846,751 53.7 Other Taxes 20,007 167,180 330,000 162,820 50.7 172,372 330,000 52.2 Licenses & Permits 27,863 299,564 392,100 92,536 76.4 265,558 442,100 60.1 Intergovernmental Revenue 27,015 1,636,139 2,028,194 392,055 80.7 1,446,155 1,793,941 80.6 Charges for Services 161,479 1,639,265 2,547,142 907,877 64.4 1,762,473 2,872,308 61.4 Miscellaneous Revenues 33,923 305,642 353,900 48,258 86.4 315,764 289,800 109.0 Transfers -In - 1,456,971 2,812,628 1,355,657 51.8 1,428,402 2,724,536 52.4 Fines & Forfeitures 3,228 32,345 55,000 22,655 58.8 33,745 55,000 61.4 TOTAL REVENUES 273,515 8,846,414 14,889,400 6,042,986 59.4 8,565,535 14,354,436 59.7 Wages & Benefits 851,447 6,302,119 10,050,414 3,748,295 62.7 6,182,982 9,672,602 63.9 Supplies 70,543 838,402 1,072,833 234,431 78.1 708,440 986,823 71.8 Services & Charges 216,044 2,059,942 2,867,722 807,780 71.8 1,802,326 2,827,889 63.7 Miscellaneous Expenses 2,727 203,048 381,400 178,352 53.2 220,748 373,500 59.1 Transfers -Out - 58,516 517,031 458,516 11.3 56,811 488,622 11.6 Capital Outlay - 838 - (838) - 24,718 5,000 494.4 TOTAL EXPENDITURES 1,140,761 9,462,864 14,889,400 5,426,536 63.6 8,996,024 14,354,436 62.7 NET REVENUE (867,247) (616,450) - 616,450 (430,489) - Comments Charges for Services This revenue category is lower than last year due to the hospital security program being discontinued, resulting in $219,203 less revenue when comparing the two years. Supplies This expense category is higher due to the City taking over the airport FBO duties. With that, the City is purchasing fuel for resale at the airport. The fuel purchased to date totals $97,337 and was not budgeted. The revenue associated with the fuel sales shows up in the Charges for Services revenue category. Services & Charges This expense category is higher due to Contract Repair & Maintenance costs running high in several departments but mainly for street repairs and waterpark repairs. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2024 2024 2023 2024 ACTUALS 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED General Fund Expense by Department Mayor & City Council 2,834 23,731 47,477 23,746 50.0 23,922 50,087 47.8 City Administrator 39,331 336,495 519,041 182,546 64.8 302,039 486,246 62.1 Elections 9,072 21,963 29,850 7,887 73.6 - - - Finance Department 30,232 312,713 427,823 115,110 73.1 275,040 406,320 67.7 Motor Vehicle 27,499 222,459 338,131 115,672 65.8 200,759 299,947 66.9 Assessing - - 61,499 61,499 - - 61,478 - Legal 24,453 190,394 329,055 138,661 57.9 191,272 325,697 58.7 Planning 13,853 114,484 181,040 66,556 63.2 106,646 170,925 62.4 Information Services 33,653 354,716 619,744 265,028 57.2 386,018 584,601 66.0 City Hall Building 15,323 131,239 202,295 71,056 64.9 122,621 201,625 60.8 Police Department 311,568 2,597,544 4,210,713 1,613,169 61.7 2,453,774 3,711,079 66.1 Hospital Security - - - - - 221,753 373,964 59.3 Emergency Management 129 18,365 13,500 (4,865) 136.0 10,596 16,980 62.4 Safety Committee 155 10,962 13,950 2,988 78.6 11,813 12,000 98.4 Fire Department 16,476 244,393 447,485 203,092 54.6 274,554 410,444 66.9 Protective Inspections 31,345 277,702 397,864 120,162 69.8 218,421 359,241 60.8 Engineering 31,444 292,072 479,881 187,809 60.9 275,662 505,473 54.5 Streets & Alleys 89,357 1,247,316 1,777,633 530,317 70.2 1,113,689 1,677,692 66.4 Park/Recreation Administration 23,019 185,105 280,458 95,353 66.0 170,266 263,811 64.5 Recreation 9,971 149,363 225,861 76,498 66.1 148,733 232,197 64.1 Senior Citizen Center 7,793 52,076 79,564 27,488 65.5 49,467 84,861 58.3 Civic Arena 43,686 249,377 413,137 163,760 60.4 241,516 407,734 59.2 Park Department 139,368 826,385 1,187,993 361,608 69.6 767,856 1,145,736 67.0 Recreation Building 18,203 177,330 280,335 103,005 63.3 169,239 281,230 60.2 Events Center 10,811 101,262 151,082 49,820 67.0 93,198 171,156 54.5 Evergreen Building 1,046 19,491 35,080 15,589 55.6 19,705 34,880 56.5 Library 51,306 172,509 247,865 75,356 69.6 171,801 244,216 70.3 Waterpark 130,539 453,869 467,082 13,213 97.2 395,609 457,647 86.4 Cemetery 11,371 103,456 153,077 49,621 67.6 98,196 151,085 65.0 Airport 15,843 203,662 129,260 (74,402) 157.6 106,402 143,905 73.9 Unallocated General Expense 1,082 372,434 1,141,625 769,191 32.6 375,459 1,082,179 34.7 TOTAL EXPENDITURES 1,140,761 9,462,864 14,889,400 5,426,536 63.6 8,996,024 14,354,436 62.7 REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2024 2024 2023 2024 ACTUALS 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED Liquor Fund Sales 714,906 5,059,555 7,708,000 2,648,445 65.6 4,876,270 7,281,000 67.0 Miscellaneous Revenues 116 1,979 10,500 8,521 18.8 2,098 10,500 20.0 TOTAL REVENUES 715,022 5,061,534 7,718,500 2,656,966 65.6 4,878,367 7,291,500 66.9 Cost of Sales 517,802 3,795,267 5,852,000 2,056,733 64.9 3,723,543 5,504,000 67.7 Wages & Benefits 72,690 578,111 924,229 346,118 62.6 562,421 904,864 62.2 Supplies 1,320 19,483 25,500 6,017 76.4 16,755 25,500 65.7 Services & Charges 22,787 175,557 308,150 132,593 57.0 182,294 298,750 61.0 Miscellaneous Expenses - 5,750 6,500 750 88.5 5,945 6,700 88.7 Transfers -Out - 550,000 550,000 - - 550,000 - Capital Outlay 8 81,974 100,000 18,026 82.0 8,204 15,000 54.7 Depreciation Expense - - 58,000 58,000 - - 61,000 - TOTAL EXPENDITURES 614,608 4,656,142 7,824,379 3,168,237 59.5 4,499,161 7,365,814 61.1 NET REVENUE 100,414 405,392 (105,879) (511,271) 379,206 (74,314) Year to Date Sales August Sales Comments 2024 2023 Change 2024 2023 Change Liquor Sales Revenue: Liquor 1,904,358 1,812,344 5.1% 264,365 236,986 11.6% Beer 2,328,215 2,324,610 0.2% 343,214 322,815 6.3% Wine 606,863 598,270 1.4% 71,990 66,670 8.0% THC Products 89,874 6,690 1243.4% 16,009 3,507 356.4% Other 130,245 134,355 -3.1% 19,329 18,377 5.2% Total Sales 5,059,555 4,876,270 3.8% 714,906 648,354 10.3% Gross Profit $1,264,287 $1,152,726 $197,104 $131,037 Gross Margin on Sales 25.0% 23.6% 1.3% 27.6% 20.2% 7.4% Customer Count 162,041 158,565 2.2% 23,030 21,545 6.9% Average Sale per Customer $31.22 $30.75 1.5% $31.04 $30.09 3.2% Labor to Sales Ratio 11.4% 11.5% -0.1 % 10.2% 10.3% -0.1 % Capital Outlay The 2024 expenditures include budgeted upgrades to the cashier counters and cabinetry. Water Fund Sales Sales - Other Local Sales Tax Charges for Services Miscellaneous Revenues TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2024 2024 2023 2024 ACTUALS 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED 186,681 938,762 1,675,000 736,238 56.0 1,021,083 1,840,000 55.5 76,054 672,755 1,006,000 333,245 66.9 685,312 614,000 111.6 104,481 547,434 1,057,000 509,566 51.8 595,370 1,012,000 58.8 2,645 90,163 88,668 (1,495) 101.7 66,768 71,685 93.1 15,834 121,861 114,500 (7,361) 106.4 95,477 44,500 214.6 385,695 2,370,976 3,941,168 1,570,192 60.2 2,464,009 3,582,185 68.8 55,218 423,178 631,441 208,263 67.0 382,053 579,848 65.9 92,857 444,505 244,225 (200,280) 182.0 180,638 185,800 97.2 38,848 313,894 599,400 285,506 52.4 287,159 561,885 51.1 - 11,634 13,500 1,866 86.2 9,010 13,500 66.7 - - 90,000 90,000 - - 70,000 - 38,303 151,816 982,310 830,494 15.5 170,207 902,876 18.9 - - 1,120,000 1,120,000 - - 1,090,000 - 1,196,351 1,328,065 1,366,550 38,485 97.2 1,319,984 1,371,173 96.3 TOTAL EXPENDITURES 1,421,576 2,673,093 5,047,426 2,374,333 53.0 2,349,050 4,775,082 49.2 NET of REVENUES & EXPENDITURES (1,035,881) (302,117) (1,106,258) (804,141) 114,959 (1,192,897) Year to Date Water Sales Comments 2024 2023 Change Water Sales Revenue: Residential 612,232 659,773 -7.2% Commercial 182,881 188,533 -3.0% Industrial 143,649 172,777 -16.9% Water Sales 938,762 1,021,083 -8.1% Base Charge 551,673 519,511 6.2% Water Connection Charge 39,340 43,750 -10.1% Other 81,742 122,051 -33.0% Other Sales 672,755 685,312 -1.8% Water usage is down in 2024 compared to 2023 due mainly to the wet summer and reduced demand for irrigation water. Supplies The expense category has already exceeded the budget due to purchasing meters for the meter replacement project. The project was budgeted under Capital Outlay but more approriately expensed under Supplies. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2024 2024 2023 2024 ACTUALS 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED Wastewater Fund Sales 337,127 1,928,872 2,875,000 946,128 67.1 1,945,768 2,750,000 70.8 Sales - Other 89,562 731,693 1,031,500 299,807 70.9 675,980 549,000 123.1 Local Sales Tax 80,441 421,576 815,000 393,424 51.7 478,544 810,000 59.1 Licenses & Permits - 5,600 6,000 400 93.3 5,800 6,000 96.7 Charges for Services - 10,116 7,500 (2,616) 134.9 2,130 7,500 28.4 Miscellaneous Revenues 177,594 337,787 176,000 (161,787) 191.9 153,958 93,500 164.7 TOTAL REVENUES 684,724 3,435,643 4,911,000 1,475,357 70.0 3,262,180 4,216,000 77.4 Wages & Benefits 64,288 530,672 892,971 362,299 59.4 508,073 813,235 62.5 Supplies 20,761 161,204 297,600 136,396 54.2 148,336 279,200 53.1 Services & Charges 145,908 726,045 840,650 114,605 86.4 457,073 855,920 53.4 Miscellaneous Expenses - 21,296 36,000 14,704 59.2 24,175 36,000 67.2 Transfers -Out - - 110,000 110,000 - - 80,000 - Capital Outlay 113,647 869,515 2,410,249 1,540,734 36.1 673,687 1,638,085 41.1 Depreciation Expense - - 1,200,000 1,200,000 - - 1,136,000 - Debt Service 914,165 1,530,845 1,609,355 78,510 95.1 1,465,491 1,557,895 94.1 TOTAL EXPENDITURES 1,258,769 3,839,577 7,396,825 3,557,248 51.9 3,276,835 6,396,335 51.2 NET of REVENUES & EXPENDITURES (574,045) (403,934) (2,485,825) (2,081,891) (14,655) (2,180,335) Year to Date Sewer Sales Comments 2024 2023 Change Wastewater Sales Revenue: Residential 1,109,061 1,119,965 -1.03T Commercial 342,468 335,888 2.0% Industrial - Flow 272,916 276,379 -1.3% Industrial - Violation Surcharges 204,426 213,535 -4.3% Sewer Sales 1,928,872 1,945,768 -0.9% Base Charge 602,273 556,837 8.2% Sewer Connection Charge 51,704 55,200 -6.3% Other 77,716 63,942 21.5% Other Sales 731,693 675,980 8.2% Services & Charges This expense category is trending higher than 2023, partially due to higher than expected Sewer Line Repairs for customers. The program expenses are severely exceeding the monthly revenue we collect of $1 per month per account. Expenses to date total $93,625 compared to $40,738 of revenues. The cost of $152,000 to repair a sewer main under the Roberts Road bridge is also affecting this category. That work was billed back to HUC due to their conduit being installed through the main. The reimbursement revenue is recorded in the Miscellaneous Revenue category. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2024 2024 2023 2024 ACTUALS 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED Refuse Fund Sales 116,697 916,057 1,352,000 435,943 67.8 864,797 1,285,000 67.3 Sales - Other 3,972 31,625 46,100 14,475 68.6 30,169 45,000 67.0 Intergovernmental Revenue 700 14,215 21,500 7,285 66.1 29,144 12,500 233.1 Miscellaneous Revenues 5,437 35,685 30,000 (5,685) 118.9 39,234 15,000 261.6 TOTAL REVENUES 126,806 997,582 1,449,600 452,018 68.8 963,343 1,357,500 71.0 Wages & Benefits 27,371 215,374 337,416 122,042 63.8 158,932 343,101 46.3 Supplies 2,264 34,487 60,750 26,263 56.8 32,883 62,850 52.3 Services & Charges 73,535 570,406 969,000 398,594 58.9 575,810 897,590 64.2 Miscellaneous Expenses 20 1,459 1,150 (309) 126.8 878 750 117.1 Transfers -Out - - 55,000 55,000 - - 55,000 - Capital Outlay 146,358 272,658 817,500 544,842 33.4 39,732 1,018,482 3.9 Depreciation Expense - - 172,000 172,000 - - 172,000 - TOTAL EXPENDITURES 249,548 1,094,383 2,412,816 1,318,433 45.4 808,236 2,549,773 31.7 NET of REVENUES & EXPENDITURES (122,743) (96,801) (963,216) (866,415) 155,108 (1,192,273) Comments Capital Outlay The 2024 capital expenditures are due to the Source Separate process improvement project. Compost Fund Sales Charges for Services Miscellaneous Revenues TOTAL REVENUES Cost of Sales Inventory Cost Adjustment Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2024 2024 2023 2024 ACTUALS 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED 89,383 2,230,289 2,620,300 390,011 85.1 2,089,090 2,939,400 71.1 23,998 31,232 95,500 64,269 32.7 1,115 97,000 1.1 10,108 50,908 52,000 1,092 97.9 57,858 32,000 180.8 123,489 2,312,429 2,767,800 455,371 83.5 2,148,063 3,068,400 70.0 56,723 1,483,866 1,759,400 275,534 84.3 1,456,274 2,158,000 67.5 (75,340) (343,421) (703,528) (360,107) 48.8 (422,244) (657,750) 64.2 60,797 502,381 888,535 386,154 56.5 500,063 838,147 59.7 8,622 73,882 149,500 75,618 49.4 67,156 162,500 41.3 39,967 123,774 287,500 163,726 43.1 173,972 304,980 57.0 203 8,131 13,500 5,369 60.2 7,553 11,000 68.7 - - 120,000 120,000 - - 120,000 - 47,368 197,000 149,632 24.0 200,512 349,652 57.3 - 290,000 290,000 - - 290,000 - 70,992 73,808 2,816 96.2 69,646 73,808 94.4 TOTAL EXPENDITURES 90,972 1,966,973 3,075,715 1,108,742 64.0 2,052,932 3,650,337 56.2 NET of REVENUES & EXPENDITURES 32,517 345,456 (307,915) (653,371) 95,131 (581,937) Year to Date Sales Comments 2024 2023 Change Compost Sales Bagged 1,800,626 1,831,129 -1.7% Bulk 291,823 123,698 135.9% Other (Freight) 137,841 134,263 2.7% Total Sales 2,230,289 2,089,090 6.8% Gross Profit 746,424 632,816 Gross Margin 33.5% 30.3% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2024 2024 2023 2024 ACTUALS 2024 AVAILABLE % BDGT 2023 YTD 2023 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED Storm Water Utility Sales 91,662 733,627 1,097,000 363,373 66.9 709,781 1,065,000 66.6 Sales - Other 492 4,699 3,500 (1,199) 134.3 3,190 3,500 91.2 Intergovernmental Revenue - 59,120 - (59,120) - - - - Licenses & Permits 570 3,585 5,500 1,915 65.2 5,926 5,500 107.7 Miscellaneous Revenues 5,135 28,197 26,300 (1,897) 107.2 28,174 15,300 184.1 TOTAL REVENUES 97,858 829,228 1,132,300 303,072 73.2 747,072 1,089,300 68.6 Wages & Benefits 23,642 190,665 311,298 120,633 61.2 181,349 308,906 58.7 Supplies 1,592 17,673 51,350 33,677 34.4 21,462 53,625 40.0 Services & Charges 4,695 115,156 223,375 108,219 51.6 152,279 208,535 73.0 Miscellaneous Expenses - 4,725 6,000 1,275 78.7 2,292 10,000 22.9 Transfers -Out - - - - - - - Capital Outlay 467,145 467,145 247,293 Depreciation Expense - 255,000 255,000 - - 275,000 - Debt Service - 172,867 187,480 14,613 92.2 166,451 221,589 75.1 TOTAL EXPENDITURES 29,930 501,086 1,501,648 1,000,562 33.4 523,833 1,324,948 39.5 NET of REVENUES & EXPENDITURES 67,929 328,142 (369,348) (697,490) 223,239 (235,648) Comments Intergovernmental Revenue This revenue category includes MPCA grant monies related to the storm water resiliency project costs. City of Hutchinson Investment Report For the Month Ended August 31, 2024 Trade Fixed or Par Purchase Premium Current Unrealized Annual Date Maturity Coupon Callable Value Amount -Discount Value Gain/ -Loss Earnings CERTIFICATES OF DEPOSIT: Manufacturers & Traders Trust 11/28/2022 12/09/2024 4.900% Fixed $244,000 $244,000 $0 $243,966 -$34 $11,956 Sallie Mae Bank/Salt Lake 12/07/2021 12/16/2024 1.000% Fixed 245,000 245,000 0 242,185 -2,815 2,450 Merrick Bank 01/23/2020 01/31/2025 1.800% Fixed 245,000 245,000 0 242,004 -2,996 4,410 Axos Bank San Diego 02/28/2020 03/26/2025 1.650% Fixed 245,000 245,000 0 240,828 -4,172 4,043 Forbright Bank 08/31/2022 09/16/2025 3.500% Fixed 245,000 245,000 0 242,793 -2,207 8,575 First Citizens Bk & Tr Co Raleigh 10/26/2022 10/25/2025 4.700% Fixed 244,000 244,000 0 244,913 913 11,468 Regions Bank Birmingham AL 10/28/2019 10/31/2025 2.000% Fixed 245,000 245,000 0 238,503 -6,497 4,900 Flushing Bank Primary 10/26/2022 11/04/2025 4.700% Fixed 245,000 245,000 0 246,058 1,058 11,515 Ally Bk Sandy Utah 11/02/2022 11/10/2025 4.800% Fixed 244,000 244,000 0 245,227 1,227 11,712 Toyota Financial Sgs Bk 07/14/2021 07/22/2026 0.950% Fixed 245,000 245,000 0 231,219 -13,781 2,328 Synchrony Bank 09/01/2022 09/09/2027 3.500% Fixed 245,000 245,000 0 242,138 -2,862 8,575 Discover Bank DE 11/16/2022 11/30/2027 4.900% Fixed 242,000 242,000 0 249,279 7,279 11,858 Morgan Stanley Bank NA 03/10/2023 03/16/2028 4.800% Fixed 244,000 244,000 0 251,298 7,298 11,712 Affinity Bank 03/15/2023 03/17/2028 4.900% Fixed 195,000 195,000 0 201,609 6,609 9,555 Customers Bank 06/07/2023 06/14/2028 4.500% Fixed 244,000 244,000 0 249,356 5,356 10,980 Thread Bank Rogers TN O6/07/2023 06/16/2028 4.400% Fixed 245,000 245,000 0 256,231 11,231 10,780 Univest Bank & Trust Co 06/02/2023 06/21/2028 4.500% Fixed 245,000 245,000 0 250,522 5,522 11,025 CIBC Bk USA O6/16/2023 06/30/2028 4.450% Fixed 244,000 244,000 0 254,648 10,648 10,858 Providence Bk Rocky Mt NC 08/03/2023 08/21/2028 4.400% Fixed 249,000 249,000 0 254,002 5,002 10,956 United Roosevelt Savings 09/06/2023 09/12/2028 4.500% Fixed 249,000 249,000 0 259,949 10,949 11,205 Central Fe S&L/Cicero IL 09/06/2023 09/14/2028 4.500% Fixed 249,000 249,000 0 255,041 6,041 11,205 Community Bk & Tr Waco TX 11/01/2023 11/10/2028 5.050% Fixed 243,000 243,000 0 254,166 11,166 12,272 Liberty First Credit Union 01/23/2024 01/30/2029 4.150% Fixed 249,000 249,000 0 252,264 3,264 10,334 Morgan Stanley Private Bank 02/28/2024 03/06/2029 4.350% Fixed 244,000 244,000 0 249,192 5,192 10,614 Carter Bank & Trust 03/08/2024 03/20/2029 4.300% Fixed 245,000 245,000 0 249,895 4,895 10,535 Mizrahi Tefahot Bank/LA 03/26/2024 03/07/2030 4.500% Fixed 244,000 244,000 0 252,416 8,416 10,980 CBC Federal Credit Union 05/03/2024 05/14/2031 4.650% Fixed 249,000 249,000 0 262,018 13,018 11,579 Total CDs $6,572,000 $6,572,000 $0 $6,661,718 $89,718 $258,380 MUNICIPAL BONDS: New York City Transition 11/10/2015 11/01/2024 2.600% Callable $500,000 $486,750 -$13,250 $497,930 $11,180 $13,000 Elk Grove Village IL 10/28/2021 01/01/2025 1.000% Fixed 150,000 150,000 0 148,181 -1,820 1,500 Oregon St Hsg & Cmnty Svcs Dept 10/19/2022 01/01/2025 4.659% Callable 355,000 354,677 -323 354,819 142 16,539 Palm Beach FL Revenue 12/06/2019 01/01/2025 2.500% Fixed 460,000 469,752 9,752 456,251 -13,501 11,500 Chaska MN EDA Lease Revenue 02/03/2020 02/01/2025 3.430% Fixed 300,000 323,256 23,256 298,266 -24,990 10,290 Virginia St Clg Bldg Authority 09/22/2022 02/01/2025 4.250% Fixed 570,000 570,000 0 567,236 -2,765 24,225 Miami -Dade Cnty FL Transit Sales 11/19/2021 07/01/2025 0.900% Fixed 375,000 373,013 -1,988 363,368 -9,645 3,375 Austin TX Cmnty Clg 04/27/2022 08/01/2025 0.992% Fixed 245,000 229,482 -15,518 236,891 7,409 2,430 August 31, 2024 Jobsohio Beverage Sys Stwd Oklahoma City OK Econ Dev Trust New York St Urban Dev Dorp Anchor Bay MI School Dist Phoenix Az Civic Impt Corp San Juan CA Unit Sch Dist District of Columbia Rev District of Columbia Rev Phoenix Az Civic Impt Corp Indiana St Fin Authority Rev NY Personal Income Tax Pima County AZ Revenue Wisconsin St Gen Fund Rev Pima County AZ Revenue New York NY City Transitional New York NY City Transitional Wisconsin St Gen Fund Rev Albertville AL Middlesex County NJ California St New York NY City Transitional Palm Beach Cnty Fla Connecticut State Palm Beach Cnty Fla Apache Junction AZ Virginia Sts Pub Bldg Santa Clara Valley CA San Diego CA Public Fac Connecticut State Total Municipal Bonds FEDERAL BONDS: Federal Home Loan Bank Total Federal Bonds MONEY MARKET FUNDS: Money Market - Citizens Bank Money Market - Oppenheimer Total Money Market Funds GRAND TOTALS Trade Fixed or Par Purchase Premium Current Unrealized Annual Date Maturity Coupon Callable Value Amount -Discount Value Gain/ -Loss Earnings 04/27/2022 01/01/2026 2.034% Fixed $310,000 $298,815 -$11,185 $299,866 $1,051 $6,305 02/08/2022 03/01/2026 1.118% Fixed 300,000 292,833 -7,167 285,330 -7,503 3,354 08/26/2022 03/15/2026 3.170% Fixed 190,000 187,925 -2,075 186,723 -1,203 6,023 07/01/2020 05/01/2026 1.250% Fixed 500,000 503,630 3,630 474,155 -29,475 6,250 12/10/2021 07/01/2026 1.157% Fixed 135,000 134,150 -851 127,652 -6,498 1,562 11/09/2021 08/01/2026 1.201% Fixed 140,000 140,000 0 132,143 -7,857 1,681 01/18/2023 06/01/2027 4.232% Callable 350,000 349,734 -266 348,471 -1,264 14,812 02/14/2023 06/01/2027 4.232% Callable 400,000 397,684 -2,316 398,252 568 16,928 03/30/2022 07/01/2027 1.257% Fixed 175,000 161,088 -13,913 161,723 635 2,200 01/27/2023 07/15/2027 4.109% Fixed 1,000,000 1,000,000 0 999,830 -170 41,090 12/09/2022 09/15/2027 5.051% Fixed 300,000 308,277 8,277 305,850 -2,427 15,153 11/09/2022 12/01/2027 5.382% Fixed 1,000,000 1,014,580 14,580 1,036,200 21,620 53,820 02/21/2023 05/01/2028 4.330% Fixed 500,000 497,905 -2,095 505,000 7,095 21,650 11/22/2023 12/01/2028 5.961% Fixed 175,000 183,171 8,171 186,912 3,742 10,432 07/05/2023 02/01/2029 4.750% Callable 385,000 385,920 920 393,555 7,635 18,288 02/14/2024 02/01/2029 4.430% Callable 375,000 375,000 0 378,548 3,548 16,613 03/13/2024 05/01/2029 4.346% Fixed 500,000 497,905 -2,095 506,380 8,475 21,730 01/19/2024 06/01/2029 4.900% Fixed 235,000 241,103 6,103 241,378 275 11,515 09/13/2023 08/15/2029 4.603% Fixed 250,000 248,115 -1,885 254,780 6,665 11,508 10/24/2023 10/01/2029 5.100% Fixed 200,000 199,788 -212 207,874 8,086 10,200 12/05/2023 11/01/2029 5.050% Callable 300,000 308,451 8,451 311,394 2,943 15,150 12/15/2023 12/01/2029 4.150% Fixed 265,000 263,614 -1,386 264,966 1,352 10,998 04/12/2024 05/15/2030 4.657% Fixed 140,000 140,000 0 143,245 3,245 6,520 O6/28/2024 06/01/2030 4.500% Fixed 740,000 740,000 0 755,503 15,503 33,300 08/15/2024 07/01/2030 4.281% Fixed 825,000 830,973 -897 820,925 -10,048 35,318 05/24/2024 08/01/2030 4.830% Fixed 340,000 343,196 3,196 351,305 8,109 16,422 07/11/2024 06/01/2031 4.400% Fixed 300,000 299,103 -897 301,515 2,412 13,200 08/22/2024 10/15/2031 3.980% Callable 500,000 499,360 -897 489,145 -10,215 19,900 08/27/2024 06/15/2032 4.160% Fixed 100,000 100,000 -897 98,842 -1,158 4,160 $13,885,000 $13,899,248 $6,224 $13,890,400-$8,849 $528,941 09/28/2021 10/26/2026 1.180% Callable $500,000 $500,000 $0 $470,490-$29,510 $5,900 $500,000 $500,000 $0 $470,490-$29,510 $5,900 Current Rate: 4.690% N/A $13,175,591 $13,175,591 $0 $13,175,591 $0 $617,935 Current Rate: 5.326% N/A $994,151 $994,151 $0 $994,151 $0 $52,948 $14,169,743 $14,169,743 $0 $14,169,743 $0 $670,883 $35,126,743 $35,140,991 $6,224 $35,192,351 $51,359 $1,464,104 City of Hutchinson Investment Report For the Month Ended August 31, 2024 CITY PORTFOLIO BY PRODUCT TY% CITY MATUR#TY SCHEDULE Pat Value Currant Municipal Fadaral Total Total % of Total Value Year CD's Bonds Bonds Par Value % CDs $6,572,000 18.7% $6,661,718 2024 $489,000 $500,000 $0 $989,000 4.7% Municipal Bonds $13,885,000 39.5% $13,890,400 2025 $1,713,000 $2,455,000 $0 $4,168,000 19.9% Federal Bonds $500,000 1.4% $470,490 2026 $245,000 $1,575,000 $500,000 $2,320,000 11.1% Money Market $14,169,743 40.3% $14,169,743 2027 $487,000 $3,225,000 $0 $3,712,000 17.7% Total $35,126,743 100.0% $35,192,351 2028 $2,407,000 $675,000 $0 $3,082,000 14.7% Unrealized Gain 1-Loss $51,359 2029 $738,000 $2,510,000 $0 $3,248,000 15.5% Prior Year Unrealized Gain! -Loss-$306,970 2030 $244,000 $2,045,000 $0 $2,289,000 10.9% Investment Gain / -Loss for 2024 $358,329 2031 $249,000 $800,000 $0 $1,049,000 5.0% 2032 $0 $100 000 5[I k 11}:i ax: 0.5% Totals $6,572,000 $13,885,000 $500,000 $20,957,000 100.0% $5,000,000 Money Market Pt. 168.000 $4,000,000 3,248,000 40.3% / Municipal Bonds $3,000,000 2,320,000 - $2 289 000 39.5% $2,000,000 1 $1,000,000 1111111111111111 Federal Bonds $0 0800 1.4% 2024 2025 2026 2027 2028 2029 2030 2031 2032 FINANCIAL INDICES: One -Year Comparison Treasury Yield Curve 8/31/2024 8/31/2023 Change Federal Lending Rate 5.50% 5.50% 0.00% 6.00% Prime Rate 8.50% 8.50% 0.00% 5.00% - Treasury Rates: 1-Year 4.38% 5.37% -0.99% 4.00% - 2-Year 3.91% 4.85% -094% 3.00% 3-Year 3.79% 4.54% -0.75% 5-Year 3.71% 4.23% -0.52% 2.00% 10-Year 3.91% 4.09% -0.18% 1.00% - 20-Year 428% 4.39% -0.11% 0.00% City's Average Coupon Rate 3.79% 3.03% 0.75% 1-Year 2-Year 3-Year 5-Year 10-Year 20-Year Average Yield to Maturity 4.28016 5.29% -1.01% -9--813112024 -9--813112023 (excluding Money Market funds)