Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
cp09-23-25
HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, SEPTEMBER 23, 2025 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 — Oak Heights Covenant Church (The invocation is a voluntary expression of the private citizen, to and for the City Council, and is not intended to ailiate the City Council with, or express the City Council's preferencefor, 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. 15916 — Resolution Accepting $500.00 Donation from Walter & Lynne Clay for Police Department Future Equipment Purchases (b) Resolution No. 15917 - Resolution Accepting Donation from Joyce Hochsprung (Varieties of Daylilies to Parks Department) PUBLIC COMMENTS (T 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. Ifyou 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) Budget Workshop of September 9, 2025 (b) Regular Meeting of September 9, 2025 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) Consideration for Approval of Spooky Sprint Event on October 25, 2025 (b) Consideration for Approval of Recycle Aggregate Crushing Services With Intex Corporation (c) Consideration for Approval to Purchase Wheel Loader from Titan Machinery for Creekside Soils (d) Consideration for Approval of 2025 Strategic Plan CITY COUNCIL AGENDA —September 23, 2025 (e) Consideration for Approval of Camp Craig Lease Agreement Between the City of Hutchinson and Civil Air Patrol (f) Consideration for Approval of Issuing Short -Term Gambling License to Allis Chalmers Club on July 26, 2025, at McLeod County Fairgrounds (g) Consideration for Approval of Resolution No. 15913 — Resolution Adopting Findings of Fact and Reasons for Approval of a Final Plat for High Bar Builders Addition With Favorable Planning Commission Recommendation (h) Consideration for Approval of Resolution No. 15914 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit for Commercial Analytical Testing of Recreational Cannabis Products and Extractions and Remediation of Contaminants Found in Course of Testing in an I/C Zoning District Located at 540 Third Avenue NW With Favorable Planning Commission Recommendation (i) Consideration for Approval of Resolution No. 15915 — Resolution Adopting Findings of Fact and Reasons for Approval of a Site Plan Review for a 20-Unit Memory Care Facility Located at 955 Golf Course Road NW With Favorable Planning Commission Recommendation 0) Claims, Appropriations and Contract Payments — Register A 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B PUBLIC HEARINGS — NONE NVIMUNICATIONS REQUESTS AND PETITIONS purpose 57 t is portion oj the agenda is to provide the ounci with information necessary to craft wise policy. Wes items like monthly or annual reports and communications from other entities.) 9. DISCUSSION ON USE OF STATEWIDE AFFORDABLE HOUSING AID MONEY UNFINISHED BUSINESS NEW BUSINESS 10. APPROVE/DENY RESOLUTION NO. 15912 — RESOLUTION RELATING TO THE ISSUANCE OF GENERAL OBLIGATION STREET RECONSTRUCTION AND IMPROVEMENT BONDS, SERIES 2025A 11. APPROVE/DENY RESOLUTION NO. 15909 — APPROVING THE 2026 HRA PRELIMINARY TAX LEVY 12. APPROVE/DENY RESOLUTION NO. 15910 — APPROVING THE 2026 EDA PRELIMINARY TAX LEVY 2 CITY COUNCIL AGENDA —September 23, 2025 13. APPROVE/DENY RESOLUTION NO. 15911 — APPROVING THE 2026 GENERAL FUND & DEBT SERVICE PRELIMINARY TAX LEVIES 14. APPROVE/DENY CONTRACTS WITH AXON ENTERPRISES INC. FOR HUTCHINSON POLICE SERVICES OFFICER SAFETY PLAN, POLICE FLEET CAMERAS AND LICENSE PLATE READERS 15. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-861 — AN ORDINANCE TO REZONE PROPERTY AT 955 GOLF COURSE ROAD NW 16. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-862 — AN ORDINANCE TO REZONE PROPERTY AT ELK RIDGE ESTATES 17. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-863 - AN ORDINANCE GRANTING MEDIACOM MINNESOTA LLC A FRANCHISE EXTENSION 18. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-864 - AN ORDINANCE GRANTING NEW ULM TELECOM, INC. A FRANCHISE EXTENSION 19. APPROVE/DENY SETTING ANNUAL CITY RECOGNITION EVENT FOR NOVEMBER 6, 2025, AT 5:30 P.M. AT HUTCHINSON EVENT CENTER 20. APPROVE/DENY RESCHEDULING NOVEMBER 11, 2025, CITY COUNCIL MEETING 21. APPROVE/DENY SETTING TRUTH IN TAXATION HEARING FOR DECEMBER 4, 2025, 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) 22. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS a) Hutchinson HRA Board Minutes from May 20, June 17, July 17, and August 19, 2025 b) Planning Commission Minutes from August 19, 2025 c) City of Hutchinson Financial Report and Investment Report for August 2025 MISCELLANEOUS 23. STAFF UPDATES 24. COUNCIL/MAYOR UPDATE ADJOURNMENT CITY OF HUTCHINSON RESOLUTION NO. 15916 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 9/11/2025 WHEREAS, such donations have 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 23rd day of September 2025. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor Resolution No. 15917 RESOLUTION ACCEPTING DONATION OF PERSONAL PROPERTY 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 individual has offered to contribute personal property set forth below to the City of Hutchinson, Hutchinson Parks Department: Name of Donor Type of Property Joyce Hochsprung — Master Gardener 40 — variety of daylilies (estimated value $400) WHEREAS, it is the intention of the City of Hutchinson to use the property throughout Hutchinson parks and rights -of -way; and WHEREAS, the City Council hereby finds that it is appropriate to accept the donation offered, NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, NHNNESOTA: THAT, the donation described above is hereby accepted by the City of Hutchinson with the conditions as laid out in the resolution. Adopted by the City Council this 23rd day of September, 2025. Gary T. Forcier, Mayor Matthew Jaunich, City Administrator HUTCHINSON CITY COUNCIL REVIEW OF 2026 PRELIMINARY BUDGET MINUTES TUESDAY, SEPTEMBER 9, 2025, AT 4:00 PM CITY CENTER — COUNCIL CHAMBERS 1. Call to Order Mayor Protein Chad Czmowski called the workshop to order at 4:00 p.m. Members present were Tim Burley, Pat May, and Dave Sebesta. Member absent was Gary Forcier. Others present were: Matt Jaunich, City Administrator, and other City directors REVIEW OF 2026 PRELIMINARY BUDGET 2. 2026 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 I". 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 2025 showed a budget surplus projected to be at $456 million. The next projection will come out in November. Early estimates expect a slight surplus, perhaps $1.8 billion. At this point, nothing is pointing towards any state financial issues that should impact the City's 2026 budget planning. Mr. Jaunich did note that future years don't necessarily look good. The next budget biennium currently shows a deficit of $1.1 billion and federal funding cuts could push that number higher. Staff is proposing to increase the general fund levy by 11.3% and the debt fund levy by 3.9% with a total preliminary levy increase of 9.2%. With a 1.7% increase in the EDA tax levy and a 1.8% increase in the HRA tax levy, total tax impact is 8.9%. Mr. Jaunich provided an overview of past tax levies from 2018 to the present. Mr. Jaunich provided the Council six 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 2.3% increase in the general fund levy and a 3.9% increase to the debt levy; the third option would increase the general fund levy by 2.0% and the debt levy by 3.9%; the fourth option would increase the general fund levy by 5.0% and the debt levy by 3.9%; the fifth option would increase the general fund levy by 8.0% and the debt levy by 3.9% and the sixth option would increase the general fund levy by 11.3% and the debt levy by 3.9%. The sixth option, or a 9.2% total levy increase, would mean a 3.590% change in tax rate or a $92.00 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 2024 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 cities state-wide and county -wide. He noted that the average tax levy increase amongst cities in 2025 was 7.7%. Mr. Jaunich provided a market value history which is a 1.7% increase from 2024 to 2025. Mr. Jaunich reviewed general fund revenues and how they are proposed to be increased and decreased, with an average of a 6.1% increase. Mr. Jaunich commented items to note for the general fund include that general fund revenues include an 11.3% 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 but a decrease in Municipal State Aid for Streets and Federal & State grant monies; no PILOT payment increase from RUC but an increase in reimbursement rates for Legal & IT; there is a $152,521 increase in charges for service; a $50,000 increase contribution to the general fund from Water/Sewer/Compost funds; and a 1% tax levy increase in the general fund is equivalent to $67,290. Mr. Jaunich spoke to the LGA allocation with 50% of the LGA in 2026 being allocated to the general fund and 50% going to the capital fund; this is the fifth straight year of a 50%/50% split; originally when LGA was split in 2011 the split was 40%/60%; LGA was significantly increased in 2024; there is a minor increase in 2026; and $206,029 is undesignated for future capital needs. Property taxes see an increase of 11.3%; other taxes see no increase; licenses & permits increase 1.8%; intergovernmental revenue decrease 1.5%; charges for service increase of 5.4%; no increase in fines & forfeitures, increase of 7.3% in miscellaneous revenue, and a 1.8% increase in transfers -in. General fund expenses are proposed to increase 6.1%. Wages & benefits increased 7.3%, supplies increased 4.0%, services & charges increased 4.0%, miscellaneous expenses decreased 0.3%, transfers -out increased 5.2% and capital outlay remains 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 15% increase in health insurance is budgeted for next year and a $32,362 increase to account for MN Paid Family Medical Leave. New positions budgeted for in 2026 include a new full-time employee in IT and a Waterpark/Rec Building Manager (this was inadvertently left out of the 2025 budget but approved for the 2024 budget) along with some staffing changes in Engineering/Public Works. The additions also include an increase of $60,900 in operating supplies to replace outdated equipment at Park & Rec, a $138,500 increase in contractual R&M for the aquatic center/ice rink and an additional $25,000 for fleet funding. The preliminary budget is currently balanced. Mr. Jaunich then reviewed expenditures from 2025 to 2026, historical general fund budget information and staffing levels. Mr. Jaunich reviewed the enterprise funds and their proposed increases/decreases. Mr. Jaunich noted that these numbers include depreciation and the sales tax allocation has been shifted due to certain debts being paid off. He noted that the liquor fund continues to do well but the industry is seeing a decline in sales. There will be the third of five rate increases for garbage with the previous increase being in 2008. The City is in the fourth 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 an 8% 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. General discussion was held on the costs of the hard good pick up and other ways the costs could be covered or the program administered. Mr. Jaunich noted that some of these costs are being incorporated into the garbage rate increases. More discussion will be held on this topic at the budget workshop held on enterprise funds. Additional budget factors include a $15.2 million capital improvement plan, no major changes in services, one new position added in the preliminary budget (IT 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, several fee and usage rate increases for 2026, no new significant revenue increases for 2026, expecting building permit revenue to remain steady and the general fund balance continues to remain healthy. General discussion was also held on the future use of the Event Center. Council Member Burley recommended researching the costs of moving the senior center and looking at eliminating the use of the Event Center. 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 2026 increase is preliminarily set at 3.9%. 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 still need to be reviewed. Mr. Jaunich further detailed adding to the Debt Plan which notes reviewing the debt analysis report, increasing the debt limit would increase the project load throughout the community, the plan includes increasing annual project costs by $200,000 with a 3% inflationary increase every five years, the plan also includes borrowing money to pay for the ladder truck and to remodel City Center, this plan would increase the debt levy from $2.65 million to $3.47 million in 2040, the plan would impact the 2027 levy and the initial impact would cost about $40 per median home. Council Members noted that they would like to know how changes to the debt plan would affect the City's bond rating. Mr. Jaunich reviewed the following considerations: a 1% levy increase is equal to $92,764, staff is proposing a preliminary City tax levy increase of 9.2% (11.3% 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 an 8.9% increase, the current budget is balanced, the budget includes year 3 of 5 of a rate increase to garbage rates, and the current proposed tax levy increase would increase the City's tax rate for the third 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 decisions that need to be made between now and the end of December. He also noted that staff have made significant efforts to have the preliminary levy closer to the actual final levy. However, there are some costs that are still unknown that could have a significant impact on the budget and noted again that there are no new significant revenue sources. Mr. Jaunich noted that there are items not included in the preliminary budget for 2026 which includes a $20,000 request to assist the Chamber/Convention & Visitors Bureau with marketing the community, increased debt load, costs to come up with a Sales Tax Plan, additional revenue to account for VRBOs in the community with the lodging tax and potential other revenue options. Mr. Jaunich further provided an overview of the noted budget changes in revenue and expenses. Lastly, Mr. Jaunich reminded the Council that the biggest factors behind the levy increase are wage and benefit increases of $769,998 and the increase in repair & maintenance costs along with supply costs estimated at $200,000. Council Member Czmowski noted that although he would prefer a lower tax levy, he is okay with what has been presented. Council Member May expressed that staff has done a thorough job on balancing the budget, but a lower levy would be preferred if possible. Council Member Burley noted that he is interested to see what the proposed increased user fees will be, which will be presented in October. He expressed that user fees should be a priority so that those using the facilities are the ones paying for them. Mr. Jaunich reminded the Council that money is lost on all recreational facilities throughout the city on an annual basis. He also noted that the additional items included in the proposed budget - $25,000 in fleet funding, new IT position — can continue to be evaluated. Council Member Burley requested that the budget be reviewed to find the most efficiencies. Formal action of the preliminary budget will be taken at the September 23, 2025, Council meeting. 3. Adjournment Motion by May, second by Sebesta, to adjourn the workshop at 5:15 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, SEPTEMBER 9, 2025 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. Mayor Protem Chad Czmowski called the meeting to order. Members present were Tim Burley, Dave Sebesta, and Pat May. Member absent was Gary Forcier. Also present were Matt Jaunich, City Administrator and Marc Sebora, City Attorney. (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Sebesta, second by Burley, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — The River Church (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 p referencefo r, 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. 15905 — Resolution Accepting $1000.00 Donation from Glen Kurth for Netting at Veterans' Memorial Field Motion by May, second by Sebesta, to approve Resolution No. 15905. Motion carried unanimously. PUBLIC COMMENTS (T is is an opportunity or members of thepublic 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) Strategic Planning Session of August 26, 2025 (b) Budget Workshop of August 26, 2025 (c) Regular Meeting of August 26, 2025 Motion by Burley, second by Sebesta, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items iste or cons= eration 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) Consideration for Approval of Resolution No. 15906 - Resolution Approving Airport Maintenance & Operations Grant Agreement with MNDOT CITY COUNCIL MINUTES — September 9, 2025 (b) Consideration for Approval of Resolution No. 15907 — Resolution Accepting Bid and Awarding Contract Letting No.5/Project No. 25-05 (Aircraft Hangar Repair Project) (c) Consideration for Approval of Issuing a Temporary Liquor License to the Hutchinson Chamber Foundation on September 18, 2025, at Arts Place (d) Consideration for Approval of Issuing Short -Term Gambling License to Gopher Campfire Sanctuary on December 3, 2025 (e) Affirmation of Board Reappointments 1. Steve Hahn to Airport Commission to September 2028 2. Andrew Hedin to Airport Commission to September 2028 (f) Claims, Appropriations and Contract Payments — Register A Motion by May, second by Sebesta, to approve Consent Agenda I. Motion carried unanimously. 8. APPROVAL OF CONSENT AGENDA 11 (a) Claims, Appropriations and Contract Payments — Register B Motion by Burley, second by May, to approve Consent Agenda II. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 9. DALE STREET SW IMPROVEMENTS (Letting No. 1/Project No. 25-01) (a) Approve/Deny Resolution No. 15903 - Resolution Ordering Improvement and Preparation of Plans and Specifications Mike Stifter, Public Works Director, presented before the Council. Mr. Stifter explained that a public hearing was held on this project previously, however a 4/5 vote was required for approval of the project and the project was approved with a 3/5 vote due to council member absences, therefore the hearing needs to be held again. Mr. Stifter reviewed the project which had a total cost of $1,926,966. Motion by May, second by Burley, to close public hearing. Motion carried unanimously. Motion by May, second by Burley, to approve Resolution No. 15903. Motion carried unanimously. 10. 2025 STREET IMPROVEMENTS PROJECTS (Letting No. 2/Project No. 25-02) (a) Approve/Deny Resolution No. 15904 - Resolution Ordering Improvement and Preparation of Plans and Specifications Mike Stifter, Public Works Director, presented before the Council again explaining that the public hearing held previously on this project was approved by a 3/5 vote and is required to have a 4/5 vote. Mr. Stiftter reviewed the project scope which included Hassan Street SE, 1st Avenue SE, 3rd Avenue SE, 6t' Avenue SE, 7t' Avenue SE and Stoney Point Road SW. Total project cost was $2,143,187. 2 CITY COUNCIL MINUTES — September 9, 2025 Motion by May, second by Sebesta, to close public hearing. Motin carried unanimously. Motion by May, second by Burley, to approve Resolution No. 15904. Motion carried unanimously. 11. MODIFICATION TO THE DEVELOPMENT PROGRAM (DEVELOPMENT DISTRICT NO. 4) & TAX INCREMENT FINANCING (TIF) PLAN (ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO.4-24, A HOUSING DISTRICT) (a) Approve/Deny Resolution No. 15908 — A Resolution Approving the Adoption of a Modification of a Development Program for Municipal Development District No. 4; Establishing Tax Increment Financing District No. 4-24 within Municipal Development District No. 4; Approving the Tax Increment Financing Plan Therefor; Authorizing an Interfund Loan for Tax Increment Financing District No. 4-24; Authorizing Execution of a Development Agreement; Approving the Elimination of a Parcel from Tax Increment Financing District No. 4-16 within Municipal Development District No. 4; and Authorizing the Forgiveness of an Interfund Loan for Tax Increment Financing District No. 4-16 Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt provided a project overview which includes an 81 market -rate apartment building located on Franklin Street along the Crow River called The Landing. The goals of redeveloping this specific site began in 2016 and included removing blight, redeveloping the site, providing needed market -rate housing and strengthening downtown. Mr. Seppelt provided further information on the project history of redevelopment of this site. Mr. Seppelt reviewed the economic impact this $20,000,000 redevelopment project will have on the downtown area and the community. Mr. Seppelt also explained the roles of the EDA and the City in getting to where we are today with this redevelopment project. Tax Increment Financing -Housing will be used to help fund the project and Mr. Seppelt provided more detail on how this funding tool is used. The City works closely with its financial advisor when utilizing tax increment financing for projects and this project specifically. Mr. Seppelt explained that approving Resolution No. 15908 includes establishing TIF District No. 4-24, approving the TIF Plan for the district, authorizing an interfund loan for the district, authorizing execution of the development agreement, removing a parcel from TIF District 4-16, and authorizing forgiveness of an interfund loan for TIF District 4-16. Mr. Seppelt thanked many staff members, EDA Finance Team, EDA Board of Directors, City Council and other city staff on the accomplishment and completion of this project. Motion by Sebesta, second by May, to close public hearing. Motion carried unanimously. Motion by May, second by Burley, to approve Resolution No. 15908. Motion carried unanimously. The developer hopes to start September 22, 2025, and the project should take approximately one year to complete. MNIUNICATIONS RE UESTS AND PETITIONS purpose o t is portion oJ the agenda is to provi e the ounci with information necessary to craft wise policy. Wes items like monthly or annual reports and communications from other entities.) UNFINISHED BUSINESS CITY COUNCIL MINUTES — September 9, 2025 12. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-858 — AN ORDINANCE FOR THE SALE OF MUNICIPALLY -OWNED PROPERTY TO HUTCHINSON — THE LANDING, LLC Miles Seppelt, EDA Director, explained that all municipally -owned property must be approved by ordinance. The first reading was held at the last Council meeting and this will be considered as the second reading and adoption. This sale of property is for The Landing project. Motion by Burley, second by Sebesta, to approve second reading and adoption of Ordinance No. 25-858. Motion carried unanimously. 13. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-859 — AN ORDINANCE OF THE CITY OF HUTCHINSON VACATING THE ALLEY IN BLOCK 41, NORTH HALF HUTCHINSON Motion by Burley, second by Sebesta, to approve second reading and adoption of Ordinance No. 25-859. Motion carried unanimously. 14. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-860 — AN ORDINANCE OF THE CITY OF HUTCHINSON VACATING THE RIGHT-OF-WAY (SANITARY SEWER) EASEMENT LOCATED AT 126 FRANKLIN STREET NW Motion by Sebesta, second by Burley, to approve second reading and adoption of Ordinance No. 25-860. Motion carried unanimously. Motion by May, second by Sebesta, to recess the meeting at 5:42 p.m. Motion carried unanimously. Motion by May, second by Burley to reconvene meeting at 6:00 p.m. Motion carried unanimously. NEW BUSINESS 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) 15. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS a) Hutchinson Library Board Minutes from June 23, 2025 b) Planning Commission Minutes from April 15, 2025 c) Planning Commission Minutes from July 15, 2025 MISCELLANEOUS 16. STAFF UPDATES 17. COUNCIL/MAYOR UPDATE ADJOURNMENT Motion by May, second by Burley, to adjourn at 6:35 p.m. Motion carried unanimously. .19 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. 2025 Spooky Sprint Agenda Item: Department: Police Services LICENSE SECTION Meeting Date: 9/23/2025 Application Complete N/A Contact: Thomas D Gifferson Agenda Item Type: Presenter: Thomas D Gifferson Reviewed by Staff Consent Agenda Time Requested (Minutes): 2 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The 16th Annual Spooky Sprint Committee is requesting permission to conduct a 5k run and a 1/2 mile sprint beginning and ending near Library square. The event would take place on October 25th, 2025. The event will require assistance from Police, Parks and Streets. Once again the committee is asking for 1 st Ave. S to be closed from the intersection with Main St to the intersection with Hassan St. for the duration of the event. I have attached the request letter and maps from Mr. Chad Harlander. BOARD ACTION REQUESTED: Recommend Approval Fiscal Impact: $ 0.00 Funding Source: Police Budget 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 Chad Harlander 204 Grove St. SW Hutchinson, MN 55350 Sept 3, 2025 Hutchinson City Council 111 Hassan ST SE Hutchinson, MN 55350 Re: 5K Family Run and Walk in Hutchinson on Saturday October 25th, 2025 To The Members of the Hutchinson City Council, I am writing today regarding the 16th annual Spooky Sprint event we are planning for Saturday October 25tn, 2025, in Hutchinson. The event is a 5k (3.1 mile) family fun run and walk with a start time of 9AM. The proceeds of this run will go to the REACH programs at the Hutchinson Schools. We want to take advantage of a great resource in town, the area around the library (Library Square). As such, we would like to start and end this race there, on 15T Ave SE. We realize that having a 3 mile run throughout the city may cause disruption, so we are attempting to run on city streets for about 20% of the total run distance. The remainder would be run on the Luce Line Trail (obtaining a permit for use from the DNR). Our goal is to offer 2 runs, a 5k run and walk, and a % mile dash for children. The % mile dash will begin at 9:15AM, the 5k run and walk will begin at 9:30AM. Each participant will be required to sign a waiver stating the following: "I am properly trained and enter this walk/run totally at my own risk and hereby waive all claims that I or my heirs may have against all sponsors, walk/run directors and all others associated with this walk/run, for any injuries or problems I may sustain, regardless of any negligence. I am totally responsible for my safety and any injury I may suffer." I am attaching a map of the proposed courses. I have met with Sergeant Nagel about the course and modified it as suggested. I am seeking approval for closure of VT Ave SE for this run. We will also be running down Adams Street towards the Luce Line, but our belief is that Adams will not need to be closed off. We will be using cones to create a separation lane on Adams. As I stated, I have discussed this with Sergeant Nagel. So, in essence, the matter before the Council on this issue is the approval or denial for the Police Department to use their discretion to close/block 15T Ave SE for some period of time on Saturday October 26th, 2024. We understand there may be costs associated with this traffic control and have accounted for this in our budget. We are looking forward to this event in Hutchinson, and to continuing it in the years to come. Sincerely, Chad Harlander 5,1• Avr r.. � ' s seh�,f r z v Proposed Course - Spooky Sprint 5K € ¢ is S s!4*�VF There and Back Style Run `g xr .: ;we kW a1h A 41 r� Sd't , Ath,ai NW 0+mHW tr 41h A4e � R dA•rk rat 3+d A. MY 'IMHnf.. # Ih— Ar. � - eoy Scfhrr 4tl PsA Wen WATT NW F N - 1 Poll' �tr t �: n�..A.r •'.nr r•�• Washir�on Ave W WnshxplM Rr"k S Wr iti i AmemP'rr Jn•! weelxnson ,. nAG lA an t r SSW Hyrirmy I n 5•P 10 Avr SW j�(� f ■ s t Pk k1Ml�ry N x !nd me 5'N :nd ■1n SW [,]]dd AW, SW G [_, s`hOOk 2nd Ave SW � � � 7nd X. SE and Are SE — � 21 •� i .r.is Arr SA' n L—;. Ayr SW 3rd AYc SW 3rd Arr SW 4 nnA f""I 3rd Are SW Yd At U X' E 3rd Arc U v 3errtli pfr4 F l5 3 u. a N H.V&1 Awe 1M 5g FdkMM UMW •+ N i Aih A, C +—h — WB9[ River Park _-Les Knuba_Pk NNNr Proposed Course - Spooky Sprint 112 Mile Dash - There and Back Style Run 5 Ath P e 7 O 22 Ud Ave srd Ave NW �Tra �eamn.� � v�K°vva Girl CD vm AVa Ng _ Rror lRiver ` Park 1 A e NW S.�NW ill -1st Avii NW _ I+ -Jf WashIrCwn Av*w pve SW c � w my Ln Sw 1at.A- SW - � rrtci City end Ave SW County Hwy? StarilFinish a � W SW _ c� Palk 9rd Ave SW �al l Ave 91N atn Ave SW Failh L.t ,.r,, r.h, , Turnaround WasNvo, A,e E w NN Q ls[A- EPL 1m ad, 41h AA-e E _ 3 I RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration for Approval of Requisition #241 to Intex Corporation for Recycle Agenda Item: Aggregate Crushing Services Department: Creekside LICENSE SECTION Meeting Date: 9/23/2025 Application Complete N/A Contact: Andy Kosek Agenda Item Type: Presenter: Andy Kosek Reviewed by Staff Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Creekside accepts blacktop and concrete rubble removed from both city and private projects in the area. The last crushing event of this material was in the fall of 2023 by Intex Corp., in which -r20,000 tons were crushed. That inventory produced was sold throughout 2024 and sold out in the spring of 2025. Staff received one quote to crush UP TO 20,000 tons for 2025, no other contractors responded: -Intex Corporation provided a quote of $4.33/ton for crushing, up to 25 hours of breaking at $225.00/hr and a flat mobilization cost of $6,500.00. Total cost for crushing up to 20,000 tons is $98,725.00. Intex Corp has conducted the last several crushing events for us and has done a great job in doing so. The total cost for the last crushing event in 2023 was $96,875.00, 2025's price is approx 2% higher. The sale price of the crushed material will be adjusted to offset the slight increase in costs. The finished crushed product (Bit -Con) is available for purchase to contractors and the general public. As noted above, there has been no issue in moving the Bit -Con inventory. 20,000 tons of crushed material is equivalent to approx. 14,285 cubic yards of material. BOARD ACTION REQUESTED: Approval of Requisition #241 for aggregate crushing services to Intex Corporation in the amount of $98,725.00 Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: No PROJECT SECTION: Total Project Cost: $ 98,725.00 Total City Cost: $ 98,725.00 Funding Source: Compost Fund Remaining Cost: $ 0.00 Funding Source: N/A leis] .1go] .L\IIs] 0 PROPOSAL Date: 9/2/25 JUDm1LLea lo: Name: Creek Side Work To Be Performed At: Street: III Hassan Street S.E. Street: City: Hutchinson City: Hutchinson State: MN State: MN Zip: 55350-2552 Approx. Start Date: Fall 2025 Telephone Number: 320-234-5680 Contact Person: Andy Kosek Fax Number: 320-234-5649 1. We propose to furnish all labor and equipment to crush and stockpile a maximum of 20,000 tons of concrete and asphalt rubble to 1" minus.) Unit price of $4.33 per ton, plus sales tax or exemption certificate. 2. Measurement by belt scale. Customer is to provide a truck for any scale checks to ensure accuracy. 3. Material will be cleaned by INTEX using three magnets running along conveyors. All iron scrap to be recycled by INTEX. Intex will provide one 20 yard trash container. Any additional trash containers will be charged to customer at cost (third party invoices will be provided). 4. If dust suppression is required, customer must supply a water source within 50 yards of the crushers. Intex will provide a tank to fill if needed. 5. Intex will pull a sample and run a gradation every 2,500 tons. Any additional testing will be extra. 6. A lump sum charge for MOBILIZATION will be $6,500 plus sales tax or exemption cert.. 7. Breaking, if any, will be performed by customer, or by Intex at a rate of $225 per hour, not to exceed 25 hours. Terms: Invoiced on the 15' and 30' of each month with the final invoice on day of completion. Each invoice is due net 30 days. A finance charge of 1.5% (annual rate 18%) will be charged on all past due accounts. Any alteration or deviation from above specifications involving extra costs, will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado and other necessary insurance upon above work. Work- er's Compensation and Public Liability Insurance on above work to be taken out by Intex Corporation. Respectfully submitted: INTEX CORPORATION Per: Gregory A. Buhl Note- This proposal may be withdrawn by Intex if not accepted within 10 days. ACCEPTANCE OF PROPOSAL The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. Date Signature *Please mail, fax or email, executed copy to INTEX to secure a spot on our schedule. P.O. BOX 260 - ALBERTVILLE, MN 55301 - OFFICE (763) 428-8222 - FAX (763) 428-8577 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration for Approval to Purchase a 2026 Case 621 GXR Wheel Loader from Agenda Item: Titan Machinery Department: Creekside - Compost Fund LICENSE SECTION Meeting Date: 9/23/2025 Application Complete N/A Contact: Andy Kosek Agenda Item Type: Presenter: Andy Kosek Reviewed by Staff Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Creekside currently employs four wheel loaders, three within the Compost Fund and one within the Refuse Fund. Due to the amount of hours Creekside puts on the machines annually, approx 1,000 hrs average per machine, the machines have been put on a 10 year replacement cycle. A machine within the Compost Fund is budgeted to be replaced in 2026; unit # 789, a 2016 Case 621 FXR with 10,450 hours as of 9/4/25. The replacement was approved by the Fleet Committee at its July 1st, 2025 meeting. Due to the current state contract pricing expiring the end of November 2025, and the longer lead times for machine delivery (approx 6-8 months), staff is requesting approval to purchase now to simply place the order under the current MN state contract pricing, the vendor states that they are anticipating a minimum of a 5% price increase on the the new upcoming contract pricing. Payment for the machine would not take place until the machine is delivered, which would be expected to be mid 2026. The order can be canceled up to 12/31/25 if necessary. Quotes from two vendors were solicited for equally equipped machines from different manufacturers (both quotes are contract pricing) - Case 621 GXR from Titan Machinery for $226,410.00 John Deere 544P from RDO Equipment for $254,809.02 The machine being replaced, unit #789, will either be traded or auctioned after delivery of the new unit. A current trade value was given, but due to the machine being operated for several more months, adding an additional several hundred hours, the trade value will most likely change by the time the new machine delivery takes place. Staff will evaluate the options at that time. BOARD ACTION REQUESTED: Approval to Purchase a 2026 Case 621 GXR Wheel Loader from Titan Machinery in the amount of $226,410.00 Fiscal Impact: $ 226,410.00 Funding Source: Compost Fund 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 TITAN MACHINERY 6340 Hwy 101 Shakopee Mn 55379 Creekside Soils Attn Andy Kosek Hutchinson MN Quotation DATE 8/22/2025 Tim Pittman Field Marketer Timothy. pittman(a)titanmachinery.com 612-708-4578 - Mobile 952-445-5400 - Office 952-445-0365 - Fax Quantity Description Total 1 2026 Case 621 G Wheel Loader $ 185,348.00 Deluxe Cab w/ Heat AC STD Enhanced Cab Comfort PKG $ 643.00 LH and RH Wide Fenders with Steps $ 730.00 Enhanced Visibility Bundle ( Rear Camera, LED Lights,heated mirrors,etc) $ 1,379.00 Hyd Diff Lock Front Axle $ 2,119.00 Cold Weather Package (HD Batteries, Fuel warmer,Block heater,ETC) STD Heavy Debris Cooling System $ 759.00 Remote Jump Start Terminals STD Ejector pre cleaner $ 290.00 Skid Plate $ 660.00 20.5X25 Michelin L3 XHA2 (XTLA L2 in Lieu if available) Standard Joystick w/ 1 aux function STD Ride Control STD ACS Style Coupler $ 7,147.00 Light Material Bucket 5 yd $ 14,886.00 Extended Reach Arms $ 4,943.00 3 year 3000 Premier Warranty STD 3 year 2000 Pro Care Plan (Service Maintenance) STD 5 year 5000 Premeier Warranty $ 7,106.00 sub total $ 226,010.00 Delivery Per Contract $ 400.00 $226,410.00 Pricing Per MN State Contract expires Nov 30th 2025 Less 2016 621 GXR aprox 10450 hrs $ (45,000.00) TOTAL $ 181,410.00 PLUS TAX If you have any questions concerning this quotation, please contact me at the number noted above. Approved By: Tim Pittman THANK YOU FOR YOUR BUSINESS! JOHN DEERE Investment Proposal (Quote) ® RDO Equipment Co. 12500 DuPont Avenue South Burnsville MN, 55337 Phone: (952) 890-8880 - Fax: (952) 890-7046 Proposal for: Investment Proposal Date: 8/18/2025 CITY OF HUTCHINSON DBA CREEKSIDE SOILS Pricing Valid Until: 9/18/2025 USE ACCT# 5151008 Deal Number: 1925242 1500 ADAMS ST SE Customer Account#: 5642012 HUTCHINSON, MN, 553507011 Sales Professional: Katie Schmitt MCLEOD Phone: (952) 882-2738 Fax: Email: kschmitt@rdoequipment.com Comments Contract #011723-JDC Member ID: 33350 Equipment Information Quantity Serial Number Stock Number Hours (approx.) Status / Year / Make / Model List Price Additional Items Per Unit Cash Price 1 TBD 0 New 2025 JOHN DEERE 544P $359,578.00 TBD Customer Discount 39% Off Deere List I Sourcewell Contract ($140,235.42) #011723-JDC Customer Discount Government Bid ($5,000.00) PM Essentials Plus Base -Final Tier 4 - 5 - 2005 Hours $14,308.44 Warranty -John Deere Comprehensive-60 Months, 5000 $7,960.00 Hours, Deductible: 0, Exp Date: 1/1/2031 1 TBD 0 Attachment - New 2025 WERK-BRAU ACS PRO 2000 $6,849.00 TBD COUPLER 1 TBD 0 Attachment- New 2025 WERK-BRAU 544P5.0 ACS BUCKET $11,349.00 TBD Freight in Burnsville $0.00 Equipment Subtotal: $254,809.02 Purchase Order Totals Balance: $254,809.02 MN STATE TAX: $17,518.12 MN SPECIAL TAX: $1,274.05 Sales Tax Total: $18,792.17 Sub Total: $273,601.19 Cash with Order: $0.00 Balance Due: $273,601.19 D1925242 Pagel of 2 Equipment Options Qty Serial Number Year / Make / Model Description List Price 1 TBD 2025 JOHN DEERE 544P 6032DW 544 P-Tier Wheel Loader $300,538.00 0202 United States $0.00 0259 English $0.00 0351 Translated Text Labels $0.00 0400 Standard Loader $0.00 0613 Level 3 Trim: Flat Black Exhaust, 145 Amp Alternator, 15 $7,818.00 Amp Converter, LED Work and Drive Lights, Premium Seat, Heated and Ventilated, Ride Control 8500 Cold Weather Package: Block Heater $526.00 8295 Heated And Powered Exterior Mirrors $758.00 8505 Guards - Transmission & Bottom $2,167.00 1100 Less Detection System $0.00 1210 Premium Package Radio $400.00 1301 Left Side Steps $0.00 183N JDLinkTM $0.00 1862 Level 2 Fleet Health: Auto Active Warm Up, Auto Daily $0.00 Fluid Checks, Fluid Loss Monitoring, Battery Health Monitoring, Mobile Alerts 2261 8 IN (203mm) Touchscreen Display $0.00 4065 John Deere 4.5L - FT4/SV $0.00 6522 Standard Hitch w/ Pin & Rear Counterweight $0.00 7026 Joystick Controls $0.00 0452 High Lift Z-BAR $4,643.00 2201 Less Payload Scale w/ Cycle Counter $126.00 7500 Less Fork Frame $0.00 7405 Field Coupler Ready - Pin Disconnect Plumbing $1,547.00 7700 Less Tines $0.00 7800 Less Bucket $0.00 2300 Less Secondary Display $0.00 8501 Debris PackagePackage includes: $3,476.00 - Automatic Reversing Hydraulic Fan Cab Fresh Air Precleaner Engine Air Intake System with Centrifugal Precleaner 7465 Less Cutting Edge, Segments, and Teeth $0.00 8502 Maintenance and Service Package includes: $629.00 - Engine Compartment Light - Environmental Drain 8508 Auxiliary Equipment Package includes: $1,193.00 - Beacon Light (Amber) Seat Belt Indicator Beacon Light (Green) Fire Extinguisher Slow Moving Vehicle Emblem 5553 Full Coverage Front Fenders $341.00 5315 Michelin XHA2 - 20.5R25 L3 1-Star Radial Tires w/ $23,977.00 0658 Level 3 Performance: locking front diff, std rear diff, manual $4,385.00 diff lock, throttle lock, less wheel spin control, 5 speed powershift trans with lock -up torque converter 7054 Three Function Hydraulics with Joystick Controls - Boom, $7,054.00 Bucket, One Auxiliary 0951 Rear Camera (Primary Display) $0.00 1 TBD 2025 WERK-BRAU ACS PRO WFLHYDQC3-A JOHN DEERE 544P ACS PRO 2000 SERIES $6,849.00 2000 COUPLER 30 HYD COUPLER GRAY68 1 TBD 2025 WERK-BRAU 544P5.0 ACS HPL310050OJ8030 100" 5.00 CYD HP LM BUCKET $11,349.00 BUCKET JOHN DEERE STANDARD OEM BOLT ON EDGE JOHN DEERE 544P / ACS PRO 2000 SERIES 30 D1925242 Page 2 of 2 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Approval of 2025 Strategic Plan Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 9/23/2025 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff Consent Agenda Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: After months of discussion and several work sessions, we should be now ready to officially accept the 2025 Strategic Plan. Attached is the plan. This plan should help guide the work of the City of the next 5-8 years. BOARD ACTION REQUESTED: Approval of 2025 Strategic Plan 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 STRATEGIC PLAN (September 2025) ITY'S CORE VALUFN Housina The City will advocate for safe and affordable housing, and encourage collaboration with other agencies and the private sector to meet community housing needs Good Government Citizens believe that the City is progressive and innovative, delivering quality services at a reasonable price and that visionary planning for the future is taking place 14111110 Public Safety Residents and visitors of all ages feel safe and are confident that their property is adequately protected Mission Statement The city of Hutchinson exists so that residents, businesses, property owners and visitors are provided with quality services and programs that support a safe, healthy, sustainable and business - friendly community with a small-town atmosphere for a cost of government similar to, or less than, comparable out - state Minnesota cities. Environment Residents and visitors enjoy a clean, environmentally healthy, beautiful city The City's mission statement answers the question of "why we exist". Our Core Values support our mission statement and provide the main priorities to which the City commits its focus. Health & Recreation City services and programs contribute to a healthy quality of life for residents and visitors Transportation & Mobility Citizens, visitors and commerce move easily and safely throughout the city and region Economic Development A diverse local economy provides economic stability, expanding job growth and employment opportunities, an average household income meeting or exceeding the state average, and an increasing local tax base A CITY r r ON PURPOSE HUTCHINSON 8 STRATEGIC GOALS We want to have fiscally We want to have active responsible management to We want to be known as a citizen engagement, serve community needs destination place for participation and involvement recreation, art and leisure do We want to have high quality, multi -modal transportation and infrastructure systems C ision Statement sion for the City of Hutchinson is e will continue to bean involved, ssive and innovative community omotes our regional prominence ile preserving our hometown cter and delivering quality, cost effective services We want to have cost rWe want to have welcoming effective, reliable, and and safe city facilities to sustainable energy and service current and future %wractices �`ations The City's vision statement answers the question of "what the future will look like". Our strategic goals help establish the short-term and long-term objectives to achieve our vision and tie together with or mission statement. We want to have a growing, diverse economy with a skilled workforce We want to have a variety of housing for a broad range of households in our community A CITY " r r ON PURPOSE. HUTCHINSON IDEAS. BARRIERS. AND PROJECTS THAT WILL ASSIST US IN ACHIEVING OUR 8 STRATIGIC GOALS STRATEGIC PLAN UPDATES (IDEAS) • Need more apartments • Need for all types of housing • More seniors are moving to town due to amenities and services • Need more tiny and manufactured homes • Need to market Hutchinson area to outside builders and developers • More condo options • More tuck -under garage options • Need a variety of price points when it comes to housing • Revise assessment policy • More "Community living" options (co-ops, etc.) • Land for housing is available • Higher density housing options • Look at lot size/lot requirements • Open to TIF — Preferred • Open to tax abatement if it makes sense More pickleball courts Desire for a splash pad Additional recreational opportunities along the crow river Campground expansion Trailhead with welcome center along the Luce Line Trail Expansion of the Dakota Rail Line Trail Multi -generational community center/ senior center New park on the south side of town due to development Expansion of the rec center Expansion/remodel of the ice arena Gymnastics program in town Roberts Park improvements More green space for fields Rebranding of park systems Renewing of sales tax for larger projects Seeking of private sponsors and naming rights More indoor court space indoor walking track • Resiliency Study for stormwater • New CASP system at Creekside • Facility maintenance and upgrades • Take on more excess food waste • Workout the Downtown Plan • Extend utilities to the south retail/ commercial area • Extend utilities to the Highway 22/7 Intersection area Fill in smaller areas along Highway 7 • Connect Hutchinson to a 4-lane highway • Keep the Hutchinson Mall "healthy" • Market Hutchinson/ strategies to "Tell our Story' • Celebrate and highlight our current successes • More homes will produce more retail/commercial • Pursue more high tech/high education jobs • Use successes to encourage people to move back home/ work back at home • Address childcare shortage Continued support of "complete streets" policy in design methods Highway 212 and 22 connection should be a City priority Determine the City's stance on the extension of the Dakota Rail Trail to Hutchinson and the South Grade Road/CR 115 Trail extension Identify appropriate use of sidewalks vs. trails Update the 2012 Transportation Plan Update the 2016 Safe Routes to School Plan Begin preparing for driverless and electric vehicles Develop/fortify the City's trail maintenance plan Review ADA compliance city-wide Age -friendly community Set up meeting with County to discuss Dakota Rail Line and 212 and 22 connection • Full-time firefighters • Additional satellite fire station • Additional mental health services and/or training • Keep doing what we are doing Avenues to increase participation in local government More elected official engagement with the community Continued leadership development Look at hiring a communications specialist Continue to be proactive in planning documents Council be more open to adjusting policies based on the needs or requests of the community Greater partnership between the EDA and the Chamber of Commerce Revitalizing the Downtown Association Continued strong relationship with the School District Review of City ordinances and policies on a more routine basis STRATEGIC PLAN UPDATES (BARRIERS) • Lack of starter homes • Labor costs • Higher Interest Rates • Lower income levels • Infrastructure costs • High housing costs in general • Young homebuyers lack of equity • High upfront costs (down/security payment) • What taxpayers are willing to support on housing/ willingness to increase taxes • Funding/Tax appetite for new projects/facilities • Staffing needs for expansion of park and rec system • Equipment needs to stay current with trends and efficiencies for staff • Facility age and maintenance • Seasonal staffing challenges • Uncertainty with Sales Tax • State and Federal regulatory agencies • Appetite for rate increases • Staffing Needs • Lack of a sales tax option • Online shopping (Amazon) vs. small retail • Smaller commercial spaces available • Cost of construction/ infrastructure • Owner of current spaces being "difficult" to work with • Vacant properties that are still collecting rent • Not a lot of spaces available currently • Not a lot of lots available to develop • Lack of market - driven recruitment • No rail system • No four -lane highway • New development and the shuffling of resources • Busy main street traffic • Need for accessibility improvements for the disabled community • Funding for increased costs of infrastructure • Lack of County support for the expansion of the Dakota Rail Trail • Staffing/ Employee retention • Public safety wages • Availability of volunteer firefighters • Increased equipment costs • State and Federal regulations (building inspections) • Inspections/ Building code perceptions • Following rules/ no permits • Increase in animal "issues" • Adult -use cannabis • Homelessness • Funding for new ladder truck • Lack of interest from the public • Barriers to recruiting public safety personnel • Cost of city services vs taxes wanting to be paid • Competitive wage and benefit packages • City development fees Log • L 19 NIMA 9 *0111 We want to have We want to have We want to have high quality, multi- active citizen fiscally responsible modal transportation engagement, management to & infrastructure participation and serve community systems involvement needs More stand-alone Implement the Need for all Update/Remodel Resiliency Study Continued support Avenues to increase Renewing of outdoor pickleball Downtown Plan types of housing of City Center for stormwater of"complete fete P participation in local sales tax for courts Desire for a splash pad Extend utilities to More seniors are Additional liquor Energy efficiency streets' policy in government More elected official larger projects Additional recreational the south retail/ moving to town store study in Facility design methods engagement with the Increased opportunities along the Crow River commercial area Extend utilities t0 due to amenities Needs study for maintenance and Highway 212 and 9 Y 22 Connection community Continued leadership maintenance Campground the Highway 22/7 and services multi- upgrades should be a City development costs expansion Intersection area Need to market generational Take on more priority Look at hiring a Explore Trailhead with welcome center along Fill in smaller areas Hutchinson area community excess food Determine the communications specialist increasing debt the Luce Line Trail along Highway 7 to outside center waste City's stance On the continue to be limits Expansion of the Connect Hutchinson builders and Fire hall facility Continued extension Of the P roactive in planning Revise Dakota Rail Line Trail to a 4-lane highway developers analysis conservation Dakota Rail Trail to documents assessment Multi -generational Keep the Hutchinson and the Council be more open community center/ Hutchinson Mall Need a variety of Finalize event practices South Grade to adjusting policies policy senior center "healthy" rice oints P P center intentions Evaluate solar Road/CR 115 Trail based on the needs or Hutch Utilities New park on the south side of town due to Market Hutchinson/ when it comes to HATS panel options on extension requests ty the community Pilot development strategies to "Tell housing facility/bonding city facilities Identify appropriate Greater partnership Wage/ Expansion of the rec our Story' Land for housing request Environmental use Of sidewalks vs. between the EDA and Compensation center Celebrate and is available Facility regulatory trails the Chamber of Study Expansion/remodel of the ice arena highlight Our Look at lot maintenance and practices Update the 2012 Commerce the Gymnastics program in Current successes Pursue more high g size/lot upgrades Explore options TransRevitalizing the 2n Plan U date the 2016 Update P Downtown Association town Roberts Park tech/hi h education 9 requirements Fix Ice Arena to reduce city- Safe Routes to Continued strong relationship with the improvements jobs Open to TIF — and Aquatic wide energy School Plan School District More green space for Use Successes to Preferred Center usage Begin preparing for Review of city fields encourage people 9 P P Open to tax Compostable driverless and ordinances and policies Rebranding of park systems to move back abatement if it material at city electric vehicles on a more routine basis Seeking of private home/work back at makes sense events Develop/fortify the Reengage with Hutch sponsors and naming home Continue with City s trail Utilities rights Address childcare maintenance plan Set up meeting with More indoor court shortage compost it right Review ADA County to discuss space and indoor Industrial park filled campaign compliance city- Dakota Rail Line and walking track with high tech wide 212 and 22 connection Festival Street manufactures Encourage and Skilled workforce support multi - modal systems 4 STRATEGIC DIRECTIONS THAT WILL ASSIST US IN ACHIEVIN(rQUR 8 STRATIGIC GALS STRATEGIC PLAID ic Direction: . Current Reality 5-Year Plan Goals Success Indicators Downtown plan has been updated (2024) Parks plan has been updated (2019) Growth planning study has been completed (2024) Active CIP Active Playground replacement schedule Complete streets policy in place Safe routes to School update is in place Comprehensive Plan is in place Transportation Plan is in place Establishment of a strategic plan for future use of renewed sales tax Master Campground plan Resiliency Study on the South -portion of town (completed) Update of the City's complete streets policy Updated Personnel Policy Updated Wage Study/Compensation Plan Study for second location for a liquor store Joint meeting with County Board on Dakota Trail/Connection to Luce Line and Highway 212 connection Synch our planning documents with our ordinances (sidewalks, etc.) Lakes and Rivers Phase 2 HATS expansion City Center Updated Future plans for Event Center? Downtown Wayfinding Explore options for a festival street Social District Succession Planning/Planning for staff growth Update of Comprehensive Plan Update of Transportation Plan Review of all Strategic Plans • Scheduled check -ins on strategic plans • Strategic plan is updated • Master Campground plan is adopted • Complete Streets Policy Updated • Personnel Policy Updated • Wage/Compensation Plan is Updated • New employee review system is implemented • Study is done that evaluates second location for a liquor store • Regular meetings with the County Board on Dakota Trail/Connection to Luce Line and Highway 212 connection • Storm water resiliency study informed project implemented • Lakes and Rivers Phase 1 is complete • Bonding has been secured for HATS facility • Comprehensive and Transportation Plans are updated STRATEGIC PLAID ic Direction: Growing Hutchinson Current Reality 5-Year Plan Goals Success Indicators • Low vacancy rates • Building 20-30 homes per year • Low inventory of homes for sale (20-30) • 60 lots available for building • Home values increasing • Confusing on what Park and Rec Facilities are a priority • Large Park and Rec Facilities are aging • As we expand, we will need more amenities • Not marketing the community • New housing developments are being considered • New apartments are being considered • Continue to encourage more housing options Enough rentals for 5% rental vacancy of all types to be constructed 100 homes for sale on the market • New housing developments come online 30-40 new housing starts maintained • Intersection of 7 and 22 is developed for Population between 15,000 and 15,500 commercial expansion Hutchinson is being marketed • South Highway 15 retail development is expanding New businesses at Highway 7/22 intersection • Begin next phase of City Branding Festival Street is implemented • Expanded childcare slots The Landing project is complete • Downtown Improvements The Jorgenson Hotel redevelopment is complete • Continued Job Creation New downtown signage is complete • Jorgenson Hotel site More industrial/commercial land is for sale • Landing Project — Downtown Housing More acres of park land (SE area of town) • Expanded industrial land • New Park Land • What new Park and Rec Facilities is the City Interested in? • City Center Updated • Market the quality of life in Hutchinson/support the marketing of the community STRATEGIC PLAID ic Direction: Engaging Hutchinson Current Reality 5-Year Plan Goals Success Indicators So you want to be a council member class National night out Citizens police academy Neighborhood meetings Planning Commission hearings Truth -in -taxation hearing Compost it right Fire Open house Facebook/Website Park & Rec Brochure Flyers in Utility Bills Council Open Forum Community Ed Newsletter Community Tax Fact Sheet Radio Show City Council Meetings on Local Access/ Streaming Continued support of staff participation in the Chamber Leadership and McLeod for Tomorrow programs. Communication Specialist Continue with current processes Citizens Survey Expansion of Social media Monthly community updates from staff Citizens Academy Help facilitate new Downtown Association Council BBQ at Neighborhood Park(s) with Mayor/Council. Hot Chocolate with the Mayor/Council at the Park Elementary Ice Rink Coffee with the Mayor/Council Joint meeting with County Board on Dakota Trail/Connection to Luce Line and Highway 212 connection Strategic Planning Session with School District Regular Meetings with HUC, HRA and the EDA • Hired Communications Specialist • Primary elections needed • More social media views • Active Downtown Association • Boards/Commissions are full • More and expanded use and views on Social Media • Yearly Meetings with the County Board • Yearly Meetings with the Utilities Commission • Yearly Meeting with the EDA and HRA STRATEGIC PLAID ic Direction: Current Reality 5-Year Plan Goals Success Indicators • Fiscally healthy (AA- Bond Rating, healthy fund balances) • Local economy is strong (low unemployment rates) • Interest rates are still decent • Tax rate is "average" • Current sales tax retires at the end of 2026 • Higher tax increases in recent years have resulted in increased tax rates • Debt management plan hasn't been adjusted since 2017 outside of new debt for police station • Financial management plan in place • Lower -side of regional LGA payments • PILOT payment has been relatively flat since 2020 • Cost of materials and labor are increasing • Large growth in wages/benefits in recent years • State/Federal Policies could impact future budgets • Established a playground replacement fund. Minor increase to fleet, facilities and misc. maintenance funds. • Analyze new debt capacity • Analyze new sales tax possibility • New wage/compensation plan is implemented • Utility Rates are average/competitive • Sustainable Facility Plan is established for the Pool and Ice Arenas. • PRCE Scholarship Program for Low Income Families • Balancing Capital Costs vs Operational and Staff Costs (analysis) • Review of annual $1.9 million debt allotment • Identifying and budgeting for costs associated with new facilities • Asset management systems in place • Projects for State Housing Aid money have been identified and funded • Maintain healthy bond rating • Tax rate impact is minimal • Tax levy increases are minimal • New sales tax is implemented • Utility Rates remain competitive compared towards our market • Identifying and budgeting costs associated with new facilities • Asset management systems in place • State Housing Aid money is spent STRATEGIC PRIORITIES STRATFG10 PLAN Master Campground plan Resiliency Study on the South -portion of town (Completed) Update of the City's complete streets/sidewalk/trail policy Updated Personnel Policy Updated Wage Study/Compensation Plan Establish a plan for the future of the Event Center Downtown Wayfinding Plan is established Explore options for a festival street Completion of the Safe Routes to School Plan School Road Corridor Study Succession Planning/Planning for staff growth Funding Plan for a HATS Facility expansion is developed Review of all Strategic Plans on a regular basis Shorter -Term Goals • Continue to work with the Developers to ensure the Landing Project takes off and is completed. • Assist new housing developments in whatever way makes sense for the City as they come online • Extend Utilities to the Intersection of 7 and 22 in an effort to assist in the expansion of commercial development in town • South Highway 15 retail development is expanding • Continue to work with the Developer of the Jorgenson Hotel site • City Center is Remodeled • Hire a City-wide Communication Analyze new debt capacity Specialist Establish a strategic plan for • Continue with current processes (So future use of a renewed sales you want to be an elected official, tax etc.) Analysis of City Fees • Expansion of presence on social Establish a plan for the State media "Housing" money • Help facilitate new Downtown New wage/compensation Association plan is implemented • Joint meeting with County Board on Dakota Trail/Connection to Luce Line and Highway 212 connection • Annual Meetings with the County, HRA, EDA, and HUC STRATFG10 PLAN • Study for second location for a liquor store • Explore the possibility of establishing a Social District in the Downtown area • Lakes and Rivers Phase 2 • ERP Software Analysis • Update of Comprehensive Plan and Transportation Plan • Review of all Strategic Plans on a regular basis Longer -Term Goals • Begin next phase of Marketing & Branding Study • Expanded industrial land • What new Park and Rec Facilities is the City Interested? • New Park Land is established with new development (along with increased staffing levels) • Assist where needed in the expansion of Daycare slots in town • Citizens Survey (2027) • Monthly community updates from staff • Establishment of a Citizens Academy • Council BBQ at Neighborhood Park(s) with Mayor/Council. • Hot Chocolate with the Mayor/Council at the Park Elementary Ice Rink • Coffee with the Mayor/Council • Strategic Planning Session with School District • Utility Rate analysis to ensure rate are average/competitive • Sustainable Facility Plan is established for the Pool and Ice Arenas. • PRCE Scholarship Program for Low Income Families • Balancing Capital Costs vs Operational and Staff Costs (analysis) STRATFG10 P1.AN Successful Indicators that we completed the 2025 Plan Master Campground plan is adopted Strategic Plan for new and expanded PRCE Facilities is established Complete Streets Policy Updated Sidewalk/Trail Policy updated in our zoning code Personnel Policy Updated Wage/Compensation Plan is Updated New employee review system is implemented Study is done that evaluates second location for a liquor store Storm water resiliency study informed project implemented Lakes and Rivers Phase 1 is complete and Phase 2 has begun Bonding has been secured for HATS facility Scheduled check -ins on strategic plans • City Center Updated • The Landing project is complete • The Jorgenson Hotel redevelopment is complete • More acres of park land and more park amenities have been added • Enough rentals for 5% vacancy rate • Average of 100 homes on the market at a given time • 30-40 new housing starts per year maintained • 5 Year Housing Stock is available (150-200 buildable lots) • Commercial/Retail Growth on the East (Hwy 7) and South Side of Town (Hwy 15) • Downtown Hutchinson is thriving • Needed daycare slots are cut in half • Quality of Life is being Marketed • Population up to 15,500 • Hired Communication Specialist • Primary elections needed • Active Downtown Association • Boards/Commissions are full • More and expanded use and views on Social Media • Regular meetings with the County Board on Dakota Trail/Connection to Luce Line and Highway 212 connection • Regular Meetings with HUC and the EDA • More Community Engagement from Elected Officials • Maintain healthy bond rating • Tax rate impact is minimal • Tax levy increases are within State averages for cities • Yearly Debt Allotment of $1.9 million is reviewed to determine if it meets the needs of the Community • New sales tax is implemented • Utility Rates remain competitive compared towards our market • Identifying and budgeting for costs associated with new facilities • Asset management systems in place • Projects for State Housing Aid money have been identified and funded STRATEGIC PLAN' IN CLOSING Work on this Strategic Plan began in January of 2024 and was completed in August of 2025. During this time there were 10 public planning sessions that included input from the public, city staff and city elected officials. This final report consists of a shared vision between city staff and elected leadership and consists of identified priorities and actionable strategies to serve as a roadmap to guide the City of Hutchinson to a prosperous future. As the city moves forward, it will be important to do regular check -ins on the plan. It will be important for city staff and elected leaders to continue to foster strong partnerships, remain adaptable to change, and stay focused on long-term goals. Through collaboration, resilience, and a forward -thinking approach, we will ensure that Hutchinson remains a vibrant and thriving place for generations to come. A CITY "' ON PURPOSE. HUTCHINSON RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Camp Craig Lease Agreement - City of Hutchinson and Civil Air Patrol (CAP) Agenda Item: Department: Public Works LICENSE SECTION Meeting Date: 9/23/2025 Application Complete N/A Contact: Mike Stifter Agenda Item Type: Presenter: Mike Stifter Reviewed by Staff Consent Agenda 0 Time Requested (Minutes): License Contingency N/A Attachments: Yes 0 BACKGROUND/EXPLANATION OFAGENDA ITEM: A Lease Agreement between CAP - Minnesota Wing and the City of Hutchinson has been prepared for Council's review. City staff have reviewed it and recommend approval per the terms outlined. City staff will be on hand to address any questions. BOARD ACTION REQUESTED: Approval of Camp Craig Lease Agreement between the City of Hutchinson and CAP Fiscal Impact: $ 0.00 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 Lease Agreement between Civil Air Patrol -Minnesota Wing and City of Hutchinson for Camp Craig Training Facility LEASE AGREEMENT This lease agreement ("lease") is made as of the day of _ , 20___, between the City of Hutchinson, a municipal corporation of the State of Minnesota ("City") and the Civil Air Patrol, Inc., a federally charged corporation, the auxiliary of the United States Air Force and a 501(c)(3) non-profit organization ("CAP"), with each of the foregoing being sometimes referred to individually as "party" or collectively as "parties." Lease The City hereby leases to CAP the real property described herein, together with any improvements located on the leased premises, located and situated on and/or adjacent to the Hutchinson Municipal Airport, a public airport owned and operated by the City, located in County of McLeod, State of Minnesota. The parties agree to cooperate to determine the legal description of the leased premises, and if necessary obtain a separate PID for the leased premises. Property: 840 Airport Rd PID: 12-116-30-15-0010, Block 2, Fair Grounds Addition County PID: 233190040 The developed area shall be five (5) acres (exclusive of drainage ditches), more or less, located immediately north of 760 Airport Rd (PID 12-116-30-15-00120) located on the northeast corner of the airport. The lot shall be contiguous in a general rectangle shape and shall exclude adjacent drainage ditches. The parties agree that additional land may be leased to CAP under the terms of this lease, upon CAP's request in the reasonable discretion of the City. CAP is leasing the property on an "as -is," "where is" and "with all faults" basis, based upon CAP's judgment. The City warrants title free and clear of all liens and encumbrances. The City specifically disclaims any warranty of merchantability or fitness for any particular purpose and liability for any consequential damages arising out of the use or inability to use the leased premises or any part of it. The City shall retain the right to engage in construction of reasonably necessary airport improvements on, near, over or about the leased premises. The City shall provide CAP with ninety (90) days' notice of such construction, to include provisions for protecting and minimizing the impacts to CAP improvements and ongoing CAP operations during construction and restoration. CAP shall have the nonexclusive privilege of using the public portions of the airport, such as roads, parking areas, taxiways, runways and other public facilities provided by the City, upon such terms and subject to the rules, regulations and charges for such use as they now exist or may hereafter be established by City ordinance, resolution, or agreement. The only exclusive right to use any part of the airport shall only apply specifically to the leased premises. The City shall properly maintain, operate and manage the airport at all times in a safe manner, consistent with generally accepted good practice in the State of Minnesota for airports of similar size and character, and consistent with FAA regulations. If for any reason beyond the control of the City (including without limitation, war, strikes, riots or acts of God), the City shall fail to properly maintain, operate and manage the airport, such failure shall not operate as a breach of this agreement. Lease Term The term of this lease shall be fifty (50) years, commencing upon the date of this agreement, unless terminated earlier in accordance with provisions of this lease. Lease Renewal This lease will automatically renew for an additional term of fifty (50) years, unless CAP provides the City with written notice that they do not intend to exercise this option. After the initial term of this lease, CAP shall have the option to extend the initial term of this lease for an additional term of fifty (50) years, or other length of time agreed upon by both parties. Renewal of the lease is subject to the following conditions: 1) No default exists in the performance of CAP of any terms of this lease; and, 2) Each renewal term shall be subject to terms, conditions and covenants of current leases then in place for other property leased by the City. Rent CAP agrees to pay to the City rent in the sum of ten cents ($0.10) per square foot per year, as determined by the outside dimensions of hangars, buildings, and required appurtenances located on the leased premises, calculated to the nearest square foot. The outside dimensions are 100 feet by 80 feet, for a total of 8,000 square feet. Annual rent payments are due each year before November 1 of the prior year. CAP plans to add additional improvements based on future appropriations from the Minnesota Legislature. The parties plan to amend this lease as those improvements are built. The City reserves the right to amend rental rates related to this lease no more than on a biennial basis. Rate revisions shall be reasonable and uniform as compared with other fees and rents charged at the City's airport. The City shall give rate revisions due regard to the value of the property leased, the improvements used, and the expense to the City of CAP's operations. Biennial rate increases shall not exceed five percent (5%). Any rate revisions shall be adopted by the City Council. Failure to pay annual rent before November 1 each year shall result in a late fee of fifty dollars ($50) or 5% of the amount due, whichever is greater, per month for each month the rent is late. Fees The parties may, by separate, written agreement, identify and establish fees for specific services that shall be paid separately from rent. Taxes assessments and other charges In addition to rent and fees identified in this agreement, CAP shall pay any taxes, assessments, licenses, fees or other charges that may be levied or assessed upon the leased property, buildings, hangars or activity of the CAP. Upon request by the City, CAP shall provide proof of such payment. CAP shall pay monthly for storm water fees, at the public/private school and institutional rate, presently $25.69 per month. CAP shall establish their own accounts for utilities and pay all rates and charges for any utility used or consumed in connection with or within the leased property during the term of this agreement. Upon request by the City, CAP shall provide proof of such payment. The word "taxes" in this section shall also apply to any tax which may be imposed and required to be collected pursuant to Minnesota Statutes 272.01, Subd. 2, or similar successor statutes, for this privilege of using and possessing the leased premises, which are tax exempt, in the same amount and to the same extent as though CAP were the owner of the leased premises. In the event CAP fails to pays rents, fees, taxes, assessments and other charges, the City shall notify CAP of the default. If CAP fails to cure such default, the City shall have the right to terminate this lease in accordance with provisions herein. Construction on leased propertM CAP plans to develop and occupy a training center over time and hangar at the City of Hutchinson (City) airport for the purpose of training its members, subject to the development agreement signed by the City December 19, 2019, and by CAP January 17, 2020. CAP has occupied its planned hangar and further development of a training center depends on additional funding from the State of Minnesota. Any improvements constructed by CAP upon leased premises shall be constructed at no cost to the City, unless otherwise agreed upon in writing. CAP shall pay the net cost of improvements made on its behalf by the City and at the City's expense, as determined by the cost of the improvement, including related engineering, legal and administrative costs, less any revenues from federal or state grants and any division of cost among more than one benefitting entity. Before commencing any erection, rebuilding, enlargement, extension, or other improvement to buildings and hangars, or before commencing any significant repair or alteration in excess of five thousand dollars ($5,000), CAP shall furnish to the City for approval: 1) the plans for such work; 2) the estimated cost of such work; 3) surety satisfactory to the City for the commencement, completion and payment for such work and against damage by reason of mechanics' liens. CAP shall, at its own cost and expense, defend each and every lien asserted or filed against any portion of the leased premises or buildings, structures or improvements thereto, and pay each and every judgement made or given against any portion of the leased premises or against any buildings, structures or improvements thereto. CAP further holds the City harmless from each and every claim, demand, action, or cause of action arising out of or in connection with any act or omission of CAP, or any agent, employee or contractor of CAP with respect to the removal, erection, alteration, enlargement or extension of any building, hangar, structure or improvement on the leased premises or arising out of or in connection with the assertion or filing of any lien on said land or against any building, hangar, structure or improvement thereon. CAP may erect suitable signs on the leased premises to identify their activity, provided the form, type, size and method of installation are approved by the City. Use and Maintenance of Buildings and Han ars Primary use of buildings and hangars must be for CAP training and administrative purposes, for storage of registered and/or leased aircraft, or for related training, administrative and aviation purposes, and other CAP related social events. CAP buildings and hangars shall not be approved for private business activities. Buildings and hangars may be used for the storage of CAP aircraft, vehicles and equipment. Buildings and hangars may be used for other CAP purposes, including teaching and training activities, administrative activities, and aircraft maintenance activities. CAP intends to utilize hangar space for overnight occupancy (i.e., sleeping quarters) during large events. CAP intends to install water, sewer and other utilities typical for use in facilities occupied overnight in the hangar. CAP intends to allow use of the buildings and hangars by other federal, state and local governmental organizations, aviation organizations and by other volunteer service organizations. All other uses of buildings must be approved by the City. CAP shall keep and maintain the property in good order and repair and in a clean and neat condition. CAP shall not permit any waste or nuisance on the leased property, nor permit anything on the leased property to interfere with the rights of other tenants of the City or users of the airport. In the even the property is not properly maintained, the City may provide written notice to CAP to correct any deficiencies. If CAP does not correct the deficiencies within the time specified in the notice, the City may maintain the property and charge CAP for administrative and maintenance costs which shall be the responsibility of CAP to pay. The City is not required to provide for maintenance, repair or replacement of any buildings, hangars, structures or improvements made to the leased premises. CAP may not store property outside of buildings, except for property commonly stored outside, including but not limited to garbage containers, liquid petroleum tanks used for heating, etc., provided such property is properly secured. The City performs general airport maintenance and those costs are included in the rent. General maintenance may include snow removal, mowing and weed control and pavement maintenance on public portions of the airport. The City reserves the right to establish separate fees for these maintenance operations. The City performs snow removal throughout the City on a priority basis. The City reserves the right to perform snow removal functions in whatever manner it deems necessary. The City intends to provide service up to and including that portion of the taxi lane located on airport property. The City is not required to perform any snow removal function on leased property, but may plow snow on or adjacent to leased property to expedite related maintenance operations. 4 Mowing and weed control immediately adjacent to CAP's buildings and hangar are CAP's responsibility. The City reserves the right to perform mowing and weed control functions in whatever manner it deems necessary. The City intends to provide mowing and weed control services up to and including that portion of taxi lane located on airport property. The City is not required to perform any mowing or weed control function on leased property, but may mow or perform weed control on or adjacent to leased property to expedite related maintenance operations. The City shall establish the standards by which public apron, ramp areas, taxi lanes and taxiways, runway(s), and other paved areas are maintained. The City intends to provide pavement maintenance service up to and including that portion of the taxi lane located on airport property. The City is not required to perform any pavement maintenance or related function on leased property, but may perform pavement maintenance on or adjacent to leased property to expedite related maintenance operations. CAP must allow the City to inspect property for determining compliance with provisions of this agreement. CAP may be a party to any compliance inspection required by the City. The City is required to notify CAP, as provided for in this agreement, and to make reasonable accommodation to CAP prior to and during compliance inspections. Use of the leased premises for purposes other than those described herein or included in separate written agreements shall constitute a default under the lease. Termination provisions At the termination of this lease, CAP has the privilege of removing the buildings, hangars and associated properties placed upon the leased property. CAP shall obtain all required permits. CAP shall have a period of six (6) months from the termination of the lease to remove the property. CAP may sell the buildings, hangars, and associated properties at the termination of this lease, with the written consent of the City. In the event CAP cannot complete the removal within six (6) months, the City may grant reasonable extension of time if the tenant can demonstrate the reasons for failure to remove property within the six (6) month period are beyond the control of CAP and provided additional rent is paid on a prorated basis for the period necessary to remove the property. If CAP does not remove the property within the time period granted by the City, the City shall retain ownership of all remaining property for any municipal purpose or shall cause the property to be removed at CAP's expense. If the leased premises becomes deserted, abandoned or vacated for a period of more than four (4) months, the City may terminate the lease agreement. If CAP's interest in the property is taken by process of law, the City may terminate the lease agreement. If the buildings, hangars, and/or properties on the leased premises are destroyed, the City or CAP shall have the right to terminate this agreement upon giving written notice, with response, to the other party. Should CAP default in the performance of any terms, conditions or covenants of this agreement not otherwise specified, and should the default continue for a period of more than ninety (90) days after the City serves the tenant with written notice of the default, the City may terminate this lease agreement. Serving the tenant with written notice includes reasonable attempts by the City to contact CAP, and may 5 include use of certified mail with return receipt and/or personal service. This may be done with or without terminating this agreement and without prejudice to any other remedy for rents, fees and other payments or breach of covenant. In any such event, the City may terminate this agreement by giving written notice of the termination. The rights and remedies give to the City are, and shall be deemed to be, cumulative, and the exercise of one shall not be deemed to be an election excluding the exercise by the City at any other or different time of a different or inconsistent remedy. Should the leased premises be declared condemned, either because the airport is closed to the public or the property is needed for another governmental or military purpose, the City may, at its discretion, reimburse CAP for rents received in the preceding five (5) years and CAP shall be given six (6) months remove property. If the property is taken through an eminent domain action of the State or Federal government, the City will reimburse CAP for rent paid in the preceding one (1) year, prorated to the effective date of the action, in addition to any condemnation award received by CAP. Liability provision CAP agrees to defend, indemnify and hold harmless, including reasonable attorneys' fees, the City and all its agents and employees from any and all claims, demands, actions or causes of action of whatever nature or for loss of or damage to property or injury to persons occurring on or about the leased premises arising out of or by reason of the execution or the performance of services provided in accordance with this agreement, except for any contributory negligence by the City, its agents and employees on the leased premises. The City shall not be liable to any extent for, nor will CAP make any claim against the City for or on account of any injury, loss or damage resulting from CAP's property or use thereof, including any claims by third parties, except for any contributory negligence by the City, its agents and employees on the leased premises. CAP shall obtain and keep all buildings, hangars, structures and improvements on the leased premises insured against fire, vandalism, malicious mischief, windstorm loss or damage for an aggregate amount equal to the fair market value of buildings, hangars, structures and improvements on the leased premises or their insurable value, whichever is greater. Proceeds from said insurance resulting from any loss or damage shall be divided between CAP and the City as each party's interest may appear. In addition, CAP shall obtain and keep current a liability insurance policy, including but not limited to coverages for bodily injury, property damage, personal injury or contractual liability, with the City as a named additional insured, in a form acceptable to the City. Minimum liability coverage shall be one million five hundred thousand dollars ($1,500,000) per occurrence with one million five hundred thousand dollars ($1,500,000) aggregate or at other levels as may be set from time to time by the City considering changes in Minnesota Statutes. Upon the occurrence of loss or damage to buildings, hangars, structures and improvements on the leased premises, CAP shall repair, rebuild, replace, remove or otherwise address the loss in any buildings, hangars, structures or improvements within one hundred eighty (180) days unless the City consents to an extended timeframe in writing, which consent shall not be unreasonably withheld or delayed. Inability to keep adequate insurance coverage and provide the City with certificates of insurance indicating coverage amounts shall be considered a default. Nothing in this lease shall cause the City to be construed as CAP's partner, joint venture, or that the City is otherwise associated in any way with CAP in the operation of the leased premises, nor shall CAP subject the City to any obligation, loss, charge or expense connect with or arising out of operation or use of the leased premises or the airport. Licensure CAP shall obtain, and provide upon request verification of, all necessary licenses required by the City, State of Minnesota and/or the United States Government to legally comply with this agreement. Aircraft & aviation fuel CAP agrees that any aircraft based at, stored at or utilizing the airport under this lease shall be currently in compliance with the aircraft registration requirement set forth in Minnesota Statutes 360. CAP shall not have the right to sell, dispense, give or transfer aviation fuel, except to fuel aircraft owned or exclusively leased to CAP. CAP shall not store flammable materials, liquids or fuels in open containers in or upon the leased premises. Transferring, subletting, selling CAP shall not transfer, sublet or sell any interest in this agreement or in the improvements located on the property without first obtaining written consent of the City. Consent to transfer, sublet or sell the property because it is no longer being used by CAP shall not be unreasonably withheld, provided the proposed assignee, subtenant or purchaser can demonstrate the ability and sufficient financial wherewithal to carry out the terms of a future lease agreement and has not been in any situation or condition that the City finds objectionable. The City may establish a fee to be paid by CAP for the transfer, sublet or sale of the property to a for profit business to the extent of the difference between rates paid by CAP and other commercial tenants within the five (5) years preceding the transfer, sublet, or sale or one thousand dollars ($1,000), whichever is more. Failure to obtain written consent for transferring, subletting or selling any interest in this agreement or in the improvements located on the property shall be sufficient grounds for terminating this agreement without obligation of the City to CAP. 7 Amendments This agreement shall not be amended except by written document signed by the parties to this agreement. Discrimination provision CAP, in its use of the Hutchinson Municipal Airport, shall not discriminate nor permit discrimination against any person or group of persons on the grounds of race, color, or national origin or in any manner prohibited by Part 21 of the Regulations of the Office of the United States Secretary of Transportation, and CAP further agrees to comply with any requirement made to enforce such regulation which may be demanded of the City, the State of Minnesota or by the United States of America under authority of said Part 21. Laws, rules and regulations CAP shall abide by and conform with all laws, rules and regulations, including future amendments thereto, controlling or in any manner affecting CAP relative to use or occupancy of the leased premises. Recording the lease agreement At CAP's cost, upon completion of site construction, a survey shall be conducted and a legal description shall be established for the leased premises. The parties agree to execute a memorandum of lease indicating the parties to the lease, the legal description of the leased property, the term of the lease and the renewal provisions of the lease. The memorandum of lease shall not include the rent and fees under the lease. The memorandum of lease in recordable form shall be recorded at the McLeod County Recorder's Office, and such fees or charges for the survey and for recording shall be paid by CAP. Venue for causes of action The laws of the State of Minnesota shall govern this lease and the venue for causes of action shall be McLeod County, Minnesota. Notices All notices under this agreement shall be sent to the following addresses. CAP is responsible for notifying the City of changes to addresses or contact information. 8 CAP: CIVIL AIR PATROL CITY: THE CITY OF HUTCHINSON By: ` By: jJohn W. Desmarais, r. Chief Operating Officer Its: National Headquarters Civil Air Patrol, U.S. Air Force Auxiliary O® ACORCERTIFICATE OF AVIATION LIABILITY INSURANCE DATE(MM/DD/YYYY) 8/28/2025 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Assured Partners Aerospace 4582 S. Ulster St, #600 Denver, CO 80237 CONTACT NAME: PHONE IFAX E-MAI4 E'U' — C Noj: ADDRESS: PRODUCER INSURERS AFFORDING COVERAGE % NAIC # INSURED INSURER A: Old Republic Insurance Company 5C 24147 Civil Air Patrol General Counsel INSURERB: Starr Indemnit & Liability Company-5C 38318 105 South Hansel[ St., Building 714 Maxwell AFB AL 36112 INSURERC: INSURERD: INSURER E : INSURER F : THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. AIRPnRT 8. FRn I IARII ITY rnVFRAr:F-R rFRTIFIrATF NI IRARFR• ARA75174r, Dr%nelnM s111UMCD. INSURER LETTER A I POLICY NUMBER AV 048517 22 EFFECTIVE DATE 10/1/2024 I EXPIRATION DATE 10/1/2025 ADDITIONAL INSURED? (Y/ N) N SUBROGATION WAIVED? (Y / N) N COVERAGE OPTIONS LIMIT APPLIESTO LIMIT APPLIESTO PREMISES LIABILITY $ $10,000,000 BI EA PER EA OCC $ PD ,1 PREMISES MEDICAL PAYMENTS $ 25,000 EA PER $ EA OCC PRODUCTS LIABILITY SALE OF FUEL & OIL EXTENDED $ $10,000,000 BI EA PER EA OCC $ 10,000,000 AGGR COMPLETED OPERATIONS LIABILITY EXTENDED $ $ 10,000,000 BI EA PER EA OCC $ 10,000,000 AGGR HANGARKEEPERS LEGAL LIABILITY INCLUDING TAXI IN FLIGHT $ EA AIRCRAFT $ 10,000,000 1 EA OCC FIRE LEGAL LIABILITY $10,000,000 ANY ONE FIRE PERSONAL INJURY LIABILITY $10,000,000 EA OCC $ 10,000,000 AGGR ADVERTISING LIABILITY $10,000,000 EA OCC $ 10,000,000 AGGR CONTRACTUAL LIABILITY INCLUDED EXCLUDED COVERAGE OPTIONS LIMIT $3,000,000 APPLIES TO EXCESS O LIMIT $ 2,000,000 APPLIES TO PRIMARY CODE DESCRIPTION EXCESS AUTO EXCESS EMPLOYER $3,000,000 EXCESS O $ 1,000,000 PRIMARY IND CONTRACTORS $10,000,000 EA OCC $ 10,000,000 AGGREGATE AIRCRAFT LIABILITY $10,000,000 EA OCC $ $ Is DESCRIPTION OF OPERATIONS / REMARKS ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Subject to the coverage, terms, conditions, limitations, exclusions and cancellation provisions of the relative policies. CERTIFICATE HOLDER CANCELLATION City of Hutchinson Camp Craig Training Facility 840 Airport Road Hutchinson MN 55350 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE Kerin Dodd © 2009, 2015 ACORD CORPORATION. All rights reserved. ACORD 20 (2016103) The ACORD name and logo are registered marks of ACORD 86878715 124-25 GL Coverages I Giff Treybig 18/28/2025 6:51:29 AM (MDT) I Page 1 of 1 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Short -Term Gambling License - Upper Midwest Allis Chalmers Club Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 9/23/2025 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 OFAGENDA 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 26, 2026, 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 26, 2026. 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 r s HUTCHINSON 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 ShortTermDate(s)ee: X $30.00 Month/Da Year Month/Da /Year 5 Or anization Information 07 11 ? Upper Midwest A-C Club 507-276-8597 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 yes ❑ no How long has the organization been in existence4CHow may members in the organization? L ` What is the purpose of the organization? Preserve Agricultural History, specifically Allis - In whose custody will organization records be kept? Lori A. Miller, Bookkee er & Archives Mgr 612-483-2712 Name Phone Number 13615 Hartungs Oaks Rd Cologne MN 55322 _ Address city State zip ly Authorized Officer of the Organization Information Norman Grams, President & Gambling Manager True Name 105 E. 10t' Street Winthrop 507-276-8597 Phone Number MN 55396 Residence Addmcs City State Date of Birth: Place of Birth: Month/day/year City Have you ever been convicted of any crime other than a traffic offense? i] yes )enib If yes, explain: Z/P State Nu S CitymfHutchinson Application for Gambling Devices License Page 2 of 3 g9nated Gambling Manager Norman Grams, President & Gambling Manager True Name 105 E. 10th Street Winthrop Residence Address City Date of Birth: Place of Birth`. Month/day/year Have you ever been convicted of any crime other than a traffic If yes, explain: How long have you been a member of the organization? 507-276-8597 Phone Number MN 55396 State Zip City State ❑ yes ❑ no /C)U125 Game Information Location #1 507-276-8597 McLeod County Fairgrounds — Orange Spectacular Name of location where game will be played 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: 07/26/2026 through 07/26/2026 T AM AM Hours of the day gambling device ill be used: From �;7-pM_ To _ PM Maximum number of players: R(On 1 Will prizes be paid in money or merchandise? >kmoney Amerchandise � j 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? ❑ yes ❑ no 1J� Game Information Location #2 V J Name of location where game will be played Phone Number Address of location where game will be played City State Zip Date(s) and/or day(s) gambling devices will be used: through AM AM Hours of the day gambling devices will be used: From pM To PM 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? ❑ yes ❑ no If yes, will a charge be made for such refreshments? ❑ yes ❑ no Citpof Hutchinson Application for Gambling Devices License Pa e 3 of 3 Officers of the Or anization i necessan,, list additional names on separate sheet SEE ATTACHED LIST Name Title Residence Address City State zip Name Title Residence Address City State zip Name Title Residence Address Cin State zip Officers or Other Persons Paid for Services Information i necessa •, list additional names on se arate sheet} NO ONE IS PAID FOR SERVICES 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)? pp5❑ Gambling Mane � ❑ no �— Authorized Officer es Initial Initial I declare that the information I have provided on this 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. as /.1 �- - Signature of authorized officer of organization Date Signature of gambling manager of organization Date Internal Use Only City Council 13 approved ❑ denied Notes: Upper Midwest A-C Club Board of Directors As of April 12,, 2025 Directors/Off ice rs Norm Grams, President 105 E. 101h Street Winthrop, MN 55396 507-276-8597 Email: nggramsOrsfiber.net Cody Hager, Vice President 13084 County Road 24 St. Charles, MN 55972 507-696-4765 Email: hacierac@qmail.com Jason Miller, Secretary 6640 Lancaster Lane N. Maple Grove, MN 55369 701-238-4340 Email: iasonc78960amail.com Scott Overgaard, Treasurer 5065 Eastwood Rd Mounds View, MN 55112 651-338-0676 Email: s4overgaardCa)outlook.com Other Board Members Darrell Grams, Sr. 34420 State Hwy 25 Green Isle, MN 55338 612-280-3397 Email: dgrams , frontiernet.net Brad Becker P.O. Box 617 Lake Crystal, MN 56055 507-317-4155 Email: bdbecker05 a7gmail.com Timothy Holker 2337 5th St. SE Buffalo, MN 55313 763-280-1405 timthetoyfarmer@gmail.com Tom Foster P.O. Box 372 Winthrop, MN 55396 507-766-9056 Email: fostertom929@gmail.com Pete Grass 2516 SWN82nd Avew Owatonna, MN 55060-4890 507-456-2970 Email: petegrass45@gmail. corn RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration of a Final Plat for High Bar Builders Addition Agenda Item: Department: Planning LICENSE SECTION Meeting Date: 9/23/2025 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 OFAGENDA ITEM: High Bar Builders has applied for a Final Plat to split the lots located at 800, 810, and 820 Texas Aven NW. The property line will be located along the dividing wall of the twin homes, like other developments in Hutchinson. The reason for the re -plat is for financing for the twin homes being constructed. Nobody from the public spoke regarding this request. The Planning Commission voted unanimously to approve this request. BOARD ACTION REQUESTED: Approval of Final 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. 15913 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF A FINAL PLAT FOR HIGH BAR BUILDERS ADDITION. FACTS 1. High Bar Builders LLC are the owners of property located at 800 Texas Ave NW, 810 Texas Ave NW and 820 Texas Ave NW; and, 2. The subject properties are legally described as: 800 Texas Ave NW — Lot 3, Block 1, BAR Properties 810 Texas Ave NW — Lot 2, Block 1, BAR Properties 820 Texas Ave NW — Lot 1, Block 1, BAR Properties 3. High Bar Builders LLC have applied for a six -lot final plat, located at 800, 810 and 820 Texas Ave NW, Hutchinson, MN, to be known as High Bar Builders Addition. 4. The Planning Commission met on September 16, 2025 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 final plat shall be recorded at the McLeod County Recorder's Office within 270 days of approval. b. The 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 23, 2025 and has considered the recommendations and findings of the Planning Commission and hereby does recommend approval of the final plat of High Bar Builders Addition subject to the following findings and conditions: a. The final plat shall be recorded at the McLeod County Recorder's Office within 270 days of approval. b. The 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. APPLICABLE LAW 6. The final plat request meets the following standards as required in Section 153.050-153.051 of the City of Hutchinson Municipal Code. Findings of Fact — Resolution # 15913 Final Plat — High Bar Builders Addition Page 2 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 final plat for High Bar Builders Addition is approved. Adopted by the City Council this 23rd day of September, 2025. ATTEST: Matthew Jaunich Gary T. Forcier City Administrator Mayor HUTCHINSON A CITY ON PURPOSE. DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan 7ochum, AICP Date: September 16, 2025 Application: Consideration of a Final Plat for High Bar Builders Addition. Applicant: High Bar Builders Owner: High Bar Builders Final Plat: High Bar Builders has applied for a Final Plat to split the lots located at 800, 810, and 820 Texas Aven NW. The property line will be located along the dividing wall of the twin homes, like other developments in Hutchinson. The reason for the re -plat is for financing for the twin homes being constructed. Indicates property described in this notice — H to Y �+ Z„ '� K 2 W F 1i g o 'TEXAS AVE NW 820 810 800 GENERAL INFORMATION Existing Zoning: R-3 PD Property Location: 800, 810, 820 Texas Ave NW Existing Land Use: Vacant - residential Adjacent Land Use and Zoning: Commercial and Residential Comprehensive Land Use Plan: Commercial Zoning History: BAR properties platted this property in 2024. The property was rezoned earlier this year. Applicable Regulations: Subdivision Ordinance Final Plat—153.050 Final Plat Analysis: The purpose of this plat is to split the existing lots in half. Each half of the proposed twin homes will be located on their own lot. Staff understands the splits are being proposed for project financing reasons. Final Plat Review Criteria After the submittal of the final plat, the Planning Commission shall recommend approval or disapproval of the plat. Failure of the Planning Commission to act upon the final plat shall be deemed a recommendation of approval of the plat. If plat disapproval is recommended, the grounds for disapproval shall be stated in the records of the Planning Commission. A plat shall not be recommended for approval unless it: (a) Conforms to the preliminary plat; (b) Conforms to the design standards set forth in this chapter; (c) Conforms to the adopted Comprehensive Plan; and (d) Is in accordance with all requirements and laws of this state. Recommendation: Staff recommends approval of this request. If Planning Commission feels this Plat is acceptable the following conditions should be applied to the final plat approval: 1. The final plat shall be recorded at the McLeod County Recorder's Office within 270 days of approval. 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. HIGH BAR BUILDERS ADDITION,,,, .. .. ....... ... .. ...... ...... ... ... .... .. ... .... . ... .... . ... ... .... . ... ... ... ... .. ......... - - - - - - - - - - - - - - - - - ...... ..... .... ........ NORTH GInPETc 6CaLE SURNEYOR'S CE—CATE AND ACKNO-EDOWENT ORIENTATION LEGEND 1 4 5 6 2 3 C m-A U PI-ANNING COMMISSION. CITY OF HUTCHINSON, MINNESOTA ... ........ .... .... ON COUNC11- CITY Of HUTCHINSON. MINNESOTA D&INQUENT TAXES RECORDER. NCI-EOO C—TY, MINNESOTA A&F, G. RUG 9 SONS INC. \,P1111 Professional Land Surveyors dI ICI 7 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration of a Conditional Use Permit for commercial analytical testing of recreational cannabis products and Agenda Item: extraction and remediation of contaminants found in course of testing in a I/C Zoning District located at 540 3rd Ave NW. Department: Planning LICENSE SECTION Meeting Date: 9/23/2025 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 OFAGENDA ITEM: The applicant, Jared Nieuwenhuis, is requesting a conditional use permit for a commercial analytical testing of recreational cannabis products to be located at 540 3rd Avenue NW in the I/C Industrial/Commercial Zoning District. Nobody from the Public spoke regarding this request. The Planning Commission voted unanimously (5-0) to recommend approval of this request. BOARD ACTION REQUESTED: Approval of Conditional Use Permits. 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. 15914 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF CONDITIONAL USE PERNUT FOR CON VOERCIAL ANALYTICAL TESTING OF RECREATIONAL CANNABIS PRODUCTS AND EXTRACTIONS AND REMEDIATION OF CONTANIINANTS FOUND IN COURSE OF TESTING IN AN I/C ZONING DISTRICT LOCATED AT 540 3P-D AVE NW. FACTS Corvus Holdings LLC is the owner of a parcel of land located at 540 3rd Ave NW, Hutchinson Minnesota; and, 2. The subject property is legally described as: 540 3rd Ave NW - That part of the Southeast Quarter of the Southeast Quarter of Section 36, Township 117, Range 30, McLeod County, Minnesota, described as beginning at a point on the North line of said Southeast Quarter of the Southeast Quarter, said point begin 898.00 feet East, assumed bearing, of the Northwest Corner of said Southeast Quarter of the Southeast Quarter; thence continuing East 42.00 feet along said North line; thence South 33.00 feet; thence East 264.00 feet to a point 1204.00 feet East of and 33.00 feet South of said Northwest Corner of the Southeast Quarter of the Southeast Quarter of said Section 36; thence South 290.14 feet to a point on the Northerly right-of-way line of Dakota Rail Inc.; thence Southwesterly 312.18 feet along said Northerly right-of-way line to a point South of the point of beginning; thence North 384.81 feet to the point of beginning. County PID Numbers 23.036.3200, 23.036.3300, 23.036.4100, 23.036.4600 Doc# A-356554 Also: That part of the Southeast Quarter of the Southeast Quarter of Section 36, Township 117 North, Range 30 West, McLeod County, Minnesota, described as follows; Commencing at the northwest corner of said Southeast Quarter of the Southeast Quarter; thence on an assumed bearing of East, along the north line of said Southeast Quarter of the Southeast Quarter 1144.00 feet; thence on a bearing of South 33.00 feet; thence on a bearing of East 60.00 feet; thence on a bearing of South 157.00 feet; thence on a bearing of West 122.00 feet to the point of beginning of the land to be described; thence on a bearing of North 34.66 feet; thence on a bearing of East 13.40 feet; thence North 21 degrees 27 minutes 00 seconds East 35.00 feet; thence North 84 degrees 00 minutes 00 seconds East 36.00 feet; thence on a bearing of West 72.00 feet; thence on a bearing of South 71.00 feet to the intersection with a line bearing West from the point of beginning; thence on a bearing of East 10.00 feet to the point of beginning. Area=1,521 Square Feet. 3. Jared Nieuwenhuis has applied to the City for a conditional use permit for commercial analytical testing of recreational cannabis products and extractions and remediation of contaminants found in course of testing in an I/C Zoning District located at 540 3rd Ave NW. 4. The Planning Commission met on September 16, 2025, 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. Findings of Fact — Resolution # 15914 540 3'd Ave NW Conditional Use Permit Page 2 b. The proposed building design will need to meet building code and the design and plans must be approved by the City of Hutchinson Building Official. c. The property must comply with City Ordinances and previous Conditional Use Permits issued relative to outdoor storage. d. 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 August 26, 2025, 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 proposed building design will need to meet building code and the design and plans must be approved by the City of Hutchinson Building Official. c. The property must comply with City Ordinances and previous Conditional Use Permits issued relative to outdoor storage. d. 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 154.066 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. 8. 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 Findings of Fact — Resolution # 15914 540 3'd Ave NW Conditional Use Permit Page 3 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 commercial analytical testing of recreational cannabis products and extraction and remediation of contaminants found in course of testing in an I/C Zoning District located at 540 3rd Ave NW, Hutchinson MN is approved. Adopted by the City Council this 23rd day of September, 2025. ATTEST: Matthew Jaunich City Administrator Gary T. Forcier Mayor HUTCHINSON I:tilIWAN ki■all :lYib94 To: Hutchinson Planning Commission From: Dan Jochum, AICP Planning Director Date: September 16, 2025 Application: Consideration of a Conditional Use Permit for commercial analytical testing of recreational cannabis products and extraction and remediation of contaminants found in course of testing in a I/C Zoning District located at 540 3rd Ave NW. Applicant: Jared Nieuwenhuis CONDITIONAL USE PERMIT The applicant, Jared Nieuwenhuis, is requesting a conditional use permit for a commercial analytical testing of recreational cannabis products to be located at 540 3rd Avenue NW in the I/C Industrial/Commercial Zoning District. Existing Zoning: Property Location: Existing Land Use: Adjacent Land Use And Zoning: Comprehensive Land Use Plan: Zoning History: Applicable Regulations: Analysis and Recommendation: GENERAL INFORMATION I/C Industrial/Commercial 540 3rd Avenue NW Industrial Industrial Industrial Property was a plating company for many years. Within the last 5 years Eco-Tech recycling has utilized the building. Section 154.066 Hutchinson City Code City Staff has been working closely with Jared Nieuwenhuis of Cannabis ChemLab on bringing Cannabis Chem Lab to Hutchinson. With the State of Minnesota legalizing recreational cannabis use comes the need for testing of the product as required by State Law. Cannabis Chem Labs will be licensed with the State of Minnesota to be a testing facility to ensure that cannabis that is being sold meets the requirements set forth in State Law. Cannabis Chem Lab chose Hutchinson due to its relative proximity to the various population centers within the State. All uses within the I/C zoning district require a CUP. Staff has no concerns with this type of use in the proposed location. All of the testing will be completed by Cannabis Chem Labs staff, many of which are chemists. In addition, the facility will need to operate under a license from the Minnesota Office of Cannabis Management (OCM). Staff feels this is a good opportunity to add some higher paying jobs to the Hutchinson economy. Approval of a conditional use permit (CUP) is required in order to allow this use. 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 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration of a Site Plan Review for a 20-unit memory care facility located at Agenda Item: 955 Golf Course Rd NW. Department: Planning LICENSE SECTION Meeting Date: 9/23/2025 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 OFAGENDA ITEM: RAM General Contracting, Inc has submitted a site plan application for the northern portion of the property located at 955 Golf Course Road NW. The property is currently zoned R-1. There are adjacent properties that are zoned R-2. To operate the memory care facility a Conditional Use Permit would be required under the R-2 Zoning District. The proposal is for a 20-unit memory care facility. There were questions from the public regarding drainage and the elevation of the property. Staff noted existing drainage would remain and as more detailed construction plans are developed the site elevation will be determined. The Planning Commission voted unanimously (5-0) to recommend approval of the site plan application. BOARD ACTION REQUESTED: Approval of Site Plan application. 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. 15915 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF A SITE PLAN REVIEW FOR A 20-UNIT MEMORY CARE FACILITY LOCATED AT 955 GOLF COURSE RD NW. FACTS 1. Bullert Revocable Family Trust is the owner of 955 Golf Course Rd NW; and, 2. RAM General Contracting, Inc. has applied for a site plan review for a 20-unit memory care facility located at 955 Golf Course Rd NW. 3. The Planning Commission met on September 16, 2025 and considered the request and recommended approval of the site plan review with the following considerations: • A Conditional Use Permit is needed for the proposed project. • Any reconstruction of existing infrastructure within City of Hutchinson right of way or easement areas shall be the developer's responsibility, including necessary improvements and associated costs. This work shall meet all of the City's engineering standards and be approved by the City. • The City of Hutchinson must be notified 7 days prior to any roadway or utility work that is going to be done within the City right of way. If the proposed work impacts roadway traffic flow, a traffic plan must be fully completed to City standards with 10 calendar days of the original disturbance. If the work isn't fully completed within 10 calendar days, the City reserves the right to have the work completed and invoice/assess the property owner for all associated costs. • Work with City staff to determine if a second site access is needed off School Rd NW to meet fire code/provide the site with better access. • Address redline comments on site plan marked up by the City of Hutchinson to City satisfaction. 4. The City Council of the City of Hutchinson reviewed the site plan approval at its meeting on September 23, 2025 and has considered the recommendation and findings of the Planning Commission and hereby does recommend approval of the site plan review with the following conditions. A Conditional Use Permit is needed for the proposed project. Any reconstruction of existing infrastructure within City of Hutchinson right of way or easement areas shall be the developer's responsibility, including necessary improvements and associated costs. This work shall meet all of the City's engineering standards and be approved by the City. The City of Hutchinson must be notified 7 days prior to any roadway or utility work that is going to be done within the City right of way. If the proposed work impacts roadway traffic flow, a traffic plan must be fully completed to City standards with 10 calendar days of the original disturbance. If the work isn't fully completed within 10 calendar days, the City reserves the right to have the work completed and invoice/assess the property owner for all associated costs. Work with City staff to determine if a second site access is needed off School Rd NW to meet fire code/provide the site with better access. Address redline comments on site plan marked up by the City of Hutchinson to City satisfaction. Findings of Fact — Resolution # 15915 955 Golf Course Rd NW Site Plan Review Page 2 APPLICABLE LAW 1. The site plan review request meets the standards as required in Section 154.173 and 154.174 of the City of Hutchinson Municipal Code: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the site plan review located at 955 Golf Course Rd NW, Hutchinson, MN is approved. Adopted by the City Council this 23rd day of September, 2025. ATTEST: Matthew Jaunich City Administrator Gary T. Forcier Mayor r no A CITY ON PURPOSE. DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan 7ochum, AICP Date: September 16, 2025 Application: Consideration of Rezoning a property from R-1 to R-2 and a Site Plan Review for a 20-unit memory care facility located at 955 Golf Course Rd NW. Applicant: RAM General Contracting, Inc. Owner: Bullert Revocable Family Trust Site Plan Review: RAM General Contracting, Inc has submitted a rezoning application and site plan for the northern portion of the property located at 955 Golf Course Road NW. The property is currently zoned R- 1. There are adjacent properties that are zoned R-2. To operate the memory care facility a Conditional Use Permit would be required under the R-2 Zoning District. The proposal is for a 20-unit memory care facility. - - '%e -a'n Fac sc rihed 1n Ihis nchce F PARCEL A 955 - PARCEL B 951 GENERAL INFORMATION Existing Zoning: R-1 Residential Property Location: 955 Golf Course Road NW Existing Land Use: Vacant Adjacent Land Use/Zoning: Residential Zoning History: Parcel was part of the Bullert property and has been used for Ag/hay or has been open space. Applicable Regulations: Sections 154.173 and 154.174 of City Code Rezoning: The property is currently zoned R-1 Low Density Residential. R-1 has several Conditional Uses that are similar in intensity to a memory care facility, such as churches and schools. The R-2, Medium Density Residential District, allows single-family and two-family homes as permitted uses. Conditional Uses in the R-2 Zoning District are all conditional uses allowed in the R-1 Zoning District, as well as licensed day care centers, licensed nursing homes, and licensed boarding houses for the elderly. The first step for this project to move forward is for the property to be rezoned from R-1 to R-2. If that is approved and the site plan is approved the applicant could apply for a Conditional Use Permit for a licensed nursing home for the memory care facility. Approving the rezoning does not guarantee the Conditional Use Permit will be approved. Staff has reviewed the rezoning request and recommends the property be rezoned to R-2. There are properties on both the east and west side of the subject property that are currently zoned R- 2. Site Plan: The City Council deems it is necessary and appropriate to require site plan approval of developments in certain zoning districts to preserve and promote attractive, well -planned, stable urban conditions. The following is an overview of site plan considerations. Please note, the full engineered site plans are attached following this report. Site The site is approximately 8.48 acres and is one large lot. There is a large wetland on the site that is not going to be impacted with this proposed development. The proposed memory care building will be constructed in the open meadow area to the south of the wetland and north of the wooded area. The site plan currently has one access point off Golf Course Road NW and a parking lot surrounding the building. Building: The building (see below) is proposed to be a one-story "farmhouse" themed building that is approximately 14,000 square feet in size. The main entrance will face south. The building is Jill III 111MINNIMEN lini MENIMMIN ullimm . . . . . . . . . . . . I!I'II 11LIF4.11 ilm11111111 11111II�111111111111�11uui ............ - - - -- - - - - - - - - - - - - - - - - - - - Parking/Access/Circulation The Parking lot has 34 parking stalls which is more than required by city code. City code requires .35 parking stalls per bed. This facility has 20 beds which would require seven parking stalls plus stalls for staff. Snow storage is also a consideration for the size of the parking lot because in the winter piles of snow take up some of the spaces. Staff is comfortable with the 34 spaces that are being proposed. Please see redlined plans following staff report by City Engineer Braithwaite. Landscaping and Lighting_ Final landscaping and lighting plans will need to be submitted with the building permit and meet the requirements of the zoning ordinance. Per the zoning ordinance, lighting installed must be indirect and shall not produce glare on adjacent properties or public right of ways. Utilities The utilities for the site will come off Golf Course Road NW. The sanitary sewer is located to the south of the proposed site in the Golf Course Road NW right-of-way. The water is also located in the road right-of-way. The site can also be serviced with electric and natural gas services from Hutchinson Utilities. Stormwater Management: There are two stormwater ponds shown on the site plan. Detailed stormwater calculations will be needed with the building permit submittal if this project were to move forward. Please see redlined plans following staff report by City Engineer Braithwaite. Future Approvals Needed As noted above, if the rezoning is approved the project will still require a Conditional Use Permit to be granted to move forward. Recommendation: Staff recommends approval of the rezoning and site plan with the following items to be addressed: 1. A Conditional Use Permit is needed for the proposed project. 2. Any reconstruction of existing infrastructure within City of Hutchinson right of way or easement areas shall be the developer's responsibility, including necessary improvements and associated costs. This work shall meet all of the City's engineering standards and be approved by the City. 3. The City of Hutchinson must be notified 7 days prior to any roadway or utility work that is going to be done within the City right of way. If the proposed work impacts roadway traffic flow, a traffic plan must be submitted to the City Engineer for approval. All roadway work must be fully completed to City standards within 10 calendar days of the original disturbance. If the work isn't fully completed within 10 calendar days, the City reserves the right to have the work completed and invoice/assess the property owner for all associated costs. 4. Work with City staff to determine if a second site access is needed off School Road NW to meet fire code/provide the site with better access. Address redline comments on site plan marked up by the City of Hutchinson to City satisfaction. EXISTING FIGHT — EA ,,-,IT IR— 11- SEMENT pe ..C-- CTIRTS. -IRT BENCH SH E=M,G SAND HNGY SEWER AND MANHOLE F—C MAIN All UFTSTATIDN SANITARY SEWER l—F A C SAMET E.C.FAFMAIN, C.SERVICE All IT E—IE.A STORM MCCH='I SAS. —T AND = CASNA—A—,KENTAND METER HANDHOTE OPTIC 1AAA AND MANHOLE RIK HE CABLE PEDESTAL AND SAMILDLE .... BURIED 1 —11, FESDE AT . AND MANHOLE BUSTED LECTRICEAPLE,PERESTAL,ESPHOLE TPLANSFORCER AND METER OVERHEAD M , POLE AND GUI WARE LIGHT POLE TRAFFETIC SIGNAL STRE RACE SIGN SI GN ANNE) DECIDUOUS AND D—FIGGLE TREE 0'U'" -- EGGS OE WOODED AREA --NC KJERNG CHNN LINK FENCECE ELECTRIC MINE FENCE -.0 I— ENTIEN MARE FENCE PLATE PEAK GUARDRAIL LABLE GLANDED, L PHST I ED IT PROPOSED STREETC RJGHT_TERELINI _�N =NT EASEMENT RY EASEMENT ------------------ CONSTRUCTION LIMITS 0 9 SANTARY FEARS, SULTHEAS AND MAN-1 M— CE :� IFO FLAKY SERVICE AND CLEAMOUT —H —t—. KATISK MA., TEE, HINIPART, ELTILEM. AN. —1E =ERVEMANHOLE, REDUCER FINGANCERESS R HE E AND cum STOP NGI STORM ,I "' LATER SAFE, CULVEETANl=EN.AA1 1111 T11 EHT I W I RIP� P t STREET NAME SIGN SIGH INCH """T NAME) RETAINING WALL Reference to City of RAM GENERA Hutchinson Specs for utilities and work in ROW CONTRACTING INC. Include an existing cond itions plan with al. . . REVIEW PLANS FOR parce info, existing contours, easements, delineations, etc. GRADING, UTILITIES, SURFACING, AND TURF ESTAB THE FARMHOUSE SITE DESIGN I TOTE TI=LIFACC EFRLI,� QIGALLTY INAREMPATION IN THK FI-Al IS LEVEL D. " � DA_ L _ HATEDMINED-0111I TH GlICEIDDED IF CEPECI RE-11, ENT FOR INKERTGATNG AND ECCUIPENT E;1-1='EITMIT�D .'CITING' 15 K—wharsbelow. R THE CONTRACTO=L.CLL THE CNE CALL —M AT 811 BEFORE FKC ACall Wore you dig, INDEX SHEET NO. DESCRIPTION yrrI /,I G 1HLE SHIFT S I1.r LAYGUI IIN PLAN F"C"GINE"'. TURF ESTASKISHMENT PLAN Include RAM General Contracting In and Owner or Developer contact information. Include EH Contact information S PROJECT LOCATION W.ryyi LE.. GESLNTY HUTCHINSON, MINNESOTA SEH of 6 AL t WETtArvO OEL NEATION / RI -TA METAL FENG A) � l� t MPGNO �A r i rR F m ADA signage on bollards? + FYI: Municipal State Aid d • ,v 'S S10 WA f p'S 'S O Need wetland x� delineation report Fire Dept to determine if a turn around is required. If so, might be easier toTE j add a second FYI: Municipal State driveway to connect Aid Road to School Rd NW. I Would adjust hydrant location. BUILDING FOOTPRINT � i iSBBar RSar I� T5 \ 0 b W oa P ROPERrruwE qi P h' • ' S g ' —NU —T.. NBFT OU-N. € ��F6\ woo ,.Jil n What is this line? g A I R _ z) RELIMINAK. I THE FARMHOUSE SITE DESIGN SITE LAYOUT SEH � p T Fo TRt1 TI HUTCHINSON, MINNESOTA s N Connect outlet .. structure to storm �z,�� sme sEoresmee a.a inlet \ WME .x '+ sm P Benchmark Info i � Roof water piped underground to pond? J► � O 1 '' �y \ acE swage O A,NaGE rwAowlttal � Consider shorter m �iz _ water service p ' \ �p °� II, opportunity - ti a A A 0 � Connect outlet structure directly storm inlet i.�t�z o7v� �MINAR I THE FARMHOUSE SITE DESIGN ' I 3 Sr u"^T HUTCHINSON MINNESOTA GRADING PLAN f 8 x 'E.l W-4 GO\S SiOPM SEWER WITH A�PyftONS AN.I...—I—TROIATRY _1 A. ...ST.- tM —ONS'ST roExi3TINc / / \\\\\\\` \ U x/ -N.Y NR. AN. I APAT A RANNANYSISNER Could sanitary Q. service and manhole Note on Developer's be located closer to Agreement that all road? NA- SPINPIR PKINHOLE utilities are private SATA. RAN Could rant e E- ould R. STOP located closer to road to decreasepiping? STORM SESSIN-TH APRONS SANITARY SEWER SERVICE ON- .4 SANITARYMANNOLA NAN j, -RA RON BRANCH 0 GATE VALVE AND HYDRANT -R! STORMSEVRE-HAPPONS OSNTTOLRISAPARR-TSTTRRAUNC-TURSE - IN ..MPTY ETSONET-II-N. -11N. t 6TORA1 P.N. TI SAAR, I P- THE FARMHOUSE SITE DESIGN TUC ,UTCHINSON MINASERSOTR SEH I UTILITY PLAN 4 1 . N a e f A\ \` F N wn 'o qNG L9� ENT 'D—NODE EAVEMENT AGGREGATE B BE TA.—LN%56GEOGRDORROW 4'El. SIDEWALK A 5 6GREGATE BASE EC D ITE-ENE a LABS 5 AGGREGATE EASE .... MONOLDI O SIDEWALK EDGE OEE DETAIL) Z lo o, Al THE FARMHOUSE SITE DESIGN I SURFACING PLAN HUTCHINSON. MINNESOTA . . . . . . . . . . .. . . . . . . . . . .1 N. N-LE . .. ........ . .... ........... AC 8 N SIDEWALK AND SIALAD ON uRacpT war TO RE —DR.,., Ow N Z.'.ffp�`AT`�' TIAE NTH .1.1' OR )ND IE D "UT"'AS TO W NTH—E SEEO 'NA i.. O o DO DO AND APOUND DISTURRED AREAS; THE FARMHOUSE SITE DESIGN TURF ESTABLISHMENT PLAN u Ti HUTCHINSON, MINNE— wor R Cos T - -SIE -1H —00! oN �5— =111 NZ EXISTING GHT111MANENT EASEMENT "NE pe ..D-- G—G. POINT SEED. AU S=KEG SARTNEY SEWER AND MAN— _E MAIN All UFTSTATIDN SANITARY SEWER SERVICE — A SERVICE & C SANDUT WATER SIN 0T,E.D. —E WATER SERVICE — - All II AIS A.. _A =. SU—E= - CATCH AS. STAND GAS MAW. —, VENT AND METER HAND-1— II.I.ER OPTIC 1AILE AND MANHOLE ALS IT , HE CABLE PEDESTAL AND MANHOLE TV IAIII, I. —AND MANHOLEGGIED ELECTRIC "'LEPEDESTAL, MANHOLE TIANSFOAMER AND METED OVERGEAT ME, POLEAND GUY WARE LIGHT POLE TRUTTIC SIGNAL STREET NAME SIGN SI GN NAME) EII—GG AND COxIFEROU3 —E 0SUSHI -- EDGE OF WOODED AREA --NU OE (VNIOENTIEIEO) CE GH— LINK FENCE ::CTMCWR FENCE , UGGAE=FENCE — SEA. GUARDRAIL CABLE GUARDNA, L IHST I - ' A.= IETAININ L PROPOSED ETDEETU EjGH_F_�?Y II,TERLNI =NT EASEMENTI'EE'.N LIMITS SANNTADY SEGERSULA HEAD AND MAN-1 WAT M==MVIME AND CLEANOUT AIN, TEE, HYDRANT, SULTILEAl AND VALVE WATER-MAEMANHOL REAUGER GINGANGUE-E GUITER E AND op RGI HE STORM HECATCH BASIN CULVERT AND ----- ----- GUUN TILE fNXP t STREET NAME SIGN SIGN INCH U NAME) RETAINING WALL RAM GENERAL CONTRACTING INC. REVIEW PLANS FOR GRADING, UTILITIES, SURFACING, AND TURF ESTABLISHMENT THE FARMHOUSE SITE DESIGN I A.TE TI=U11— UHLI,� QU.ALIYY INFORMATION IN THUS DY-Al IS LEVEL D. " tt GITALUTY L _ USTEENINED-0111I TH GlIUSIDDED DI 0-1 YN-11, ANTculDeuNPs FOR I—G-ING ANDDO E;1-1='NITMITN'15 K—wharsbelow. THE C0GTTMGT0N=L.CALL THE GAS CAII —M AT 811 BEFORE EAD Call Wore you dig, INDEX SHEET NO. DESCRIPTION I IHIE SHEET Ml. —U, Ir ITLAN E TURF ESTAKISHMENT It -AN PROJECT LOCATION ' "t" G.UN1 HUTCHINSON, MINNESOTA SEH 6 D EGUID-i, 6FT BUILDING SET-U�- 0, WOO 'opo PROPERTY LINE THE FARMHOUSE SITE DESIGN SITE LAYOUT 2 R LM71 HUTCHINSON, MINNESOTA TRUIN E SEH m A AZ W MNA _T5 M.M.., L I THE FARMHOUSE SITE DESIGN GRADING PLAN TI YE OP &V MINNESOTA R 'l M1IW-4 y .. STORM EWER WITAH A`PaftONS / \ I.. IN ...RT. STftI EMP'rc WTO E%ISTIN6 tM r CWONNEOTroE%ISTING ATER MUN ftEMOVEAND REPUCE C}/\\ %ieTINOOVRSANDPAVEM /l� tlY 'LCONNEOTTOEN"T"' • �• • JK ' P SANITARY 6EWERMANHO1E ' jp; q UP w * 4 �r. W ERpERN�EW j• - •' � ' J ' •�.. - STORM SESSIN—TH APRONS 4• SANITARY SEWER SERVICE ``H C Y r •{ • • ~ • � ARYMANHOLEI) I , ,WATER MA6i WTM GATE VALVE AND HYDRANT lop s i ✓ l STORMSEWE—HAPRONS l • STORMGONTROWTH"PONS-1 6 ` INTO EYJBTING W£IiAN, 6TORA1 POND J "*11apR�LIMINARY_ '' THE FARMHOUSE SITE DESIGN oT ft N T UC HUTCHINSON, MINNESOTA SEH 'I UTILITY PLAN I 4 or N a e f A\ \` F N wn 'o qNG L9� ENT 'D—NODE EAVEMENT AGGREGATE B BE TA.—LN%56GEOGRDORROW 4'El. SIDEWALK A 5 6GREGATE BASE EC D ITE-ENE a LABS 5 AGGREGATE EASE .... MONOLDI O SIDEWALK EDGE OEE DETAIL) Z lo o, Al THE FARMHOUSE SITE DESIGN I SURFACING PLAN HUTCHINSON. MINNESOTA . . . . . . . . . . .. . . . . . . . . . .1 N. N-LE . .. ........ . .... ........... AC 8 N SIDEWALK AND SIALAD ON uRacpT war TO RE —DR.,., Ow N Z.'.ffp�`AT`�' TIAE NTH .1.1' OR )ND IE D "UT"'AS TO W NTH—E SEEO 'NA i.. O o DO DO AND APOUND DISTURRED AREAS; THE FARMHOUSE SITE DESIGN TURF ESTABLISHMENT PLAN u Ti HUTCHINSON, MINNE— wor R Cos T - -SIE -1H —00! oN �5— =111 NZ (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 154.175) 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 proposed building design will need to meet building code and plans must be approved by the City of Hutchinson Building Official. 3. The property must comply with City Ordinances and previous Conditional Use Permits issued relative to outdoor storage. 4. 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. CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATES 9/3/25 - 9/23/25 Check Date Check # Name Description Amount 9/3/2025 302887 RANDY ULRICH ESTATE WATER BILL REFUND 41.68 9/5/2025 EFT EFTPS Payroll Report 8/17/25 - 8/30/25 79,546.91 9/5/2025 EFT MN Dept of Revenue Payroll Report 8/17/25 - 8/30/25 16,004.41 9/5/2025 EFT VOYA (Hutch City of) Payroll Report 8/17/25 - 8/30/25 475.00 9/5/2025 EFT Child Support Payroll Report 8/17/25 - 8/30/25 706.96 9/5/2025 EFT UNUM Voluntary Insurance Payroll Report 8/17/25 - 8/30/25 317.07 9/5/2025 EFT PERA Payroll Report 8/17/25 - 8/30/25 67,293.77 9/5/2025 EFT Health Equity Payroll Report 8/17/25 - 8/30/25 18,128.47 9/5/2025 EFT Mission Square Payroll Report 8/17/25 - 8/30/25 3,732.50 9/5/2025 EFT VOYA (CITY OF HUTCH) Payroll Report 8/17/25 - 8/30/25 250.00 9/5/2025 302888 HART Payroll Report 8/17/25 - 8/30/25 521.53 9/5/2025 302889 NCPERS Payroll Report 8/17/25 - 8/30/25 208.00 9/23/2025 302890 ANDERSON, MARLYS UB REFUND 36.72 9/23/2025 302891 LARSON, DENNIS UB REFUND 40.61 9/23/2025 302892 LOTUS HOLDINGS LLC UB REFUND 6.74 9/23/2025 302893 PATTISON, SCOTT UB REFUND 47.25 9/23/2025 302894 PHILLIPS, RICHARD UB REFUND 21.47 9/23/2025 302895 SANDERS, LISA UB REFUND 58.99 9/23/2025 302896 4 SQUARE BUILDERS INC WW GARAGE REPAIR, GRANDSTAND WINGS-VMF 2,904.40 9/23/2025 302897 AARP AARP INSTRUCTION - SR CTR 475.00 9/23/2025 302898 ACE HARDWARE- 1315 REPAIR & MAINTSUPPLIES- MULTIPLE DEPTS 550.94 9/23/2025 302899 ACTYOURAGE SIGN &AWNING GRANT -EDA 2,000.00 9/23/2025 302900 ALTERNATIVE BUSINESS FURNITURE REPLACEMENT CYLINDER - CITY CTR 25.00 9/23/2025 302901 AMERICAN RED CROSS TRAINING EXPENSES- WATERPARK 280.00 9/23/2025 302902 AMERICAN WELDING &GAS SERVICE, EXTINGUISHER REFILL- MULTIPLE DEPTS 208.29 9/23/2025 302903 ANIMAL MEDICAL CENTER ON CROW RIVER ANIMAL IMPOUNDS- POLICE 639.00 9/23/2025 302904 APEX ENGINEERING GROUP INC ENVIRONMENTAL TRANSITION - MULTIPLE DEPTS 1,343.00 9/23/2025 302905 ARKANCE USA LLC BLUE BEAM SOFTWARE - ENG 866.68 9/23/2025 302906 ARTISAN BEER COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 929.90 9/23/2025 302907 BARNUM COMPANIES INC REPAIRED FRONTGATE- CREEKSIDE 953.74 9/23/2025 302908 BELLBOY CORPORATION COST OF GOODS SOLD - LIQUOR HUTCH 2,858.05 9/23/2025 302909 BENEFIT EXTRAS INC COBRA ADM IN FEES 22.50 9/23/2025 302910 BENTZ, KEN REIMB: SAFETY FOOTWEAR- PARKS 114.99 9/23/2025 302911 BERNICK'S COST OF GOODS SOLD - LIQUOR HUTCH 648.94 9/23/2025 302912 BERTRAM ASPHALT COMPANY INC JACKSON/PISHNEYSTREET PATCHING 31,125.61 9/23/2025 302913 BOARD OF AELSLAGID CERTIFICATE RENEWAL - ENG 120.00 9/23/2025 302914 BOBBING BOBBER BREWING CO COST OF GOODS SOLD - LIQUOR HUTCH 712.95 9/23/2025 302915 BOLTON & MENK INC RUNWAY SAFETY AREA GRADING -AIRPORT 4,725.00 9/23/2025 302916 BRADLEY SECURITY & ELECTRIC LLC REPLACE DOOR HARDWARE - REC BLDG 1,095.00 9/23/2025 302917 BRANDED SOLUTIONS UNIFORMPOLOS- POLICE 102.00 9/23/2025 302918 BRANDON TIRE CO TIRE REPAIRS - PARKS 369.73 9/23/2025 302919 BREAKTHRU BEVERAGE MN WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 10,428.61 9/23/2025 302920 BRIAN MURPHY REIMB: SUPPLIES FOR LOCKER ROOM REMODEL - PRCE 150.92 9/23/2025 302921 BUDDING IDEAS MEMORIAL ARRANGEMENT -ENG 65.00 9/23/2025 302922 BUFFALO CREEK ENTERPRISES COST OF GOODS SOLD - LIQUOR HUTCH 83.52 9/23/2025 302923 C & L DISTRIBUTING COST OF GOODS SOLD - LIQUOR HUTCH 52,942.67 9/23/2025 302924 C-AIRE INC PREVENTIVE MAINTENANCE ON EQUIP -CREEKSIDE 1,566.47 9/23/2025 302925 CARS ON PATROL SHOP LLC TOW/IMPOUND, MAINT-POLICE 1,359.17 9/23/2025 302926 CENTRAL MCGOWAN WELDING SUPPLIES - MULTIPLE DEPTS 243.69 9/23/2025 302927 CINTAS CORPORATION SUPPLIES & SERVICE - MULTIPLE DEPTS 625.35 9/23/2025 302928 CLARKE ENVIRONMENTAL MOSQUITO MGMT MOSQUITO SPRAYING -STREETS 10,818.00 9/23/2025 302929 CLEAN DRAIN LLC SEWER REPAIR - 105 5TH AVE NW 9,240.00 9/23/2025 302930 CODE PACK LLC LABELS AND RIBBON FOR BAGGING - CREEKSIDE 1,742.06 9/23/2025 302931 COLDSPRING SCHLECT NICHE PLAQUE - CEMETERY 366.00 9/23/2025 302932 CONFITREK INC CERTIFIED CRIME FIGHTER RENEWAL- POLICE 2,796.00 9/23/2025 302933 CORRA GROUP CREDIT REPORT- POLICE 52.00 9/23/2025 302934 CREEKSIDE SOILS HUSKIES REQUESTED 50/50 FOR VMF - PARKS 53.25 9/23/2025 302935 CRESTED RIVER COST OF GOODS SOLD - LIQUOR HUTCH 270.00 9/23/2025 302936 CROW RIVER FLORAL &GIFTS MEMORIAL ARRANGEMENT -ADMIN 65.00 9/23/2025 302938 CROW RIVER OFFICIALS ASSN OFFICIALS FOR PRCE PROGRAMS 3,290.00 9/23/2025 302939 CROW RIVER WINERY COST OF GOODS SOLD - LIQUOR HUTCH 472.80 9/23/2025 302940 DAHLHEIMER BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 45,020.85 9/23/2025 302941 DELL MARKETING LP DELL SFF DESKTOP, LAPTOP - MULTIPLE DEPTS 3,933.00 9/23/2025 302942 DESIGN ELECTRIC INC ELECTRICAL REPAIRS - MULTIPLE DEPTS 6,541.10 9/23/2025 302943 E2 ELECTRICAL SERVICES INC RIVER FOUNTAIN - STREETS 2,070.01 9/23/2025 302944 ECOLAB PEST ELIMINATION PEST CONTROL- POLICE 108.00 9/23/2025 302945 1 ECOSAFE ZERO WASTE USA INC COMPOSTABLE BAGS-CREEKSIDE 1 299.60 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATES 9/3/25 - 9/23/25 Check Date Check # IName Description Amount 9/23/2025 302946 ELECTRO WATCHMAN FRONT ELECRIC GATE REPAIR - WWTP 2,684.93 9/23/2025 302947 ELK RIVER COMPOSTING INC COMPOSTBULK- CREEKSIDE 7,280.00 9/23/2025 302948 EWERT BROS INC SHORT CATCH BASIN SECTIONS- WWTP/STORMWATER 12,089.50 9/23/2025 302949 FARM -RITE EQUIPMENT TOOL CATREPAIRSAGAIN - PARKS 1,250.75 9/23/2025 302950 FASTENAL COMPANY GARBAGE BAGS - PARKS 207.90 9/23/2025 302951 FIRST ADVANTAGE LNS OCC HEALTH SOLU DRUG TESTING 105.76 9/23/2025 302952 FORESTEDGE WINERY COST OF GOODS SOLD - LIQUOR HUTCH 414.00 9/23/2025 302953 FOSTER MECHANICAL REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 820.53 9/23/2025 302954 GRAINGER REPAIR & MAINTSUPPLIES- MULTIPLE DEPTS 1,023.73 9/23/2025 302955 GREEN EARTH LAWN CARE INC CONTRACTED LAWN SERVICE - MULTIPLE DEPTS 787.65 9/23/2025 302956 GROUNDED GARDENS FACADE IMPROVEMENT GRANT -EDA 7,500.00 9/23/2025 302957 HANSEN GRAVEL INC MEEKER ROCK, RED ROCK - MULTIPLE DEPTS 339.50 9/23/2025 302958 HAWKINS INC CITRIC ACID AND CHLORINE -WWTP 1,443.10 9/23/2025 302959 HEALTHPARTNERS INC MEDICAL INSURANCE 152,328.11 9/23/2025 302960 HELDT PAINTING & CONTRACTING LLC STAIN DOOR AT LIBRARY 800.00 9/23/2025 302961 HERALD JOURNAL PUBLISHING ADVERTISING - MULTIPLE DEPTS 888.25 9/23/2025 302962 HILLYARD/HUTCHINSON JANITORIAL SUPPLIES - MULTIPLEDEPTS 2,231.85 9/23/2025 302963 HJERPE CONTRACTING RPL WATER LINE 4,095.00 9/23/2025 302964 HOISINGTON KOEGLER GROUP INC DOWNTOWN FESTIVAL STREET -EDA 7,351.25 9/23/2025 302965 HOLT MOTORS INC EN945G SENSOR KIT- ENG 257.56 9/23/2025 302966 HOME CITY ICE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 544.92 9/23/2025 302967 HORIZON COMMERCIAL POOL SUPPLY POOL REPAIRS 27,750.00 9/23/2025 302968 HUTCHINSON AREA CHAMBER OF COMMERCE LEADERSHIP INSTITUTE - MULTIPLE DEPTS 2,400.00 9/23/2025 302969 HUTCHINSON CENTER FOR THE ARTS 2025 CONTRIBUTION 15,000.00 9/23/2025 302970 HUTCHINSON CO-OP FUEL & SUPPLIES - MULTIPLE DEPTS 32,085.94 9/23/2025 302971 HUTCHINSON UTILITIES UTILITIES 72,707.97 9/23/2025 302972 HUTCHINSON UTILITIES GIS SERVICES FOR B. FITZPATRICK 17,587.55 9/23/2025 302973 HUTCHINSON WHOLESALE #1550 BATTERY, FILTER STOCK - MULTIPLE DEPTS 213.45 9/23/2025 302974 HUTCHINSON WHOLESALE #1552 TORQUE WRENCH -ARENA 131.98 9/23/2025 302975 HUTCHINSON, CITY OF WATER BILLS 7,995.53 9/23/2025 302976 INDEPENDENT EMERGENCY SERVICES 911 PS/ALI SERVICE - POLICE 10.77 9/23/2025 302977 INGSTAD BROADCASTING RADIO ADVERTISING - LIQUOR HUTCH 353.00 9/23/2025 302978 INSIGHT PUBLIC SECTOR INC ARUBAAP LICENSING, KIT- IT 820.05 9/23/2025 302979 INTERSTATE BEARING SYSTEMS INC BRAKE COIL FOR BAGGER - CREEKSIDE 208.19 9/23/2025 302980 JAUNICH, MATT REIMB: ADMIN MTG, PEER GROUP MTG -ADMIN 87.50 9/23/2025 302981 JOHNSON BROTHERS LIQUOR CO COST OF GOODS SOLD - LIQUOR HUTCH 24,505.83 9/23/2025 302982 JOHNSON CONTROLS FIRE PROTECTION LP NEW SMOKE DETECTOR - EVENT CTR 400.22 9/23/2025 302983 JUUL UNDERGROUND LLC STORMLINE RPR-335 1ST AVE NW -STORMWATER 4,070.00 9/23/2025 302984 K & A CONTRACTING LLC CONCRETE AT VMF FOR DUMPSITE 1,209.00 9/23/2025 302985 KAHL, DENNIS MOWING - STREETS/STORMWATER 1,530.00 9/23/2025 302986 KAY KARG REFUND: CANCELLED RESERVATION - PARKS 70.00 9/23/2025 302987 KERI'S CLEANING & HANDYMAN SERVICES CONTRACTED JANITORIAL- MULTIPLE FACILITIES 8,589.20 9/23/2025 302988 KNIFE RIVER CORPORATION CEMENT FOR ODDFELLOWS PLAYGROUND - PARKS 1,590.80 9/23/2025 302989 KOHLS SWEEPING SERVICE PILING CONCRETE AND ASPHALT - CREEKSIDE 825.00 9/23/2025 302990 KRAEMER KONTRACTING RMV/RPL OLD CURBSTOP - WATER 2,910.56 9/23/2025 302991 KRANZ LAWN & POWER OIL DRAIN KIT, MOWER PARTS, FUEL - PARKS 624.20 9/23/2025 302992 KRUGER, HANNAH REIMB: SAFETY FOOTWEAR - STREETS 225.00 9/23/2025 302993 L & P SUPPLY OF HUTCHINSON INC REPAIR & MAINTSUPPLIES - MULTIPLE DEPTS 191.42 9/23/2025 302994 LAWSON PRODUCTS INC HEX WASH SCREWS, PRIMER, WASHERS, SCREWS - HATS 407.45 9/23/2025 302995 LEAGUE OF MN CITIES -INS TRUST WORKER COMP PREMIUM, INS PREMIUMS 144,322.00 9/23/2025 302996 LOCATORS & SUPPLIES MARKING PAINT- MULTIPLE DEPTS 281.36 9/23/2025 302997 LOGIS MICROSOFT LICENSING, KNOWBE4- MULTIPLE DEPTS 3,710.41 9/23/2025 302998 MAPA MAPA CONF - ENG 220.00 9/23/2025 302999 MARCO TECHNOLOGIES LLC PRINTING CONTRACTS- MULTIPLE DEPTS 2,024.85 9/23/2025 303000 MARCO TECHNOLOGIES LLC NW 7128 PRINTING CONTRACTS- MULTIPLE DEPTS 156.74 9/23/2025 303001 MCLEOD COUNTY RECORDER RECORDING FEES, PUBLIC NOTICES - MULTIPLE DEPTS 322.00 9/23/2025 303002 MENARDS HUTCHINSON REPAIR & MAINTSUPPLIES- MULTIPLE DEPTS 1,501.56 9/23/2025 303003 MIDWEST FENCE & MFG FENCE REPAIRS NEEDED WITH NEW FRONT GATE VMF 1,158.75 9/23/2025 303004 MIDWEST MACHINERY CO MW524XFILTERS -STORMWATER 136.73 9/23/2025 303005 MILK AND HONEY CIDERS COST OF GOODS SOLD -LIQUOR HUTCH 273.00 9/23/2025 303006 MINI BIFF PORTATOILET RENTALS- MULTIPLE DEPTS 945.83 9/23/2025 303007 MINNESOTA CONTINUING LEGAL EDUCATIO CONTINUING EDUCATION FOR LEGAL 148.50 9/23/2025 303008 MINNESOTA DEPTOF LABOR & INDUSTRY BOILER LICENSE, PRESSURE VESSEL- POLICE 75.00 9/23/2025 303009 MINNESOTA SAFETY COUNCIL REGIONAL SAFETY DAY CONF- SAFETY 450.00 9/23/2025 303010 MINNESOTA VALLEY TESTING LAB LAB SAMPLE TESTING - MULTIPLEDEPTS 20,237.25 9/23/2025 303011 MN DEPT OF NATURAL RESOURCES HWY 7/22 UTILITY EXT LICENSE - ENG 45.00 9/23/2025 303012 1 MN DEPT OF NATURAL RESOURCES HWY 7/22 UTILITY EXT LICENSE - ENG 90.00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATES 9/3/25 - 9/23/25 Check Date Check # Name Description Amount 9/23/2025 303013 MOTION PICTURE LICENSING CORPORATIO MOVIE LICENSE 10/2025-10/2026 - SR CTR 511.60 9/23/2025 303014 MR CUTTING EDGE LLC NEW CUTTING EDGES, SHARPENING EDGES - ARENA 1,343.00 9/23/2025 303015 MYAPP MANAGEMENT PERMIT REFUND- P/Z 75.00 9/23/2025 303016 MYGUYINC 1YRLEASE-BLENDCOTANK, POWER -CARWASH 786.00 9/23/2025 303017 NORTH CENTRAL INC MS707T POWER UNIT -STREETS 723.55 9/23/2025 303018 NORTH CENTRAL INTERNATIONAL - GLENCOE MS115TGOVAIR BRAKE -STREETS 23.25 9/23/2025 303019 NORTH CENTRAL LABORATORIES CHEMICALS & CHEMICAL PRODUCTS - WWTP 1,336.97 9/23/2025 303020 NOTHING BUT HEMP COST OF GOODS SOLD - LIQUOR HUTCH 888.00 9/23/2025 303021 NUVERA PHONE SERVICES - MULTIPLE DEPTS 5,498.22 9/23/2025 303022 OFFICE DEPOT BINDERS, TISSUES- MULTIPLE DEPTS 55.32 9/23/2025 303023 OFFICE OF MN IT SERVICES CROWDSTRIKE MNIT- MULTIPLE DEPTS 410.66 9/23/2025 303025 OVERHEAD HOIST & CRANE SPECIALISTS INSPECTIONS - HATS 1,475.00 9/23/2025 303026 PAAPE DISTRIBUTING COMPANY EMAIL ALERTS- POLICE 62.50 9/23/2025 303027 PEAT INC SPHAGNUM PEAT BULK - CREEKSIDE 4,287.50 9/23/2025 303028 PEOPLEREADY INC CREEKSIDE TEMP STAFFING 2,373.84 9/23/2025 303029 PHILLIPS WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 5,776.63 9/23/2025 303030 PIONEER ATHLETICS/ PIONEER MFG MARKING PAINT- PARKS 2,758.17 9/23/2025 303031 PLAISTED COMPANIES ENTRYROCK- STREETS 4,411.27 9/23/2025 303032 PLUNKETTS PEST CONTROL PEST CONTROL - LIQUOR HUTCH 861.51 9/23/2025 303033 POMP'S TIRE SERVICE INC LEAF VACS TIRE STOCK - STORMWATER 795.00 9/23/2025 303034 POSTMASTER POSTAGE - UB BILLING 2,070.00 9/23/2025 303035 PREMIUM WATERS SERVICE FEE FOR WATER SERVICE - PARKS 10.99 9/23/2025 303036 REINDERS LIBRARY FOUNTAIN PIPING 97.11 9/23/2025 303037 RICE LAKE CONSTRUCTION GROUP RAW WATER PIPE REPAIR- WATER 1,025.13 9/23/2025 303038 RUNNING'SSUPPLY SHOP TOWELS -WWTP 71.94 9/23/2025 303039 S&S TRUCKING LLC FLATBED TRUCKING FOR BAGGED PRODUCTS - CREEKSIDE 1,450.00 9/23/2025 303040 SAM'S TIRE SERVICE TIRES FOR LOADER - CREEKSIDE 4,804.12 9/23/2025 303041 SHAW, KAREN YOGA/ PILATES INSTRUCTION - SR CTR 180.00 9/23/2025 303042 SHORT-ELLIOT-HENDRICKSON INC CITY ENG SERVICES 13,583.80 9/23/2025 303043 SHRED-N-GO 446138 SHREDDING - MULTIPLE DEPTS 70.00 9/23/2025 303044 SIMONSON LUMBER CO RESTROOM DOOR HINGES - PARKS 102.15 9/23/2025 303045 SMALL LOT WINE AND SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 580.70 9/23/2025 303046 SOIL CONTROL LAB FINISHED COMPOST - CREEKSIDE 1,197.00 9/23/2025 303047 SOUTHERN GLAZER'S WINE AND SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 23,541.92 9/23/2025 303048 ST. CLOUD REFRIGERATION INC DEHUMIDIFIER REPAIR - ARENA 314.45 9/23/2025 303049 STANDARD PRINTING-N-MAILING SS COMPOST SAMPLES TO SOIL CONTROL LAB - CREEKSIDE 419.65 9/23/2025 303050 STAPLES ADVANTAGE OFFICE SUPPLIES- MULTIPLE DEPTS 760.56 9/23/2025 303051 STREICH TRUCKING PEAT FREIGHTIN- CREEKSIDE 6,975.00 9/23/2025 303052 SYN-TECH SYSTEMS FUELMASTER STANDARD MAINT- HATS 1,175.00 9/23/2025 303053 TALL SALES COMPANY AUGCOMMISSIONS- CREEKSIDE 2,369.17 9/23/2025 303054 THOMSON REUTERS-WEST OPERATING SUPPLIES, SOFTWARE - MULTIPLE DEPTS 1,625.47 9/23/2025 303055 TIDYTIGHTWADS HATS JANITORIAL SERVICE 1,485.75 9/23/2025 303056 TITAN MACHINERY LOADER PARTS & SERVICE - CREEKSIDE 5,561.30 9/23/2025 303057 TOWMASTER INC MW932XRETRACT STEPS -STORMWATER 290.50 9/23/2025 303058 TRI COUNTY WATER SOFTENER SALT, BOTTLED WATER - MULTIPLE DEPTS 161.70 9/23/2025 303059 TRITECH SOFTWARE SYSTEMS LETG ANNUAL MAINTENANCE FEE - POLICE 388.08 9/23/2025 303060 TRUE BRANDS COST OF GOODS SOLD - LIQUOR HUTCH 149.48 9/23/2025 303061 ULINE AV CART FOR ARENA 364.90 9/23/2025 303062 VERIZON WIRELESS PHONE SERVICES- MULTIPLE DEPTS 618.89 9/23/2025 303063 VIDEO SERVICES INC NEW POLICE FACILITY FINAL PAYMENT 8,915.00 9/23/2025 303064 VIKING BEER COST OF GOODS SOLD - LIQUOR HUTCH 6,991.05 9/23/2025 303065 VI KING COCA COLA COST OF GOODS SOLD - LIQUOR HUTCH 516.00 9/23/2025 303066 VINOCOPIA INC COST OF GOODS SOLD - LIQUOR HUTCH 1,405.75 9/23/2025 303067 VIVID IMAGE WEB PAGE CONSULTING - MULTIPLE DEPTS 262.50 9/23/2025 303068 WASTE MANAGEMENT OF WI -MN REFUSE TAKEN TO LANDFILL 8,969.07 9/23/2025 303069 WATER CONSERVATION SERVICE INC WATER LEAK LOCATE 755.30 9/23/2025 303070 WELCOME NEIGHBOR ADVERTISING - LIQUOR HUTCH 60.00 9/23/2025 303071 WEST CENTRAL SANITATION INC RESIDENTIAL REFUSE, REFUSE - MULTIPLE DEPTS 59,738.85 9/23/2025 303072 WILSON'S NURSERY INC PERENNIAL PLANTS, TREES- MULTIPLE DEPTS 1,809.85 9/23/2025 303073 WINE COMPANY, THE COST OF GOODS SOLD - LIQUOR HUTCH 1,950.00 9/23/2025 303074 WINEBOW FINE WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 849.00 9/23/2025 303075 WM MUELLER & SONS 1/4 VIRGIN SAND BLACKTOP - STREETS 1,470.56 9/23/2025 303076 WOLF BRONZE LLC PUBLIC ARTS - SCUPLTURE MAINTENANCE 2025 2,965.00 Total - Check Register A: 1 1 1$1,202,711.43 CHECK REGISTER B FOR CITY OF HUTCHINSON CHECK DATES 9/3/25 - 9/23/25 Check Date Check# Name Description Amount 9/23/2025 302937 CROW RIVER GLASS INC NEW POOL REGULATION SIGNS 354.00 9/23/2025 303024 OUTDOOR MOTION BIKE TUBE - POLICE 20.50 Total - Check Register B: $ 374.50 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Discussion on use of the Statewide Affordable Housing Aid Money Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 9/23/2025 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff Communications, Requests Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Back in 2023, the State legislature passed legislation to provide funding to local governments to assist cities in creating and maintaining affordable housing options. Through 2025, the City will have received $167,965 and we are expected to receive another $29,647 in 2026. We are in need of allocating this money to projects, with our first reporting requirement being by December 1, of this year. Just a reminder that the funds can be used for the following: -- Emergency rental assistance for households earning less than 80% of area median income as determined by HUD -- Financial support to nonprofit affordable housing providers -- Construction, acquisition, rehabilitation, demolition or removal of structures, construction financing, permanent financing, interest rate reduction, refinancing, and gap financing for: - Homeownership projects, 115% of the greater of state or area median income as determined by HUD. - Rental housing projects, 80% of the greater of state or area median income as determined by HUD. -- Emergency rental assistance for households earning less than 80% of area median income as determined by HUD. -- Use of funds for new construction or substantial rehabilitation of a building containing more than four units. It must include the greater of at least one unit or 5% of the buildings units as accessible units and meet sensory accessible standards. We have received two requests for use of the funds (please note we have not solicited publicly for interest on these funds). One from our HRA and the other from Crow River Habitat for Humanity. Both of those requests are attached. The HRA is asking for usage of all of the funds for their programs and Crow River Habitat for Humanity is asking for $80,000. Staff is asking for direction on how you would like to allocate these funds. A future resolution will be put together for action purposes following the discussion at the meeting. BOARD ACTION REQUESTED: Discussion only. No action at this time 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 Proposal for the Use of the City of Hutchinson's Statewide Affordable Housing Aid Funds The Hutchinson HRA would like to continue the City Home Improvement Program for the citizens of Hutchinson by using the City of Hutchinson's Statewide Affordable Housing Aid (SAHA) funds for the City Home Improvement Program. The City Home Improvement Program is a unique home improvement program for a broad range of households, particularly with an increase to income limits. Considering historical program usage, it is estimated that this program will use $70,000 per year, helping 7-10 households. Taking into account the SAHA funds received by the City this would be enough funding to continue the program another 3- 4 years, and help an estimated 40 households. The Hutchinson HRA requests to utilize the Statewide Affordable Housing Aid (SAHA) funds to fund the City Home Improvement Program. The Hutchinson HRA currently administers multiple City housing programs using different funding sources, including from the Department of Employment and Economic Development (DEED) and the closed Augusta Housing TIF Debt Service Fund (TIF). City Home Improvement Program Grants using the closed Augusta Housing TIF Debt Service Fund were added in 2015 as flexible tools for rehabilitation of single-family, owner -occupied housing throughout the city. Grants were offered using four programs to address different community needs. The current programs are the Emergency Home Repair Grant, Home Accessibility Grant, City Home Repair Grant, and the Live and Work, First-time Homebuyer Rehab Grant. The City Home Improvement Program grants have been a great resource for the citizens of Hutchinson to do home improvements, as well as, to maintain their home values. These grants are available citywide instead of in a targeted area required for DEED's grants. Since the program began in 2015, there have been 67 loan/grants given out for a total of over $416,000, an average of around 7 grants per year. These Funds are nearly depleted. If the City Council approves the Hutchinson HRA proposal to use the SAHA funds for the continuation of the City Home Improvement program, some of the proposed changes to the program will help ensure these funds will be expended within the required timeline. SAHA funds have higher homeowner income limits, compared to current funding, allowing Hutchinson HRA to process grants to a broader range of applicants. To meet required timelines, there will be increased marketing efforts. Below are the proposed Income Limits and maximum grant amounts. Current Income Limits SAHA Funds SAHA Funds Proposed Current Proposed Difference Grant Amount Emergency Home Repair Grant 60% AMI 80% SMI $28,260 $5,000 $5,000 Home Accessibility Grant 80% AMI 80% SMI $6,500 $5,000 $5,000 City Home Repair Grant 80% SMI 115% SMI $40,900 $10,000 $10,000 Match Required Live and Work, First-time Homebu er Rehab Grant 100% SMI 115% SMI $17,600 1 $5,000 1 $10,000 2025: 60% AMI is $65,340; 80% AMI is 87,100 and 100% AMI is $108,900 80% SMI is $93,600, 100% SMI is $116,900 and the 115% SMI is $134,500 The Hutchinson HRA requests to utilize the Statewide Affordable Housing Aid (SAHA) funds to fund the City Home Improvement Program. Crow River • ' • Habitat for Humanity Proposal for Funding Support Submitted to: City of Hutchinson, Minnesota Submitted by: Crow River Habitat for Humanity Date: May 7, 2025 1020 Highway 7 W, Suite A Hutchinson MN 55350 Phone: (320) 587-8868 Website: www.crhfh.org Email: bayley@crhfh.org May 14th, 2025 Executive Summary Crow River Habitat for Humanity respectfully submits this proposal to the City of Hutchinson to request financial support in the amount of $80,000 to aid in the construction of affordable housing for low- to moderate -income families (See Tables I & 2 for CRHFH Income Limits) in Hutchinson. This partnership will help address the growing need for safe, stable housing and contribute to a stronger, more vibrant community. Organizational Background Crow River Habitat for Humanity is a 501(c)(3) nonprofit organization dedicated to eliminating substandard housing in McLeod County by building and repairing homes in partnership with families in need. Since our founding in 1994, we have completed 29 homes in the region, including several in Hutchinson. We build homes with volunteers and community partners, then sell them to families at no profit with affordable mortgage terms. These groups are referred to as "Partner Families" because they volunteer as a partner in the construction or renovation of their home and the homes of others. They not only are heavily vented through our application process, but then agree to volunteer 200 hours as a family during the life of the project. They volunteer those hours at the Build Site; all while also learning how to budget for their mortgage, maintaining their fulltime hours, and fulfilling their other responsibilities at home. Our mission: Seeking to put God's love into action, Habitat for Humanity brings people together to build homes, communities, and hope. Need for Support Affordable housing remains a critical issue in Hutchinson and the State of Minnesota, at large. Local employers report housing as a barrier to workforce recruitment and retention. Habitat home applicants consistently report overcrowding, unsafe living conditions, or housing instability. Adults and children in vunerable housing report lower mental, and sometimes, physical health than those in more stable and safer living environments. The demand for affordable housing continues to outpace supply. Crow River Habitat is uniquely positioned to meet this need through proven, community -driven housing solutions. Project Description With support from the City of Hutchinson and other public entities, we will be able to build new or renovate existing single family homes throughout Hutchinson benefiting families who meet our criteria for need, willingness to partner, and ability to pay an affordable mortgage. Each home will: Be energy efficient and built to high safety and quality standards. Provide a stable foundation for families to thrive —improving educational, health, and employment outcomes. Be built in partnership with local volunteers, organizations, and the homeowners themselves. We are currently in the planning or early construction phase for a renovation project homes in Hutchinson, with the hope to purchase and revitalive more in the future. At the time of donation, the home was valued at $70,000. After renovations are finalized, we anticipate that the value will increase to at least $200,000. Which would raise the value of the neighborhood and city overall. Requested Support We respectfully request a grant of $80,000.00 from the City of Hutchinson to be used for: - Site preparation and infrastructure (utilities, grading, driveways) - Construction materials - Permit and inspection fees - Project coordination and volunteer management This funding will be leveraged with contributions from local donors, businesses, and volunteers to maximize community impact. Community Impact By investing in Habitat homes, the City of Hutchinson will: - Expand access to affordable homeownership - Reduce strain on rental markets - Increase local property tax base - Strengthen neighborhoods - Support workforce development and family self-sufficiency - Improve the mental and physical health of local families that wish to live, work and play in Hutchinson, Minnesota. In addition to economic benefits, each home provides long-term social returns by offering families a path out of poverty housing. Conclusion We invite the City of Hutchinson to join us in building a stronger future -one home, one family at a time. Your investment in affordable housing will provide lasting value for our entire community. We welcome the opportunity to present this proposal in person and discuss ways we can partner for greater impact. Thank you for your consideration. Bayley Schluter Executive Director Crow River Habitat for Humanity TAX LD: 41-1798128 320-587-8868 bayley(a,crhfh. org Table 1: 2024/2025 Income Limits 30% $21,550 $24,600 $27,700 $31,200 $36,580 $41,960 $47,340 $52,720 60% $43,100 $49,200 $55,400 $62,400 $73,160 $83,920 $94,680 $105,440 Table 2: 2025/2026 Income Limits (Effective July 1, 2025) 30% $22,900 $26,150 $29,400 $32,650 $37,650 $43,150 $48,650 $54,150 60% $45,800 $52,300 $58,800 $65,300 $75,300 $86,300 $97,300 $108,300 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Resolution 15912 Relating to General Obligation Street Reconstruction and Agenda Item: Improvement Bonds, Series 2025A Department: Finance LICENSE SECTION Meeting Date: 9/23/2025 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Nick Anhut Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Nick Anhut from Ehlers will review the bids received for the 2025 bond issuance. The new 15-year debt, with an estimated par value of $2,405,000, will finance the following roadway and infrastructure improvement projects: The bonds will fund the following roadway and infrastructure improvement projects: 1) Dale Street (South Grade Road SW to Roberts Road SW 2) Hassan Street (1st Ave NE to Oakland Ave SE), including improvements on side streets The City's projected debt tax levy graph, following this page, is based on an estimated 2025 bond sale and will be updated after the terms of the actual bond sale are known on September 23. The levy is expected to increase moderately each year by 2% to 3% until it stabilizes in 2030/2031. Keep in mind that rising roadway improvement costs may impact the future debt levy, along with potential debt for a new fire ladder truck and city center remodel. 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 $2,405,000 general obligation improvement bonds, series 2025A, by adopting resolution 15912. 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 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 167 $1 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Existing Levy =Future Roadway Improvements =New Police Facility —Total Debt Levy S&P Global Ratings Research Update: RatingsDirect° Hutchinson, MN Series 2025A GO Bonds Rated 'AA-'; Outlook Stable September 16, 2025 Overview • S&P Global Ratings has assigned its'AA-' rating to the City of Hutchinson, Minn.'s anticipated $2.4 million series 2025A general obligation (GO) improvement bonds. • Concurrently, S&P Global Ratings affirmed its'AA-' rating on the city's GO debt outstanding • The outlook is stable. Rationale Security The bonds are secured by the city's full -faith -and -credit pledge and its ability to levy unlimited ad valorem property taxes. Officials intend to pay debt service from a combination of special assessments and ad valorem property taxes. Bond proceeds will finance road improvements. Credit highlights Hutchinson's record of stable financial performance and healthy reserves, underpinned by a sound management framework, are key factors supporting its general creditworthiness. Limiting credit factors include the city's somewhat elevated debt burden and comparatively high debt service carrying costs. The rating also incorporates our view that Hutchinson's limited local economy is stabilized by a steadily growing population and moderately expanding tax base driven by ongoing demand for new housing. Operating with a $15.7 million general fund budget, the city is anticipating ending fiscal 2025 (December year-end) with a modest surplus of approximately $300,000 (2%), supported by growing interest income and positive revenue variances compared to management's conservative budget assumptions. Hutchinson is developing its 2026 budget, which might show a larger than typical 11.3% tax levy increase to balance the general fund budget while factoring increased expenditures to add a new full-time position in the information technology department, coupled with an increase to the debt service levy. We continue to view Hutchinson's comparatively higher debt levels and fixed costs as a rating constraint while considering future Primary Contact Emma Drilias Madison 1-312-233-7132 emma.drilias @spglobaLcom Secondary Contact Tyler Livesey Chicago 1-609-426-7533 tyler.livesey @spglobaLcom www.spglobai.com/ratingsdirect September 16, 2025 1 Hutchinson, MN Series 2025A GO Bonds Rated'AA-'; Outlook Stable debt plans for routine road improvements and one-time projects, including a potential city hall renovation. There continues to be a growing demand for new housing in Hutchinson and, as a result, management reports development plans that would add more than 200 new apartment units, 29 new single-family homes, and 22 new townhouses over the coming years. Although net tax capacity growth is slowing relative to recent years, with an anticipated 2.7% value increase for 2026, these housing development plans support our expectation that Hutchinson will continue to experience steady tax base expansion over at least the two-year outlook period. The 3M plant in Hutchinson is the company's largest manufacturing plant in the U.S. as well as the city's largest employer, with more than 1,400 employees. City management reports plant operations are stable despite an ongoing need for up to 150 new employees to fill persistent vacancies. Overall, given the city's projected balanced operating performance over the next few years and stable economy, we do not anticipate material medium -term credit pressures. Credit fundamentals supporting the'AA-' rating include: • Per capita gross county product and per capita personal income that are below national averages, but in line with that of similarly rated peers. We view the economy as stable, with the city expecting steady growth in the coming years driven by residential development. • Positive general fund operating results supported by taxing flexibility, conservative assumptions for interest earnings, and positive building permit revenue. The city's operations were funded primarily by property taxes (53%), followed by charges for services (19%), in fiscal 2024. • A 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 draw down. In fiscal 2023, Hutchinson established a stabilization fund in the committed general fund balance that obligates 10% of the next year's expenditures for contingencies. Therefore, available reserves include committed funds, with access to a cash balance of $672,000 in municipal liquor fund cash also available for operating purposes. • A forward -looking 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. • A debt burden that we expect will remain a credit constraint based on medium -term debt plans that include annual issuance of $2.5 million for roadway projects, an additional $850,000 one-time issuance for a fire truck, a potential one-time issuance of about $1 million to finance renovation of city hall, and a potential one-time issuance for a new electric substation that would be financed through a revenue bond payable from electric utility funds. • Moderate pension and other postemployment costs compared with 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 89% and 90%, respectively, as of June 30, 2024. • For more information on our institutional framework assessment for Minnesota cities, see • "Institutional Framework Assessment: Minnesota Local Governments," Sept.10, 2024. www.spgiobai.com/ratingsdirect September 16, 2025 2 Hutchinson, MN Series 2025A GO Bonds Rated'AA-'; Outlook Stable Environmental, social, and governance Environmental, social, and governance factors are neutral within our credit analysis. The city's cybersecurity practices and policies align with those of peers. Outlook The stable outlook reflects our view that Hutchinson will continue to sustain its robust reserves in line with its formal policy by maintaining 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 Hutchinson's debt burden were to moderate. Further economic growth and diversification could also support a higher rating. Hutchinson, Minnesota --credit summary InstltutlonaI framework (IF) 1 Individual credit profile (ICP) Economy Financial performance Reserves and liquidity Management Debt and liabilities Hutchinson, Minnesota --key credit metrics Most recent 2024 2.48 4.0 2 1 1.65 3.75 2023 2022 Economy Real GCP per capita % of U.S. 72 72 76 County PCPI %of U.S. 89 89 90 Market value ($000s) 1,624,582 1,586,264 1,479,416 1,341,765 Market value per capita ($) 109,858 107,267 99,947 94,040 Top 10 taxpayers % of taxable value 9.2 9.1 9.3 10.5 County unemployment rate (%) 3.6 3.3 3.1 2.6 Local median household EBI % of U.S. 96 96 91 97 Local per capita EBI % of U.S. 99 99 91 97 Local population 14,788 14,788 14,802 14,268 Financial performance Operating fund revenues ($000s) 12,612 11,977 11,305 Operating fund expenditures ($000s) 14,593 13,774 13,869 Net transfers and other adjustments ($000s) 2,296 2,236 2,108 Operating result ($000s) 315 439 (456) Operating result %of revenues 2.5 3.7 (4.0) www.spglobai.com/ratingsdirect September 16, 2025 3 Hutchinson, MN Series 2025A GO Bonds Rated'AA-'; Outlook Stable Hutchinson, Minnesota --key credit metrics Most recent 2024 2023 2022 Operating result three-year average % 0.7 0.4 0.9 Reserves and liquidity Available reserves % of operating revenues 68.2 68.2 69.7 Available reserves ($000s) 8,600 8,172 7,876 Debt and liabilities Debt service cost % of revenues 14.4 11.9 17.1 Net direct debt per capita ($) 2,240 2,385 2,571 2,902 Net direct debt ($000s) 33,127 35,268 38,053 41,412 Direct debt 10-year amortization (%) 70 75 Pension and OPEB cost % of revenues 8.0 6.0 8.0 NPLs per capita ($) 513 779 1,363 Combined NPLs ($000s) 7,580 11,534 19,450 Financial data may reflect analytical adjustments and are sourced from issuer audit reports or other annual disclosures. Economic data is generally sourced from S&P Global Market Intelligence, the Bureau of Labor Statistics, Claritas, and issuer audits and other disclosures. Local population is sourced from Claritas. Claritas estimates are point in time and not meant to show year -over -year trends. GCP--Gross county product. PCPI--Per capita personal income. EBI--Effective buying income. OPEB--Other postemployment benefits. NPLs--Net pension liabilities. Ratings List New Issue Ratings US$2.405 mil GO imp binds ser 2025A dtd 10/16/2025 due 02/01/2041 Long Term Rating AA -/Stable Ratings Affirmed Local Government Hutchinson, MN Unlimited Tax General Obligation AA -/Stable Hutchinson, MN Unlimited Tax General Obligation and Special Assessments AA -/Stable Hutchinson, MN Unlimited Tax General Obligation and Storm Water System AA -/Stable Hutchinson, MN Unlimited Tax General Obligation, Water and Sewer System, and Special Assessments AA -/Stable The ratings appearing below the new issues represent an aggregation of debt issues (ASID) associated with related maturities. The maturities similarly reflect our opinion about the creditworthiness of the U.S. Public Finance obligor's legal pledge for payment of the financial obligation. Nevertheless, these maturities may have different credit ratings than the rating presented next to the ASID depending on whether or not additional legal pledges) support the specific maturity's payment obligation, such as credit enhancement, as a result of defeasance, or other factors. Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meaningsascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at https://disclosure.spgtobal.com/ratings/en/regulatory/ratings-criteria for further information. A description of each of S&P Global Ratings' rating categories is contained in "S&P Global Ratings Definitions" at https://disclosure.spgtobal.com/ratings/en/regulatory/article/-/view/sourceld/504352. Complete ratings information is available to Ratings Direct subscribers at www.capitatiq.com. All ratings referenced herein can be found on S&P Global Ratings' public website at www.spgtobal.com/ratings. www.spglobal.com/ratingsdirect September 16, 2025 4 Hutchinson, MN Series 2025A GO Bonds Rated'AA-'; Outlook Stable Copyright © 2025 by Standard & Poor's Financial Services LLC. All rights reserved. No content (including ratings, credit -related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third -party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages. Some of the Content may have been created with the assistance of an artificial intelligence (AI) tool Published Content created or processed using Al is composed, reviewed, edited, and approved by S&P personnel. Credit -related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P's opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating -related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses. To the extent that regulatory authorities allow a rating agency to acknowledge in onejurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof. S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.spglobal.com/ratings (free of charge), and www.ratingsdirect.com (subscription), and may be distributed through other means, including via S&P publications and third -party redistributors. Additional information about our ratings fees is available at www.spglobal.com/usratingsfees. STANDARD & POOR'S, S&P and RATI NGSDI RECT are registered trademarks of Standard & Poor's Financial Services LLC. www.spgiobai.com/ratingsdirect September 16, 2025 5 CERTIFICATION OF MINUTES RELATING TO $[PAR] GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2025A Issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on September 23, 2025, 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. 15912 RESOLUTION RELATING TO $[PAR] GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2025A; 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 day of September, 2025. (SEAL) Matt Jaunich City Administrator 4937-6085-0525\3 The City Administrator reported that [__] ([__]) proposals for the purchase of the $[PAR] General Obligation Improvement Bonds, Series 2025A 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) 4937-6085-0525\3 Councilmember introduced the following resolution (the "Resolution") and moved its adoption, which motion was seconded by Councilmember RESOLUTION NO. _15912_ RESOLUTION RELATING TO $[PAR] GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2025A; 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 26, 2025, this Council determined it to be in the best interest of the City to issue and sell its General Obligation Improvement Bonds, Series 2025A (the "Bonds"), in the approximate principal amount of $2,405,000, pursuant to Minnesota Statutes, Chapters 429 and 475, to finance the City's Dale Street SW and 2025 street improvement projects (the "Projects") and to pay costs of issuance of the Bonds. 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, 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. 4937-6085-0525\3 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, Pam. 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 2027 $ % 2028 2029 2030 2031 2032 2033 2034 Year Amount 2035 2036 2037 2038 2039 2040 2041 $ Rate [REVISE MATURITY SCHEDULE FOR ANY TERM BONDS] 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, 2026 (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. 2 4937-6085-0525\3 3.04. Redemption. Bonds maturing in 2036 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, 2035, 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 I in each of the following years the following stated principal amounts of such Bonds: Term Bond due February 1, 20" Redemption Date Principal (February 1) Amount *Stated Maturity Term Bond due February 1, 20" Redemption Date Principal (February 1) Amount * *Stated Maturity 3 4937-6085-0525\3 Notice of redemption shall be given as provided in the preceding paragraph.] 3.05. Appointment of Initial Re ig strar. 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 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. 4 4937-6085-0525\3 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. 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. 5 4937-6085-0525\3 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 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. 6 4937-6085-0525\3 (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 Improvement Bonds, Series 2025A Construction Fund. There is hereby created a special bookkeeping fund to be designated as the "General Obligation Improvement Bonds, Series 2025A 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. The Construction Fund shall be credited with $F from the proceeds from the Bonds, representing the estimated cost of the Projects ($[]) and costs of issuance of the Bonds ($[]). From the Construction Fund shall be paid all costs and expenses related to the construction of the Projects and costs of issuance of the Bonds. After payment of all such costs and expenses, the Construction Fund 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 16, 2028. 4.02. General Obligation Improvement Bonds, Series 2025A Bond Fund. The Bonds shall be payable from a separate General Obligation Improvement Bonds, Series 2025A 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. There shall be credited to the Bond Fund the following: 7 4937-6085-0525\3 (i) the amounts specified in Section 4.01 above, after payment of all costs of the Projects; (ii) special assessments levied and collected in accordance with this Resolution; (iii) taxes levied and collected in accordance with this Resolution; and (iv) any other funds appropriated by this Council for the payment of the 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: Levy Years 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. Lew of Special Assessments. The City hereby covenants and agrees that for payment of the cost of Projects it will do and perform all acts and things necessary for the full 8 4937-6085-0525\3 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 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 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 Projects shall be in the principal amount of $628,034 payable in not more than 10 installments, the first installment to be collectible with taxes during the year 2026. 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. Registration. 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 9 4937-6085-0525\3 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 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 2025 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. 10 4937-6085-0525\3 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 2025 does not exceed $10,000,000. 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 11 4937-6085-0525\3 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: (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, 2025, 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;" "GENERAL INFORMATION — 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 12 4937-6085-0525\3 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. (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. 13 4937-6085-0525\3 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 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. 14 4937-6085-0525\3 (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 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. 15 4937-6085-0525\3 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 4937-6085-0525\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 4937-6085-0525\3 R-15912 EXHIBIT A Form of Bond UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF MCLEOD CITY OF HUTCHINSON GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2025A Interest Rate Maturity Date Date of Original Issue % February 1, 20_ October 16, 2025 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: THOUSAND DOLLARS 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, 2026, 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 23, 2025 (the "Resolution") to pay the cost of certain street improvements 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. 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 4937-6085-0525\3 Bonds maturing in the years 2036 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, 2035 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 Aggregate Principal Amount Notice of redemption shall be given as provided in the preceding paragraph.] 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 4937-6085-0525\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 Improvement Bonds, Series 2025A 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 4937-6085-0525\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 IRE Authorized Representative A-4 4937-6085-0525\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 .................. (Cust) (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 4937-6085-0525\3 Exhibit B PROJECTED TAX LEVIES AND ASSESSMENTS [TO COME] 4937-6085-0525\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 23, 2025, by the City Council of the City of Hutchinson, Minnesota, setting forth the form and details of an issue of $[PAR] General Obligation Improvement Bonds, Series 2025A, dated as of October 16, 2025, 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 , 2025. McLeod County Auditor (SEAL) A-3 4937-6085-0525\3 CERTIFICATION OF MINUTES RELATING TO $2,195,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2025A Issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on September 23, 2025, 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. 15912 RESOLUTION RELATING TO $2,195,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2025A; 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 day of September, 2025. (SEAL) Matt Jaunich City Administrator 4937-6085-0525\4 Revised The City Administrator reported that seven (7) proposals for the purchase of the $2,195,000 General Obligation Improvement Bonds, Series 2025A 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) 4937-6085-0525\4 d%�EHLERS Will PUBLIC FINANCE ADVISORS BID TABULATION $2,405,000" General Obligation Improvement Bonds, Series 2025A City of Hutchinson. Mnnesots SALE: September 23, 2D25 AWARD; BAIR❑ Rating: S&P Global Ratings "AFL-'' :' Stable --MATtiRTI'Y COUPON REOFFERT�G NA31E OFDYSTTTLMON (Tebruary 1) RATE. YIEEID BAIRD Nriilwaukee, Wisconsin C.I.- King & Associates Colliers Securities LLC Edward Janes Fidelity Capital Markets Cfews & Associates, Inc. The B aker Group A1Liance Global Partners CADZ Securities Inc Celadon Financial Gfcup, LLC Isaa3c Bond Inti-estmeats, Inc Carty, Harding & Hearn, Inc - United Bankers Bank FMS Boads Inc. Midland Securities First Southern LLG ISinasaur Financial Group Mountainside Securities LLC Blaylock Van, LLC Caldwell Sutter Capital, Inc. ZIONS BAND division of ZB, N-A- NORTI-ILA dD SECURITIES, INC. Miuleapolis, Minnesota 2027 5.OD0°% 2.170°/a 2029 5-0D0°% 2-160°% 2029 5-0D0°% 2-190°% 203D 5-0D0'% 2-260°% 2031 5.0DO% 2.390% 2032 5-ODO°% 2-50r/a 2033 5.0150°% 2.690% 2034 5ADMO 2.780'% 2035 5ADMO 29Md9 20361 4-ODO°% 3-310°% 20371 4-0150°% 3-310°% 20392 4-0D0°% 3-550°% 20392 4-0D0°% 3-550°% 2040-3 4.0D0°% 3.750°% 2041' 4-0D0°% 3-750% Subsequent to bid opening the issue size was decreased to $2,195,000. Adjusted Price: $2,368,960.39 Adjusted Net Interest Cost $642.497.94 1$305,000 Term Bond due 2037 with mandatory redemption in 2036. 2 $275,000 Term Bond due 2039 with mandatary redemption in 2038- 3 $295,000 Term Bond due 2041 with mandatory redemption in 2040- EUILIDING COMMUNITIES- IT'S WHAT WF 130- Tax Exempt - Bcutk Qu.'tlified TRLT PRICE INTEREST RATE $2,595.108.20 3.2941% 3.3921% Adjusted TIC: 3.3055% i nfo@ehlers-inc.c4 rrl �, 1 (8005 552-1171 � www.ehlers-iw-eom 4937-6085-0525\4 TRUE. LITEREST NAME OF DtiSTTTL—HON RATE STONER FINANCIAL INC 3.4123" u Atlanta, Georgia HILLTOPS ECURITM S 3.4-484% Dallas, Texas BOK FINANCIAL SECURFI ]ES, 3.4-495% INC_ Milwaukee, Wisconsin BROWNSTONE INVESTMENT 3.4724% GROUP, LLC New YorL. New York RAYMOND JAMES & 3.4766% ASSOCIATES, INC. St. Petersburg; Florida Bid Tabulation September 23, 2025 City of Hutchinson, Minnesota VAD5,00* Creneral Obligation Improvement Bands, Series 2025A Page 2 4937-6085-0525\4 Councilmember introduced the following resolution (the "Resolution") and moved its adoption, which motion was seconded by Councilmember RESOLUTION NO. _15912_ RESOLUTION RELATING TO $2,195,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2025A; 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 26, 2025, this Council determined it to be in the best interest of the City to issue and sell its General Obligation Improvement Bonds, Series 2025A (the "Bonds"), in the approximate principal amount of $2,400,000, pursuant to Minnesota Statutes, Chapters 429 and 475, to finance the City's Dale Street SW and 2025 street improvement projects (the "Projects") and to pay costs of issuance of the Bonds. 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, 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 Robert W. Baird & Co. Incorporated, of Milwaukee, Wisconsin (the "Purchaser"), to purchase the Bonds at a price of $2,368,960.39, representing the principal amount of the Bonds plus original issue premium of $193,561.60, less underwriter's discount of $19,601.21, 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. 4937-6085-0525\4 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, Pam. 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: Year Amount Rate Year Amount Rate 2027 $100,000 5.000% 2035 $170,000 5.000% 2028 135,000 5.000 2037 305,000 4.000 2029 140,000 5.000 2039 275,000 4.000 2030 145,000 5.000 2041 295,000 4.000 2031 150,000 5.000 2032 155,000 5.000 2033 160,000 5.000 2034 165,000 5.000 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, 2026 (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 2036 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, 2035, and on any date thereafter, at a price equal to the principal amount thereof plus accrued interest to the date of redemption. 2 4937-6085-0525\4 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. Bonds maturing on February 1 in the years 2037, 2039, and 2041 (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: Term Bond due February 1, 2037 Redemption Date (February 1) 2036 2037* *Stated Maturity Principal Amount $175,000 130,000 Term Bond due February 1, 2039 Redemption Date (February 1) 2038 2039* *Stated Maturity Principal Amount $135,000 140,000 Term Bond due February 1, 2041 Redemption Date (February 1) 2040 2041* *Stated Maturity Principal Amount $145,000 150,000 3 4937-6085-0525\4 Notice of redemption shall be given as provided in the preceding paragraph. 3.05. Appointment of Initial Re ig strar. 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 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 4 4937-6085-0525\4 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. 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: 5 4937-6085-0525\4 "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 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 6 4937-6085-0525\4 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 Improvement Bonds, Series 2025A Construction Fund. There is hereby created a special bookkeeping fund to be designated as the "General Obligation Improvement Bonds, Series 2025A 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. The Construction Fund shall be credited with $2,368,960.39 from the proceeds from the Bonds, representing the estimated cost of the Projects ($2,311,798.39) and costs of issuance of the Bonds ($57,162.00). From the Construction Fund shall be paid all costs and expenses related to the construction of the Projects and costs of issuance of the Bonds. After payment of all such costs and expenses, the Construction Fund 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 16, 2028. 4.02. General Obligation Improvement Bonds, Series 2025A Bond Fund. The Bonds shall be payable from a separate General Obligation Improvement Bonds, Series 2025A 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. There shall be credited to the Bond Fund the following: (i) the amounts specified in Section 4.01 above, after payment of all costs of the Projects; 7 4937-6085-0525\4 (ii) special assessments levied and collected in accordance with this Resolution; (iii) taxes levied and collected in accordance with this Resolution; and (iv) any other funds appropriated by this Council for the payment of the 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: Levy Years 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 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 8 4937-6085-0525\4 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 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 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, in addition to prepaid special assessments in the amount of $69,665.00, the remaining special assessments levied for payment of the cost of the Projects shall be in the principal amount of $558,369.00 payable in not more than 10 installments, the first installment to be collectible with taxes during the year 2026. 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. Registration. 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 9 4937-6085-0525\4 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 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 2025 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. 10 4937-6085-0525\4 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 2025 does not exceed $10,000,000. 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 11 4937-6085-0525\4 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: (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, 2025, 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;" "GENERAL INFORMATION — 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 12 4937-6085-0525\4 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. (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. 13 4937-6085-0525\4 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 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. 14 4937-6085-0525\4 (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 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. 15 4937-6085-0525\4 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 4937-6085-0525\4 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 4937-6085-0525\4 R-15912 EXHIBIT A Form of Bond UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF MCLEOD CITY OF HUTCHINSON GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2025A Interest Rate Maturity Date Date of Original Issue % February 1, 20_ October 16, 2025 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: THOUSAND DOLLARS 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, 2026, 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 $2,195,000 (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 23, 2025 (the "Resolution") to pay the cost of certain street improvements 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. 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 4937-6085-0525\4 Bonds maturing in the years 2036 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, 2035 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. Bonds maturing in the years 2037, 2039, and 2041 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 Bond due February 1, 2037 Redemption Date (February 1) 2036 2037* *Stated Maturity Principal Amount $175,000 130,000 Term Bond due February 1, 2039 Redemption Date (February 1) 2038 2039* *Stated Maturity Principal Amount $135,000 140,000 Term Bond due February 1, 2041 Redemption Date Principal (February 1) Amount 2040 $145,000 2041* 150,000 *Stated Maturity Notice of redemption shall be given as provided in the preceding paragraph. A-2 4937-6085-0525\4 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. 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 Improvement Bonds, Series 2025A 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 4937-6085-0525\4 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 IRE Authorized Representative A-4 4937-6085-0525\4 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 .................. (Cust) (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 4937-6085-0525\4 Exhibit B PROJECTED TAX LEVIES AND ASSESSMENTS Assessments Date Principal Coupon Interest Total P+I 12/31/2026 55,836.90 4.300% 24,009.87 79,846.77 12/31/2027 55,836.90 4.300% 21,608.88 77,445.78 12/31/2028 55,836.90 4.300% 19,207.90 75,044.80 12/31/2029 55,836.90 4.300% 16,806.90 72,643.80 12/31/2030 55,836.90 4.300% 14,405.92 70,242.82 12/31/2031 55,836.90 4.300% 12,004.94 67,841.84 12/31/2032 55,836.90 4.300% 9,603.94 65,440.84 12/31/2033 55,836.90 4.300% 7,202.96 63,039.86 12/31/2034 55,836.90 4.300% 4,801.98 60,638.88 12/31/2035 55,836.90 4.300% 2,400.98 58,237.88 Total $558,369.00 - $132,054.27 $690,423.27 Tax Levy Schedule Tax Tax Bond Levy Collect Pay Year Year Year Total P+1 Net New D/S P & 1 @105% Assessments Net Levy 2025 2026 2027 230,458.33 230,458.33 241,981.25 79,846.77 162,134.48 2026 2027 2028 231,000.00 231,000.00 242,550.00 77,445.78 165,104.22 2027 2028 2029 229,250.00 229,250.00 240,712.50 75,044.80 165,667.70 2028 2029 2030 227,250.00 227,250.00 238,612.50 72,643.80 165,968.70 2029 2030 2031 225,000.00 225,000.00 236,250.00 70,242.82 166,007.18 2030 2031 2032 222,500.00 222,500.00 233,625.00 67,841.84 165,783.16 2031 2032 2033 219,750.00 219,750.00 230,737.50 65,440.84 165,296.66 2032 2033 2034 216,750.00 216,750.00 227,587.50 63,039.86 164,547.64 2033 2034 2035 213,500.00 213,500.00 224,175.00 60,638.88 163,536.12 2034 2035 2036 210,000.00 210,000.00 220,500.00 58,237.88 162,262.12 2035 2036 2037 158,000.00 158,000.00 165,900.00 - 165,900.00 2036 2037 2038 157,800.00 157,800.00 165,690.00 165,690.00 2037 2038 2039 157,400.00 157,400.00 165,270.00 165,270.00 2038 2039 2040 156,800.00 156,800.00 164,640.00 164,640.00 2039 2040 2041 156,000.00 156,000.00 163,800.00 163,800.00 Total - $3,011,458.33 $3,011,458.33 $3,162,031.25 $690,423.27 $2,471,607.98 4937-6085-0525\4 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 23, 2025, by the City Council of the City of Hutchinson, Minnesota, setting forth the form and details of an issue of $2,195,000 General Obligation Improvement Bonds, Series 2025A, dated as of October 16, 2025, 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 , 2025. McLeod County Auditor (SEAL) 4937-6085-0525\4 September 23, 2025 SALE DAY REPORT FOR: City of Hutchinson, Minnesota $2,195,000 General Obligation Improvement Bonds, Series 2025A rs 91111111111 ►EHLERS PUBLIC FINANCE ADVISORS Prepared by: Nick Anhut, Ehlers Senior Municipal Advisor 3001 Broadway Street, Suite 320 Minneapolis, MN 55413 Bruce Kimmel, Senior Municipal Advisor BUILDING COMMUNITIES. IT'S WHAT WE DO. Competitive Sale Results PURPOSE: Tax-exempt financing for the Dale Street SW and 2025 street improvement projects RATING: S&P Global Ratings "AA-" / Stable affirmed NUMBER OF BIDS: 7 LOW BIDDER: Baird, Milwaukee, Wisconsin COMPARISON FROM LOWEST TO HIGHEST BID: (TIC as bid) LOW BID:* 3.2941% HIGH BID: 3.4766% Summary of Sale ■ Principal Amount*: $2,195,000 Reoffering Premium: $193,562 Underwriter's Discount: $19,601 Costs of Issuance: $57,162 True Interest Cost: 3.3056% Yield: 2.16%-3.75% Total Net Principal & Interest: $3,011,458 NOTES: Bond Trust Services Corporation, Minneapolis, Minnesota will serve as Paying Agent on the Bonds. The Bonds maturing February 1, 2036 and thereafter are callable February 1, 2035 or any date thereafter. * Subsequent to bid opening, the issue size was decreased to $2,195,000. CLOSING DATE: October 16, 2025 CITY COUNCIL Consider a resolution awarding the sale of $2,195,000 ACTION: General Obligation Improvement Bonds, Series 2025A. SUPPLEMENTARY ATTACHMENTS • Bid Tabulation • Sources and Uses of Funds • Final Debt Service Schedules Sale Day Report for City of Hutchinson, Minnesota 1 g'%l'EHLERS W PUBLIC FINANCE ADVISORS BID TABULATION $2,405,000* General Obligation Improvement Bonds, Series 2025A Rating: S&P Global Ratings "AA-" / Stable NAME OF INSTITUTION BAIRD Milwaukee, Wisconsin C.L. King & Associates Colliers Securities LLC Edward Jones Fidelity Capital Markets Crews & Associates, Inc. The Baker Group Alliance Global Partners CADZ Securities Inc Celadon Financial Group, LLC Isaak Bond Investments, Inc Carty, Harding & Hearn, Inc. United Bankers Bank FMS Bonds Inc. Midland Securities First Southern LLC Dinosaur Financial Group Mountainside Securities LLC Blaylock Van, LLC Caldwell Sutter Capital, Inc. ZIONS BANK, division of ZB, N.A. NORTHLAND SECURITIES, INC. Minneapolis, Minnesota City of Hutchinson, Minnesota SALE: September 23, 2025 AWARD: BAIRD Tax Exempt - Bank Qualified MATURITY COUPON REOFFERING PRICE (February 1) RATE YIELD $2,595,108.20 2027 5.000% 2.170% 2028 5.000% 2.160% 2029 5.000% 2.190% 2030 5.000% 2.260% 2031 5.000% 2.390% 2032 5.000% 2.560% 2033 5.000% 2.690% 2034 5.000% 2.780% 2035 5.000% 2.940% 20361 4.000% 3.310% 20371 4.000% 3.310% 20382 4.000% 3.550% 20392 4.000% 3.550% 20403 4.000% 3.750% 20413 4.000% 3.750% TRUE INTEREST RATE Subsequent to bid opening the issue size was decreased to $2,195,000. Adjusted Price: $2,368,960.39 Adjusted Net Interest Cost: $642,497.94 Adjusted TIC: 3.3055% 1$305,000 Term Bond due 2037 with mandatory redemption in 2036. 2 $275,000 Term Bond due 2039 with mandatory redemption in 2038. 3 $295,000 Term Bond due 2041 with mandatory redemption in 2040. 3.2941 % 3.3921% BUILDING COMMUNITIES. IT'S WHAT WE DO. ® info@ehlers-inc.com �, 1 (1300) 552-117I ® www.ehiers-inc.com TRUE INTEREST NAME OF INSTITUTION RATE STONEX FINANCIAL INC 3.4123% Atlanta, Georgia HILLTOPSECURITIES 3.4484% Dallas, Texas BOK FINANCIAL SECURITIES, 3.4495% INC. Milwaukee, Wisconsin BROWNSTONE INVESTMENT 3.4724% GROUP, LLC New York, New York RAYMOND JAMES & 3.4766% ASSOCIATES, INC. St. Petersburg, Florida Bid Tabulation September 23, 2025 City of Hutchinson, Minnesota $2,405,000* General Obligation Improvement Bonds, Series 2025A Page 2 City of Hutchinson, Minnesota $2,195,000 General Obligation Improvement Bonds, Series 2025A Sources & Uses Dated 10/16/2025 1 Delivered 10/16/2025 Sources Of Funds Par Amount of Bonds $2,195,000.00 Reoffering Premium 193,561.60 Prepaid Assessments 69,665.00 Total Sources $2,458,226.60 Uses Of Funds Total Underwriter's Discount (0.893%) 19,601.21 Costs of Issuance 57,162.00 Deposit to Project Construction Fund 2,381,463.39 Total Uses 2025A GO Imp Bonds - FINA I SINGLE PURPOSE 1 9/23/2025 1 10:26 AM ►EHLERS runuc FiNnn�e noviso Hs City of Hutchinson, Minnesota $2,195,000 General Obligation Improvement Bonds, Series 2025A Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 10/16/2025 - - - 08/01/2026 - - 79,958.33 79,958.33 - 02/01/2027 100,000.00 5.000% 50,500.00 150,500.00 230,458.33 08/01/2027 - - 48,000.00 48,000.00 - 02/01/2028 135,000.00 5.000% 48,000.00 183,000.00 231,000.00 08/01/2028 - - 44,625.00 44,625.00 - 02/01/2029 140,000.00 5.000% 44,625.00 184,625.00 229,250.00 08/01/2029 - - 41,125.00 41,125.00 - 02/01/2030 145,000.00 5.000% 41,125.00 186,125.00 227,250.00 08/01/2030 - - 37,500.00 37,500.00 - 02/01/2031 150,000.00 5.000% 37,500.00 187,500.00 225,000.00 08/01/2031 - - 33,750.00 33,750.00 - 02/01/2032 155,000.00 5.000% 33,750.00 188,750.00 222,500.00 08/01/2032 - - 29,875.00 29,875.00 - 02/01/2033 160,000.00 5.000% 29,875.00 189,875.00 219,750.00 08/01/2033 - - 25,875.00 25,875.00 - 02/01/2034 165,000.00 5.000% 25,875.00 190,875.00 216,750.00 08/01/2034 - - 21,750.00 21,750.00 - 02/01/2035 170,000.00 5.000% 21,750.00 191,750.00 213,500.00 08/01/2035 - - 17,500.00 17,500.00 - 02/01/2036 175,000.00 4.000% 17,500.00 192,500.00 210,000.00 08/01/2036 - - 14,000.00 14,000.00 - 02/01/2037 130,000.00 4.000% 14,000.00 144,000.00 158,000.00 08/01/2037 - - 11,400.00 11,400.00 - 02/01/2038 135,000.00 4.000% 11,400.00 146,400.00 157,800.00 08/01/2038 - - 8,700.00 8,700.00 - 02/01/2039 140,000.00 4.000% 8,700.00 148,700.00 157,400.00 08/01/2039 - - 5,900.00 5,900.00 - 02/01/2040 145,000.00 4.000% 5,900.00 150,900.00 156,800.00 08/01/2040 - - 3,000.00 3,000.00 02/01/2041 150,000.00 4.000% 3,000.00 153,000.00 156,000.00 Total $2,195,000.00 $816,458.33 $3,011,458.33 Yield Statistics Bond Year Dollars $18,560.21 Average Life 8.456 Years Average Coupon 4.3989718% Net Interest Cost (NIC) 3.4616957% True Interest Cost (TIC) 3.3055815% Bond Yield for Arbitrage Purposes 3.1348994% All Inclusive Cost (AIC) 3.6605850% IRS Form 8038 Net Interest Cost 3.1166630% Weighted Average Maturitv 8.367 Years 2025A GO Imp Bonds - FINA I SINGLE PURPOSE 1 9/23/2025 1 10:26 AM ►FREERS ■ I+ue SIC Firvq rvCk A�Vi50H5 City of Hutchinson, Minnesota $2,195,000 General Obligation Improvement Bonds, Series 2025A Debt Service Schedule and Levy Calculation Date Principal Coupon Interest Total P+I 105% of Total Assessments Levy 02/01/2026 - - - - - - - 02/01/2027 100,000.00 5.000% 130,458.33 230,458.33 241,981.25 79,846.77 162,134.48 02/01/2028 135,000.00 5.000% 96,000.00 231,000.00 242,550.00 77,445.78 165,104.22 02/01/2029 140,000.00 5.000% 89,250.00 229,250.00 240,712.50 75,044.80 165,667.70 02/01/2030 145,000.00 5.000% 82,250.00 227,250.00 238,612.50 72,643.80 165,968.70 02/01/2031 150,000.00 5.000% 75,000.00 225,000.00 236,250.00 70,242.82 166,007.18 02/01/2032 155,000.00 5.000% 67,500.00 222,500.00 233,625.00 67,841.84 165,783.16 02/01/2033 160,000.00 5.000% 59,750.00 219,750.00 230,737.50 65,440.84 165,296.66 02/01/2034 165,000.00 5.000% 51,750.00 216,750.00 227,587.50 63,039.86 164,547.64 02/01/2035 170,000.00 5.000% 43,500.00 213,500.00 224,175.00 60,638.88 163,536.12 02/01/2036 175,000.00 4.000% 35,000.00 210,000.00 220,500.00 58,237.88 162,262.12 02/01/2037 130,000.00 4.000% 28,000.00 158,000.00 165,900.00 - 165,900.00 02/01/2038 135,000.00 4.000% 22,800.00 157,800.00 165,690.00 - 165,690.00 02/01/2039 140,000.00 4.000% 17,400.00 157,400.00 165,270.00 - 165,270.00 02/01/2040 145,000.00 4.000% 11,800.00 156,800.00 164,640.00 - 164,640.00 02/01/2041 150,000.00 4.000% 6,000.00 156,000.00 163,800.00 - 163,800.00 Total $2,1959000.00 - $8169458.33 $390119458.33 $391629031.25 $6909423.27 $294719607.98 Significant Dates Dated 10/16/2025 First Coupon Date 8/01/2026 Yield Statistics Bond Year Dollars $18,560.21 Average Life 8.456 Years Average Coupon 4.3989718% Net Interest Cost (NIC) 3.4616957°/o True Interest Cost (TIC) 3.3055815% Bond Yield for Arbitrage Purposes 3.1348994% All Inclusive Cost (AIC) 3.6605850% 2025A GO Imp Bonds - FINA I SINGLE PURPOSE 1 9/23/2025 1 10:26 AM ►FREERS �. �,�4��� �u 50�5 City of Hutchinson, Minnesota $558,369 Remaining Assessments TIC plus 1.00% - Equal Principal Assessment Revenues Date Principal Coupon Interest Total P+I 12/31/2026 55,836.90 4.300% 24,009.87 79,846.77 12/31/2027 55,836.90 4.300% 21,608.88 77,445.78 12/31/2028 55,836.90 4.300% 19,207.90 75,044.80 12/31/2029 55,836.90 4.300% 16,806.90 72,643.80 12/31/2030 55,836.90 4.300% 14,405.92 70,242.82 12/31/2031 55,836.90 4.300% 12,004.94 67,841.84 12/31/2032 55,836.90 4.300% 9,603.94 65,440.84 12/31/2033 55,836.90 4.300% 7,202.96 63,039.86 12/31/2034 55,836.90 4.300% 4,801.98 60,638.88 12/31/2035 55,836.90 4.300% 2,400.98 58,237.88 Total $558,369.00 - $132,054.27 $690,423.27 Significant Dates Filing Date 1/01/2O26 First Payment Date 12/31/2026 Series 2025A GO Bonds - A I SINGLE PURPOSE 1 9/23/2025 1 10:25 AM ►FREERS ■ �,�A��� �� SRNs RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Resolution 15909 Approving the 2026 HRA Preliminary Tax Levy Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 9/23/2025 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 OFAGENDA ITEM: In accordance with State Statute, the City must certify the 2026 preliminary HRA tax levy to the County auditor by September 30th. This tax levy has a statutory limit of $292,282, however, the HRA Board is requesting only $173,000 to fund its 2026 operations. The levy amount represents a 1.8% increase from the 2025 levy of $170,000. The HRA's statutory levy limit is based on .0185% of the City's 2025 Estimated Market Value of $1,579,905,400. 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 2026 HRA Preliminary Tax Levy of $173,000 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. 15909 CITY OF HUTCHINSON, MINNESOTA SETTING 2026 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 2026 the authorization yields:.000185 x $1,579,905,400 = $292,282; The HRA Board requests for 2026 a levy of $173,000. THAT the City of Hutchinson hereby establishes a preliminary tax levy for the above named special taxing district of: $ 173,000 Adopted by the City Council this 23rd day of September, 2025. Gary T. Forcier Mayor ATTESTED: Matthew Jaunich City Administrator RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Resolution 15910 Approving the 2026 EDA Preliminary Tax Levy Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 9/23/2025 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 OFAGENDA ITEM: In accordance with State Statute, the City must certify the 2026 preliminary EDA tax levy to the County auditor by September 30th. This tax levy has a statutory limit of $286,437 and that is the amount the EDA Board is requesting to fund its 2026 operations. The levy amount represents a 1.7% increase from the 2025 levy of $281,771. The EDA's statutory levy limit is based on .01813% of the City's 2025 Estimated Market Value of $1,579,905,400 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 2026 EDA Preliminary Tax Levy of $286,437 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. 15910 CITY OF HUTCHINSON, MINNESOTA SETTING 2026 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 2026 the authorization yields- .0001813 x $1,579,905,400 = $286,437-1 The EDA Board requests for 2026 a levy of $286,437. THAT the City of Hutchinson hereby establishes a preliminary tax levy for the above named special taxing district of: $286,437 Adopted by the City Council this 23rd day of September, 2025. Gary T. Forcier Mayor ATTESTED: Matthew Jaunich City Administrator RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Resolution 15911 Approving the 2026 General Fund & Debt Service Agenda Item: Preliminary Tax Levies Department: Finance LICENSE SECTION Meeting Date: 9/23/2025 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 OFAGENDA ITEM: In accordance with State Statute, the City must certify a preliminary 2026 tax levy to the McLeod County auditor by September 30, for the General Fund and Debt Service Funds. The proposed preliminary tax levy of $10,133,941 reflects an overall City tax levy increase of 9.2%. This is based on a 11.3% levy increase to the General fund levy and 3.9% increase to the Debt levy. Combined with the EDA and HRA tax levies, the Total tax levy increase is 8.9%. The General fund expenses are preliminarily $965,228 higher than last year's expense budget, or a 6.1 % increase. Wages & Benefits is the largest factor, increasing $769,998. Major Assumptions: - Employee performance -based wage increase: $300,545 - (3% inflationary shift in pay grid) - Health premium increase (14% increase): $148,998 - Proposed IT position added (Mar 1 start): $78,604 - Waterpark/Recreation Center Manager: $86,150 - missed in the 2025 budget - Proposed new Public Works employee: $19,478 - (20% General fund / 80% Enterprise funds) - Election judges: $20,000 - every other year expense The budget for Services & Charges increased $119,494, largely due to critical repairs and maintenance contracts needed at the Civic Arena and Waterpark. BOARD ACTION REQUESTED: Approve the 2026 Preliminary General fund and Debt Service tax levy at $10,133,941. 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. 15911 2026 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 2026 is hereby set in the amount of: $10,133,941 The detail for this preliminary tax levy is as follows: General Fund Tax Abatement Total General Fund Tax Levy G.O. Improvement Special Assessment Bonds 2014 2015 2016 2017 2018 2019 2020 2021 2023 2024 2025 Subtotal G.O. Bonds 2021 & 2022 CIP Facility Bonds - Police 2021 Tax Abatement Bonds 2022 Street Reconstruction Bonds Subtotal Total Debt Tax Levy TOTAL PRELIMINARY TAX LEVY Adopted by the City Council this 23rd day of September, 2025. ATTESTED: Matthew Jaunich City Administrator Levy Amount $ 7,463,195 25,000 7,488,195 E 129,833 143,418 147,896 170,967 135,368 146,283 154,036 127,625 98,646 166,014 177,088 $ 1,597,174 $ 824,788 42,630 181,154 $ 1,048,572 $ 2,645,746 $ 10,133,941 Gary T. Forcier Mayor 2026 PRELIMINARY TAX LEVIES 2025 2026 Change % Chg General Fund 6,704,034 7,463,195 $759,161 11.3% Tax Abatement 25,000 25,000 - 0.0% Total General Fund 6,729,034 7,488,195 759,161 11.3% Debt Funds 2,547,379 2,645,746 98,367 3.9% Total City Tax Levy $%276,413 $10,1335941 $8575528 9.2% E DA Levy H RA Levy TOTAL TAX IMPACT 281,771 286,437 4,666 1.7% 170,000 173,000 3,000 1.8% $997289184 $1095939378 $8659194 8.9% PROJECTED DEBT LEVY $3,500,000 AL $3,000,000 $2,856,578 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 6,601 21,7 $ 7,6 97,3 64,9 89,219 0,5 2,3 6,8 521, 3 701, 3 $ 8,7 881, $2,645,746 $2,547,379 24,7 08, 3 $ 8 $ 3 $ 3 $ - - — - 16- — - - — 59,0 688, 80 $1 0 $ $ 8 _ 8 1 _ — —$1, 32 $1 8 - $1 $1 3 50 $1 $ 6,2 5 $ 10 $1 $1 70 $1 67 $1 643, 667, 648, 466, 8 $ 7 $ 57 $1 69,9 09— _$1 — - 02,8 65,1 , — 36,1 9 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Existing Levy =Future Roadway Improvements =New Police Facility — Total Debt Levy PROPOSED TAX IMPACT 2026 Tax Levy Options 2.50% Maintains PY Inflationary 8% Gen Fund Preliminary Adopted 2025 Flat Levy Tax Rate Levy Increase Levy Increase Tax Levy General Fund levy: 4.0% 0.0% 2.3% 2.0% 8.0% 11.3% Debt levy: 3.4% 0.0% 3.9% 3.9% 3.9% 3.9% TAX CAPACITY $16,410,588 $16,856,896 $16,856,896 $16,856,896 $16,856,896 $16,856,896 % Change 2.7% 2.7% 2.7% 2.7% 2.7% Tax Levy - General Fund $6,729,034 $6,729,034 $6,882,952 $6,862,577 $7,267,357 $7,488,195 Tax Levy - Debt Service 2,547,379 2,547,379 2,645,746 2,645,746 2,645,746 2,645,746 TOTAL LEVY $9,276,413 $9,276,413 $9,528,698 $9,508,323 $9,913,103 $10,133,941 Total Levy % Increase over 2025 0.0% 2.7% 2.5% 6.9% 9.2% Tax Rate 56.527% 55.030% 56.527% 56.406% 58.807% 60.117% Change in Tax Rate -1.497% 0.000% -0.121% 2.280% 3.590% Budget Cuts for Levy Scenario -$857,528 -$605,243 -$625,618 -$220,838 NIA City Tax Impact to Median Home Value Maintains PY Inflationary 8% Gen Fund Preliminary Adopted 2025 Flat Levy Tax Rate Levy Increase Levy Increase Tax Levy Median Home Value $275,000 $275,000 $275,000 $275,000 $275,000 $275,000 Homestead Exclusion -21,800 -21,800 -21,800 -21,800 -21,800 -21,800 Net Taxable Value $253,200 $253,200 $253,200 $253,200 $253,200 $253,200 Estimated City Tax $1,431 $1,393 $1,431 $1,428 $1,489 $1,522 Change from 2025 -$37 $1 -$2 $59 $92 % Change -2.6% 0.1% -0.1% 4.1% 6.4% 2026 General Fund Budget Preliminary Change from 2025 Budget 2023 Actual 2024 Actual 2025 Budget 2026 Budget Amount % Chg Revenues: Taxes 5,862,753 6,349,940 6,741,034 7,500,195 759,161 11.3 % 1 % levy increase = $67,290 Other Taxes 324,575 309,422 320,000 320,000 - 0.10 Licenses & Permits 366,841 419,628 415,725 423,125 7,400 1.8% Intergovernmental Revenue 1,893,496 2,162,020 2,166,525 2,134,671 (31,854) -1.5% Charges for Services 2,828,196 2,601,157 2,816,417 2,968,938 152,521 5.4% Fines & Forfeitures 52,141 50,809 55,000 55,000 - 0.10 Miscellaneous Revenues 650,297 632,663 382,400 410,400 28,000 7.3% Transfers -In 2,724,536 2,812,628 2,812,628 2,862,628 50,000 1.8% Total Revenues 14,702,835 15,338,266 15,709,729 16,674,957 965,228 6.1 % Expenses Wages & Benefits 9,701,018 10,044,590 10,542,600 11,312,598 769,998 7.3% Supplies 968,631 1,054,296 1,218,850 1,267,050 48,200 4.0% Services & Charges 2,710,727 3,042,430 3,022,832 3,142,326 119,494 4.0% Miscellaneous Expenses 360,932 362,360 379,905 378,825 (1,080) -0.3% Transfers -Out 488,622 517,031 545,542 574,158 28,616 5_2 Capital Outlay 32,218 4,000 0.10 Total Expenses 14,262,148 15,024,708 15,709,729 16,674,957 965,228 6.1 % Net Revenues 440,687 313,559 - - - Changein 2025-2026 % Chg Change in Revenues: Taxes General fund tax levy 759,161 11.3% Levy increase needed to balance Revenues with Expenses Other Taxes Cable TV Franchise Tax - 0.0% Seeing gradual drop in Cable TV franchise revenue Building Permits - 0.0% Licenses & Permits Moderate increases to various licenses 7,400 1.8% Mainly liquor and the new Cannabis and Chicken licenses 7,400 1.8% Intergovernmental Revenue Local Government Aid 4,296 0.2% Increased LGAwith 50-50 split with the Capital Projects fund Police & Fire Pension Aid - 0.0% Municipal State Aid for Streets (16,650) -0.8% State's TAA funding for street maintenance reduced from 2025 Federal & State grants (19,500) -0.9% Removed 2025 grants to fund new police armor Other budgetary changes 0.0% (31,854) -1.5% Charges for Services Engineering Fees 20,949 0.7% Fees to cover Engineering departmental expenses - impacts annual bonding Motor Vehicle Fees 23,000 0.8% Increased rates from the State Civic Arena -Fees & Rents 20,000 0.7% Increased usage and fee rates Campground Fees 5,000 0.2% Fee increases for campers Rentals -Building 10,000 0.4% User fee increases for the Recreation Center School Liaison Program 18,027 0.6% Contract increase for the school resource officer Special Events/Rentals - Waterpark 7,000 0.2% Fee increase Other Revenues 41,944 1.5% Increases to HUC reimbursements for Legal & IT services Other budgetary changes 6,601 0.2% 152,521 5.4% Miscellaneous Revenues Refunds & Reimbursements 10,000 2.6% Revenue fromthe School & HUC for Parks services Sponsorships & Contributions 18,000 4.7% Increases at various recreational facilities based on increasing costs 28,000 7.3% Transfers -In Transfer from Water/Sewer Fund 45,000 1.6% Increases based on increasing General fund Transfer from Compost Fund 5,000 0.2% expenditures that support the 50,000 1.8% Change in Expenses: Wages & Benefits Wage/Fringe merit increases effective 3/1/2025 64,297 Increases were in 2025 budget for 10 months but in 2026 budget for all 12 months Heath/Dental coverage changes 11,878 0.1% Various employee changes since 2025 budget was finalized New Fire Inspector for full year 17,952 0.2% Position was in 2025 budget effective 3/1/2025 New City Engineervs Engineering Technician 26,353 0.2% Difference in final position determined to be needed Waterpark/Rec Building Manager - not budgeted in 2025 86,150 0.8% Position wasn't budgeted in 2025 due to staff miscommunication in budget process Other changes due to retirements and resignations (20,227) -0.2% Various departments Changes from 2025 Budget Assumptions 186,403 1.8% Pay Grid Shift - 3% for Prelim 6,837 0.1 % Initial assumption of 3% to be reviewed by the Wage Committee Workers Compensation rates - 3% 6,841 0.1 % Assumed 3% increase in premium rates Health Insurance premium 15% increase assumption 148,998 1.4% Health Partners quoted 18%, hopeful we can negotiate lower Nice Healthcare increase - 5% estimate 1,634 0.0% Assumed 5 % increase in premium rates MN Paid Family Medical Leave 32,362 0.3% New State -run program starting Jan 1, 2026 Employee performance increase assumption 300,545 2.9% Based on average rating of "Exceeds Expectations' for all employees Proposed IT position (budgeted Mar 1 start date) 78,604 0.7% Request from IT due to increased workload including security and threat prevention Proposed Engineering/Pub Works position (20% Gen Fund) 19,478 0.2% Request to hire individual to assist PW alter John Paulson's resignation Wages & Benefits cont. Streets Dept retirement and assumed replacement Public Works employee allocation adjustments Adjust Seasonal Employee wages Election Judges Other minor adjustments 2026 Budget Assumptions TOTAL WAGES & BENEFITS Supplies Operating Supplies Change in 2025-2026 % Chg 10,026 0.1 % Replace retiring street employee - higher cost due to retiree being on single for benefits and assuming family coverage for new employee (12,213) -0.1 % Adjust allocations of new Public Works employees for Gen Fund & Enterprise Funds (22,009) -0.2% Adjusted various departments based on trends and for an "average" year 20,000 0.2% Elections held every other year (7,508) -0.1% Various departments 583,595 5.5 % 769,998 7.3% 60,900 5.0% Safety Supplies (14,100) -1.2% Motor Fuels & Lubricants (8,300) -0.7% Small Tools & Minor Equipment 13,700 1.1 % Building Repair Supplies (8,000) -0.7% Other budgetary changes 4,000 0.3% 48,200 4.0% Services & Charges Other Professional Services 17,165 1.4% Miscellaneous Transfers -Out Software & Licensing Police Body Cameras Contractual R&M Contracted Janitorial Equipment Rental Automotive R&M Other budgetary changes Other budgetary changes (28,861) -2.4% (31,000) -2.5% 138,500 11.4% (12,250) -1.0% 13,000 1.1% 11,750 1.0% 11,190 0.4% 119,494 4.0% (1,080) -0.3% $55,000 related to PRCE programs - Replace football equipment, increase in costs for mulch, landscape materials, benches, replace volleyball standards, replace indoor playground, new inner tubes & chairs for waterpark Removed the one-time budget in 2025 for new police armor Reduced police and fire amounts that were higher than past actuals & trends Increased cost of computers, need 2 new pickup truck plow blades for Parks new concession equipment at Roberts Park, new edger and zamboni parts at the Civic Arena Tempered the budget after 2025 increases to address recreational facility needs $15,000 added for the 2026 Compensation Study, 5% increase ($10.440) requested by Pioneerland for the library funding, small reductions to various depts 2025 budget included the initial cost to convert to the Microsoft 365 platform that won't be incurred for 2026 PD is looking to sign a new contract and use $50,000 of State Public Safety monies from the Capital Projects fund to buy down the contract rate Waterpark increase of $55,000 to realign the slides that have shifted, Civic Arena increase of $40,000 for various vendor contracts as staff cannot complete the technical and more complex maintenance needs Recreation Building is proposing to eliminate contract labor and hire a part-time employee to do custodial duties - tried contract labor after January 2025 retirement of former custodian and contract labor isn't as effective during the days. Newturftank lease for painting recreational field lines Anticipated, critical repairs to the existing fire ladder truck Minor reduction to Miscellaneous Expense and slight increase to dues (1,080) -0.3% Interfund Transfers 28,616 5.2% HATS funding increase ($3,616) and proposed Fleet Replacement increase ($25,000) 28,616 5.2% General Fund - Five Year Forecast Budget Forecast Forecast Forecast Forecast Forecast 2026 2027 2028 2029 2030 2031 REVENUES: Taxes $ 7,500,195 $ 7,925,374 $ 8,497,320 $ 9,039,900 $ 9,668,067 $ 10,242,676 Other Taxes 320,000 321,300 322,613 323,939 325,278 326,631 Licenses & Permits 423,125 423,125 423,125 423,125 423,125 423,125 Intergovernmental Revenue 2,134,671 2,143,720 2,152,950 2,162,365 2,171,969 2,181,765 Charges for Services 2,968,938 2,996,869 3,061,851 3,128,973 3,198,327 3,270,006 Fines & Forfeitures 55,000 55,000 55,000 55,000 55,000 55,000 Miscellaneous Revenues 410,400 414,676 419,038 423,486 428,024 432,652 Transfers -In 2,862,628 2,919,981 2,979,037 3,039,856 3,102,503 3,167,045 TOTAL REVENUES $16,674,957 $ 17,200,045 $ 17,910,934 $ 18,596,644 $ 19,372,293 $ 20,098,900 EXPENDITURES Wages & Benefits $ 11,312,598 $ 11,787,982 $ 12,366,329 $ 12,931,015 $ 13,568,090 $ 14,192,707 Supplies 1,267,050 1,284,932 1,317,847 1,340,136 1,374,372 1,397,783 Services & Charges 3,142,326 3,144,507 3,212,177 3,280,828 3,352,962 3,426,208 Miscellaneous Expenses 378,825 382,224 387,927 391,744 397,669 401,710 Transfers -Out 574,158 600,400 626,654 652,921 679,200 680,492 TOTAL EXPENDITURES $16,674,957 $ 17,200,045 $ 17,910,934 $ 18,596,644 $ 19,372,293 $ 20,098,900 NET REVENUES $ - $ - $ - $ - $ - $ - Estimated Tax Levy % Increase 11.3% 5.8% 7.2% 6.4% 6.9% 5.9% ncrease in Wages & Benefits 769,998 475,384 578,347 564,686 637,075 624,617 1% Tax Levy Increase 67,290 74,900 79,300 85,000 90,400 96,700 Tax Levy to Fund increase 11.4% 6.3% 7.3% 6.6% 7.0% 6.5% Estimated Prior Year Fund Balance 8,939,018 9,272,018 9,616,018 9,974,218 10,346,118 10,733,518 Estimated Surplus (2%) 333,000 344,000 358,200 371,900 387,400 402,000 Estimated Fund Balance 9,272,018 9,616,018 9,974,218 10,346,118 10,733,518 11,135,518 Fund Balance % 53.9% 53.7% 53.6% 53.4% 53.4% 52.8% City Policy: 40 % Working Capital 6,880,018 7,164, 374 7,438,658 7,748,917 8,039,560 8,441,538 Public Emergencies/Levy 10 % 1,720,005 1,791,093 1,859,664 1,937,229 2,009,890 2,110, 385 Excess Over 50% Minimum 671,996 660,551 675,896 659,972 684,068 583,596 2026 Preliminary Levy New IT employee Waterpark / Rec Center manager Higher health premium increase New engineer vs engineering technician State Paid Medical Leave program Levy net of abnormal activity 11.3% -1.2% -1.3% -1.1 % (forecast average 7.5% increase) -0.4% -0.5% (new for 2026) 6.9% (last year's 5-year forecast was a 6.3% levy increase) RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Approve/Deny Axon Contracts for Police Department Agenda Item: Department: Police Services LICENSE SECTION Meeting Date: 9/23/2025 Application Complete N/A Contact: Thomas D Gifferson Agenda Item Type: Presenter: Thomas D Gifferson Reviewed by Staff New Business 0 Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Requesting approval to enter into contracts with Axon Enterprises Inc. to provide Police Services with Officer Safety Plan and Police Fleet cameras for a 10 year period and also enter into contract to provide license plate readers (OUTPOST) for the same 10 year time frame. The following is a list of the equipment provided through Axon as a part of this agreement: Taser 10s for the licensed personnel, Body cameras for Licensed personnel and CSOs, Fleet cameras for the department's fleet, Software / licensing for users and use of Force Virtual Reality Training software and hardware. Contract length is for a period of 10 years. Axon Enterprises will honor the pricing from the current contract for the first year of this ten year contract. Axon OUTPOST contract provides 4 stationary license plate readers installed at four locations in the community. Contract length for OUTPOST is 10 years. Axon will provide the first year of the contract at no cost. The proposed contracts have been solicited through Sourcewell. Sourcewell is a cooperative purchasing entity that provides competitively solicited contracts that support compliant purchasing. The City of Hutchinson is a member of Sourcewell. BOARD ACTION REQUESTED: Recommend Approval Fiscal Impact: $1,141,997.40 Funding Source: General Fund FTE Impact: 0.00 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 AXON OFFICER SAFETY PLAN 10/PLUS (27) Axon Body 4 • Body cameralmounts/docking station/magnet charging cords • Full Coverage Warranty Refresh every 2.5 Years Free Upgrades at refresh Signal Connectivity - Fleet Cameras an d TAS ER 10 (27) TASE R 10's Handles/Batteries/Holsters/Docking Station • Unlimited Duty Cartridges Annual Training Cartridges Instructor Vouchers Full Warranty (5- or 10-years) VR Training (VR TASER/Headset/Software • New TASER 10s at 5-year mark (10Y only) Software (27) Evidence.com Pro Licenses Unlimited Storage Auto -Tagging Redaction Assistant Performance Community Request • Full VR (TASER, block, Community Engagement) f a� ` I "Low r Alit. f� Enterprise, Inc. 17800 N 85th St Scottsdale, Arizona 85255 United States VAT:86-0741227 Domestic:(800) 978-2737 International: +1.800.978.2737 SHIP TO BILL TO Hutchinson Police Department - MN Hutchinson Police Department - MN 10 FRANKLIN ST NW 2141st Ave NE HUTCHINSON, Hutchinson MN MN 55350-1614 55350-5541 USA USA Email: Quote Summary 0 I SALES REPRESENTATIVE I Kevin Pirehpour Phone: Email: kpirehpour@axon.com Fax Discount Summary Q-712304-4591 1 KP Quote Expiration: 09/15/2025 Account Number: 178706 Payment Terms: N30 Mode of Delivery: UPS-GND Credrf/DebitAmount: $0.00 PRIMARY CONTACT Adam Ament Phone:(320) 587-2242 Email: aament@hutchinsommn.gov Fax:(320) 587-6427 Program Length 120 Months Average Savings Per Year $52,338.09 TOTAL COST $1,102,295.08 TOTAL SAVINGS $523,380.90 ESTIMATED TOTAL WI TAX $1,102,295.08 Page 1 Q-712304-4591 1 KP Payment Summary Date Subtotal Tax Total Jan 2026 $86,904.71 $0.00 $86,904.71 Jan 2027 $112,810.29 $0.00 $112,810.29 Jan 2028 $112,810.29 $0.00 $112,810.29 Jan 2029 $112,908.05 $0.00 $112,908.05 Jan 2030 $112,810.29 $0.00 $112,810.29 Jan 2031 $112,810.29 $0.00 $112,810.29 Jan 2032 $112,810.29 $0.00 $112,810.29 Jan 2033 $112,810.29 $0.00 $112,810.29 Jan 2034 $112,810.29 $0.00 $112,810.29 Jan 2035 $112,810.29 $0.00 $112,810.29 $1,102,295.08 $1,102,295.08 Page 2 Q-712304-4591 1 KP Quote Unbundled Price: $1,625,729.80 Quote List Price: $1,274,011.00 Quote Subtotal: $1,102,295.08 Pricing All deliverables are detailed in Delivery Schedules section lower in proposal Item Description Qty Term Unbundled List Price Net Price Subtotal Tax Total Program 100553 TRANSFER BALANCE - SOFTWARE AND SERVICES 1 $1.00 $6,794.15 $6,794.15 $0.00 $6,794.15 100552 TRANSFER BALANCE - GOODS 1 $1.00 $21,219.53 $21,219.53 $0.00 $21,219.53 Fleet3ARe Fleet 3 Advanced Renewal 9 60 $203.01 $189.57 $173.77 $93,835.80 $0.00 $93,835.80 M00042 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 25 120 $425.46 $318.16 $282.71 $848,130.00 $0.00 $848,130.00 Fleet3ARe Fleet 3 Advanced Renewal 9 60 $231.35 $189.57 $41.91 $22,631.40 $0.00 $22,631.40 la Carte Software 11641 AXON FLEET - CRADLEPOINTNETCLOUDESSENTIALS 9 12 $213.00 $213.00 $1,917.00 $0.00 $1,917.00 RENEWAL -1YR 11641 AXON FLEET - CRADLEPOINTNETCLOUDESSENTIALS 9 15 $213.00 $213.00 $1,917.00 $0.00 $1,917.00 RENEWAL -1YR 11521 AXON FLEET -CRADLEPOINTNETCLOUDESSENTIALS 9 60 $1,065.00 $1,065.00 $9,585.00 $0.00 $9,585.00 RENEWAL -5YR 73447 AXON FUSUS - LICENSE - PLUS USER 25 120 $16.96 $16.96 $50,880.00 $0.00 $50,880.00 ProLicense Pro License Bundle 5 120 $54.52 $54.03 $32,418.00 $0.00 $32,418.00 BasicLicense Basic License Bundle 6 120 $18.17 $18.01 $12,967.20 $0.00 $12,967.20 A la Carte Services 11, 101208 AXON TASER 10 - 2 DAY INSTRUCTOR COURSE - INSIDE 1 $2,700.00 $0.00 $0.00 $0.00 $0.00 SALES 101186 AXON VR-PSO-VIRTUAL 1 $2,000.00 $0.00 $0.00 $0.00 $0.00 A la Carte Warranties 73390 AXON FLEET -CRADLEPOINTROUTER TRANSFERRED 9 33 $0.00 $0.00 $0.00 $0.00 $0.00 WARRANTY Total r $1,102,295.08 $0.00 $1,102,295.08 Delivery Schedule Hardware Bundle Item Description QTY Shipping Location Estimated Delivery Date BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100390 AXON TASER 10 - HANDLE - YELLOW CLASS 3R 25 2 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100394 AXON TASER 10 - MAGAZINE - HALT TRAINING BLUE 4 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100396 AXON TASER 10 - MAGAZINE - INERT RED 1 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100399 AXON TASER 10 - CARTRIDGE - LIVE 500 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100400 AXON TASER 10 - CARTRIDGE - HALT 250 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100401 AXON TASER 10 - CARTRIDGE - INERT 10 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100591 AXON TASER - CLEANING KIT 1 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100611 AXON TASER 10 - SAFARILAND HOLSTER - RH 25 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100623 ENHANCED HOOK -AND -LOOP TRAINING(HALT) SUIT 2 1 1 12/01/2025 Page 3 Q-712304-45911 KP Hardware Bundle Item Description QTY Shipping Location Estimated Delivery Date BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100681 AXON SIGNAL- SIDEARM SENSOR ONLY 25 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 101455 AXON TASER 10 - REPLACEMENT TOOL KIT - INTERPOSER BUCKET 1 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 101456 AXON TASER 10 -REPLACEMENT INTERPOSER BUCKET 1 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 101751 AXON VR - HEADSET - HTC FOCUS VISION 1 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 101755 AXON TASER 10 - MAGAZINE - LIVE DUTY BLACK V2 25 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 101757 AXON TASER 10 - MAGAZINE - LIVE TRAINING PURPLE V2 3 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 20018 AXON TASER - BATTERY PACK - TACTICAL 5 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 20018 AXON TASER - BATTERY PACK - TACTICAL 25 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 70033 AXON - DOCK WALL MOUNT - BRACKET ASSY 1 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 71019 AXON BODY - DOCK POWERCORD - NORTH AMERICA 1 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 71044 AXON SIGNAL- BATTERY - CR2430 SINGLE PACK 50 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 74200 AXON TASER - DOCK - SIX BAY PLUS CORE 1 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 80087 AXON TASER-TARGET- CONDUCTIVE PROFESSIONAL RUGGEDIZED 1 1 12/01/2025 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 80090 TASER - TARGET FRAME - PROFESSIONAL 27.5IN X 75 IN 1 1 12/01/2025 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100399 AXON TASER 10- CARTRIDGE- LIVE 80 1 12/01/2026 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100400 AXON TASER 10- CARTRIDGE- HALT 200 1 12/01/2026 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100399 AXON TASER 10- CARTRIDGE- LIVE 70 1 12/01/2027 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100400 AXON TASER 10 - CARTRIDGE - HALT 200 1 12/01/2027 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100399 AXON TASER 10 - CARTRIDGE - LIVE 80 1 12/01/2028 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100400 AXON TASER 10 - CARTRIDGE - HALT 200 1 12/01/2028 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 73309 AXON BODY - TAP REFRESH 1 - CAMERA 25 1 12/01/2028 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 73689 AXON BODY - TAP REFRESH 1 - DOCK MULTI BAY 4 1 12/01/2028 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100399 AXON TASER 10 - CARTRIDGE - LIVE 70 1 12/01/2029 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100400 AXON TASER 10 - CARTRIDGE - HALT 200 1 12/01/2029 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 73310 AXON BODY - TAP REFRESH 2 - CAMERA 25 1 12/01/2030 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 73688 AXON BODY - TAP REFRESH 2 - DOCK MULTI BAY 4 1 12/01/2030 Fleet 3 Advanced Renewal 72040 AXON FLEET- TAP REFRESH 1 - 2 CAMERA KIT 9 1 12/01/2030 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 20242 AXON TASER - CERTIFICATION PROGRAM YEAR 6-10 HARDWARE 25 1 06/01/2031 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 73345 AXON BODY - TAP REFRESH 3 - CAMERA 25 1 06/01/2033 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 73347 AXON BODY - TAP REFRESH 3 - DOCK MULTI BAY 4 1 06/01/2033 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 73346 AXON BODY - TAP REFRESH 4 - CAMERA 25 1 12/01/2035 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 73348 AXON BODY - TAP REFRESH 4 - DOCK MULTI BAY 4 1 12/01/2035 Fleet 3 Advanced Renewal 72040 AXON FLEET - TAP REFRESH 1 - 2 CAMERA KIT 9 1 12/01/2035 Software Bundle Item Description NIFUTY Estimated Start Date Estimated End Date Basic License Bundle 73683 AXON EVIDENCE - STORAGE -10GB A LA CARTE 6 01/01/2026 12/31/2035 Basic License Bundle 73840 AXON EVIDENCE - ECOM LICENSE - BASIC 6 01/01/2026 12/31/2035 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 101180 AXON TASER - DATA SCIENCE PROGRAM 25 01/01/2026 12/31/2035 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 101705 AXON FUSUS- LICENSE -PRO USER 25 01/01/2026 12/31/2035 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 20248 AXON TASER - EVIDENCE.COM LICENSE 1 01/01/2026 12/31/2035 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 20248 AXON TASER - EVIDENCE.COM LICENSE 25 01/01/2026 12/31/2035 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 20370 AXON VR-USER ACCESS - FULL VR 25 01/01/2026 12/31/2035 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 73449 AXONBODY- LICENSE - DEVICE CONNECTIVITY 25 01/01/2026 12/31/2035 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 73478 AXON EVIDENCE- REDACTION ASSISTANT USER LICENSE 25 01/01/2026 12/31/2035 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 73618 AXON COMMUNITY REQUEST 25 01/01/2026 12/31/2035 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 73638 AXONSTANDARDS- LICENSE 25 01/01/2026 12/31/2035 Page 4 Q-712304-45911 KP Software Bundle Item Description 11111111 QTY Estimated Start Date Estimated End Date BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 73682 AXON EVIDENCE -AUTO TAGGING LICENSE 25 01/01/2026 12/31/2035 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 73683 AXON EVIDENCE - STORAGE -10GB A LA CARTE 250 01/01/2026 12/31/2035 BUNDLE -OFFICER SAFETY PLAN 10PLUSISLE 10YR 73686 AXONEVIDENCE- STORAGE - UNLIMITED AXON DEVICE 25 01/01/2026 12/31/2035 BUNDLE -OFFICER SAFETY PLAN 10PLUSISLE 10YR 73739 AXON PERFORMANCE - LICENSE 25 01/01/2026 12/31/2035 BUNDLE -OFFICER SAFETY PLAN 10PLUSISLE 10YR 73746 AXON EVIDENCE -ECOMLICENSE -PRO 25 01/01/2026 12/31/2035 Fleet 3 Advanced Renewal 80400 AXON EVIDENCE- FLEET VEHICLE LICENSE 9 01/01/2026 12/31/2030 Fleet 3 Advanced Renewal 80401 AXON FLEET 3- ALPR LICENSE -1 CAMERA 9 01/01/2026 12/31/2030 Fleet 3 Advanced Renewal 80402 AXONFLEET- LICENSE - REAL-TIME LOCATION, ALERTS,& LIVESTREAM 9 01/01/2026 12/31/2030 Fleet 3 Advanced Renewal 80410 AXON EVIDENCE - STORAGE - FLEET 1CAMERA UNLIMITED 18 01/01/2026 12/31/2030 Pro License Bundle 73683 AXON EVIDENCE - STORAGE -10GB A LA CARTE 15 01/01/2026 12/31/2035 Pro License Bundle 73746 AXON EVIDENCE -ECOMLICENSE -PRO 5 01101/2026 12/31/2035 AlaCarte 73447 AXONFUSUS- LICENSE - PLUS USER 25 01/01/2026 12/31/2035 A la Carte 11521 AXON FLEET- CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -5YR 9 10/15/2028 10/14/2033 Fleet 3 Advanced Renewal 80400 AXON EVIDENCE- FLEET VEHICLE LICENSE 9 01/01/2031 12/31/2035 Fleet 3 Advanced Renewal 80401 AXON FLEET 3- ALPR LICENSE -1 CAMERA 9 01/01/2031 12/31/2035 Fleet 3 Advanced Renewal 80402 AXONFLEET- LICENSE - REAL-TIME LOCATION, ALERTS,& LIVESTREAM 9 01/01/2031 12/31/2035 Fleet 3 Advanced Renewal 80410 AXON EVIDENCE - STORAGE - FLEET 1 CAMERA UNLIMITED 18 01/01/2031 12/31/2035 A la Carte 11641 AXON FLEET- CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 10/15/2033 10/14/2034 AlaCarte 11641 AXON FLEET - CRADLEPOINTNETCLOUDESSENTIALS RENEWAL -1YR 9 10/15/2034 12/31/2035 Services Bundle Item Description QTY BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100751 AXON TASER 10 - REPLACEMENT ACCESS PROGRAM - DUTY CARTRIDGE 25 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 101184 AXON INVESTIGATE -TRAINING- OPERATOR AND EXAMINER 1 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 101193 AXON TASER- ON DEMAND CERTIFICATION 25 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 11642 AXON INVESTIGATE - THIRD PARTY VIDEO SUPPORT 25 Fleet 3 Advanced Renewal 73392 AXON FLEET 3 - INSTALLATION - UPGRADE (PER VEHICLE) 9 AlaCarte 101186 AXON VR-PSO-VIRTUAL 1 A la Carte 101208 AXON TASER 10 - 2 DAY INSTRUCTOR COURSE - INSIDE SALES 1 Warranties Bundle Item Description QTY Estimated Start Date Estimated End Date BUNDLE -OFFICER SAFETY PLAN 10PLUSISLE 10YR 80464 AXON BODY - TAP WARRANTY -CAMERA 25 01/01/2026 12/31/2035 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 80465 AXON BODY -TAP WARRANTY -MULTI BAY DOCK 4 01/01/2026 12/31/2035 Fleet 3 Advanced Renewal 80495 AXON FLEET 3 - EXT WARRANTY - 2 CAMERA KIT 9 01/01/2026 12/31/2030 A la Carte 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 9 01/01/2026 10/14/2028 BUNDLE -OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100197 AXON VR- EXT WARRANTY- HEADSET 1 12/01/2026 12/31/2035 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 100704 AXON TASER 10 - EXT WARRANTY - HANDLE 25 12/01/2026 12/31/2035 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 80374 AXON TASER - EXT WARRANTY - BATTERY PACK WHO 5 12/01/2026 12/31/2035 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 80374 AXON TASER - EXT WARRANTY - BATTERY PACK WHO 25 12/01/2026 12/31/2035 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 80396 AXON TASER - EXT WARRANTY - DOCK SIX BAY WHO 1 12/01/2026 12/31/2035 Fleet 3 Advanced Renewal 80495 AXON FLEET 3 - EXT WARRANTY - 2 CAMERA KIT 9 01/01/2031 12/31/2035 Page 5 Q-712304-45911 KP Shipping Locations Location Number Street city State Zip Country 1 10 FRANKLIN ST NW HUTCHINSON MN 55350-1614 USA 2 10 FRANKLIN ST NW HUTCHINSON MN 55350-1614 USA Payment Details Jan 2026 Invoice Plan Annual Payment 1 Item 101186 Descri ion AXON VR - PSO - VIRTUAL 1 Subtotal $0.00 Tax $0.00 $0.00 Annual Payment 1 101208 AXON TASER 10 - 2 DAY INSTRUCTOR COURSE - INSIDE SALES 1 $0.00 $0.00 $0.00 Annual Payment 1 11521 AXON FLEET - CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL - 5YR 9 $525.44 $0.00 $525.44 Annual Payment 1 11641 AXON FLEET-CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $105.09 $0.00 $105.09 Annual Payment 1 11641 AXON FLEET-CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $105.09 $0.00 $105.09 Annual Payment 1 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 9 $0.00 $0.00 $0.00 Annual Payment 1 73447 AXON FUSUS - LICENSE - PLUS USER 25 $2,789.19 $0.00 $2,789.19 Annual Payment 1 Basid-icense Basic License Bundle 6 $710.85 $0.00 $710.85 Annual Payment 1 Fleet3ARe Fleet 3 Advanced Renewal 9 $1,240.63 $0.00 $1,240.63 Annual Payment 1 Fleet3ARe Fleet 3 Advanced Renewal 9 $5,143.99 $0.00 $5,143.99 Annual Payment 1 M00042 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 25 $46,493.63 $0.00 $46,493.63 Annual Payment 1 Prol-icense Pro License Bundle 5 $1,777.12 $0.00 $1,777.12 Transfer Value 100552 TRANSFER BALANCE - GOODS 1 $21,219.53 $0.00 $21,219.53 Transfer Value 100553 TRANSFER BALANCE - SOFTWARE AND SERVICES 1 $6,794.15 $0.00 $6,794.15 Invoice Upon Fulfillment M00042 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 25 $0.00 $0.00 $0.00 Total $86,904.71 $0.00 $86,904.71 Jan 2027 Invoice Plan Item Description Subtotal Tax Total Annual Payment 2 101186 AXON VR - PSO - VIRTUAL 1 $0.00 $0.00 $0.00 Annual Payment 2 101208 AXON TASER 10 - 2 DAY INSTRUCTOR COURSE - INSIDE SALES 1 $0.00 $0.00 $0.00 Annual Payment 2 11521 AXON FLEET-CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL- 5YR 9 $1,006.52 $0.00 $1,006.52 Annual Payment 2 11641 AXON FLEET - CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Annual Payment 2 11641 AXON FLEET-CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Annual Payment 2 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 9 $0.00 $0.00 $0.00 Annual Payment 2 73447 AXON FUSUS - LICENSE - PLUS USER 25 $5,342.91 $0.00 $5,342.91 Annual Payment 2 Basid-icense Basic License Bundle 6 $1,361.69 $0.00 $1,361.69 Annual Payment 2 Fleet3ARe Fleet 3 Advanced Renewal 9 $2,376.52 $0.00 $2,376.52 Annual Payment 2 Fleet3ARe Fleet 3 Advanced Renewal 9 $9,853.69 $0.00 $9,853.69 Annual Payment 2 M00042 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 25 $89,062.15 $0.00 $89,062.15 Annual Payment 2 Prol-icense Pro License Bundle 5 $3,404.21 $0.00 $3,404.21 Total $112,810.29 $0.00 $112,810.29 Jan 2028 Invoice Plan Item Annual Payment 3 101186 Annual Pavment 3 101208 Page 6 AXON VR - PSO - VIRTUAL Tax Total 50.00 $0.00 50.00 $0.00 Q-712304-4591 1 KP Jan 2028 Invoice Plan Item Description Subtotal Tax Total Annual Payment 3 11521 AXON FLEET - CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -5YR 9 $1,006.52 $0.00 $1,006.52 Annual Payment 3 11641 AXON FLEET- CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Annual Payment 3 11641 AXON FLEET- CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Annual Payment 3 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 9 $0.00 $0.00 $0.00 Annual Payment 3 73447 AXON FUSUS - LICENSE - PLUS USER 25 $5,342.91 $0.00 $5,342.91 Annual Payment 3 Basid-icense Basic License Bundle 6 $1,361.69 $0.00 $1,361.69 Annual Payment 3 Fleet3ARe Fleet 3 Advanced Renewal 9 $9,853.69 $0.00 $9,853.69 Annual Payment 3 Fleet3ARe Fleet 3 Advanced Renewal 9 $2,376.52 $0.00 $2,376.52 Annual Pay ment 3 M00042 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 25 $89,062.15 $0.00 $89,062.15 Annual Pay ment 3 PmLicense Pro License Bundle 5 $3,404.21 $0.00 $3,404.21 Total 11M $112,810.29 $0.00 $112,810.29 Jan 2029 Invoice Plan Item Description Subtotal Tax Total Annual Payment 4 101186 AXON VR - PSO - VIRTUAL 1 $0.00 $0.00 $0.00 Annual Payment 4 101208 AXON TASER 10 - 2 DAY INSTRUCTOR COURSE - INSIDE SALES 1 $0.00 $0.00 $0.00 Annual Payment 4 11521 AXON FLEET - CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -5YR 9 $1,007.39 $0.00 $1,007.39 Annual Payment 4 11641 AXON FLEET - CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.48 $0.00 $201.48 Annual Payment 4 11641 AXON FLEET-CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.48 $0.00 $201.48 Annual Payment 4 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 9 $0.00 $0.00 $0.00 Annual Payment 4 73447 AXON FUSUS - LICENSE - PLUS USER 25 $5,347.54 $0.00 $5,347.54 Annual Payment 4 Basid-icense Basic License Bundle 6 $1,362.87 $0.00 $1,362.87 Annual Payment 4 Fleet3ARe Fleet 3 Advanced Renewal 9 $2,378.58 $0.00 $2,378.58 Annual Payment 4 Fleet3ARe Fleet 3 Advanced Renewal 9 $9,862.24 $0.00 $9,862.24 Annual Payment 4 M00042 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 25 $89,139.31 $0.00 $89,139.31 Annual Payment 4 PmLicense Pro License Bundle 5 $3,407.16 $0.00 $3,407.16 Total $112,908.05 $0.00 9112,908.05 Jan 2030 Invoice Plan Annual Payment 5 Item 101186 Description AXON VR - PSO - VIRTUAL 1 Subtotal $0.00 Tax $0.00 otal $0.00 Annual Payment 5 101208 AXON TASER 10 - 2 DAY INSTRUCTOR COURSE - INSIDE SALES 1 $0.00 $0.00 $0.00 Annual Payment 5 11521 AXON FLEET - CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL - 5YR 9 $1,006.52 $0.00 $1,006.52 Annual Payment 5 11641 AXON FLEET - CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Annual Payment 5 11641 AXON FLEET-CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Annual Payment 5 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 9 $0.00 $0.00 $0.00 Annual Payment 5 73447 AXON FUSUS - LICENSE - PLUS USER 25 $5,342.91 $0.00 $5,342.91 Annual Payment 5 Basid-icense Basic License Bundle 6 $1,361.69 $0.00 $1,361.69 Annual Payment 5 Fleet3ARe Fleet 3 Advanced Renewal 9 $2,376.52 $0.00 $2,376.52 Annual Payment 5 Fleet3ARe Fleet 3 Advanced Renewal 9 $9,853.69 $0.00 $9,853.69 Annual Payment 5 M00042 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 25 $89,062.15 $0.00 $89,062.15 Annual Payment 5 PmLicense Pro License Bundle 5 $3,404.21 $0.00 $3,404.21 Total $112,810.29 $0.00 $112,810.29 Jan 2031 Invoice Plan Description Qty Subtotal Tax Total Annual Payment 6 101186 AXON VR - PSO - VIRTUAL 1 $0.00 $0.00 $0.00 Annual Payment 6 101208 AXON TASER 10 - 2 DAY INSTRUCTOR COURSE - INSIDE SALES 1 $0.00 $0.00 $0.00 Annual Payment 6 11521 AXON FLEET - CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -5YR 9 $1,006.52 $0.00 $1,006.52 Annual Payment 6 11641 AXON FLEET-CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Page 7 Q-712304-45911KP Jan 2031 Invoice Plan Item Description Tax Total Annual Payment 6 11641 AXON FLEET- CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Annual Payment 6 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 9 $0.00 $0.00 $0.00 Annual Payment 6 73447 AXON FUSUS - LICENSE - PLUS USER 25 $5,342.91 $0.00 $5,342.91 Annual Payment 6 Basid-icense Basic License Bundle 6 $1,361.69 $0.00 $1,361.69 Annual Payment 6 Fleet3ARe Fleet 3 Advanced Renewal 9 $2,376.52 $0.00 $2,376.52 Annual Payment 6 Fleet3ARe Fleet 3 Advanced Renewal 9 $9,853.69 $0.00 $9,853.69 Annual Payment 6 M00042 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 25 $89,062.15 $0.00 $89,062.15 Annual Pay ment 6 ProLicense Pro License Bundle 5 $3,404.21 $0.00 $3,404.21 Invoice Upon Fulfillment Fleet3ARe Fleet 3 Advanced Renewal 9 $0.00 $0.00 $0.00 Total $112,810.29 $0.00 $112,810.29 Jan 2032 Invoice Plan Item Description City Subtotal Tax Total Annual Payment 7 101186 AXON VR - PSO - VIRTUAL 1 $0.00 $0.00 $0.00 Annual Payment 7 101208 AXON TASER 10 - 2 DAY INSTRUCTOR COURSE - INSIDE SALES 1 $0.00 $0.00 $0.00 Annual Payment 7 11521 AXON FLEET - CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -5YR 9 $1,006.52 $0.00 $1,006.52 Annual Payment 7 11641 AXON FLEET-CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Annual Payment 7 11641 AXON FLEET-CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Annual Payment 7 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 9 $0.00 $0.00 $0.00 Annual Payment 7 73447 AXON FUSUS - LICENSE - PLUS USER 25 $5,342.91 $0.00 $5,342.91 Annual Payment 7 Basid-icense Basic License Bundle 6 $1,361.69 $0.00 $1,361.69 Annual Payment 7 Fleet3ARe Fleet 3 Advanced Renewal 9 $2,376.52 $0.00 $2,376.52 Annual Payment 7 Fleet3ARe Fleet 3 Advanced Renewal 9 $9,853.69 $0.00 $9,853.69 Annual Payment 7 M00042 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 25 $89,062.15 $0.00 $89,062.15 Annual Payment 7 Totalr ProLicense Pro License Bundle 5 $3,404.21 $112,810.29 $0.00 $0.00 $3,404.21 $112,810.29 Jan 2033 Invoice Plan m Description Subtotal Tax Total Annual Payment 8 101186 AXON VR - PSO - VIRTUAL 1 $0.00 $0.00 $0.00 Annual Payment 8 101208 AXON TASER 10 - 2 DAY INSTRUCTOR COURSE - INSIDE SALES 1 $0.00 $0.00 $0.00 Annual Payment 8 11521 AXON FLEET - CRADLEPOINT NETCLOt1DESSENTIALS RENEWAL -5YR 9 $1,006.52 $0.00 $1,006.52 Annual Payment 8 11641 AXON FLEET-CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Annual Payment 8 11641 AXON FLEET - CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Annual Payment 8 73390 AXON FLEET-CRADLEPOINT ROUTER TRANSFERRED WARRANTY 9 $0.00 $0.00 $0.00 Annual Payment 8 73447 AXONFUSUS- LICENSE - PLUS USER 25 $5,342.91 $0.00 $5,342.91 Annual Payment 8 Basid-icense Basic License Bundle 6 $1,361.69 $0.00 $1,361.69 Annual Payment 8 Fleet3ARe Fleet 3 Advanced Renewal 9 $9,853.69 $0.00 $9,853.69 Annual Payment 8 Fleet3ARe Fleet 3 Advanced Renewal 9 $2,376.52 $0.00 $2,376.52 Annual Payment 8 M00042 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 25 $89,062.15 $0.00 $89,062.15 Annual Payment 8 ProLicense Pro License Bundle 5 $3,404.21 $0.00 $3,404.21 Total $112,810.29 $0.00 $112,810.29 Jan 2034 Invoice Plan Item Description Subtotal Tax Total Annual Payment 9 101186 AXON VR - PSO - VIRTUAL 1 $0.00 $0.00 $0.00 Annual Payment 9 101208 AXON TASER 10 - 2 DAY INSTRUCTOR COURSE - INSIDE SALES 1 $0.00 $0.00 $0.00 Annual Payment 9 11521 AXON FLEET - CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -5YR 9 $1,006.52 $0.00 $1,006.52 Annual Payment 9 11641 AXON FLEET - CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Annual Payment 9 11641 AXON FLEET - CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Page 8 Q-712304-45911KP Jan 2034 Invoice Plan Annual Payment 9 Item 73390 Description AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 9 $0.00 Tax $0.00 $0.00 Annual Payment 9 73447 AXON FUSUS - LICENSE - PLUS USER 25 $5,342.91 $0.00 $5,342.91 Annual Payment 9 Basid-icense Basic License Bundle 6 $1,361.69 $0.00 $1,361.69 Annual Payment 9 Fleet3ARe Fleet 3 Advanced Renewal 9 $2,376.52 $0.00 $2,376.52 Annual Payment 9 Fleet3ARe Fleet 3 Advanced Renewal 9 $9,853.69 $0.00 $9,853.69 Annual Payment 9 M00042 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 25 $89,062.15 $0.00 $89,062.15 Annual Payment 9 ProLicense Pro License Bundle 5 $3,404.21 $0.00 $3,404.21 Total $112,810.29 $0.00 $112,810.29 Jan 2035 Invoice Plan Item Description Subtotal Tax Total Annual Payment 10 101186 AXON VR-PSO-VIRTUAL 1 $0.00 $0.00 $0.00 Annual Payment 10 101208 AXON TASER 10 - 2 DAY INSTRUCTOR COURSE - INSIDE SALES 1 $0.00 $0.00 $0.00 Annual Payment 10 11521 AXON FLEET-CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL- 5YR 9 $1,006.52 $0.00 $1,006.52 Annual Payment 10 11641 AXON FLEET-CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Annual Payment 10 11641 AXON FLEET-CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL -1YR 9 $201.30 $0.00 $201.30 Annual Payment 10 73390 AXON FLEET - CRADLEPOINT ROUTER TRANSFERRED WARRANTY 9 $0.00 $0.00 $0.00 Annual Payment 10 73447 AXON FUSUS - LICENSE - PLUS USER 25 $5,342.91 $0.00 $5,342.91 Annual Payment 10 Basid-icense Basic License Bundle 6 $1,361.69 $0.00 $1,361.69 Annual Payment 10 Fleet3ARe Fleet 3 Advanced Renewal 9 $9,853.69 $0.00 $9,853.69 Annual Payment 10 Fleet3ARe Fleet 3 Advanced Renewal 9 $2,376.52 $0.00 $2,376.52 Annual Payment 10 M00042 BUNDLE - OFFICER SAFETY PLAN 10 PLUS ISLE 10YR 25 $89,062.15 $0.00 $89,062.15 Annual Payment 10 T ProLicense Pro License Bundle 5 $3,404.21 $112,810.29 $0.00 $0.00 $3,404.21 $112,810.29 Page 9 Q-712304-4591 1 KP Tax is estimated based on rates applicable at date of quote and subject to change at time of invoicing. If a tax exemption certificate should be applied, please submit prior to invoicing. Contract Sourcewell #101223-AXN is incorporated by reference into the terms and conditions of this Agreement. In the event of conflict the terms of Axon's Master Services and Purchasing Agreement shall govern. Standard Terms and Conditions Axon Master Services and Purchasing Agreement: ACEIP: Axon Enterprise Inc. Sales Terms and Conditions This Quote is limited to and conditional upon your acceptance of the provisions set forth herein and Axon's Master Services and Purchasing Agreement (posted at https://www.axon.com/sales-terms-and-conditions), as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview Room purchase, if applicable. In the event you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern to the extent it includes the products and services being purchased and does not conflict with the Axon Customer Experience Improvement Program Appendix as described below. The Axon Customer Experience Improvement Program Appendix, which includes the sharing of de -identified segments of Agency Content with Axon to develop new products and improve your product experience (posted at www.axon.com/legal/sales-terms-and-conditions), is incorporated herein by reference. By signing below, you agree to the terms of the Axon Customer Experience Improvement Program. Acceptance of Terms: Any purchase order issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you are lawfully able to enter into contracts. If you are signing on behalf of an entity (including but not limited to the company, municipality, or government agency for whom you work), you represent to Axon that you have legal authority to bind that entity. If you do not have this authority, please do not sign this Quote. Exceptions to Standard Terms and Conditions Page 10 0-712304-45911 KP Agency has existing contract(s) originated via Quote(s): Q-398714, Q-420903, Q-619988 Agency is terminating those contracts effective 1/1/2026 Any changes in this date will result in modification of the program value which may result in additional fees or credits due to or from Axon. The parties agree that Axon is applying a Net Transfer Debit of $28,013.68 100% discounted body -worn camera and docking station hardware contained in this quote reflects a TAP replacement for hardware purchased under existing quotes aforementioned above. All TAP obligations from this contract will be considered fulfilled upon execution of this quote. Signature 9/11 /2025 Date Signed Page 11 0-712304-45911KP Page 12 Q-712304-4591 1 KP Enterprise, Inc. 17800 N 85th St Scottsdale, Arizona 85255 United States VAT:86-0741227 Domestic:(800) 978-2737 International: +1.800.978.2737 SHIP TO BILL TO Hutchinson Police Department - MN Hutchinson Police Department - MN 10 FRANKLIN ST NW 2141st Ave NE HUTCHINSON, Hutchinson MN MN 55350-1614 55350-5541 USA USA Email: Quote Summary 0 I SALES REPRESENTATIVE I Kevin Pirehpour Phone: Email: kpirehpour@axon.com Fax Discount Summary Q-743386-4591 1 KP Quote Expiration: 09/15/2025 Account Number: 178706 Payment Terms: N30 Mode of Delivery: UPS-GND Credrf/DebitAmount: $0.00 PRIMARY CONTACT Adam Ament Phone:(320) 587-2242 Email: aament@hutchinsommn.gov Fax:(320) 587-6427 Program Length 120 Months Average Savings Per Year $3,970.23 TOTAL COST $115,560.00 TOTAL SAVINGS $39,702.32 ESTIMATED TOTAL WI TAX $115,560.00 Page 1 Q-743386-45911 KP Payment Summary L. Date Subtotal Total Mar 2027 $12,840.00 $0.00 $12,840.00 Mar 2028 $12,840.00 $0.00 $12,840.00 Mar 2029 $12,840.00 $0.00 $12,840.00 Mar 2030 $12,840.00 $0.00 $12,840.00 Mar 2031 $12,840.00 $0.00 $12,840.00 Mar 2032 $12,840.00 $0.00 $12,840.00 Mar 2033 $12,840.00 $0.00 $12,840.00 Mar 2034 $12,840.00 $0.00 $12,840.00 Mar 2035 $12,840.00 $0.00 $12,840.00 Total $115,560.00 $115,560.00 Page 2 Q-743386-45911 KP Quote Unbundled Price: $155,270.40 Quote List Price: $127,555.20 Quote Subtotal: $115,560.00 Pricing All deliverables are detailed in Delivery Schedules section lower in DroDosal Item Description Qty Term Unbundled List Price Net Price Subtotal Tax Total Program B00063 BUNDLE - OUTPOST WITH TAP 10YR 4 120 $323.48 $265.74 $240.75 $115,560.00 $0.00 $115,560.00 Total $115,560.00 $0.00 $115,560.00 Delivery Schedule Hardware Bundle BUNDLE-OUTPOSTWITH TAP 10YR Item 102032 Description AXONOUTPOST- CAMERA QTY 4 Shipping Location Estimated Delivery Date 1 03/01/2026 BUNDLE - OUTPOST WITH TAP 10YR 102126 AXON OUTPOST - EXTERNAL BATTERY 4 1 03/01/2026 BUNDLE - OUTPOST WITH TAP 10YR 102127 AXON OUTPOST - SOLAR PANEL 4 1 03/01/2026 BUNDLE - OUTPOST WITH TAP 10YR 102128 AXON OUTPOST - POLE 4 1 03/01/2026 BUNDLE - OUTPOST WITH TAP 10YR 102165 AXON OUTPOST - CAMERA MOUNT 4 1 03/01/2026 BUNDLE - OUTPOST WITH TAP 10YR 102134 AXON OUTPOST - TAP REFRESH ONE - BATTERY 4 1 09/01/2028 BUNDLE - OUTPOST WITH TAP 10YR 102144 AXON OUTPOST - TAP REFRESH ONE - CAMERA 4 1 03/01/2031 BUNDLE - OUTPOST WITH TAP 10YR 102160 AXON OUTPOST - TAP REFRESH TWO - BATTERY 4 1 03/01/2031 BUNDLE - OUTPOST WITH TAP 10YR 102184 AXON OUTPOST - TAP REFRESH THREE - BATTERY 4 1 09/01/2033 BUNDLE -OUTPOST WITH TAP 10YR 102145 AXON OUTPOST - TAP REFRESH TWO -CAMERA 4 1 03/01/2036 BUNDLE - OUTPOST WITH TAP 10YR 102185 AXON OUTPOST - TAP REFRESH FOUR - BATTERY 4 1 03/01/2036 Software Bundle Item Description QTY Estimated Start Date Estimated End Date BUNDLE -OUTPOST WITH TAP10YR 102142 AXON VEHICLE INTELLIGENCE - ALPRLICENSE 4 04/01/2026 03/31/2036 Services Bundle Item Description QTY BUNDLE -OUTPOST WITH TAP 10YR 102136 AXON OUTPOST- STANDARD INSTALLATION 4 BUNDLE -OUTPOST WITH TAP 10YR 102139 AXON OUTPOST- INTERNET ACCESS 4 BUNDLE -OUTPOST WITH TAP 10YR 102143 AXON OUTPOST- UPGRADE INSTALLATION 8 Warranties Bundle Item Description QTY Estimated Start Date Estimated End Date BUNDLE - OUTPOST WITH TAP 10YR 102161 AXON OUTPOST - EXT WARRANTY - EXTERNAL BATTERY 4 04/01/2026 03/31/2036 BUNDLE -OUTPOST WITH TAP 10YR 102135 AXON OUTPOST -EXTWARRANTY -CAMERA 4 03/01/2027 03/31/2036 BUNDLE -OUTPOST WITH TAP 10YR 102137 AXONOUTPOST- MAINTENANCE 4 03/01/2027 03/31/2036 Page 3 Q-743386-45911 KP Shipping Locations Location Number Street city State Zip Country 1 10 FRANKLIN ST NW HUTCHINSON MN 55350-1614 USA Payment Details Mar 2027 Invoice Plan Item Description Qry Subtotal Tax Total Annual Payment 1 B00063 BUNDLE - OUTPOST WITH TAP 10YR 4 $12,840.00 $0.00 $12,840.00 Total $12,840.00 $0.00 $12,840.00 Mar 2028 Invoice Plan Item Description MY Subtotal Tax Total Annual Payment 2 B00063 BUNDLE - OUTPOST WITH TAP 10YR 4 $12,840.00 $0.00 $12,840.00 Total $12,840.00 $0.00 $12,840.00 Mar 2029 Invoice Plan Item Description MY Subtotal Tax Total Annual Payment 3 B00063 BUNDLE - OUTPOST WITH TAP 10YR 4 $12,840.00 $0.00 $12,840.00 Total $12,840.00 $0.00 $12,840.00 Mar 2030 Invoice Plan Item Description Qty Subtotal Tax Total Annual Payment 4 B00063 BUNDLE - OUTPOST WITH TAP 10YR 4 $12,840.00 $0.00 $12,840.00 Total $12,840.00 $0.00 $12,840.00 Mar 2031 Invoice Plan Item Description MY Subtotal Tax Total Annual Payment 5 B00063 BUNDLE - OUTPOST WITH TAP 10YR 4 $12,840.00 $0.00 $12,840.00 Total $12,840.00 $0.00 $12,840.00 Mar 2032 Invoice Plan Item Description MY Subtotal Tax Total Annual Payment 6 B00063 BUNDLE - OUTPOST WITH TAP 10YR 4 $12,840.00 $0.00 $12,840.00 Total $12,840.00 $0.00 $12,840.00 Mar 2033 Invoice Plan Item Description MY Subtotal Tax Total Annual Payment 7 B00063 BUNDLE - OUTPOST WITH TAP 10YR 4 $12,840.00 $0.00 $12,840.00 Total $12,840.00 $0.00 $12,840.00 Page 5 Q-743386-4591 1 KP Mar 2034 Invoice Plan Item Description MY Subtotal Tax Total Annual Payment 8 B00063 BUNDLE - OUTPOST WITH TAP 10YR 4 $12,840.00 $0.00 $12,840.00 Total $12,840.00 $0.00 $12,840.00 Mar 2035 Invoice Plan Item Description MY Subtotal Tax Total Annual Payment 9 B00063 BUNDLE - OUTPOST WITH TAP 10YR 4 $12,840.00 $0.00 $12,840.00 Total $12,840.00 $0.00 $12,840.00 Page 6 Q-743386-45911 KP Tax is estimated based on rates applicable at date of quote and subject to change at time of invoicing. If a tax exemption certificate should be applied, please submit prior to invoicing. Contract Sourcewell #101223-AXN is incorporated by reference into the terms and conditions of this Agreement. In the event of conflict the terms of Axon's Master Services and Purchasing Agreement shall govern. Standard Terms and Conditions Axon Master Services and Purchasing Agreement: ACEIP: Axon Enterprise Inc. Sales Terms and Conditions This Quote is limited to and conditional upon your acceptance of the provisions set forth herein and Axon's Master Services and Purchasing Agreement (posted at https://www.axon.com/sales-terms-and-conditions), as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview Room purchase, if applicable. In the event you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern to the extent it includes the products and services being purchased and does not conflict with the Axon Customer Experience Improvement Program Appendix as described below. The Axon Customer Experience Improvement Program Appendix, which includes the sharing of de -identified segments of Agency Content with Axon to develop new products and improve your product experience (posted at www.axon.com/legal/sales-terms-and-conditions), is incorporated herein by reference. By signing below, you agree to the terms of the Axon Customer Experience Improvement Program. Acceptance of Terms: Any purchase order issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you are lawfully able to enter into contracts. If you are signing on behalf of an entity (including but not limited to the company, municipality, or government agency for whom you work), you represent to Axon that you have legal authority to bind that entity. If you do not have this authority, please do not sign this Quote. Page 7 0-743386-45911KP Signature 9/11 /2025 Date Signed Page 8 Q-743386-4591 1 KP RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration of first reading to Rezone a property from R-1 to R-2 at 955 Golf Agenda Item: Course Rd NW. Department: Planning LICENSE SECTION Meeting Date: 9/23/2025 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: RAM General Contracting, Inc has submitted a rezoning application at 955 Golf Course Road NW. The property is currently zoned R-1. There are adjacent properties that are zoned R-2. To operate the memory care facility a Conditional Use Permit would be required under the R-2 Zoning District. The proposal is for a 20-unit memory care facility. The Planning Commission held a public hearing on this request on September 16th. Two members of the public had questions about the request. One question was related to drainage on properties to the north of the proposed site and if the drainage would be altered with this request. Staff noted that the plan is for the existing drainage to continue as is. Another resident asked about the process for a rezoning and about permitted and conditionally permitted uses in the R-2 zoning district. Staff explained the zoning ordinance. There were also questions regarding the elevation of the site. The Planning Commission voted unanimously (5-0) to recommend approval of the rezoning. BOARD ACTION REQUESTED: Approval of first reading of rezoning. 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 PUBLICATION NO. 8590 ORDINANCE NO. 25-861 AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, TO REZONE PROPERTY AT 955 GOLF COURSE RD NW. THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS: Section 1. Notice of hearing was duly given, and publication of said hearing was duly made and was made to appear to the satisfaction of the City Council that it would be in the best interest of the City to rezone the property from R-1 to R-2. Section 2. That the property to be rezoned to R-2 is the following address and legal description: 955 Golf Course Rd NW (That part of the tract described below being part of the Northeast Quarter of the Northwest Quarter of Section 36, Township 117, Range 30, McLeod County, Minnesota, lying northerly of a Line hereinafter referred to as Line A. Beginning at the Southeast corner of the Northeast quarter of the Northwest quarter (NE 1/4 of NW 1/4) of Section36, Township 117, Range 30; thence West 1 chain, thence North 31 1/2 degrees West 4 and 1/2 chains, thence North 24 1/2 degrees West 8 chains, thence North 11 degrees West 7.93 chains to the Section line; thence East 8.65 chains, thence South 20 chains to the place of beginning, containing 11 acres, more or less, McLeod County Minnesota, EXCEPTING THEREFROM all the land described as Parcels No. 2 and 2A of Right -of -Way Plat No. 4. Line A, described as follows: Commencing at the northeast corner of said Northwest Quarter of said Section 36, thence southerly along the east line of said Northwest Quarter 650.59 feet tot eh point of beginning of said Line A; thence southwesterly, deflecting to the right 59 degrees 25 minutes 09 seconds a distance of 385.63 feet, more or less, to the westerly line of the above described tract and said Line A there terminating. This tract contains 8.48 acres, more or less, and is subject to any and all easements of record. Section 3. This ordinance shall take effect from and after passage and publication. Adopted by the City Council this 14th day of October, 2025. ATTEST: Matthew Jaunich, City Administrator Gary T. Forcier, Mayor r no A CITY ON PURPOSE. DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan 7ochum, AICP Date: September 16, 2025 Application: Consideration of Rezoning a property from R-1 to R-2 and a Site Plan Review for a 20-unit memory care facility located at 955 Golf Course Rd NW. Applicant: RAM General Contracting, Inc. Owner: Bullert Revocable Family Trust Site Plan Review: RAM General Contracting, Inc has submitted a rezoning application and site plan for the northern portion of the property located at 955 Golf Course Road NW. The property is currently zoned R- 1. There are adjacent properties that are zoned R-2. To operate the memory care facility a Conditional Use Permit would be required under the R-2 Zoning District. The proposal is for a 20-unit memory care facility. - - '%e -a'n Fac sc rihed 1n Ihis nchce F PARCEL A 955 - PARCEL B 951 GENERAL INFORMATION Existing Zoning: R-1 Residential Property Location: 955 Golf Course Road NW Existing Land Use: Vacant Adjacent Land Use/Zoning: Residential Zoning History: Parcel was part of the Bullert property and has been used for Ag/hay or has been open space. Applicable Regulations: Sections 154.173 and 154.174 of City Code Rezoning: The property is currently zoned R-1 Low Density Residential. R-1 has several Conditional Uses that are similar in intensity to a memory care facility, such as churches and schools. The R-2, Medium Density Residential District, allows single-family and two-family homes as permitted uses. Conditional Uses in the R-2 Zoning District are all conditional uses allowed in the R-1 Zoning District, as well as licensed day care centers, licensed nursing homes, and licensed boarding houses for the elderly. The first step for this project to move forward is for the property to be rezoned from R-1 to R-2. If that is approved and the site plan is approved the applicant could apply for a Conditional Use Permit for a licensed nursing home for the memory care facility. Approving the rezoning does not guarantee the Conditional Use Permit will be approved. Staff has reviewed the rezoning request and recommends the property be rezoned to R-2. There are properties on both the east and west side of the subject property that are currently zoned R- 2. Site Plan: The City Council deems it is necessary and appropriate to require site plan approval of developments in certain zoning districts to preserve and promote attractive, well -planned, stable urban conditions. The following is an overview of site plan considerations. Please note, the full engineered site plans are attached following this report. Site The site is approximately 8.48 acres and is one large lot. There is a large wetland on the site that is not going to be impacted with this proposed development. The proposed memory care building will be constructed in the open meadow area to the south of the wetland and north of the wooded area. The site plan currently has one access point off Golf Course Road NW and a parking lot surrounding the building. Building: The building (see below) is proposed to be a one-story "farmhouse" themed building that is approximately 14,000 square feet in size. The main entrance will face south. The building is Jill III 111MINNIMEN lini MENIMMIN ullimm . . . . . . . . . . . . I!I'II 11LIF4.11 ilm11111111 11111II�111111111111�11uui ............ - - - -- - - - - - - - - - - - - - - - - - - - Parking/Access/Circulation The Parking lot has 34 parking stalls which is more than required by city code. City code requires .35 parking stalls per bed. This facility has 20 beds which would require seven parking stalls plus stalls for staff. Snow storage is also a consideration for the size of the parking lot because in the winter piles of snow take up some of the spaces. Staff is comfortable with the 34 spaces that are being proposed. Please see redlined plans following staff report by City Engineer Braithwaite. Landscaping and Lighting_ Final landscaping and lighting plans will need to be submitted with the building permit and meet the requirements of the zoning ordinance. Per the zoning ordinance, lighting installed must be indirect and shall not produce glare on adjacent properties or public right of ways. Utilities The utilities for the site will come off Golf Course Road NW. The sanitary sewer is located to the south of the proposed site in the Golf Course Road NW right-of-way. The water is also located in the road right-of-way. The site can also be serviced with electric and natural gas services from Hutchinson Utilities. Stormwater Management: There are two stormwater ponds shown on the site plan. Detailed stormwater calculations will be needed with the building permit submittal if this project were to move forward. Please see redlined plans following staff report by City Engineer Braithwaite. Future Approvals Needed As noted above, if the rezoning is approved the project will still require a Conditional Use Permit to be granted to move forward. Recommendation: Staff recommends approval of the rezoning and site plan with the following items to be addressed: 1. A Conditional Use Permit is needed for the proposed project. 2. Any reconstruction of existing infrastructure within City of Hutchinson right of way or easement areas shall be the developer's responsibility, including necessary improvements and associated costs. This work shall meet all of the City's engineering standards and be approved by the City. 3. The City of Hutchinson must be notified 7 days prior to any roadway or utility work that is going to be done within the City right of way. If the proposed work impacts roadway traffic flow, a traffic plan must be submitted to the City Engineer for approval. All roadway work must be fully completed to City standards within 10 calendar days of the original disturbance. If the work isn't fully completed within 10 calendar days, the City reserves the right to have the work completed and invoice/assess the property owner for all associated costs. 4. Work with City staff to determine if a second site access is needed off School Road NW to meet fire code/provide the site with better access. Address redline comments on site plan marked up by the City of Hutchinson to City satisfaction. RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration of first reading to Rezone properties from R-1 to R-3 located at Elk Agenda Item: Ridge Estates. Department: Planning LICENSE SECTION Meeting Date: 9/23/2025 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: BAR Properties, LLC (Brent Reiner) has applied for a rezoning the property in Elk Ridge Estates from R-1 to R-3. This application was supposed to go along with the Final Plat of Elk Ridge Estates, however was not included with the final plat approval process. The discussion with the developer and the Planning Commission/City Council during the platting process was that this property would be rezoned to R-3. The existing development to the North, South and West is zoned R-2. The majority of the Southwind development to the west of Elk Ridge Estates is zoned R-3. The zoning and the use of the land as single-family homes and duplexes is consistent with the Comprehensive Plan. Nobody from the public spoke regarding this request. The Planning Commission voted unanimously to recommend approval of this rezoning. BOARD ACTION REQUESTED: Approval of first reading of rezoning ordinance. 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 PUBLICATION NO.8591 ORDINANCE NO. 25-862 AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, TO REZONE PROPERTY AT ELK RIDGE ESTATES. THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS: Section 1. Notice of hearing was duly given, and publication of said hearing was duly made and was made to appear to the satisfaction of the City Council that it would be in the best interest of the City to rezone the property from R- I to R-3. Section 2. That the property to be rezoned to R-3 is the following address: Elk Ridge Estates (Lots 1-14 , Block 1 Elk Ridge Estates; Lots 1-13, Block 2, Elk Ridge Estates; Lots 1-8, Block 3, Elk Ridge Estates; Outlot A, Elk Ridge Estates and Outlot B, Elk Ridge Estates Section 3. This ordinance shall take effect from and after passage and publication. Adopted by the City Council this 14th day of October, 2025. ATTEST: Matthew Jaunich, City Administrator Gary T. Forcier, Mayor HUTCHINSON A CITY ON PURPOSE. DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan 7ochum, AICP Date: September 16, 2025 Application: Consideration of Rezoning properties from R-1 to R-3 located at Elk Ridge Estates. Applicant: BAR Properties, LLC Owner: BAR Properties, LLC REZONING REQUEST: BAR Properties, LLC (Brent Reiner) has applied for a rezoning the property in Elk Ridge Estates from R-1 to R-3. This application was supposed to go along with the Final Plat of Elk Ridge Estates, however was not included with the final plat approval process. The discussion with the developer and the Planning Commission/City Council during the platting process was that this property would be rezoned to R-3. The existing development to the North, South and West is zoned R-2. The majority of the Southwind development to the west of Elk Ridge Estates is zoned R-3. The zoning and the use of the land as single- family homes and duplexes is consistent with the Comprehensive Plan. 1 cafes property c;scrimd in this ndtce rA �T Existing Zoning: Property Location: Existing Land Use: Adjacent Land Use and Zoning: Comprehensive Land Use Plan: Zoning History: Applicable Regulations: Rezoning Consideration: GENERAL INFORMATION R-1 Low Density Residential Elk Ridge Estates Subdivision Vacant - residential Residential Residential Property was annexed to the City in early 2025. Sections 154.173 of the City Code In considering a rezoning request, the Planning Commission should review the proposed rezoning for consistency with the surrounding area, City Plans and the purpose of the Zoning Ordinance. As noted above, the adjacent properties are zoned R-2, with some R-1 on the northern and eastern border of the development. There is a significant amount of R-3 just a short distance west of this development in the Southwind Development, as well as R-3 to the east in the South Fork Ridge Development. The land use proposed in Elk Ridge Estates is single-family and twin homes. The R-3 zoning district is the best zoning district to accommodate the lot sizes and setbacks that were proposed during the platting process. Staff Recommendations: Staff recommends rezoning the property from R-1 to R-3 for the reasons noted above. Staff recommends approval of the request with the following findings and recommendations: 1. The rezoning is consistent with the character of the surrounding area. 2. The rezoning is consistent with the comprehensive plan. 3. The property is proposed to be developed into single-family homes and twin homes. HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Agenda Item: Ordinance No. 25-863 - Granting Franchise Extension with Mediacom Department: Legal LICENSE SECTION Meeting Date: 9/23/2025 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff ❑ New Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The current cable TV franchise ordinance that the City has with Mediacom expired on August 31, 2025. Earlier this year, the City retained the law firm of Kennedy and Graven who negotiated the current telecommunications ordinance agreement that we have with Mediacom and the negotiations with Mediacom are ongoing. It is expected that the new franchise agreement with Mediacom will be ready for approval by the City Council by December 31, 2025. I'm asking that the City Council approve the short-term extension of the existing agreement so that the City's right of way infrastructure can be protected and so that HCVN (whom gets its revenue through this franchise agreement) can still continue to receive payments through the end of the year. BOARD ACTION REQUESTED: Approve first reading of Ordinance No. 25-863 Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON ORDINANCE NO.25-863 AN ORDINANCE GRANTING MEDIACOM MINNESOTA LLC A FRANCHISE EXTENSION THROUGH DECEMBER 31, 2025 WHEREAS, the City of Hutchinson ("City") and Mediacom Minnesota LLC ("Grantee") entered into a cable communications franchise, Ordinance No. 10-0545, with an effective date of August 4, 2010 ("Franchise") for the construction and operation of a cable communications system in the City, and; WHEREAS, the City and Grantee wish to extend the term of the Franchise until December 31, 2025. NOW, THEREFORE, the City ordains as follows: Section 1. Extension of Franchise. The term of the Franchise is hereby amended to expire on December 31, 2025. Section 2. Reservation of Rights. Subject to applicable law, all other terms and conditions of the Franchise shall remain in full force and effect and neither party waives any rights it may have pursuant to applicable law. Section 3: Effective Date. This Ordinance shall be effective upon its passage and publication in accordance with applicable law and its written acceptance by Grantee. Adopted this day of 52025. ATTEST: City Clerk CITY OF HUTCHINSON Mayor GRANTEE ACCEPTANCE: The Ordinance is accepted, and Grantee agrees to be bound by its terms and conditions. MEDIACOM MINNESOTA LLC IIn Its: Dated: HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Agenda Item: Ordinance No. 25-864 - Granting Franchise Extension with Nuvera Department: Legal LICENSE SECTION Meeting Date: 9/23/2025 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff ❑ New Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The current cable TV franchise ordinance that the City has with Nuvera expired on September 22, 2025. Earlier this year, the City retained the law firm of Kennedy and Graven who negotiated the current telecommunications ordinance agreement that we have with Nuvera and the negotiations with Nuvera are ongoing. It is expected that the new franchise agreement with Nuvera will be ready for approval by the City Council by December 31, 2025. I'm asking that the City Council approve the short-term extension of the existing agreement so that the City's right of way infrastructure can be protected and so that HCVN (whom gets its revenue through this franchise agreement) can still continue to receive payments through the end of the year. BOARD ACTION REQUESTED: Approve first reading of Ordinance No. 25-864 Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON ORDINANCE NO.25-864 AN ORDINANCE GRANTING NEW ULM TELECOM, INC. A FRANCHISE EXTENSION THROUGH DECEMBER 31, 2025 WHEREAS, the City of Hutchinson ("City") and New Ulm Telecom, Inc. ("Grantee") entered into a cable communications franchise, Ordinance No. 15-7475, with an effective date of September 22, 2015 ("Franchise") for the construction and operation of a cable communications system in the City, and; WHEREAS, the City and Grantee wish to extend the term of the Franchise until December 31, 2025, NOW, THEREFORE, the City ordains as follows: Section 1. Extension of Franchise. The term of the Franchise is hereby amended to expire on December 31, 2025. Section 2. Reservation of Rights. Subject to applicable law, all other terms and conditions of the Franchise shall remain in full force and effect and neither party waives any rights it may have pursuant to applicable law. Section 3: Effective Date. This Ordinance shall be effective upon its passage and publication in accordance with applicable law and its written acceptance by Grantee. Adopted this day of 52025. ATTEST: City Clerk CITY OF HUTCHINSON Mayor GRANTEE ACCEPTANCE: The Ordinance is accepted, and Grantee agrees to be bound by its terms and conditions. NEW ULM TELECOM, INC. IIn Its: Dated: RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Setting the Date for the Annual City Recognition Event/Set Public Meeting Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 9/23/2025 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: On an annual basis, the City conducts an event to recognize the employees and volunteers who serve the City of Hutchinson. The last few years, the City Administrator has provided a "State of the City" report to those attending. This event is normally held in the fall of the year at the Hutchinson Event Center. Invited attendees and an adult guest are provided with a complimentary meal. The format for the 2025 event is proposed as follows: 5:30 p.m. Check -in and social time 6:30 p.m. Dinner 7:15 p.m. State of the City presentation/program by City Administrator Jaunich to acknowledge and to thank current employees, recent retirees, and the volunteer board and commission members, and to highlight any notable departmental and employee achievements throughout the past year. The date proposed for the event is Thursday, November 6, 2025. It is requested that the Council set a date for the event, set it as a public meeting for the Council, and approve the proposed event format. BOARD ACTION REQUESTED: Consideration of setting the date for the annual City Recognition Event for November 6, 2025, from 5:30 to 8:30 p.m. at the Hutchinson Event Center and setting the event as a public meeting for the Council members to attend. 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 RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Approve Rescheduling of the November 11 City Council Meeting Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 9/23/2025 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 OFAGENDA ITEM: Our first meeting in November falls on November 11, which is Veterans Day. State law does not allow public business to take place on legal holidays. Because of this, we are in need of rescheduling that meeting. Staff is proposing to reschedule the meeting to Wednesday, November 12 at 5.30 p.m. There is a school board meeting that Monday, November 10, so that won't work. If the 12th doesn't work for the City Council, then staff would recommend Thursday, November 13 at 5.30 p.m. BOARD ACTION REQUESTED: Approve Rescheduling of the November 11 City Council Meeting 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 RA HUTCHINSON CITY COUNCIL HUTCHINSON 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: 9/23/2025 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 OFAGENDA 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 25 and before December 29 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. However, the County Board is hosting their hearing this year on the first Tuesday in December. Noting that, I would recommend that we host ours on Thursday, December 4. The School District will likely have theirs at a regular meeting date (Monday nights). If the 4th doesn't work, I would recommend Tuesday, December 2 or to conduct it during our regular council meeting on December 9. BOARD ACTION REQUESTED: Approve setting the Truth -in -Taxation Hearing date and time for Thursday, December 4 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 111 Hassan Street SE HRA Hutchinson, MN 55350 Website: www.hutchinsonhra.com HUTCHINSON HOUSING AND (320) 234-4251 (320) 234-4240 Fax REDEVELOPMENT AUTHORITY Hutchinson HRA Regular Board Meeting May 20, 2025 Minutes 1. CALL TO ORDER — 7:00 a.m. — Chair Renee Lynn Johnson-Kotlarz called the meeting to order at approximately 7:00 a.m. Other members present: Robin Kashuba; Dan Masog; Gary Forcier, Mayor Members absent: Peggy Godina Others present; Judy Flemming, Executive Director; John Olson, HRA Technician 2. Motion by Masog, second by Kashuba to approve the Hutchinson HRA Regular Board Meeting agenda and any agenda additions and/or corrections, unanimous approval. 3. PUBLIC COMMENTS — No citizens addressed the HHRA Board of Commissioners 4. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON APRIL 15, 2025 Motion by Kashuba, second by Masog to approve regular meeting minutes as presented, unanimous approval. 5. FINANCIAL REPORTS a. City Center: 1) Consideration of City Center General Fund payments of $10,629.98 for checks 9518 to 9522 and the 5/13/2025 Visa Bill payment 2) Consideration of City Center April 2025 Financial Statements Motion by Kashuba, second by Masog to approve City Center payments and April 2025 financial statement, unanimous approval. b. Park Towers: 1) Consideration of Park Towers Operating Account payments of $54,840.70 for checks 16680 to16712, and the 5/13/2025 Visa Bill payment 2) Consideration of Park Towers Security Deposit Account payment of $350 for checks 1635 3) Consideration of Park Towers April 2025 Financial Statements Motion by Masog, second by Kashuba to approve Park Towers payments and April 2025 financial statements, unanimous approval. 6. PARK TOWERS a. Park Towers May Newsletter b. Park Towers Vacancy Report. Flemming described situations surrounding several "notice to vacate" letters that have been given. c. Operation Update 1) PIH Closeout Update 'Mmns�, HRA HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY 111 Hassan Street SE Hutchinson, MN 55350 Website: www.hutchinsonhra.com (320) 234-4251 (320) 234-4240 Fax 2) 2025 Building Improvement Projects: a) Leadership Spring Cleanup b) Consideration of Approval for the intercom update by Integrated Fire & Security Proposal for $1,750 Motion by Forcier, second by Kashuba to approve intercom project, unanimous approval. c) Consideration of Approval for the Total Unit Smoke Alarm Replacement project award to Northern Electrical Solutions, LLC for $20,891.65. Flemming disclosed that the Northern Electrical Solutions, LLC proposal was submitted by Nick Steinhaus, husband of Megan Steinhaus, Housing Specialist. The board discussed the circumstances of the proposed transaction, concluding there is no conflict of interest. Motion by Kashuba, second by Masog to approve smoke alarm replacement project, unanimous approval. 6. PROGRAM UPDATES a. Downtown Rental Rehab Program Flemming reported there is at least one rental rehab project that staff will meet with. Olson is working on environmental review documents for both programs. b. Owner Occupied Rehab Programs Flemming also reported on proposals for houses to be built on the two remaining Island View Heights lots. Staff will provide a proposal for a one -level home, to be built considering future handicap accessibility by including wider hallways, doors, etc. 7. COMMUNICATIONS a. 2024 Annual Report Presentation to City Council b. "Workforce, Housing & The Rural Narrative" Forum, May 6, 2025 Flemming reported that steel and fiberglass doors and vinyl windows provide among the best value in home improvements. Windows have typically been the most common improvement utilizing HRA program funding. c. Funding Request Flemming reported that Crow River Habitat for Humanity had made a request to utilize some of the city state funding. d. FYI: March 2025 Hutchinson Housing Market Update e. FYI: Freddie Mac Mortgage Interest Rate for the week of 5/15/2025 up from last month 8. ADJOURNMENT. There being no further business, Chair Renee Lynn Johnson-Kotlarz adjourned the meeting. 111 Hassan Street SE HRA Hutchinson, MN 55350 Website: www.hutchinsonhra.com HUTCHINSON HOUSING AND (320) 234-4251 (320) 234-4240 Fax REDEVELOPMENT AUTHORITY Hutchinson HRA Regular Board Meeting June 17, 2025 Minutes CALL TO ORDER — 7:00 a.m. — Vice Chair Robin Kashuba called the meeting to order at 7:00 a.m. Other members present: Peggy Godina and Gary Forcier, Mayor Members absent: Renee Lynn Johnson-Kotlarz and Dan Masog; Others present: Judy Flemming, Executive Director Motion by Forcier, second by Godina to approve the Hutchinson HRA Regular Board Meeting agenda and any agenda additions and/or corrections, unanimous approval. 2. PUBLIC COMMENTS — No citizens addressed the HHRA Board of Commissioners 3. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON MAY 20, 2025 Motion by Forcier, second by Godina to approve regular meeting minutes as presented, unanimous approval. 4. FINANCIAL REPORTS a. City Center: 1) Consideration of City Center General Fund payments of $12,471.48 for checks 9523 to 9527 2) Consideration of City Center May 2025 Financial Statements Kashuba had a question on why the actual expense was off from the budget number on some items. Flemming said she would get an explanation and get back to the Board with the details. Motion by Forcier, second by Godina to approve City Center payments and May 2025 financial statement, unanimous approval. b. Park Towers: 1) Consideration of Park Towers Operating Account payments of $39,359.66 for checks 16713 to16734, and the 6/10/2025 Visa Bill payment 2) Consideration of Park Towers Security Deposit Account payments of $228.04 for checks 1636 & 1637 3) Consideration of Park Towers May 2025 Financial Statements Motion by Forcier, second by Godina to approve Park Towers payments and April 2025 financial statements, unanimous approval. 5. PARK TOWERS a. Park Towers June Newsletter b. Park Towers Vacancy Report 'Mmns�, HRA HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY c. Operation Update 1) Conciliation Court 111 Hassan Street SE Hutchinson, MN 55350 Website: www.hutchinsonhra.com (320) 234-4251 (320) 234-4240 Fax Motion by Forcier, second by Godina to approve the costs associated with the court claim, unanimous approval. 2) Flemming updated the Board on the AT&T Antennas Relocation Request. 3) Flemming updated the Board that the PIH Closeout One Step Closer 6. PROGRAM UPDATES a. Downtown Rental Rehab Program Public Hearing for Hutchinson Downtown Housing Rehabilitation — June 24, 2025 b. Owner Occupied Rehab Programs Forcier moved to approve the following City Home Repairs Program grant applications contingent to the Loan Review Committee's Approval, seconded by Godina, Unanimous approval: a) City Rehab Grant: 231 Monroe Street SE b) City Rehab Grant: 1162 Oakwood Ct NW 7. COMMUNICATIONS a. City 2026 Budget Preparation Memo b. FYI: Country Club Terrace c. FYI: April 2025 Hutchinson Housing Market Update d. FYI: Freddie Mac Mortgage Interest Rate for the week of 6/5/2025 8. ADJOURNMENT. There being no further business, Vice Chair Kashuba adjourned the meeting. Recorded by Judy Flemming, HRA Executive Director Gary Forcier, Secretary/Treasurer 'Mmns�' HRA HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY 111 Hassan Street SE Hutchinson, MN 55350 Website: www.hutchinsonhra.com (320) 234-4251 (320) 234-4240 Fax Hutchinson HRA Regular Board Meeting July 15, 2025 Minutes CALL TO ORDER — Chair Renee Lynn Johnson-Kotlarz called the meeting to order at 7:00 a.m. Other members present: Peggy Godina, Robin Kashuba and Dan Masog Members absent; Gary Forcier, Mayor Others present: Judy Flemming, Executive Director, John Olson, HRA Technician a. Approve the Hutchinson HRA Regular Board Meeting agenda. Motion by Masog, second by Kashuba to approve the Hutchinson HRA Regular Board Meeting agenda, including agenda additions and/or corrections, unanimous approval. 2. PUBLIC COMMENTS — No citizens addressed the HHRA Board of Commissioners. 3. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON JUNE 17, 2025. Motion by Kashuba, second by Godina to approve regular meeting minutes as presented, unanimous approval. 4. FINANCIAL REPORTS a. City Center: 1) Consideration of City Center General Fund payments of $8,041.23 for checks 9528 to 9530 2) Consideration of City Center June 2025 Financial Statements Flemming noted receipt of tax levy revenue. Motion by Kashuba, second by Godina to approve City Center payments and May 2025 financial statement, unanimous approval. b. Park Towers: 1) Consideration of Park Towers Operating Account payments of $35,000.40 for checks 16735 to 16759, and the 7/9/2025 Visa Bill payment 2) Consideration of Park Towers June 2025 Financial Statements Flemming noted an uncommon expenditure relating to the door opener in the laundry room. Motion by Masog, second by Kashuba to approve Park Towers payments and June 2025 financial statements, unanimous approval. 5. PARK TOWERS a. Park Towers July Newsletter. Flemming noted issues relating to air conditioning during warm weather. b. Park Towers Vacancy Report. Flemming noted efforts she and Megan Steinhaus, Housing Specialist, are working on to market to seniors. c. Operation Update 1) Conciliation Court. Flemming provided an update to the Board regarding postponement of hearings until September. 2) AT&T Antennas Relocation Update: Bolton & Menk Inc. Contract. Flemming presented a contract with Bolton-Menk, Inc. to serve as HRA' engineer to protect HRA's interests during relocation and that the City Attorney will comment on the contract. Motion made by Masog, second by Godina, unanimous approval. HRA HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY 111 Hassan Street SE Hutchinson, MN 55350 Website: www.hutchinsonhra.com (320) 234-4251 (320) 234-4240 Fax 3) Consideration of Selling John Deere Tractor/equipment and authorization for Executive Director to complete the sale. Flemming requested approval to sell various lawn equipment. Motion by Masog, second by Godina to authorize Flemming to dispose of lawn equipment in the manner she determines to be advantageous. 6. PROGRAM UPDATES a. Downtown Housing Rehab Program Update 1) Approval of Revised Revolving SCDP Procedural Guide for Hutchinson Downtown Housing Rehabilitation Program. Motion by Masog, second by Kashuba to approve, unanimous approval. b. Owner Occupied Rehab Programs 1) CONSIDERATION OF APPROVAL OF CITY HOME REPAIRS PROGRAM GRANT: a) City Home Repair Grant for 586 Jefferson Street SE. Motion by Masog, second by Kashuba to approve, contingent upon the Loan Review Committee's approval. 7. COMMUNICATIONS a. FYI: May 2025 Hutchinson Housing Market Update b. FYI: Freddie Mac Mortgage Interest Rate for the week of 7/3/2025 c. City Strategic Planning Update. Flemming presented strategic planning update and will consider a workshop with the City Council in the future. 8. ADJOURNMENT Masog moved to adjourn and Kashuba seconded. There being no other business, Chair Kotlarz declared the meeting adjourned. Recorded by Judy Flemming, HRA Executive Director Gary Forcier, Secretary/Treasurer 111 Hassan Street SE HRA Hutchinson, MN 55350 Website: www.hutchinsonhra.com HUTCHINSON HOUSING AND (320) 234-4251 (320) 234-4240 Fax REDEVELOPMENT AUTHORITY Hutchinson HRA Regular Board Meeting August 19, 2025 Minutes 1. CALL TO ORDER — Chair Renee Lynn Johnson-Kotlarz called the meeting to order at 7:00 a.m. Members present: Gary Forcier, Mayor; Robin Kashuba; Dan Masog Members absent: Peggy Godina Others present: Judy Flemming, Executive Director, John Olson, HRA Technician a. Approve the Hutchinson HRA Regular Board Meeting agenda. Motion by Forcier, second by Kashuba to approve the agenda, including any agenda additions and/or corrections, unanimous approval. 2. PUBLIC COMMENTS — No citizens addressed the HHRA Board of Commissioners. 3. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON JULY 15, 2025. Motion by Masog, second by Kashuba to approve regular meeting minutes, as presented, unanimous approval. 4. FINANCIAL REPORTS a. City Center: 1) Consideration of City Center General Fund payments of $10,524.32 for checks 9531 to 9538 2) Consideration of City Center July 2025 Financial Statements Motion by Masog, second by Kashuba to approve City Center payments and July 2025 Financial Statements, unanimous approval. b. Park Towers: 1) Consideration of Park Towers Operating Account payments of $73,123.63 for checks 16760 to 16794, Security Deposit Account payment of $15.14 for check 1638 and the 8/12/2025 Visa Bill payment 2) Consideration of Park Towers July 2025 Financial Statements Flemming noted that payment for the smoke detector replacement project was made on July 23. Motion by Masog, second by Kashuba to approve Park Towers payments and July 2025 Financial Statements, unanimous approval. 5. PARK TOWERS a. Park Towers August Newsletter. Flemming noted that preparations are being made for recertifications. b. Park Towers Vacancy Report. Flemming noted efforts she and Megan Steinhaus, Housing Specialist, have worked on and are working on to get tenants. c. Operation Update 1) AT&T Antennas Relocation Update: Bolton & Menk Inc. Contract. Flemming presented regarding Bolton & Menk, Inc. serving as HRH's engineer to protect HRA's interest during AT&T's project to relocate antennas at Park Towers. Flemming noted the final product will be more visually appealing than the current configuration. 6. REVIEW OF DRAFT CITY CENTER 2026 BUDGET. Flemming presented the more significant changes to the draft 2026 budget, which includes a levy request of $173,000, a 1.76% increase. Motion by Forcier, second by Kashuba to approve the draft 2026 budget, unanimous approval. 111 Hassan Street SE HRA HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY 7. PROGRAM UPDATES Hutchinson, MN 55350 Website: www.hutchinsonhra.com (320) 234-4251 (320) 234-4240 Fax a. Downtown Housing Rehab Program Update. Olson reported that contact continues for a roofing project on a downtown 4-unit apartment. b. Owner Occupied Rehab Programs 1) Draft HHRA Proposal for use of City SAHA Funds. Flemming presented the proposal. Motion by Masog, second by Kashuba to approve the proposal, unanimous approval. 2) Consideration of approval of City Home Repairs Program grant: a) Additional funding for City Home Repair Grant for 586 Jefferson Street SE. Olson reported these funds were for roof decking deficiencies found during the project. Motion by Forcier, second by Masog to approve additional funding, unanimous approval. c. Island View Heights Lots Update: 1) Correspondence. 1280 Prairie View Dr SW: Flemming presented proposal from neighboring property owner, indicating their interest to purchase the lot. After discussion, the consensus was to retain the property. 8. COMMUNICATIONS a. FYI: June 2025 Hutchinson Housing Market Update b. FYI: Freddie Mac Mortgage Interest Rate for the week of 8/7/2025 down .03% c. Out of Reach 2025, Minnesota Housing Partnership Report d. FYI: Proposed City Center Remodel Plan 9. ADJOURNMENT — There being no other business, Chair Kotlarz declared the meeting adjourned. Recorded by Judy Flemming, HRA Executive Director Gary Foytier, Secretary/Treasurer HUTCHINSON A CITY ON PURPOSE. MINUTES HUTCHINSON PLANNING COMMISSION Tuesday, August 19, 2025 5:30 p.m. 1. CALL TO ORDER 5:30 P.M. The August 19, 2025 Planning Commission meeting was called to order by Vice Chairman Hacker at 5:30 p.m. Members in bold were present Chairman Fahey, Vice Chairman Hacker, Commissioner Garberg, Commissioner Zuidema, Commissioner Sebesta, and Commissioner Janssen, Commissioner Kosek. Also present were Dan Jochum, City Planner, Mike Stifter, City Public Works Director, Brandon Braithwaite, City Engineer, Marc Sebora, City Attorney, Miles Seppelt, City Economic Development Authority, Andrea Schwartz, City of Hutchinson Planning and Building Specialist, Rozanne Johnson, City of Hutchinson Planning and Building Assistant. 2. PLEDGE OF ALLEGIANCE 3. CONSENT AGENDA A. CONSIDERATION OF MINUTES DATED July 15, 2025. Motion by Commissioner Zuidema to approve July 15, 2025 meeting minutes. Second by Commissioner Garberg. Motion approved. 4. PUBLIC HEARING A. CONSIDERATION OF A PRELIMINARY AND FINAL PLAT FOR WENWOOD. 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 Janssen, second by Commissioner Sebesta to close the hearing at 5:36 p.m. Motion by Commissioner Garberg to approve the Preliminary and Final Plat with 2 staff recommendations. Second by Commissioner Zuidema. Item will be on City Council consent agenda on 08/26/25. B. CONSIDERATION OF A CONDITIONAL USE PERMIT FOR A DATA CENTER IN AN I-2 ZONING DISTRICT LOCATED AT 1025 5T" AVE SE. Minutes Hutchinson Planning Commission August 19, 2025 Page 2 Dan Jochum, City Planner addressed the Commission and gave a brief overview of the project. Mr. Jochum then covered the staff report. Commissioner Sebesta asked if the building would be stick built or post frame. Mr. Jochum noted the construction type is TBD, the exterior will most likely metal. Vice Chairman Hacker noted this project has been in the works for a while, is the delay due to the newness of the Data Centers or from staff? Mr. Jochum noted that the Data Center is working on a Power Agreement with Hutchinson Utilities. Hoping to start the project yet this fall if possible or next year. Joe Ostrowski,14503 2101h St Hutchinson, wondering if reduced rates from Hutchinson Utilities be an option with this center. He has concern that if the Data Center receives reduced rates from the Utilities Commission, resulting in higher cost for the community. He does not want to see the community affected by costs. Mr. Ostrowski asked/verified how the cooling units work? Concerned with the school nearby and the noise. Anthony Leveseque 6005 Goyer St. Quebec Canada, Data Center responded that no water is used to cool system, they are only using water for lavatory. He also noted that the noise level is to comply and be sustainable. Motion by Commissioner Zuidema, second by Commissioner Janssen to close the hearing at 5:54 p.m. Motion by Commissioner Zuidema to approve the Conditional Use Permit, with 6 staff recommendations. Second by Commissioner Kosek. Item will be on City Council consent agenda on 08/26/25. C. CONSIDERATION OF VARIANCES FOR THE LANDING. Dan Jochum, City Planner addressed the Commission and gave a brief overview of the project. Mr. Jochum then covered the staff report. Vice Chairman Hacker noted he has seen this site for many years in distress, this is a great project. This project seems very reasonable. Commissioner Janssen asked if staff is confident that the next project that comes along will not ask for variances like this because we are allowing this to proceed. Is this project unique enough? Mr. Jochum responded that the variance criteria appears to have been met for granting a variance for this project. Motion by Commissioner Garberg, second by Commissioner Janssen to close the hearing at 6:19 p.m. Motion by Commissioner Garberg to approve the requested variances, with 10 staff recommendations. Second by Commissioner Sebesta. Item will be on City Council New Business on 08/26/25. Minutes Hutchinson Planning Commission August 19, 2025 Page 3 D. CONSIDERATION OF A CONDITIONAL USE PERMIT FOR A PLANNED DEVELOPMENT IN THE SHORELAND ZONING DISTRICT FOR AN 81-UNIT APARTMENT BUILDING IN A C-3 ZONING DISTRICT LOCATED AT 126 FRANKLIN ST NW. There was a reading from a letter received from the DNR on August 18th, 2025. Mr. Jochum gave an overview and background of the communication with the DNR. Mr. Sebora agreed with his overview and noted his approval of the process staff and Planning Commission are going through to approve this application of the Conditional Use Permit. Mr. Jochum and Mr. Sebora are confident that we are interpreting our ordinance correctly and doing this process the right way. Vice Chairman Hacker feels City Staff is the expert on interpreting the City Zoning Code. Mr. Jochum agreed and noted that we are following what our code allows. Dan Jochum, City Planner addressed the Commission and gave a brief overview of the project. Mr. Jochum then covered the staff report. Commissioner Sebesta asked about the request for sidewalk on southside of the building. What about on the east side? Mr. Jochum noted that the east side was already on the plan. Motion by Commissioner Sebesta, second by Commissioner Janssen to close the hearing at 6:37 p.m. Motion by Commissioner Zuidema to approve the Conditional Use Permit, with 9 staff recommendations. Second by Commissioner Kosek. Item will be on City Council consent agenda on 08/26/25. E. CONSIDERATION OF AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA VACATING THE ALLEY LOCATED NEAR 126 FRANKLIN ST NW. 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 Zuidema, second by Commissioner Garberg to close the hearing at 6:40 p.m. Motion by Commissioner Zuidema to approve the Ordinance. Second by Commissioner Janssen. Item will be on City Council consent agenda on 08/26/25. F. CONSIDERATION OF AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA VACATING THE SANITARY SEWER EASEMENT LOCATED AT 126 FRANKLIN ST NW. 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 Sebesta, second by Commissioner Kosek to close the hearing at 6:42 p.m. Minutes Hutchinson Planning Commission August 19, 2025 Page 4 Motion by Commissioner Garberg to approve the Ordinance. Second by Commissioner Sebesta. Item will be on City Council consent agenda on 08/26/25. 5. NEW BUSINESS A. CONSIDERATION OF A LOT SPLIT LOCATED AT 951 GOLF COURSE RD NW. Dan Jochum, City Planner addressed the Commission and gave a brief overview of the project. Mr. Jochum then covered the staff report. Judy Plamann, 1165 121h Ave Hutchinson has concern about the pond on the large lot and making sure the pond stays due to the area drainage. Mr. Jochum noted this is a wetland not a pond and will remain a wetland. Motion by Commissioner Sebesta to approve the Lot Split with 4 staff recommendations. Second by Commissioner Kosek. Item will be on City Council consent agenda on 08/26/25. B. CONSIDERATION OF A SKETCH PLAN AND COMPREHENSIVE PLAN AMENDMENT FOR THE FORMER BURNS MANOR PROPERTY AT 135 NORTH HIGH DR. Dan Jochum, City Planner addressed the Commission and gave a brief overview of the project. Mr. Jochum then covered the staff report. Vice Chairman Hacker noted this is a great use of the land. Commissioner Garberg asked if the entrance in the SW corner is of any concern to the City the way it lines up to the street to the south. Mr. Jochum noted the entrances of the property are still under discussion. This is a county road and the City will be working with the County on this access. Motion by Commissioner Janssen to approve the Sketch Plan with 4 staff recommendations and adding an amendment to the Comprehensive Plan to change this property to Mixed Use. Second by Commissioner Zuidema. Item will be on City Council consent agenda on 08/26/25. 6. UNFINISHED BUSINESS A. Elk Ridge Estates is coming along. Three homes have been applied for. 7. COMMUNICATION FROM STAFF A. Planning Department has been very busy. Building Department has slowed down a bit with permits. 8. ADJOURNMENT Motion was made by Commissioner Garberg, second by Commissioner Janssen to adjourn the meeting, Meeting was adjourned at 7:03 p.m. RA HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. August 2025 Financial and Investment Reports Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 9/23/2025 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 OFAGENDA 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, 2025 2025 2024 2025 ACTUALS 2025 AVAILABLE % BDGT 2024 YTD 2024 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED General Fund Taxes - 3,594,976 6,741,034 3,146,058 53.3 3,309,308 6,370,436 51.9 Other Taxes 16,118 158,192 320,000 161,808 49.4 167,180 330,000 50.7 Licenses & Permits 67,146 298,852 415,725 116,873 71.9 301,492 392,100 76.9 Intergovernmental Revenue 63,709 1,697,413 2,166,525 469,112 78.3 1,636,139 2,028,194 80.7 Charges for Services 144,961 1,606,731 2,816,417 1,209,686 57.0 1,638,940 2,547,142 64.3 Miscellaneous Revenues 62,328 335,716 382,400 46,684 87.8 291,640 353,900 82.4 Transfers -In - 1,456,971 2,812,628 1,355,657 51.8 1,456,971 2,812,628 51.8 Fines & Forfeitures 3,013 29,500 55,000 25,500 53.6 32,345 55,000 58.8 TOTAL REVENUES 357,275 9,178,352 15,709,729 6,531,377 58.4 8,834,015 14,889,400 59.3 Wages & Benefits 902,481 6,572,844 10,542,600 3,969,756 62.3 6,314,340 10,050,414 62.8 Supplies 65,438 749,448 1,218,850 469,402 61.5 838,402 1,072,833 78.1 Services & Charges 206,847 2,195,407 3,022,832 827,425 72.6 2,059,942 2,867,722 71.8 Miscellaneous Expenses 18,801 230,854 379,905 149,051 60.8 203,048 381,400 53.2 Transfers -Out - 60,271 545,542 485,271 11.0 58,516 517,031 11.3 Capital Outlay 29,391 (29,391) - 838 - TOTAL EXPENDITURES 1,193,567 9,838,214 15,709,729 5,871,515 62.6 9,475,085 14,889,400 63.6 NET REVENUE (836,292) (659,862) - 659,862 (641,070) - Comments Services & Charges Contracted Repair & Maintenance is running higherthis year due to critical repairs to the refrigeration system at the Civic Arena. General Fund Expense by 2025 2024 Department: 2025 YTD 2025 AVAILABLE % BDGT 2024 YTD 2024 % BDGT AUGUST ACTUAL BUDGET BALANCE USED ACTUAL BUDGET USED Mayor & City Council 2,835 23,502 47,488 23,986 49.5 23,735 47,477 50.0 City Administrator 42,751 339,316 544,862 205,546 62.3 336,623 519,041 64.9 Elections - - - - - 21,963 29,850 73.6 Finance Department 38,909 307,142 448,831 141,689 68.4 312,848 427,823 73.1 Motor Vehicle 30,792 261,775 398,892 137,117 65.6 222,512 338,131 65.8 Assessing - - - - - - 61,499 - Legal 28,983 204,572 348,219 143,647 58.7 190,540 329,055 57.9 Planning 14,120 115,999 187,488 71,489 61.9 114,507 181,040 63.2 Information Services 41,666 410,494 723,131 312,637 56.8 354,769 619,744 57.2 City Hall Building 13,769 124,647 213,097 88,450 58.5 131,410 202,295 65.0 Police Department 329,453 2,778,984 4,405,365 1,626,381 63.1 2,603,227 4,210,713 61.8 Emergency Management 140 10,798 13,500 2,702 80.0 18,365 13,500 136.0 Safety Committee - 11,405 14,335 2,930 79.6 10,962 13,950 78.6 Fire Department 23,025 280,240 556,153 275,913 50.4 244,681 447,485 54.7 Protective Inspections 30,730 265,204 414,616 149,412 64.0 277,761 397,864 69.8 Engineering 52,852 406,743 547,217 140,474 74.3 292,225 479,881 60.9 Streets & Alleys 83,747 1,214,712 1,717,314 502,602 70.7 1,248,566 1,777,633 70.2 Park/Recreation Administration 24,919 193,795 299,036 105,241 64.8 185,139 280,458 66.0 Recreation 19,486 149,010 237,115 88,105 62.8 149,379 225,861 66.1 Senior Citizen Center 8,817 57,764 83,426 25,662 69.2 52,093 79,564 65.5 Civic Arena 30,916 306,706 445,718 139,012 68.8 249,551 413,137 60.4 Park Department 120,205 794,125 1,230,328 436,203 64.5 828,187 1,187,993 69.7 Recreation Building 18,241 204,001 324,132 120,131 62.9 177,654 280,335 63.4 Events Center 9,243 97,092 158,993 61,901 61.1 101,305 151,082 67.1 Evergreen Building 1,087 16,920 36,080 19,160 46.9 19,491 35,080 55.6 Library 53,918 179,499 257,808 78,309 69.6 172,509 247,865 69.6 Waterpark 129,674 402,366 473,834 71,468 84.9 455,177 467,082 97.5 Cemetery 10,796 99,808 157,200 57,392 63.5 103,719 153,077 67.8 Airport 15,573 194,648 248,888 54,240 78.2 203,752 129,260 157.6 Unallocated General Expense 16,923 386,950 1,176,663 789,713 32.9 372,434 1,141,625 32.6 TOTAL EXPENDITURES 1,193,567 9,838,214 15,709,729 5,871,515 62.6 9,475,085 14,889,400 63.6 REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2025 2025 2024 2025 ACTUALS 2025 AVAILABLE % BDGT 2024 YTD 2024 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED Water Fund Sales 147,465 934,751 1,550,000 615,249 60.3 938,768 1,675,000 56.0 Sales - Other 86,464 670,047 1,051,000 380,953 63.8 672,828 1,006,000 66.9 Local Sales Tax 80,820 447,737 990,000 542,263 45.2 547,434 1,057,000 51.8 Charges for Services 2,724 91,709 100,000 8,291 91.7 90,163 88,668 101.7 Miscellaneous Revenues 14,098 127,694 162,500 34,806 78.6 117,524 114,500 102.6 TOTAL REVENUES 331,570 2,271,938 3,853,500 1,581,562 59.0 2,366,718 3,941,168 60.1 Wages & Benefits 53,625 407,113 702,663 295,550 57.9 423,856 631,441 67.1 Supplies 9,304 120,940 253,900 132,960 47.6 444,505 244,225 182.0 Services & Charges 103,930 437,462 556,490 119,028 78.6 313,894 599,400 52.4 Miscellaneous Expenses 3,500 13,462 15,500 2,038 86.9 11,634 13,500 86.2 Transfers -Out - - 90,000 90,000 - - 90,000 - CapitalOutlay 88,136 1,388,812 1,300,676 6.3 151,816 982,310 15.5 Depreciation Expense - - 1,120,000 1,120,000 - - 1,120,000 - Debt Service 830,779 1,150,345 1,150,228 (117) 100.0 1,366,549 1,366,550 100.0 TOTAL EXPENDITURES 1,001,139 2,217,458 5,277,593 3,060,135 42.0 2,712,255 5,047,426 53.7 NET of REVENUES & EXPENDITURES (669,568) 54,480 (1,424,093) (1,478,573) (345,537) (1,106,258) Year to Date Water Sales Comments 2025 2024 Change Water Sales Revenue: Residential 607,342 612,238 -0.8% Commercial 188,452 182,881 3.0% Industrial 138,957 143,649 -3.3% Water Sales 934,751 938,768 -0.4% Base Charge 554,052 551,733 0.4% Water Connection Charge 32,777 39,340 -16.7% Other 83,218 81,756 1.8% Other Sales 670,047 672,828 -0.4% Water Service Repair Program: User revenue ($1/meter/month) 41,073 40,805 Repair Expenditures (34,120) (25,638) Net Revenue (Loss) 6,954 15,168 Wastewater Fund Sales 264,477 1,910,461 2,810,000 899,539 68.0 1,928,885 2,875,000 67.1 Sales - Other 104,994 732,319 1,086,800 354,481 67.4 731,765 1,031,500 70.9 Local Sales Tax 80,820 447,737 990,000 542,263 45.2 421,576 815,000 51.7 Licenses & Permits - 5,600 6,000 400 93.3 5,600 6,000 93.3 Charges for Services - 4,730 5,000 270 94.6 10,116 7,500 134.9 Miscellaneous Revenues 30,962 183,327 226,000 42,673 81.1 331,244 176,000 188.2 TOTAL REVENUES 481,252 3,284,173 5,123,800 1,839,627 64.1 3,429,186 4,911,000 69.8 Wages & Benefits 72,732 558,149 990,321 432,172 56.4 531,583 892,971 59.5 Supplies 28,014 142,120 289,400 147,280 49.1 161,204 297,600 54.2 Services & Charges (23,512) 619,016 895,390 276,374 69.1 726,045 840,650 86.4 Miscellaneous Expenses 4,025 20,021 33,000 12,979 60.7 21,296 36,000 59.2 Transfers -Out - - 110,000 110,000 - - 110,000 - CapitalOutlay 84,352 588,063 3,721,629 3,133,566 15.8 869,515 2,410,249 36.1 Depreciation Expense - - 1,200,000 1,200,000 - - 1,200,000 - Debt Service 923,651 1,614,227 1,614,347 120 100.0 1,609,073 1,609,355 100.0 TOTAL EXPENDITURES 1,089,262 3,541,598 8,854,087 5,312,490 40.0 3,918,716 7,396,825 53.0 NET of REVENUES & EXPENDITURES (608,010) (257,424) (3,730,287) (3,472,863) (489,530) (2,485,825) Year to Date Sewer Sales Comments 2025 2024 Change Wastewater Sales Revenue: Residential 1,078,167 1,109,074 -2.8% Commercial 344,273 342,468 0.5% Industrial - Flow 315,724 272,916 15.7% Industrial - Violation Surcharges 172,297 204,426 -15.7% Sewer Sales 1,910,461 1,928,885 -1.0% Base Charge 605,800 602,339 0.6% Sewer Connection Charge 39,100 51,704 -24.4% Other 87,419 77,722 12.5% Other Sales 732,319 731,765 0.1% Sewer Service Repair Program: User revenue ($1/meter/month) 40,968 40,744 Repair Expenditures (53,403) (93,625) Net Revenue (Loss) (12,435) (52,881) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2025 2025 2024 2025 ACTUALS 2025 AVAILABLE % BDGT 2024 YTD 2024 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED Liquor Fund Sales 698,761 4,950,086 7,899,000 2,948,914 62.7 5,059,555 7,708,000 65.6 Miscellaneous Revenues 124 2,309 10,500 8,191 22.0 1,979 10,500 18.8 TOTAL REVENUES 698,885 4,952,395 7,909,500 2,957,105 62.6 5,061,534 7,718,500 65.6 Cost of Sales 515,016 3,679,633 5,983,000 2,303,367 61.5 3,795,267 5,852,000 64.9 Wages & Benefits 73,006 596,106 936,298 340,192 63.7 578,843 924,229 62.6 Supplies 7,370 18,988 25,500 6,512 74.5 19,483 25,500 76.4 Services & Charges 18,140 182,534 312,270 129,736 58.5 175,557 308,150 57.0 Miscellaneous Expenses - 5,740 6,500 760 88.3 5,750 6,500 88.5 Transfers -Out - 550,000 550,000 - - 550,000 - CapitalOutlay 42,607 45,000 2,393 94.7 81,974 100,000 82.0 Depreciation Expense 58,000 58,000 58,000 - TOTAL EXPENDITURES 613,532 4,525,608 7,916,568 3,390,960 57.2 4,656,874 7,824,379 59.5 NET REVENUE 85,353 426,787 (7,068) (433,855) 404,659 (105,879) Year to Date Sales August Sales Comments 2025 2024 Change 2025 2024 Change Liquor Sales Revenue: Liquor 1,901,390 1,904,358 -0.2% 268,855 264,365 1.7% Beer 2,195,038 2,328,215 -5.7% 321,716 343,214 -6.3% Wine 579,165 606,863 -4.6% 66,523 71,990 -7.6% THC Products 136,128 89,874 51.5% 20,285 16,009 26.7% Other 138,366 130,245 6.2% 21,383 19,329 10.6% Total Sales 4,950,086 5,059,555 -2.2% 698,761 714,906 -2.3% Gross Profit $1,270,453 $1,264,287 $183,745 $197,104 Gross Margin on Sales 25.7% 25.0% 0.7% 26.3% 27.6% -1.3% Customer Count 159,166 162,041 -1.8% 22,311 23,030 -3.1% Average Sale per Customer $31.10 $31.22 -0.4% $31.32 $31.04 0.9% Labor to Sales Ratio 12.0% 11.4% 0.6% 10.4% 10.2% 0.3% Capital Outlay We installed new flooring in the wine section along with new wine racks. Refuse Fund Sales 124,281 977,161 1,461,000 483,839 66.9 916,115 1,352,000 67.8 Sales - Other 4,473 33,922 46,700 12,778 72.6 31,627 46,100 68.6 Intergovernmental Revenue - 12,870 4,500 (8,370) 286.0 14,215 21,500 66.1 Miscellaneous Revenues 3,850 74,401 50,000 (24,401) 148.8 34,142 30,000 113.8 TOTAL REVENUES 132,604 1,098,354 1,562,200 463,846 70.3 996,098 1,449,600 68.7 Wages & Benefits 30,152 211,410 349,221 137,811 60.5 215,749 337,416 63.9 Supplies 870 22,618 45,000 22,382 50.3 34,487 60,750 56.8 Services & Charges 81,514 595,634 1,032,135 436,501 57.7 570,406 969,000 58.9 Miscellaneous Expenses 1,708 3,108 2,500 (608) 124.3 1,459 1,150 126.8 Transfers -Out - - 105,000 105,000 - - 55,000 - CapitalOutlay 35,000 35,000 272,658 817,500 33.4 Depreciation Expense - - 172,000 172,000 - - 172,000 - TOTAL EXPENDITURES 114,244 832,770 1,740,856 908,086 47.8 1,094,758 2,412,816 45.4 NET of REVENUES & EXPENDITURES 18,360 265,584 (178,656) (444,240) (98,659) (963,216) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2025 Comaost 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 TOTAL EXPENDITURES NET of REVENUES & EXPENDITURES 2025 ACTUALS AUGUST YTD 2025 BUDGET AVAILABLE BALANCE 2025 % BDGT USED 2024 YTD ACTUAL 2024 BUDGET 2024 % BDGT USED 97,491 2,162,535 2,372,500 209,965 91.2 2,231,849 2,620,300 85.2 23,724 24,756 107,000 82,244 23.1 31,232 95,500 32.7 10,987 71,037 72,000 963 98.7 48,426 52,000 93.1 132,201 2,258,329 2,551,500 293,171 88.5 2,311,507 2,767,800 83.5 72,172 1,368,627 1,591,200 222,573 86.0 1,483,866 1,759,400 84.3 (89,719) (470,492) (703,250) (232,758) 66.9 (343,421) (703,528) 48.8 57,397 525,767 897,840 372,073 58.6 503,325 888,535 56.6 1,380 73,457 126,850 53,393 57.9 73,882 149,500 49.4 32,931 152,594 308,390 155,796 49.5 123,774 287,500 43.1 2,183 9,302 13,500 4,198 68.9 8,131 13,500 60.2 - - 120,000 120,000 - - 120,000 - 170,052 305,000 134,948 55.8 47,368 197,000 24.0 - 290,000 290,000 - - 290,000 - 73,808 73,808 (0) 100.0 73,808 73,808 100.0 76,344 1,903,115 3,023,338 1,120,223 62.9 1,970,732 3,075,715 64.1 55,857 355,214 (471,838) (827,052) 340,775 (307,915) Year to Date Sales Comments 2025 2024 Change Compost Sales Bagged 1,847,011 1,800,626 2.6% Bulk 187,039 293,383 -36.2% Other (Freight) 128,485 137,841 -6.8% Total Sales 2,162,535 2,231,849 -3.1% Gross Profit 793,908 747,984 Gross Margin 36.7% 33.5% Capital Outlay Capital Outlay for 2025 includes $112,090 to enclose Creekside's blending building. Storm Water Utility Sales 99,994 791,563 1,185,000 393,437 66.8 733,815 1,097,000 66.9 Sales - Other 374 4,424 7,000 2,576 63.2 4,699 3,500 134.3 Intergovernmental Revenue - 81,200 - (81,200) - 59,120 - - Licenses & Permits 850 2,845 6,000 3,155 47.4 3,585 5,500 65.2 Miscellaneous Revenues 4,216 26,044 26,800 756 97.2 27,043 26,300 102.8 Transfer In - - 50,000 50,000 - - - - TOTAL REVENUES 105,434 906,076 1,274,800 368,724 71.1 828,263 1,132,300 73.1 Wages & Benefits 16,685 137,997 313,368 175,371 44.0 191,012 311,298 61.4 Supplies 227 12,370 48,350 35,980 25.6 17,673 51,350 34.4 Services & Charges 17,708 168,012 256,020 88,008 65.6 115,156 223,375 51.6 Miscellaneous Expenses - 10,303 6,000 (4,303) 171.7 4,725 6,000 78.7 Capital Outlay 357,330 558,818 201,488 63.9 - 467,145 - Depreciation Expense - 255,000 255,000 - - 255,000 - Debt Service - 186,205 186,180 (25) 100.0 187,505 187,480 100.0 TOTAL EXPENDITURES 34,621 872,218 1,623,736 751,518 53.7 516,071 1,501,648 34.4 NET of REVENUES & EXPENDITURES 70,813 33,858 (348,936) (382,794) 312,192 (369,348) Comments Capital Outlay This category includes the $220,000 land acquisition for a future storm water pond that will serve the Michigan Street area. A new leaf vaccum was purchased for $137,330. The Refuse fund will contribute $50,000 towards the leaf vacuum at year-end. City of Hutchinson - Investment Report For the Month Ended August 31, 2025 Trade Fixed or Par Purchase Premium Current Unrealized Annual Date Maturity Coupon Callable Value Amount -Discount Value Gain/ -Loss Earnings CERTIFICATES OF DEPOSIT: Forbright Bank 08/31/2022 09/16/2025 3.500% Fixed $245,000 $245,000 $0 $244,880 -$120 $8,575 First Citizens Bk & Tr Co Raleigh 10/26/2022 10/25/2025 4.700% Fixed 244,000 244,000 0 244,059 59 11,468 Regions Bank Birmingham AL 10/28/2019 10/31/2025 2.000% Fixed 245,000 245,000 0 244,030 -970 4,900 Flushing Bank Primary 10/26/2022 11/04/2025 4.700% Fixed 245,000 245,000 0 245,181 181 11,515 Ally Bk Sandy Utah 11/02/2022 11/10/2025 4.800% Fixed 244,000 244,000 0 244,115 115 11,712 Toyota Financial Sgs Bk 07/14/2021 07/22/2026 0.950% Fixed 245,000 245,000 0 238,547 -6,453 2,328 Vantage West Credit Union 09/05/2024 09/14/2026 4.100% Fixed 249,000 249,000 0 249,441 441 10,209 Synchrony Bank 09/01/2022 09/09/2027 3.500% Fixed 245,000 245,000 0 243,246 -1,754 8,575 Discover Bank DE 11/16/2022 11/30/2027 4.900% Fixed 242,000 242,000 0 247,326 5,326 11,858 Morgan Stanley Bank NA 03/10/2023 03/16/2028 4.800% Fixed 244,000 244,000 0 249,510 5,510 11,712 Affinity Bank 03/15/2023 03/17/2028 4.900% Fixed 195,000 195,000 0 199,996 4,996 9,555 Customers Bank 06/07/2023 06/14/2028 4.500% Fixed 244,000 244,000 0 248,168 4,168 10,980 Thread Bank Rogers TN 06/07/2023 06/16/2028 4.400% Fixed 245,000 245,000 0 253,575 8,575 10,780 Univest Bank & Trust Co 06/02/2023 06/21/2028 4.500% Fixed 245,000 245,000 0 249,317 4,317 11,025 CIBC Bk USA 06/16/2023 06/30/2028 4.450% Fixed 244,000 244,000 0 252,150 8,150 10,858 Providence Bk Rocky Mt NC 08/03/2023 08/21/2028 4.400% Fixed 249,000 249,000 0 252,959 3,959 10,956 United Roosevelt Savings 09/06/2023 09/12/2028 4.500% Fixed 249,000 249,000 0 257,486 8,486 11,205 Central Fe S&L/Cicero IL 09/06/2023 09/14/2028 4.500% Fixed 249,000 249,000 0 253,738 4,738 11,205 Community Bk & Tr Waco TX 11/01/2023 11/10/2028 5.050% Fixed 243,000 243,000 0 251,631 8,631 12,272 Liberty First Credit Union 01/23/2024 01/30/2029 4.150% Fixed 249,000 249,000 0 251,375 2,375 10,334 Morgan Stanley Private Bank 02/28/2024 03/06/2029 4.350% Fixed 244,000 244,000 0 247,814 3,814 10,614 Carter Bank & Trust 03/08/2024 03/20/2029 4.300% Fixed 245,000 245,000 0 248,570 3,570 10,535 Mizrahi Tefahot Bank/LA 03/26/2024 03/07/2030 4.500% Fixed 244,000 244,000 0 249,795 5,795 10,980 State Bank of India Chicago IL 06/13/2025 06/21/2030 4.350% Fixed 244,000 244,000 0 248,331 4,331 10,614 CBC Federal Credit Union 05/03/2024 05/14/2031 4.650% Fixed 249,000 249,000 0 257,775 8,775 11,579 Celtic Bank 12/11/2024 12/20/2032 4.150% Fixed 249,000 249,000 0 252,389 3,389 10,334 Total CDs $6,335,000 $6,335,000 $0 $6,425,402 $90,402 $266,678 MUNICIPAL BONDS: Jobs Ohio Beverage Sys Stwd 04/27/2022 01/01/2026 2.034% Fixed $310,000 $298,815 -$11,185 $307,818 $9,002 $6,305 Oklahoma City OK Econ Dev Trust 02/08/2022 03/01/2026 1.118% Fixed 300,000 292,833 -7,167 295,671 2,838 3,354 New York St Urban Dev Dorp 08/26/2022 03/15/2026 3.170% Fixed 190,000 187,925 -2,075 189,061 1,136 6,023 Anchor Bay MI School Dist 07/01/2020 05/01/2026 1.250% Fixed 500,000 503,630 3,630 491,420 -12,210 6,250 Phoenix Az Civic Impt Corp 12/10/2021 07/01/2026 1.157% Fixed 135,000 134,150 -851 131,884 -2,265 1,562 San Juan CA Unif Sch Dist 11/09/2021 08/01/2026 1.201% Fixed 140,000 140,000 0 136,305 -3,695 1,681 Phoenix Az Civic Impt Corp 03/30/2022 07/01/2027 1.257% Fixed 175,000 161,088 -13,913 166,947 5,859 2,200 Indiana St Fin Authority Rev 01/27/2023 07/15/2027 4.109% Fixed 1,000,000 1,000,000 0 1,004,780 4,780 41,090 NY Personal Income Tax 12/09/2022 09/15/2027 5.051% Fixed 300,000 308,277 8,277 305,841 -2,436 15,153 Pima County AZ Revenue 11/09/2022 12/01/2027 5.382% Fixed 1,000,000 1,014,580 14,580 1,030,500 15,920 53,820 Wisconsin St Gen Fund Rev 02/21/2023 05/01/2028 4.330% Fixed 500,000 497,905 -2,095 505,320 7,415 21,650 Pima County AZ Revenue 11/22/2023 12/01/2028 5.961% Fixed 175,000 183,171 8,171 185,476 2,305 10,432 New York NY City Transitional 07/05/2023 02/01/2029 4.750% Callable 385,000 385,920 920 390,439 4,519 18,288 New York NY City Transitional 02/14/2024 02/01/2029 4.430% Callable 375,000 375,000 0 383,925 8,925 16,613 Wisconsin St Gen Fund Rev 03/13/2024 05/01/2029 4.346% Fixed 500,000 497,905 -2,095 506,625 8,720 21,730 Albertville AL 01/19/2024 06/01/2029 4.900% Fixed 235,000 241,103 6,103 242,066 964 11,515 Middlesex County NJ 09/13/2023 08/15/2029 4.603% Fixed 250,000 248,115 -1,885 256,545 8,430 11,508 California St 10/24/2023 10/01/2029 5.100% Fixed 200,000 199,788 -212 208,328 8,540 10,200 New York NY City Transitional 12/05/2023 11/01/2029 5.050% Callable 300,000 308,451 8,451 311,346 2,895 15,150 Palm Beach Cnty Fla 12/15/2023 12/01/2029 4.150% Fixed 265,000 263,614 -1,386 268,164 4,550 10,998 Palm Beach Cnty Fla 10/25/2024 12/01/2029 4.150% Fixed 500,000 499,300 -700 505,970 6,670 20,750 Andalusia AL 03/20/2025 05/01/2030 4.250% Fixed 140,000 140,000 0 141,021 1,021 5,950 Connecticut State 04/12/2024 05/15/2030 4.657% Fixed 140,000 140,000 0 144,579 4,579 6,520 Las Cruces NM Gross Recpts Tax 02/20/2025 06/01/2030 4.850% Fixed 150,000 152,775 2,775 155,438 2,663 7,275 Palm Beach Cnty Fla 06/28/2024 06/01/2030 4.500% Fixed 740,000 740,000 0 761,194 21,194 33,300 Apache Junction AZ 08/15/2024 07/01/2030 4.281% Fixed 825,000 830,973 5,973 834,644 3,671 35,318 Virginia Sts Pub Bldg 05/24/2024 08/01/2030 4.830% Fixed 340,000 343,196 3,196 354,651 11,455 16,422 Corpus Christi TX ISD 12/30/2024 08/15/2030 4.450% Fixed 500,000 499,485 -515 500,125 640 22,250 New York City Transitional 02/07/2025 02/01/2031 4.560% Fixed 500,000 500,000 0 508,850 8,850 22,800 Las Cruces NM Gross Recpts Tax 02/20/2025 06/01/2030 4.880% Fixed 145,000 147,577 2,577 150,516 2,939 7,076 Portland OR Revenue 01/03/2025 06/01/2031 4.450% Fixed 470,000 468,684 -1,316 476,740 8,056 20,915 Santa Clara Valley CA 07/11/2024 06/01/2031 4.400% Fixed 300,000 299,103 -897 303,774 4,671 13,200 San Francisco City & Cty CA 09/12/2024 09/01/2031 3.918% Fixed 460,000 460,000 0 447,626 -12,374 18,023 San Diego CA Public Fac 08/22/2024 10/15/2031 3.980% Callable 500,000 499,360 -640 490,090 -9,270 19,900 Oregon St Dept of Admin Svcs 02/05/2025 04/01/2032 4.353% Fixed 170,000 169,505 -495 171,312 1,807 7,400 Spotsylvania County VA Econ Dev 09/05/2024 06/01/2032 4.200% Fixed 295,000 299,838 4,838 292,876 -6,962 12,390 Waterloo IA 01/16/2025 06/15/2032 4.160% Fixed 395,000 398,622 3,622 404,796 6,174 16,432 Connecticut State 08/27/2024 06/15/2032 4.160% Fixed 100,000 100,000 0 99,952 -48 4,160 Connecticut State 07/01/2025 06/15/2032 4.160% Fixed 405,000 405,000 0 404,806 -194 16,848 Los Angeles CA 12/13/2024 09/01/2032 4.400% Fixed 275,000 275,000 0 276,983 1,983 12,100 Total Municipal Bonds $14,585,000 $14,610,687 $25,687 $14,744,402 $133,715 $604,551 August 31, 2025 Trade Fixed or Par Purchase Premium Current Unrealized Annual Date Maturitv Coupon Callable Value Amount -Discount Value Gain/ -Loss Earnina 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 09/28/2021 10/26/2026 1.180% Callable $500,000 $500,000 $0 $484,760-$15,240 S5.900 $500,000 $500,000 $0 $484,760-$15,240 $5,900 Current Rate: 3.780% N/A $13,211,484 $13,211,484 $0 $13,211,484 $0 $499,394 Current Rate: 4.305% N/A 365,640 365,640 0 365,640 0 15,741 $13,577,125 $13,577,125 $0 $13,577,125 $0 $515,135 $34,997,125 $35,022,812 $25,687 $35,231,689 $208,877 $1,392,264 CITY PORTFOLIO BY PRODUCT TYPE CITY MATURITY SCHEDULE Par Value Current Average Municipal Federal Total %of Average Total % of Total Value Coupon Year CD's Bonds Bonds Par Value Total Coupon CDs $6,335,000 18.1% $6,425,402 4.2% 2025 $1,223,000 $0 $0 $1,223,000 5.7% 3.9% Municipal Bonds $14,585,000 41.7% $14,744,402 4.2% 2026 $494,000 $1,575,000 $500,000 $2,569,000 12.0% 1.7% Federal Bonds $500,000 1.4% $484,760 1.2% 2027 $487,000 $2,475,000 $0 $2,962,000 13.8% 4.5% Subtotal $21,420,000 $21,654,564 4.1% 2028 $2,407,000 $675,000 $0 $3,082,000 14.4% 4.6% Money Market $13,577,125 38.8% $13,577,125 2029 $738,000 $3,010,000 $0 $3,748,000 17.5% 4.5% Total $34,997,125 100.0% $35,231,689 2030 $488,000 $2,835,000 $0 $3,323,000 15.5% 4.5% Unrealized Gain / -Loss $208,877 2031 $249,000 $2,375,000 $0 $2,624,000 12.3% 4.3% Prior Year Unrealized Gain/ -Loss-$195,379 2032 $249,000 $1,640,000 $0 $1,889,000 8.8% 4.3% Totals $6,335,000 $14,585,000 $500,000 $21,420,000 100.0% 4.1% Investment Gain / -Loss for 2025 $404,256 $4,000,000 $3,323,000 $2,962,000 $3,000,000 38.80%1. $2,569,000 Municipal Bonds 41.7% $1,889,000 $2,000,000 1 3000 $1,000,000 Federal Bonds $0 1.4% 2025 2026 2027 2028 2029 2030 2031 2032 FINANCIAL INDICES: One -Year Comparison Treasury Yield Curve 8/31/2025 8/31/2024 Change City's Average Coupon Rate 4.11 % 3.79% 0.32% 6.00% Average Yield to Maturity 4.01 % 4.28% -0.27% (excluding Money Market funds) 5.00% 4.00 Federal Lending Rate 4.50% 5.50% -1.00% ■ Prime Rate 7.50% 8.50% -1.00% 3.00% - Treasury Rates: 1-Year 3.83% 4.38% -0.55% 2.00% 2-Year 3.59% 3.91% -0.32% 1.00% 3-Year 3.58% 3.79% -0.21% 5-Year 3.68% 3.71% -0.03% 0.00% 10-Year 4.23% 3.91% 0.32% 1-Year 2-Year 3-Year 5-Year 10-Year 20-Yea 20-Year 4.86% 4.28% 0.58% t8/31/2025 t8/31/2024