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cp02-28-2017C CITY OF HUTCHINSON MCLEOD COUNTY HUTCHINSON, MINNESOTA Hutchinson City Center I ] 1 Hassan Street SF Hutchinson, MN 55350-2522 320-587-51511Rax 320-2.344240 NOTICE OF A SPECIAL CITY COUNCIL WORKSHOP Tuesday, February 28, 2017 X1:00 p.m. Council Chambers — Hutchinson City Center Notice is hereby given that the Hutchinson City Council has called a special workshop meeting ['or Tuesday, February 28, 2017, in the Council Chambers at the Hutchinson City Center, 111 1 lassan Street SE, Hutchinson, Minnesota for the following purpose: • Review and Discuss 2017 Goals and Objectives DATED: February 22, 2017 POSTED: City Center - Pri lWd ori rcryCkd pxprr Matthew unich, City A lnistrator HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, FEBRUARY 28, 2017 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: City policy and practices, input from constituents, and other questions or information that has notyet 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 — Our Savior's Lutheran Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Approve/Deny Accepting Donation from Hutchinson Elks Lodge for Play Structure at Elks Park (b) Approve/Deny Resolution No. 14687 — Resolution Accepting Donation for Cemetery Sculpture from Rotary Club PUBLIC COMMENTS (This is an opportunity or members of the public to address the City Council on items not on the current agenda. 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 speak for more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals.) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of February 14, 2017 (b) Workshop Minutes of February 14, 2017 CONSENT AGENDA (The items listedjor 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) Planning Commission Appointments 1. Bill Garberg to March 2022 2. Tom Wirt to March 2020 (filling Ron Kalenberg's unexpired term) (b) Consideration for Approval of Support of 43 n Annual Chamber of Commerce Arts & Crafts Festival on September 15 & 16, 2017 (c) Consideration for Approval of Dairy Day Celebration on June 2, 2017 CITY COUNCIL AGENDA FEBRUARY 28, 2017 (d) Consideration for Approval of Resolution No. 14685 — Resolution Closing Construction Funds and Transferring Fund Balances to the Debt Service Funds (e) Consideration for Approval of Resolution No. 14686 — Resolution Closing the 2004 Debt Service Fund and Transferring Fund Balance to the Community Improvement Fund (Excess Bond Fund) (f) Consideration for Approval of Mn/DOT Aviation Grant Application for Airport Pavement Sealing (g) Consideration for Approval of Amendments to the Fee Schedule (h) Consideration for Approval of Items for Wastewater Treatment Facility Membrane Bioreactor Cassettes Replacements (Letting No. 8, Project No. 17-08) 1. Resolution No. 14688 - Ordering Preparation of Report on Improvement 2. Resolution No. 14689 - Receiving Report and Calling Hearing on Improvement (i) Claims, Appropriations and Contract Payments — Register A 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B PUBLIC HEARINGS — 6:00 P.M. 9. APPROVE/DENY POLICE DEPARTMENT BODY CAMERA PROGRAM POLICY NtMUNICATIONS RE UESTS AND PETITIONS purpose oJ this portion oJ the agenda is to provide the Council with information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) 10. PLANNING/ZONING/BULIDING DEPARTMENT 2016 YEAR END REPORT 11. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY 2016 YEAR END REPORT UNFINISHED BUSINESS NEW BUSINESS 12. APPROVE/DENY SETTING SPECIAL CITY COUNCIL WORKSHOP ON MARCH 9, 2017, AT 3:00 P.M. TO HOLD JOINT WORKSHOP WITH MCLEOD COUNTY COMMISSIONERS GOVERNANCE (T e purpose o t is 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.) 2 CITY COUNCIL AGENDA FEBRUARY 28, 2017 13. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Pedestrian and Bicycle Advisory Committee Minutes from August 17, October 19 and November 16, 2016 (b) Hutchinson Housing & Redevelopment Authority Board Minutes from January 17, 2017 (c) Public Arts Commission Minutes from March 9, 2017 (d) City of Hutchinson Investment Reports and Financial Reports for December 2016 and January 2017 NHSCELLANEOUS 14. STAFF UPDATES 15. COUNCIL/MAYOR UPDATE ADJOURNMENT HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Accept Donation for Cemetery Sculpture from Rotary Club Department: PW/Engineering LICENSE SECTION Meeting Date: 2/28/2017 Application Complete Contact: John Olson Agenda Item Type: Presenter: John Olson Reviewed by Staff Recognition of Gifts/Donations Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The Hutchinson Rotary Club has generously donated $500 toward the Cemetery sculpture. Rotarians support a number of very valuable projects and programs within the City. The Cemetery appreciates their support. BOARD ACTION REQUESTED: Approve/deny resolution #14687 accepting donation from the Hutchinson Rotary Club. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: -$500.00 Funding Source: Cemetery sculpture Remaining Cost: $ 500.00 Funding Source: Rotary Club of Hutchinson PO Box 501 Hutchinson, MN 55350 February 13, 2017 Oakland Cemetery 1400 Adams Street SE Hutchinson, MN 55350 The Hutchinson Rotary Foundation is pleased to present a check for $500.00 as a grant toward the purchase and installation of the Parent and Child Bronze Sculpture. Sincerely, Lawrence D. Haugen Treasurer Resolution No. 14687 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 service pursuant to Minnesota Statutes Section 471.17; and, WHEREAS, the following organization has offered to contribute the cash amount set forth below to the City of Hutchinson: Name of Donor Amount Hutchinson Rotary Foundation $500.00 WHEREAS, the donation is being made on the condition that the City earmarks the donation for the purchase and installation of the Parent and Child Bronze Sculpture. WHEREAS, The City Council hereby finds that it is appropriate to accept the donations offered, NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, NHNNESOTA: THAT, the donation described above are hereby accepted by the City of Hutchinson with the conditions as laid out in the resolution. Adopted by the City Council this day of , 2017. Gary T. Forcier, Mayor Matthew Jaunich, City Administrator HUTCHINSON CITY COUNCIL MEETING NHNUTES TUESDAY, FEBRUARY 14, 2017 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: City policy and practices, input from constituents, and other questions or information that has notyet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 5:30 P.M. Mayor Protein Chad Czmowski called the meeting to order. Members present were Steve Cook, Mary Christensen and John Lofdahl. Member absent was Gary Forcier. Others present were Matt Jaunich, City Administrator, Kent Exner, City Engineer and Marc Sebora, City Attorney. (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Cook, second by Lofdahl, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — Our Savior's Lutheran Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) School Bus Driver Appreciation Day — February 22, 2017 Mayor Protein Czmowski read a proclamation proclaiming February 22, 2017, as School Bus Driver Appreciation Day. PUBLIC COMMENTS (This is an opportunity or members of the public to address the City Council on items not on the current agenda. 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 speak for more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals.) 5. CITIZENS ADDRESSING THE CITY COUNCIL Paul Meyer, Vision Transportation, presented before the Council. Mr. Meyer provided statistics on the number of students and the number of miles that are driven per school day. Mr. Meyer stressed how safe students are traveling on school buses. Mr. Meyer noted that the governor will be proclaiming this as well on February 22, 2017, and Mr. Meyer invited the mayor to read the proclamation on air on KDUZ next week. 6. APPROVAL OF MINUTES (a) Regular Meeting of January 24, 2017 Motion by Christensen, second by Cook, to approve the minutes as presented. Motion carried unanimously. (b) Summary of City Administrator Performance Review of January 24, 2017 Motion by Lofdahl, second by Christensen, to approve the summary as presented. Motion carried unanimously. CITY COUNCIL MINUTES FEBRUARY 14, 2017 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) Claims, Appropriations and Contract Payments — Register A Due to the absence of Mayor Forcier, Matt Jaunich, City Administrator, noted that Check Registers A and B could be considered with one motion. Check Register B contained a payment to Mayor Forcier's business. Motion by Lofdahl, second by Christensen, to approve Registers A and B. Motion carried unanimously. 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B Action above. PUBLIC HEARINGS - NONE COMMUNICATIONS RE UESTS AND PETITIONS (T e purpose oJ this portion oJ the agenda is to provide the Council with information necessary to craft wise policy. Includes items like monthly or annual reports and communication from other entities) 9. FIRE DEPARTMENT 2016 YEAR END REPORT Mike Schumann, Fire Chief, presented before the Council. Chief Schumann noted that the fire department is staffed at 32 firefighters. Chief Schumann noted that this year's report is dedicated to Darvin Zieman and Casey Stotts. Chief Schumann reviewed the department's mission statement. Chief Schumann reviewed the department's goals and objectives that stay mostly consistent from year to year. Chief Schumann reviewed the officers in the department as well as ceremonies that were held in 2016 and other various events. Chief Schumann also reviewed operational data year by year, as well as training activities completed and equipment information. Lastly, Chief Schumann reported on the fire department's ISO rating. The City's ISO rating is a 3/3Y. There are 47,240 fire departments in the nation and only 3831 are class 3 or better. Of Minnesota's 784 fire departments there are only 21 fire departments rated a class 3 or better (there are NO class 1 or class 2 departments). That means that Hutchinson is in the top 3% of the state and amongst the top 8% in the country. 10. REVIEW OF 2017 PAVEMENT MANAGEMENT PROGRAM REPORT John Olson, Public Works Manager, presented before the Council. Mr. Olson reviewed the 2017 pavement management program report. Overall, there is a street network average Pavement Condition Index (PCI) of 70. This is right in the middle of the City's stated goal of maintaining network PCI between 65 and 75. There are 90.6 miles of street in Hutchinson. Street rehabilitation included in the 5 -year capital improvement plan is expected to allow for maintaining network average PCI between 65 and 75 at an anticipated cost of $2.8 million/year. The goals of the pavement management program are to protect investment in pavements, maintain PCI of 65-75, adjust the G.O. Bond limit to $1.9 million 2 CITY COUNCIL MINUTES FEBRUARY 14, 2017 and keep close tabs on pavement conditions. Mayor Protein moved to the New Business section of the agenda. 11. REVIEW OF TRUNK HIGHWAY 15 DOWNTOWN RECONSTRUCTION PROJECT DELIVERY PROCESS AND SCHEDULE Kent Exner, City Engineer, presented before the Council. At this point, the design consultant scope of services document is being finalized and the consultant selection process n�s to begin in the near future for the Trunk Highway 15 Downtown Reconstruction project (2 Avenue North to 5t' Avenue South). The City was recently informed that MnDOT intends to administer a concrete pavement rehabilitation project from 5t' Avenue South to Denver Avenue South during the same time frame as the downtown project due to a portion of the TH 15 traffic being detoured at that time. There was discussion on use of MnDOT right of way along Main Street. Mr. Exner reviewed MnDOT's scope of services document that has been drafted for the reconstruction project which included the proposed project schedule. General discussion was held regarding accessibility and installing new sidewalks. 12. REVIEW OF SCHOOL ROAD & ROBERTS ROAD PROJECT CONSTRUCTION PHASING PLAN Kent Exner, City Engineer, presented before the Council. City staff has recently finalized the project plans and specifications for the School Road & Roberts Road reconstruction project and the proposed project construction phasing plan was firmly established. The project is slated to begin as soon as school gets out, therefore the project is scheduled to begin May 15, 2017, and then open to local traffic on or before June 16, 2017, for Water Carnival activities. Construction will then begin again on June 19, 2017, with final completion scheduled for on or before November 3, 2017. Although final completion is scheduled for November 3, 2017, the roadway is scheduled to be open to local traffic on or before August 25, 2017. UNFINISHED BUSINESS NEW BUSINESS 13. APPROVE/DENY ACCEPTANCE OF THE RESULTS OF THE JOB EVALUATION AND COMPENSATION STUDY CONDUCTED BY KEYSTONE COMPENSATION GROUP Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that in April 2016, the City entered into an agreement with Keystone Compensation Group to conduct a comprehensive job evaluation and compensation study. The study has been completed and specific information regarding the results of the study was conveyed to the Council at the workshop held on December 27, 2016. Based on the study, the consultant recommended that the 2016 pay grid be adjusted by 2.5% in 2017 to account for "market adjustments". Upon conversations with Council Members Lofdahl and Cook, who are proposing the idea of a "Lead the Market' factor for the City's pay structure, it is being proposed that an additional one time 2.5% "Lead the Market" adjustment also be incorporated for a total grid adjustment in 2017 to 5%. The "Lead the Market" factor is based off of the City's general pay philosophy that states the City will be "highly competitive within our defined market and that we want to lead or exceed the market in attracting and retaining qualified, reliable and motivated employees who are committed to quality and excellence for those we serve". This proposal was presented to the wage committee on CITY COUNCIL MINUTES FEBRUARY 14, 2017 February 2, 2017, and after review and discussion, the wage committee is in support of the "Lead the Market" strategy as brought forth by Council Members Lofdahl and Cook. The ability to finance this adjustment was the biggest concern raised. It is estimated that the additional 2.5% adjustment (to a total 5%) would have a fiscal impact of about $26,514 in the general fund and $31,563 overall when including enterprise funds. Council Members Cook and Lofdahl feel this is an acceptable amount based off of what impact this will have on the future recruitment and retention efforts for the City. Mr. Jaunich noted that a 5% market adjustment does not mean that every employee is receiving a 5% wage increase. Adjusting the grid 5% basically means that the City is broadening the scope within which staff assigns performance evaluations. Annual adjustments for every employee are based off of their performance as measured by their supervisor through a performance matrix system. Upon approval of the job evaluation and compensation study and the 2017 compensation plan, position classification table and pay grid, staff will need to update the merit/performance model to coincide with the new compensation plan. Mr. Jaunich also noted that staff is proposing that a full compensation study be completed every five years, and not 10-15 years. Motion by Cook, second by Lofdahl, to approve acceptance of the results of the job evaluation and compensation study conducted by Keystone Compensation. Council Member Cook recognized employees in attendance that have raised questions and concerns of the new plan. Council Member Cook explained that internal equity uses five factors in evaluating the jobs and classifying them in the appropriate categories that is fair for the entire organization. Council Member Lofdahl spoke of the professionalism of the consultant and the vast amount of studies that they conduct all over the state as well as the science that was used for the study and the market that was used. Council Member Lofdahl noted he found no fault in the analysis that was completed and fares as to what the market calls for. Council Member Cook noted that when a study is completed, the reality is is that some jobs are upgraded a classification and some are downgraded a classification. Motion carried unanimously. 14. APPROVE/DENY RESOLUTION NO. 14684 — CITY OF HUTCHINSON 2017 COMPENSATION PLAN, POSITION CLASSIFICATION TABLE AND PAY GRID Matt Jaunich, City Administrator, noted that based on the results of the study, the information was put into the 2017 compensation plan and replaces the 2016 compensation plan. Motion by Cook, second by Christensen, to approve Resolution No. 14684. Motion carried unanimously. 15. APPROVE/DENY SETTING PUBLIC HEARING FOR FEBRUARY 28, 2017, FOR BODY CAMERA PROGRAM POLICY ADOPTION Matt Jaunich noted that at the last Council meeting a public hearing was held on the police department body camera program. Another public hearing must be held to review the body program policy before it's adopted. Motion by Christensen, second by Lofdahl, to set public hearing for February 28, 2017, at 6:00 p.m. Motion carried unanimously. 16. APPROVE/DENY EQUIPMENT TRANSACTION WITH MCLEOD COUNTY John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that the public works department has a snow blower available due to acquiring a replacement snow blower last year. McLeod County would like to acquire the City's snow blower that it .19 CITY COUNCIL MINUTES FEBRUARY 14, 2017 no longer needs. McLeod County has a tandem -axle dump truck that they are disposing of and the City has identified the need for a used tandem -axle dump truck in the capital improvement plan. Based on these situations, the relative value of each of these pieces of equipment hold the same value of $12,000. Motion by Cook, second by Lofdahl, to approve equipment transaction with McLeod County. Motion carried unanimously. 17. APPROVE/DENY FEDERAL AVIATION ADMINISTRATION AIRPORT IMPROVEMENT PROGRAM ENTITLEMENT TRANSFER TO THE CITY OF TRACY John Olson, Public Works Manager, explained that the City of Tracy has requested to transfer $93,000 in 2017 entitlements from the Federal Aviation Administration Airport Improvement Program. In 2009, the City of Hutchinson received a transfer of $93,000 in entitlements from the City of Tracy to help in the construction of a 5600 square foot hangar, formerly used by Life Link III and now used by Airport FBO, ASI Jet. There is no actual money that will be transferred back and forth. The City of Hutchinson is merely assigning a portion of its 2017 AIP entitlements, which is $150,000 per year, to the City of Tracy. Motion by Lofdahl, second by Christensen, to approve FAA improvement program entitlement transfer to City of Tracy. Motion carried unanimously. 18. APPROVE/DENY SETTING COUNCIL WORKSHOP TO REVIEW 2017 GOALS AND OBJECTIVES Matt Jaunich noted that a workshop was held last year at about this same time for this same purpose. He is looking to set priorities, as well as goals and objectives. Motion by Christensen, second by Lofdahl, to set Council workshop for 4:00 p.m. on February 28, 2017. Motion carried unanimously. GOVERNANCE (T e purpose o t is 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.) 19. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS (a) City Snow Removal & Ice Control Report for January 2017 (b) Sidewalk Snow Removal Monthly Report for January 2017 NHSCELLANEOUS 20. STAFF UPDATES Kent Exner — Mr. Exner noted that a McCuen Creek cleanout meeting is being held February 21, 2017, at 7:30 p.m. McCuen Creek is southwest of town and touches the south end of airport property. Matt Jaunich — Mr. Jaunich noted that City offices will be closed Monday February 20, 2017, for Presidents' Day 21. COUNCIL/MAYOR UPDATE 5 CITY COUNCIL MINUTES FEBRUARY 14, 2017 ADJOURNMENT Motion by Christensen, second by Czmowski, to adjourn at 7:50 p.m. Motion carried unanimously. HUTCHINSON CITY COUNCIL SPECIAL WORKSHOP MEETING MINUTES TUESDAY, FEBRUARY 14, 2017, AT 4:00 PM CITY CENTER — COUNCIL CHAMBERS 1. Call to Order Mayor Protem Chad Czmowski called the meeting to order. Members present were Mary Christensen, Steve Cook and John Lofdahl. Member absent was Gary Forcier. Others present were Matt Jaunich, City Administrator and Kent Exner, City Engineer and other City staff. DISCUSSION/REVIEW ITEMS 2. Review and Discuss Guiding Principles and Project Goals of the Facilities Master Plan John McNamara, Wold Architects, introduced himself. Mr. McNamara and his associates are working on a facilities master plan for city center, police station and fire station. Mr. McNamara explained the work that has been done thus far with City staff. Council Member Cook noted that this is a master plan that can be instituted over the next several years and is not being instituted immediately. Mr. McNamara noted that the items included in the master plan will need to be approved by the Council through its capital improvement plan. Mr. McNamara explained the space needs assessment process that will be followed. The space needs assessment will be approximately a four month process including the assessment and options development. Mr. McNamara explained the project goals and the specific goals and objectives for each facility, as well as the guiding principles. The guiding principles include a focus on function & operations, sustainability and community pride & personnel recruitment. Mr. McNamara noted that his staff has held departmental meeting discussions on each facility. From those discussions the following was arrived at: City Hall: Public wayfmding in lobby is not as good as it could be. Lobby could be utilized better. Combined service counter could improve customer service and reception back-up. Conference rooms could provide better separation of staff and public. Safety and security improvements in Council Chambers are needed. Adequate office and staff spaces. Open office areas could be improved for efficiency. Motor Vehicle Licensing has consistently increased volume. Need some additional space for staff and customers. Safety and security is a concern. Improved staff spaces such as break room, fitness, showers and collaborative spaces would improve worker experience. Police Department: Main lobby is small and has no privacy for public. All paper work is done in the lobby. Interview rooms are needed. Lobby security is needed. Currently open at all times. A secure vestibule would allow for after- hours access. There is little privacy in administration area due to size and configuration. Detention area is not utilized as it could be due to DOC requirements. Locker rooms are undersized and have inadequately sized lockers for modern police equipment. There are no lockers for staff. Additional showers and toilets are needed. Patrol briefing room is undersized. Ideally, Investigations, Evidence Storage and Processing and EOC would be co -located together. Evidence storage and processing is undersized and better ventilation is needed. Would be better if it was near patrol. Additional garage space for patrol vehicles is needed. Patrol vehicles are difficult to access and are often parked outside and left running to protect equipment during shifts. There is no training space available. Fire Department: Minimal changes have occurred since it was constructed. Lobby is undersized and does not allow enough room for public or fire fighters. There is no security to keep public from getting to the second floor. There is no elevator providing access to second floor and the restrooms are not handicap accessible — is a problem for public events. Apparatus bay fits current equipment, but new equipment has to be custom built to fit due to the heights of the doors. Cannot fully tip open cab for maintenance due to bay heights. Current bay configuration is not drive through, requiring all vehicles to back into station. There is no office space or day room for duty crew. Upstairs training room is adequate, but kitchen area is small and outdated - would be nice to have an eating area. May want to consider sleeping space for flexibility in changing staffing model. Location of the station serves well for response to and from station. Parking area next to building is tight. Mr. McNamara then reviewed the facility assessment process. The process includes exploring condition and deficiencies in 10 important areas: site, exterior, interior, accessibility, life safety, hazardous materials, mechanical systems, electrical systems, technology and expandability. General discussion was held on security issues in various areas. Motion by Christensen, second by Lofdahl, to adjourn at 5:05 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Matthew Jaunich Mayor City Administrator HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-XZ Agenda Item: Special Event Request Department: Police LICENSE SECTION Meeting Date: 2/23/2016 Application Complete N/A Contact: Daniel T. Hatten Agenda Item Type: Presenter: Daniel T. Hatten Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 2 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: The 42th Annual Arts & Crafts Festival and Taste of Hutchinson will be held Friday, September 15th, 10 am - 6 pm and Saturday, September 16th, 9 am - 4 pm in Library Square and 1 S\ Ave SE. Setup for the festival will begin on Thursday, September 14th at 8 am. The event will end on Saturday the 16th at 4 pm. Cleanup is usually completed by 8 pm on the 17th. A rain location will not be provided. A severe weather emergency plan is currently in place. The Arts & Crafts Festival committee would like to request the support and assistance of the City of Hutchinson in regards to the areas outlined. We understand that our request for support of the festival will affect multiple City of Hutchinson departments. Request of Support from the City of Hutchinson - Administration • The Hutchinson Ambassadors wish to reserve all concession rights on 1 st Ave SE between Main Street and Hassan Street as well as the control of any and all food exhibitors for the Taste of Hutchinson. The Ambassadors have an agreement with the Downtown Association regarding the operation of the Popcorn Wagon during the event. • Use of electricity in band shell and along 151 Ave SE during the festival weekend. Police Department • Overnight security on Thursday, September 14th and Friday, September 15h. • Assistance with pedestrian traffic crossing on the comer of Main Street and 1st Ave. • Assistance in directing vendor traffic during the event • Assistance with vendor check in traffic control and allow use of Hassan Street from Washington to 5th Ave SE to aid in this process • Emergency services support during the event Parks & Recreation • Exclusive use of Library Square for art & craft exhibitors for September 15-16, 2016 BOARD ACTION REQUESTED: I Recommend approval Fiscal Impact: $ 4,000.00 Funding Source: Department Buget FTE Impact: 20.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL ci=qf� Request for Board Action 7AL =-XZ Agenda Item: Special Event Department: Police LICENSE SECTION Meeting Date: 2/28/2017 Application Complete N/A Contact: Daniel T. Hatten Agenda Item Type: Presenter: Daniel T. Hatten Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 2 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: On behalf of the Hutchinson Chamber & Tourism's Agri-Business Committee I would like to make a request to close First Ave SE between Main Street and Hassan Street. This request is for the annual Dairy Day Celebration on Friday, June 2, 2017, in Library Square. We would like to use First Ave SE for the tractor club and equipment displays. We currently have Library Square reserved from 9:00 am until 3:00 pm. The tractors would be brought in Friday morning after 9:00 am. The event is scheduled to run until 1:30 pm, but we are requesting 3:00 pm to allow for clean-up. If you have any questions, or if the committee can be of any assistance, please give me a call at 320-234- 0785 or email me at mary@explorehutchinson.com. Thank you for your help. BOARD ACTION REQUESTED: Recommend Approval Fiscal Impact: $ 0.00 Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL ci=v�fAa� Request for Board Action 7AL =-NZ Resolution #14685 Closing Construction Funds and Transferring Fund Balances to the Agenda Item: Debt Service Funds. Department: Finance LICENSE SECTION Meeting Date: 5/12/2015 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Andy Reid Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: When the City bonds for its annual roadway and infrastructure projects, a Construction Fund is established to account for all project costs and funding sources. A Debt Service Fund is also created to account for the debt service activity related to that year's bond issuance. When the construction projects are fully completed and all costs have been incurred, the Construction Fund is closed into the Debt Service Fund with any transferred cash being restricted for debt service payments. Two construction funds were fully completed in 2016 as follows: 2014 Construction fund - closed with -0- fund balance due to a cash deficit in the fund that was resolved with an inter-fund transfer from the Capital Projects fund. That transfer was approved by city council on 12/27/2016. 2015 Construction fund - closed into the 2011 Debt Service Fund - $116,077.32 inter-fund transfer. These funds have been closed and the appropriate transfers made within fiscal year 2016. BOARD ACTION REQUESTED: Approve Resolution #14685. Fiscal Impact: $ 0.00 Funding Source: 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 CITY OF HUTCHINSON RESOLUTION NO. 14685 CLOSING OF THE 2014 & 2015 CONSTRUCTION FUNDS AND TRANSFERRING FUND BALANCES TO THE 2014 & 2015 DEBT SERVICE FUNDS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, the following funds are hereby closed, 2014 Construction Fund 2015 Construction Fund THAT, any remaining fund balances, including cash, is hereby transferred to the Debt Service Fund to be available for debt service payments. THAT, said transfers are hereby effective and apply to the 2016 fiscal year. Adopted by the City Council this 28th day of February 2017. Gary Forcier Mayor ATTESTED: Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL ci=v�fAa� Request for Board Action 7AL =-NZ Resolution #14686 Closing the 2004 Debt Service Fund and Transferring Fund Balance Agenda Item: to the Community Improvement Fund (Excess Bond Fund) Department: Finance LICENSE SECTION Meeting Date: 2/28/2017 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Andy Reid Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 1 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: When the City bonds for its annual roadway and infrastructure projects, a Construction Fund is established to account for all project costs and funding sources. A Debt Service Fund is also created to account for the debt service activity related to that year's bond issuance. When the debt obligation has been fully satisfied, the debt service fund is closed with any fund balance being transferred into the excess bond fund (Community Improvement Fund). The 2004 debt service fund obligations were fully satisfied in 2016. The fund has been closed and an inter-fund transfer of $130,687.21 has been made to the Community Improvement fund at 12/31/2016. BOARD ACTION REQUESTED: Approve Resolution #14686. Fiscal Impact: $ 0.00 Funding Source: 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 CITY OF HUTCHINSON RESOLUTION NO. 14686 CLOSING OF THE 2004 DEBT SERVICE FUND AND TRANSFERRING FUND BALANCE TO THE COMMUNITY IMPROVEMENT FUND (EXCESS BOND FUND) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, the 2004 Debt Service Fund is hereby closed and any remaining fund balance, including cash is hereby transferred into the Community Improvement Fund. THAT, said transfer is hereby effective and applies to the 2016 fiscal year. Adopted by the City Council this 28th day of February 2017. Gary Forcier Mayor ATTESTED: Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-ft Agenda Item: Approve/Deny Airport grant request - Pavement Sealing (Runway & Apron) Department: PW/Engineering LICENSE SECTION Meeting Date: 2/14/2017 Application Complete Contact: John Olson Agenda Item Type: Presenter: John Olson Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Public Works is seeking approval to proceed with a grant request to MnDOT Aviation to apply pavement sealant on the runway and apron. The proposal is to apply Replay sealant on the runway and apron areas that were built in late 2015. Taxiway A and the connecting taxiways were removed from consideration due to funding constraints, both of the State and City. Attached is our grant request for: Runway 15/33: $ 51,217.92 Apron: $ 20,950.16 Project Cost: $ 72,168.08 State (80%): $ 57,734.46 City (20%): $ 14,433.62 Project Funding: $ 72,168.08 City match of $14,433.62 is proposed to be taken from the Airport Construction Fund. The fund has a balance of about $10,000 at this time and monthly deposits of $1,100 are made into the fund, which will allow the match to be met. If approval is given to apply for the grant and the City is successful in receiving the grant, grant documents will be brought before the Council at a later date for final approval and work will be awarded to Bargen, Inc., who submitted the lowest price quotations. BOARD ACTION REQUESTED: Approve/deny grant request to MnDOT Aeronautics for runway, apron sealing project. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: $ 72,168.08 Total City Cost: $ 14,433.62 Funding Source: Airport Construction Remaining Cost: $ 57,734.46 Funding Source: MnDOT Aeronautics Grant C February 17, 2017 Mr. Daniel Boerner, P.E. Central Region Airport Development Engineer Minnesota Department of Transportation Office of Aeronautics 222 East Plato Blvd. St. Paul, MN 55107 City of Hutchinson Hutchinson Municipal Airport — Butler Field Operations & Maintenance 1400 Adams St SE Hutchinson, MN 55350 Phone (320) 234-4219 Fax (320) 234-6971 RE: Grant Application. Hutchinson Municipal Airport — Butler Field (HCD). Runway 15/33 Seal Coat Dear Mr. Boerner: Please find enclosed the project price quotes (2), layout, and pre -construction photos for the aforementioned project at the Hutchinson Municipal Airport — Butler Field, Hutchinson, MN. The project involves application of a polymer based oil seal and preservation coating on Runway 15/33 and the Apron. Please note the quotes included potentially more area that what is proposed below, as available funding is not sufficient for all areas. Funding is to consist of a combination of State and Local funds. The following is a breakdown of costs associated with this grant request: Construction (Bareen. Inc.): Runway 15/33 Seal Coat $ 51,217.92 Apron Seal Coat $ 20,950.16 Total Project Cost: J22,168.08 Total State Share (80%): $ 57,734.46 Total Local Share (20%): $ 14,433.62 Total Project Fundine: S72,168.08 The City of Hutchinson requests a State grant agreement in the amount of $ 57,734.46 for the Runway 15/33 and Apron Seal Coat project. If you need any further information or documentation, please feel welcome to contact me at Tolson@ci.hutchinson.mn.us or (320) 234-4473. Sincerely, ohn Olson, Public Works Manager City of Hutchinson 1400 Adams St SE Hutchinson, MN 55350 (320) 234-4219 — department (320) 234-4473 — direct (320) 234-6971— fax (320) 583-8145 — mobile Tolson@ci.hutchinson.mn.us cc: Bob Burrell, MNDOTAeronautics Silas Parmar, Bolton & Menk, Inc. Enclosures: Project Price Quotes Project Layout Pre -Construction Photos a BARGEN INC. im N. COUNTY ROAD 1 MOUNTAIN LAKE MN 50159 HUTCHINSON MUNICIPAL AIRPORT - BUTLER FIELD RUNWAY, TAXIWAY, AND APRON SEAL COAT CONTRACTOR QUOTE ITEM NO. SPEC NO. DESCRIPTION QUANTITY UNIT UNIT PRICE AMOUNT 1 2356.506 RUNWAY SEAL COAT-RePLAY 33,696 SY $ /I 60 $ 61 Z/-7'IZ, 2 2346.506 TAXIWAY SEAL COAT - RePLAY 25,449 SY $ 5 '2 $ 3 23.56.506. APRONSEALCOAT- RePLAY 13,709 SY 15Z $ 'z0,, 960.16 TOTAL: NOTE: CONTRACTOR SHALL INDICATE UNIT PRICE FOR EACH ITEM, TOTAL AMOUNT, SIGN, AND EMAIL (Tolson@dbutchlnsoo.mn.us) FOR PROCESSING. SIGNED: DATE. F'T 0, `i \\metrosouth4\h\HUTCLGanoral\2017 Seal Coat\HCD.Seal Coat Quota (020317).xlsx HUTCHINSON MUNICIPAL AIRPORT - BUTLER FIELD RUNWAY, TAXIWAY, AND APRON SEAL COAT CONTRACTOR QUOTE ITEM NO. SPEC NO. DESCRIPTION QUANTITY UNIT UNIT PRICE AMOUNT 1 2356.506 RUNWAY SEAL COAT - RePLAY 33,696 SY $ 6211��.S r 2 2356.506 TAXIWAY SEAL COAT - RePLAY 25,449 SY $% -7 2 f� J J U $ 'IL.� Z 4/ 3 2356.506 APRON SEAL COAT- RePLAY 13,783 SY $ I� 7 a -7 $ 72- r� r TOTAL: $ / J%2— NOTE: CONTRACTOR SHALL INDICATE UNIT PRICE FOR EACH ITEM, TOTAL AMOUNT, SIGN, AND EMAIL (jolson@ci.hutchinson.mn.us) FOR PROCESSING. SIGNED: Cy`f� �'� DATE: '� , 3�Z ayd # 3 a v -e- r-) K 04 14 d�y� ett Wu--, Sam. -h'vyte as t 4e ?,+1 ate- a5 � Pr � Y \\metrosouth4\h\HUTCLGeneral\2017 Seal Coat\HCD-Seal Coat Quote (020317).xlsx t LEGEND RUNW (33,691 , TAXIWAY SEAL COAT (25,449 SY) APRON SEAL COAT (13,783 SY) a ® 20 p Ran • 5tal!! TETT � 8��..T�N 12VILLE. MINNESOTA CITY OF HUTCHINSON, MINNESOTA OU 12224 E. MINNESOTA 55337 & M E N K Ohonc:(952)ojton- 9 RUNWAY, TAXIWAY, AND APRON SEAL COAT 6nail: &vnsvl+c@4oRon-nrnk.wrr www.bo ton•nenkcon PROJECT LAYOUT A'Po:Cco x blrn\ bc. "IF" M Rio,, Rry m d \�a�^ :.+=v+vv+cr;um:vr tn7tr +u'Jo+evw ww, RRua uvJrn?Rwicr FEBRUARY, 2017 FIGURE NO. 1 irk .-r r" Z. + �I fy� a ® 20 p Ran • 5tal!! TETT � 8��..T�N 12VILLE. MINNESOTA CITY OF HUTCHINSON, MINNESOTA OU 12224 E. MINNESOTA 55337 & M E N K Ohonc:(952)ojton- 9 RUNWAY, TAXIWAY, AND APRON SEAL COAT 6nail: &vnsvl+c@4oRon-nrnk.wrr www.bo ton•nenkcon PROJECT LAYOUT A'Po:Cco x blrn\ bc. "IF" M Rio,, Rry m d \�a�^ :.+=v+vv+cr;um:vr tn7tr +u'Jo+evw ww, RRua uvJrn?Rwicr FEBRUARY, 2017 FIGURE NO. 1 HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-ft Agenda Item: Amendments to the 2017 Fee Schedule Department: PRCE LICENSE SECTION Meeting Date: 2/28/2017 Application Complete N/A Contact: Dolf Moon Agenda Item Type: Presenter: Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: With the opening of the Hutchinson Aquatic Center in 2017 the attached fee schedule is recommended for approval. In addition to this fee schedule the PRCE Department is recommending a refundable damage deposit fee of $100 for the Depot and Episcopal Church reservations. BOARD ACTION REQUESTED: I would recommend amending the 2017 fee schedule. Fiscal Impact: Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Hutchinson Family Aquatic Center 2017 Proposed Schedule & Fee Structure Daily Hours Description of Activity 5:30-9:00 am Fitness Time, Lap Swim, River Walking 9:00-11:30 am Rentals - Programming (Mon -Fri) Noon -8:00 pm Open Swim - Daily Dailv Admission All Swimmers $6.00 After 5 pm $5.00 24 months and younger Free Spectators $4.00 Season Pass Individual $90 Each additional family member $20 FifnPcc PnQQ AM Fitness, Lap Swim, River Walking $60 Fitness admission $4 Discount tickets 12 admissions $60 Rentals Party Tent Rentals $20 - 2 hours HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-ft Agenda Item: Items for WWTF Membrane Bioreactor Cassettes Replacements (L8/P17-08) Department: PW/Eng LICENSE SECTION Meeting Date: 2/28/2017 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: City staff requests that the City Council approve the appropriate Resolutions to set a Public Hearing for the above referenced project letting at their March 28th meeting. Please note that City staff will be working with the potential vendor of this equipment to finalize estimated costs and delivery/installation time frames prior to this future hearing. BOARD ACTION REQUESTED: Approval of Resolutions Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 560,000.00 Total City Cost: $ 560,000.00 Funding Source: Wastewater Funds Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14688 RESOLUTION ORDERING PREPARATION OF REPORT ON IMPROVEMENT LETTING NO. 8/PROJECT NO. 17-08 WHEREAS, it is proposed to improve: Wastewater Treatment Facility (WWTF) Membrane Bioreactor Cassettes Replacements: Equipment procurement, installation, startup, training and appurtenances. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, the proposed improvement, called Letting No. 8/Project No. 17-08, be referred to the Engineer for study and that that person is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvement is necessary, cost-effective, and feasible; whether it should best be made as proposed or in connection with some other improvement; the estimated cost of the improvement as recommended; and a description of the methodology used to calculate individual assessments for affected parcels. Adopted by the Council this 28th day of February 2017. Mayor: Gary Forcier City Administrator: Matt Jaunich HUTCHINSON PUBLIC WORKS/ENGINEERING DEPARTMENT Hutchinson City Center/111 Hassan St SE/Hutchinson MN 55350-2522/320-234-4209/FAX 320-234-4240 ENGINEERING REPORT & FEASIBILITY STUDY TO: Mayor & City Council FROM: Kent Exner, DPW/City Engineer DATE: February 28, 2017 SUBJECT: Letting No. 8/Project No. 17-08 I have studied the following proposed improvements and find that the proposed project is feasible and recommend it be constructed: L8/P17-08 Wastewater Treatment Facility (WWTF) Membrane Bioreactor Cassettes Replacements: Equipment procurement, installation, startup, training and appurtenances. ESTIMATED COST TOTAL Construction Cost $525,000 Engineering $35,000 Administration $0 ESTIMATED TOTAL $560,000 ESTIMATED FUNDING TOTAL Assessable Costs $0 State Aid $0 Cit - Bonding $0 City -Water Funds $0 City -Wastewater Funds $560,000 City - Stormwater Funds $0 ESTIMATED TOTAL $560,000 RESOLUTION NO. 14689 RESOLUTION RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT LETTING NO. 8/PROJECT NO. 17-08 WHEREAS, pursuant to a resolution of the Council adopted February 28th, 2017, a report has been prepared by Kent Exner, Public Works Director/City Engineer with reference to the following proposed improvements: Wastewater Treatment Facility (WWTF) Membrane Bioreactor Cassettes Replacements: Equipment procurement, installation, startup, training and appurtenances; and said report was received by the Council on February 28th, 2017. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The Council will consider the improvement in accordance with the report at an estimated total cost of the improvement of $560,000.00. 2. A public hearing shall be held on such proposed improvements on the 28th day of March 2017, in the Council Chambers of the Hutchinson City Center at 6:00 PM and the Clerk shall give mailed and published notice of such hearing and improvements as required by law. Adopted by the Hutchinson City Council this 28th day of February 2017. Mayor: Gary Forcier City Administrator: Matt Jaunich PUBLICATION NO. 8217 NOTICE OF HEARING ON IMPROVEMENT LETTING NO. 8 PROJECT NO. 17-08 TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council of Hutchinson, Minnesota, will meet in the Council Chambers of the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, MN, at 6:00 pm on the 28th day of March, 2017, to consider the making of an improvement of Letting No. 8/Project No. 17-08, an improvement of: Wastewater Treatment Facility (WWTF) Membrane Bioreactor Cassettes Replacements: Equipment procurement, installation, startup, training and appurtenances. pursuant to Minnesota Statutes, Sections 429.011 to 429.111. The estimated City cost of said improvement is $560.000.00, with no Assessable cost for the total estimated cost of $560,000.00 A reasonable estimate of the impact of the assessment will be available at the hearing. Such persons as desire to be heard with reference to the proposed improvement will be heard at this meeting. Dated: 02/28/2017 Matt Jaunich, City Administrator PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS HEARING, WHETHER YOU ARE FOR OR AGAINST THE PROJECT, IN ORDER THAT YOUR COUNCIL CAN BE BETTER INFORMED OF A TRUE REPRESENTATION OF OPINION. PUBLISHED IN THE HUTCHINSON LEADER ON WEDNESDAY, MARCH 15TH, 2017 AND WEDNESDAY, MARCH 22ND, 2017. CHECK REGISTERA -FOR CITY OF HUTCHINSON CHECK DATE FROM 02/08/2017 - 02/28/2017 Check Date -------------------- 02/13/2017 Check -------------- 195158 Vendor Name ----------------------------------------------------------------- BRAUN INTERTEC CORP Description --------------------------------------------------------------------- HUTCHINSON AQUATIC CENTER- CONSTRUCTION Amount -------------------- 15,263.25 02/13/2017 195159 BUSHMAN, RAQUEL CONCESSION SUPPLIES-FREEZER,HOTDOG & NACHO 2,840.76 02/13/2017 195160 E.G. RU & SONS INC. OFFICE SETUP, COMPUTATIONS & PROJECT MAN 205.00 02/13/2017 195161 G LO BAL SP ECIALTY CO NTRACTO RS, I NC AQUATIC CENTER PAYMENT#7 144,970.00 02/13/2017 195162 HASSLEN CONSTRUCTION COMPANY, INC AQUATIC CENTER PAYMENT#7 342,500.65 02/13/2017 195163 KTI FENCING INC 48 FEET OF TEMP FENCE BROUGHTTO AQUATIC 192.00 02/13/2017 195164 MINI BIFF RENT REG BLUE- AQUATIC CENTER 209.96 02/13/2017 195165 SWITCH FAST COMMUNICATIONS SIGN & AWNING GRANT 1,000.00 02/28/2017 195169 A & K REPAIR LABOR ON BATTERY CHARGER 65.00 02/28/2017 195170 ACE HARDWARE RECIP SAW BLD 9" 339.24 02/28/2017 195171 ADVANTAGE COURT REPORTING LLC ULLAND-DEPOSITION OF K. PIEPENBURG 1,864.65 02/28/2017 195172 AEM MECHANICAL SERVICES INC VENTER MOTOR 460V, HATS SHOP UNIT HEATER 210.19 02/28/2017 195173 ALPHA WIRELESS TECHNICAL SERVICE ON PORTABLE RADIO SERI 952.00 02/28/2017 195174 AMERICAN BOTTLING CO FEB PURCH 224.64 02/28/2017 195175 AMERIPRIDE SERVICES MOPS, MATS 97.88 02/28/2017 195176 ARCTIC GLACIER USA INC. ICE 209.32 02/28/2017 195177 ARNESON DISTRIBUTING CO FEB PURCH 420.50 02/28/2017 195178 ARROW TERMINAL LLC BLACK CABLE TIE, LED WORK LIGHT 204.44 02/28/2017 195179 ARTISAN BEER COMPANY FEB PURCH 1,957.70 02/28/2017 195180 AUTO VALUE - GLENCOE 3/8-16X3/4 SS, CAP SCREW, NUTS 59.93 02/28/2017 195181 BALDWIN SUPPLY COMPANY BAGGER VF, SS POTATOE CONVEYOR, MAINT 897.08 02/28/2017 195182 BELLBOY CORP FEB PURCH 1,733.29 02/28/2017 195183 BERNICK'S FOOD SERVICE FEB PURCH 283.20 02/28/2017 195184 BETTER HALF EMBROIDERY SHIRTS -DARK INDIGO, TRUE NAVY,ROYAL, ORA 506.46 02/28/2017 195185 BREAKTHRU BEVERAGE FEB PURCH 9,637.41 02/28/2017 195186 BUSINESSWARE SOLUTIONS VEEAM ESSENTIALS RENEWAL 700.00 02/28/2017 195187 C & L DISTRIBUTING FEB PURCH 24,424.99 02/28/2017 195188 CARLOS CREEK WINERY FEB PURCH 1,104.00 02/28/2017 195189 CENTRAL HYDRAULICS PIPE 6.11 02/28/2017 195190 CENTRAL MCGOWAN HIGH PRESSURE CYL 34.72 02/28/2017 195191 CHEMISOLV CORP FERRIC CHLORIDE 38% 4,495.41 02/28/2017 195192 CORPORATE MECHANICAL REPAIR LEAKING HOT WATER PUMP- BOILER #4 1,065.66 02/28/2017 195193 CROW RIVER AUTO & TRUCK REPAIR ENGINE MISS- 2005 FORD PICKUP F150 200.40 02/28/2017 195195 CUMMINS NPOWER LLC MOBILE UNIT, BATTERY REPLACEMENT, FULLS 5,542.82 02/28/2017 195196 DAVE GRIEP CLEANING CLEAN WINDOWS 45.00 02/28/2017 195197 DROP -N -GO SHIPPING INC MAILER JIFFYLITE,CUBFOODS,FRATTALONES,PR 1,994.97 02/28/2017 195198 DYNA SYSTEMS FAST CURE EPDXY 153.94 02/28/2017 195199 E2 ELECTRICAL SERVICES INC REHOOK ELECTROWATCH PANEL, HOOK UP HEATE 1,017.45 02/28/2017 195200 ECM PUBLISHERS INC BRIDAL GUIDE 170.00 02/28/2017 195201 ECOLAB PEST ELIMINATION RODENT PROGRAM- FEB 154.56 02/28/2017 195202 EXNER, KENT ANNUAL SMALL UTILITIES COORDINATION BREA 65.41 02/28/2017 195203 FACILITY DUDE MAINTENANCE EDGE 1/1/17-12/31/17 1,323.00 02/28/2017 195204 FARM -RITE EQUIPMENT SEAL KIT 87.93 02/28/2017 195205 FASTENAL COMPANY EYEWEAR,TOWEL, PURPCOVER 229.64 02/28/2017 195206 FIRSTADVANTAGE LNS OCC HEALTH SOLU EMPLOYEE TESTING 92.70 02/28/2017 195207 FOREST EDGE WINERY FEB PURCH 117.00 02/28/2017 195208 FRATZKE, CARL REIMB- SHELTER RENTAL 40.00 02/28/2017 195209 G & K SERVICES MATS & TOWELS 145.87 02/28/2017 195210 GRATKE, TIM SHELVING UNIT 161.04 02/28/2017 195211 GREGOR-MCKEE, ERIN RETURN DAMAGE DEPOSIT 300.00 02/28/2017 195212 HANSEN GRAVEL SCHOOL LOTS- LOADER & SNOW PUSHER 1,260.00 02/28/2017 195213 HILLYARD / HUTCHINSON TOP CLEAN 382.24 02/28/2017 195214 HUTCHINSON CO-OP UNLEADED REG GAS,FMD DSL-BUSINESS,WINERM 1,367.82 02/28/2017 195215 HUTCHINSON CONVENTION & VISITORS BU ECONOMY INN JUNE/AUGUST LODGING TAX & PE 1,368.14 02/28/2017 195216 HUTCHINSON HEALTH EMPLOYEE TESTING 656.60 02/28/2017 195217 HUTCHINSON LEADER 24 MONTH RENEWAL 861.48 02/28/2017 195218 HUTCHINSON SENIOR ADVISORY BOARD TOUR REIMBURSMENT-' THE BANK' 1,120.53 02/28/2017 195219 HUTCHINSON WHOLESALE FEELER GAUGE -CHIPPER 949.37 02/28/2017 195220 HUTCHINSON, CITY OF WATER & SEWER SERVICE 1/1/17-1/31/17 1,301.56 02/28/2017 195221 HUTCHINSON, CITY OF REPLENISH ATM MACHINE 4,000.00 02/28/2017 195222 INDUSTRIAL PNEUMATIC SYSTEMS COMPRESSOR REPAIR- PRESSURE SWITCH 176.60 02/28/2017 195223 INTERNATIONAL ECON DEV COUNCIL MEMBERSHIP RENEWAL 2017 M. SEPPELT-BALAN 15.00 CHECK REGISTERA -FOR CITY OF HUTCH INSON CHECK DATE FROM 02/08/2017 - 02/28/2017 Check Date -------------------- 02/28/2017 Check -------------- 195224 Vendor Name ----------------------------------------------------------------- INTERSTATE BATTERY SYSTEM MINNEAPOL Description --------------------------------------------------------------------- MTP -65, SRM -27 Amount -------------------- 308.85 02/28/2017 195225 JJ TAYLOR DIST OF MN FEB PURCH 5,243.63 02/28/2017 195226 JOCHUM, DANIEL AIRFARE FOR CONF IN NY 312.40 02/28/2017 195227 JOHNSON BROTHERS LIQUOR CO. FEB PURCH 33,045.64 02/28/2017 195228 JOHNSON, DOUG L. FOOTWEAR 149.99 02/28/2017 195229 KAHNKE BROTHERS NURSERY WAYFINDING SIGNS -LANDSCAPING TREES/BUSHES 452.25 02/28/2017 195230 KERI'S CLEANING CLEANING 2/1-2/15, CITY,LIBRARY,SENIOR D 2,044.00 02/28/2017 195231 KRANZ LAWN & POWER SPIKE BAR KIT 36.90 02/28/2017 195232 L & P SUPPLY CO STAND ON MOWER -SPINDLE, PULLEY, BELT, TI 1,111.64 02/28/2017 195233 LEAGUE OF MN CITIES -INS TRUST LIABILITY DEDUCTIBLE -Claim LMCGL000000025888 6,904.59 02/28/2017 195234 LEVINE, ERIC RECYCLINGTV 15.00 02/28/2017 195235 LOCATORS & SUPPLIES 3M RESPIRATOR, STARLITE CLEAR TEMPLE 106.14 02/28/2017 195236 LOCHER BROTHERS INC FEB PURCH 30,935.59 02/28/2017 195237 LOGIS ANNUAL NETWORK WELLNESS CHARGE 17,686.65 02/28/2017 195238 MARIPOSA PUBLISHING MN ATTY SECY UPDATES 139.26 02/28/2017 195239 MARTIN-MCALLISTER PUBLIC SAFETY ASSESSMENT- M.DOUVIER 500.00 02/28/2017 195240 MCLEOD COUNTY ABSTRACT & TITLE ULLAND-TRACT W/OPEN ENCUMBRANCES PID#21. 304.00 02/28/2017 195241 MCLEOD COUNTY RECORDER ORDINANCE VAC EAS #16-0768 DOC#61109-NOK 66.00 02/28/2017 195242 MCRAITH,JOHN EQUIPMENT FOR INDOOR PLAYGROUND 600.22 02/28/2017 195243 MEDICA MEDICAL INSURANCE FOR MARCH 2017 124,187.11 02/28/2017 195244 MEEKER COUNTY SHERIFF'S OFFICE SERVICE CHARGE-A.JOHNSON CR -16-254 70.00 02/28/2017 195245 MENARDS HUTCHINSON PINE S4S, 1X4-8' #2 QAUALITY BOARD 563.37 02/28/2017 195246 MINNESOTA SPORTS FEDERATION STATE TOURNAMENT VOLLEYBALL & BASKETBALL 2,085.00 02/28/2017 195247 MINNESOTA VALLEY TESTING LAB BOD, PHOSPHORUS 486.05 02/28/2017 195248 MN DNR FORESTRY RECERTIFICATION FEE- D. SCHUETTE 75.00 02/28/2017 195249 MORRISON COUNTY COURT ADMIN SUBPOENA-CR16684-17000069 50.00 02/28/2017 195250 NAVRATIL, JAMES SAFETY SHOES 104.99 02/28/2017 195251 NORTHERN HOLLOW WINERY FEB PURCH 345.72 02/28/2017 195252 NORTHERN SAFETY & INDUSTRIAL GLO BRITE EXITSIGN-PER SAFETY WALKTHRU- 609.82 02/28/2017 195253 NORTHERN STATES SUPPLY INC BOOM TRUCK-S/O PACK RAT EXTRA WIDE COMPA 950.13 02/28/2017 195254 NUSS TRUCK & EQUIPMENT 2016 MACK SFA GU712 TRUCK CHASSIS 113,449.27 02/28/2017 195255 NYGAARD INDUSTRIAL PAINTING INC SANDBLAST PREP/PRIME & PAINT BLACK GARBA 1,775.00 02/28/2017 195256 O'REILLY AUTO PARTS SPRAY PAINT 62.06 02/28/2017 195257 PAUSTIS WINE COMPANY FEB PURCH 3,863.77 02/28/2017 195258 PHILLIPS WINE & SPIRITS FEB PURCH 24,069.74 02/28/2017 195259 POSTMASTER MARCH UTILITY -POSTAGE 1,700.00 02/28/2017 195260 PREMIER TECH CHRONOS AP -425 ELEVATOR VFD & GEARMOTOR RETROFIT 4,854.87 02/28/2017 195261 RED BULL DISTRIBUTION COMPANY RED BULL 133.99 02/28/2017 195262 RIPPE PRINT COMMUNICATIONS WONDERBLEND REBATE SLIPS 991.60 02/28/2017 195263 RUNNING'SSUPPLY NOZZLE,FITTING HOSE 299.71 02/28/2017 195264 SCHIMMEL CONSTRUCTION LLC HRA DOWNTOWN RENTAL REHAB LOAN-G.HEINTZ 20,425.00 02/28/2017 195265 SCHIROO ELECTRICAL REBUILDING INC 24V BOSCH RECTIFIER, HOUSING, STATOR, NU 342.12 02/28/2017 195266 SCHOOL DIST # 423 JAN ACTIVITIES 3,120.62 02/28/2017 195267 SCHUMACHER, FATHER PAUL ROOM CANCELLATIONS 187.50 02/28/2017 195268 SEBORA, MARC GLENCOE- MTG WITH JODY WINTERS, COURT 81.97 02/28/2017 195269 SIMONSON LUMBER CO POLICE PICINIC TABLES REPAIR RANGE- 2X10 43.11 02/28/2017 195270 SIMPLEXGRINNELL LP ALARM & DETECTION MONITORING 3/1/17-5/31 191.56 02/28/2017 195271 SOUTHERN WINE & SPIRITS OF MN FEB PURCH 18,257.06 02/28/2017 195272 SPS COMMERCE INC WEBFORMS MONTHLY 239.30 02/28/2017 195273 STAPLES ADVANTAGE VARIOUS OFFICE SUPPLIES 547.50 02/28/2017 195274 STRATEGIC EQUIPMENTAND SUPPLY VARIOUS LIQUOR STORE SUPPLIES 409.67 02/28/2017 195275 SUN LIFE FINANCIAL DENTAL INSURANCE FOR FEBRUARY 2017 8,540.20 02/28/2017 195276 TALKPOINT TECHNOLOGIES INC PLANTRONICS HW251N SUPRAPLUS NOAURAL NOI 82.90 02/28/2017 195277 TASC 4/1/17-6/30/17 HAS Adm. Fees 1,150.20 02/28/2017 195278 TEK MECHANICAL BAG BLDG -HEATER IN BAGGING BUILDING NOT 87.00 02/28/2017 195279 THOMSON REUTERS -WEST DISCOUNT PLAN CHARGES - LEGAL 930.09 02/28/2017 195280 TIEGS, JIM LICENSE FEE, EXAM FEE 125.00 02/28/2017 195281 UNITED FARMERS COOP SUPER UNLEAD=TRANSPORT NRPT 16,213.75 02/28/2017 195282 UNUM LIFE INSURANCE CO OF AMERICA LIFE & LTD INSURANCE FOR MARCH 2017 2,153.56 02/28/2017 195283 USA BLUE BOOK FLUORIDE REAGENT 65.04 02/28/2017 195284 VERIZON WIRELESS JAN03'17-FEB02'17 USAGE 38.07 02/28/2017 195285 VERTECH SOLUTIONS & SERVICES RENTAL- DISHMACHINE AT SENIOR DINING 69.95 CHECK REGISTERA -FOR CITY OF HUTCH INSON CHECK DATE FROM 02/08/2017 - 02/28/2017 Check Date -------------------- 02/28/2017 Check -------------- 195286 Vendor Name ----------------------------------------------------------------- VIKING BEER Description --------------------------------------------------------------------- FEB PURCH Amount -------------------- 13,633.90 02/28/2017 195287 VIKING COCA COLA FEB PURCH 559.15 02/28/2017 195288 VINOCOPIA INC FEB PURCH 702.00 02/28/2017 195289 WALTER, MIKE UB refund for account: 1-420-5610-1-02 84.71 02/28/2017 195290 WASTE MANAGEMENT OF WI -MN 2/1-2/15/17 DISPOSAL FEES 10,315.36 02/28/2017 195291 WELCOME NEIGHBOR HUTCHINSON NEW RESIDENT VISITS -JAN 60.00 02/28/2017 195292 WEST CENTRAL SANITATION INC. JANUARY RESIDENTIAL REFUSE SERVICE 46,588.14 02/28/2017 195293 WEST CENTRAL SHREDDING 3CONSULES 62.00 02/28/2017 195294 WILD MOUNTAIN WINERY, INC FEB PURCH 228.00 02/28/2017 195295 WINE COMPANY, THE FEB PURCH 827.00 02/28/2017 195296 WINE MERCHANTS INC FEB PURCH 654.75 02/28/2017 195297 WOLD ARCHITECTS & ENGINEERS MASTER FACILITIES PLANNING- 5% OF FEE 717.50 02/28/2017 195298 ZEP SALES AND SERVICE DIELECTRIC SILICONE GREASE 1,263.65 TOTAL 1,113,663.79 CITY OF HUTCHINSON Department Purchasing Card Activity - January 2017 Dept Date ------------------ 1/11/2017 Card -------------- ADMIN Vendor Name -------------------------------------------------------------- MNEFILE Description -------------------------------------------------------------------------- -------------------- Court Filing Fee for Case #43-CV-16-646 Amount 107.00 1/23/2017 ADMIN GTS Minnesota City Attorneys Educational Conference 335.00 1/25/2017 ADMIN INTERNATION City Administrator Membership in ICMA 873.00 1/20/2017 FINANCE HOLIDAY INN Miles trip to Eau Claire with school officials to tour facility similar to the new Tiger Path program Hutchinson is implementing. 114.64 1/9/2017 IT NEWEGG SSHD for PD Laptop 1172 109.98 1/14/2017 IT AMAZON Headset Batter Jody Harms 11.50 1/13/2017 IT URBAN ARMOR GEAR Case for Surface Pro Electric Division 139.90 1/18/2017 IT BESTBUY Printer Ink for field inspection laptops 68.97 1/23/2017 IT ELEMENT EXPRESS TSYS Vantiv CC Scanners 1,770.00 1/24/2017 IT AMAZON Keyboard for Maintenance Area 29.95 1/26/2017 IT AMAZON Cisco head set to be returned. 249.00 1/4/2017 PLAN AMERICAN PLANNING ASSN Registration for National Planning Conference. 895.00 1/5/2017 PLAN SENSIBLE LAND USE COALITION training in twin cities. 58.00 1/18/2017 PLAN WAL-MART COMMUNITY Ink for mobile printer in Kyles car. 68.69 1/4/2017 POLICE QDOBA City Holiday Party Gift Card - QDOBA 20.00 1/4/2017 POLICE TOKYO GRILL City Holiday Party Gift Card -TOKYO GRILL 20.00 1/4/2017 POLICE TARGET City Holiday Party Gift Card - TARGET 20.00 1/4/2017 POLICE TARGET City Holiday Party Gift Card - TARGET 50.00 1/4/2017 POLICE SQU EAKY'S City Holiday Party Gift Card - SQUEAKY'S 20.00 1/4/2017 POLICE MAIN STREET SPORTS BAR City Holiday Party Gift Card - MSSB 20.00 1/4/2017 POLICE SUBWAY City Holiday Party Gift Card - SUBWAY 30.00 1/4/2017 POLICE MENARDS City Holiday Party Gift Card - MENARDS 50.00 1/6/2017 POLICE DUNN BROS COFFEE City Holiday Party Gift Card - DUNN BROS COFFEE 10.00 1/6/2017 POLICE BUFFALO WILD WINGS City Holiday Party Gift Card - BUFFALO WILD WINGS 20.00 1/6/2017 POLICE APPLEBEES City Holiday Party Gift Card - APPLEBEES 20.00 1/6/2017 POLICE EL LORO II INC City Holiday Party Gift Card - EL LORO II INC 20.00 1/6/2017 POLICE ZELLAS City Holiday Party Gift Card - ZELLAS 20.00 1/6/2017 POLICE CASH WISE CARIBOU City Holiday Party Gift Card - CASH WISE CARIBOU 20.00 1/6/2017 POLICE LANDY LODGE BAR & GRILL City Holiday Party Gift Card - LANDY'S LODGE 20.00 1/6/2017 POLICE SHOPKO STORES OPERATING CO, LLC City Holiday Party Gift Card - SHOPKO 50.00 1/6/2017 POLICE CASH WISE City Holiday Party Gift Card - CASH WISE 50.00 1/9/2017 PUB WKS UNIVERSITY OF MINNESOTA CONTLEARNIN CEAM Conference Registration -John Paulson 305.00 1/10/2017 PUB WKS SEARS Wastewater Lab Fridge 479.99 1/13/2017 PUB WKS NATIONAL SOCIETY OF PROFESSIONAL Project Specs General Conditions Document 110.00 1/20/2017 PUB WKS MN SOCIETY OF PROFESSIONAL ENGINEER Ethics Training - Kent Exner 50.00 1/20/2017 PUB WKS MINNESOTAS BOOKSTORE Mn DOT Construction Specs Books 89.00 1/30/2017 PUB WKS MARINE ENTERPRISED INC Specialized Rust Inhibitor 169.00 1/7/2017 CREEK LOOP PARKING Parkingl/7/17 UH show, Mpls Convention Center 8.00 1/6/2017 CREEK PLZA MPI-SPARKING Parking 1/6/17 UH show, Mpls Convention Center 14.00 1/12/2017 CREEK LORING RAMP Parking for 1/11/17 MNLA, Mpls Convention Center 19.00 1/12/2017 CREEK PLZA MPI-SPARKING Parkingfor 1/12/17 MNLA, Mpls Convention Center 14.00 1/12/2017 CREEK HYATT HOTELS Hotel for MNLA Show, Becky Kobow 123.61 1/18/2017 EDA HUTCH CAFE Lunch for EDA Finance Team Meeting 83.22 GRAND TOTAL 6,755.45 CHECK REGISTERB -FOR CITY OF HUTCHINSON CHECK DATE FROM 02/08/2017 - 02/28/2017 Check Date Check ---------------------------------- 02/28/2017 195194 Vendor Name Description Amount ----------------------------------------------------------------- --------------------------------------------------------------------- -------------------- CROW RIVER SIGNS DRIVER SIDE DOOR WRAP & GRAPHICS ON SQUA 275.00 GRAND TOTAL 1 275.00 HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-XZ Agenda Item: Approve/Deny Police Department Body Camera Program Policy Department: Administration/Police LICENSE SECTION Meeting Date: 2/28/2017 Application Complete N/A Contact: Matt Jaunich/Dan Hatten Agenda Item Type: Presenter: Dan Hatten Reviewed by Staff ❑ Public Hearing Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: As follow up to our January 24 public hearing on the Police Department Body Camera Program Policy, we are in need of a second public hearing prior to approving the proposed policy. Attached is the proposed policy. There has been no changes to the policy since our last public hearing. There has also been no comments submitted since we held our first public hearing. What is needed Tuesday night is a second public hearing (scheduled for 6:00 pm) and then hopefully action on the proposed policy. BOARD ACTION REQUESTED: Conduct a public hearing and then approve/deny the proposed Police Department Body Camera Program Policy Fiscal Impact: $ 0.00 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: REVISED 11-09-16 Mobile Video Recorders 600 Purpose This policy is intended to provide officers with instruction on when and how to use in -car mobile video recorders (BWC/MVRs) and body worn cameras (BWCs) so that they may reliably record their contacts with the public in accordance with the law. 600.1 Policy rs%kk It is the policy of the Hutchinson Police Department that officers shall activate the BWC/MVR when such use is appropriate in the proper performance of his or her official duties, where the recordings are consistent with this policy and the law. This policy does not govern the use or surreptitious recording devices used in investigative or undercover operation. 600.1.1 DEFINITIONS (a) Activate - Any process that causes the BWC/MVR system to transmit or store audio-visual signals. (b) Evidence.com - The online web -based digital media storage facility. The virtual warehouse stores digitally -encrypted data (photographs, audio and video recordings) in a highly secure environment. The digital recordings are accessible to authorized personnel based upon a security clearance and maintains an audit trail of user activity. (c) MGDPA - The Minnesota Government Data Practices Act, Minn. Stat. Chapter 13. (d) Mobile Video Recorder (MVR) - This refers to any system that captures audio and video signals that is capable of installation in a vehicle. (e) Body -Worn Cameras (BWC) - This refers to any system that captures audio and video signals that is individually worn by officers. (f) BWC/MVR Administrator - Designated personnel certified or trained in the operational use of BWC/MVRs, storage and retrieval methods and procedures who assigns, tracks and maintains BWC/MVR equipment, oversees needed repairs or replacement equipment through the vendor, controls user rights and access, and acts as a liaison with the vendor. Also responsible for the training of law enforcement operators on the use of the BWC/MVR. (g) Recorded Media - Audio -video signals recorded or digitally stored on a storage device or portable media. 600.2 POLICY The Hutchinson Police Department may equip officers with access to Body -worn Cameras for use during the performance of their duties. Use of recorders is intended to enhance the Department's mission by accurately documenting contacts between officers of the Department and the public. 600.2.1 BODY -WORN CAMERA OBJECTIVES The Hutchinson Police Department has adopted the use of BWCs and MVRs to accomplish the following objectives: (a) To enhance officer safety. (b) To document statements and events during the course of an incident. (c) To enhance the officer's ability to document and review statements and actions for both internal reporting requirements and for courtroom preparation/presentation. (d) To preserve audio and visual information for use in current and future investigations. (e) To provide a tool for self -critique and field evaluation during officer training. (f) To enhance the public trust by preserving factual representations of officer -citizen interactions in the form of audio -video recordings. (g) To assist with the defense of civil actions against Hutchinson Police Officers and the City of Hutchinson. (h) To assist with the training and evaluation of officers. 600.3 OFFICER RESPONSIBILITIES 6111�- M Officers who are issued a BWC will, as part of their uniform, shall wear and activate the BWC consistent with this policy. Prior to going into service each officer will properly equip him/herself to record audio and video in the field. The exception is if the officer's BWC system is not functioning and a Supervisor and BWC/MVR administrator have been notified. At the start of each shift, officers will confirm the BWC and MVR systems are is operational in accordance with manufacturer specifications and department operating procedures and training. During their shift, officers will follow the established policies and procedures for documenting, categorizing and retaining any recorded media. Any time an officer reasonably believes a recorded contact may be beneficial in a non -criminal matter (e.g., a hostile contact), the officer should promptly notify a supervisor of the existence of the recording. Malfunctions, damage, loss or theft of BWC/MVR equipment shall immediately be documented with the Communication Center and report it to a Supervisor, and BWC/MVR administrator. BWC shall not be worn while officers are engaged in outside agency employment, unless previously authorized by the Chief of Police. 600.4 SUPERVISOR RESPONSIBILITIES Supervisors shall ensure officers are using their BWC/MVR equipment per policy. Supervisors shall on a quarterly basis, randomly review BWC recordings of their officers to ensure that the equipment is operating properly and that officers are using the devices appropriately and in accordance with policy and to identify any areas in which additional training or guidance is required. Supervisors should determine corrective action for non-functioning BWC/MVR equipment. When an incident arises that requires the immediate retrieval of the recorded media (e.g., serious crime scenes, peace officer -involved shootings, department -involved collisions), a supervisor shall respond to the scene and ensure that the BWC/MVR is properly uploaded. 600.5 ACTIVATION OF THE BWC/MVR Minnesota law permits an individual to record any conversation in which one party to the conversation has given his/her permission (Minn. Stat. § 626A.02). The BWC/MVR system will be used to document events and the media recordings are to be preserved in a web based digital storage facility. If no recording is made, the officer shall document and explain why their BWC/MVR was not activated. 600.5.1 REQUIRED ACTIVATION OF THE BWC/MVR This policy is not intended to describe every possible situation in which the BWC/MVR system may be used, although there are many situations where its use is appropriate. An officer may activate the system any time the officer believes its use would be appropriate and/or valuable to document an incident. All self -initiated activity in which an officer would normally notify the Hutchinson Police Communication Center. r \ At no time is an officer expected to jeopardize his/her safety in order to ac iva e the BWC/MVR. I. When and How to Use the BWC/MVR 1. Each Hutchinson Police Department marked patrol squad is equipped with an MVR system. 2. Prior to the beginning of each patrol shift, officers shall sign into the BWC/MVR system and ensure that it is in proper working order. If it is not, the officer shall notify a supervisor and BWC/MVR Administrator including the squad number and a description of the problem. 3. Each officer has been issued a body microphone for the MVR in their assigned squad. With the issuance of BWCs to each patrol officer, use of the MVR body mic will no longer be required. However, if the officer's BWC is out of service for any reason, officers will be required to switch back to 41 using their assigned body mic. 4. The MVRs are programmed to automatically activate when the squad's 4emergency lights are activated. They are also outfitted with a crash sensor which activates the MVR when the squad is involved in a crash significant enough to trip the sensor. 5 -The MVR front camera shall be activated for all emergency driving situations and traffic stops. The MVR back seat camera shall be activated any time someone is placed in the back seat. While not required, activation of the MVR is encouraged for all other calls for service. II. When and How to Use the BWC 1. For each officer issued a BWC system, it is the individual officer's responsibility to ensure that the equipment is in proper working order. If it is not, notify the Supervisor and BCW/MVR Administrator immediately. 2. Officers shall activate the BWC to record all contacts with citizens and prior to arriving at all in-person calls for service. The department recognizes that due to the sometimes spontaneous nature of some police -public encounters, it may be impractical, unreasonable, or unsafe to immediately activate the BWC. In those cases, officers shall activate their BWC at the first reasonable opportunity. Once activated, the BWC shall remain activated for the duration of the event. 3. If an officer fails to activate the BWC, or fails to record the entire contact, or interrupts the recording, the officer shall notify Communications so to be included in the CAD notes, and his or her supervisor in writing with an explanation. 4. The BWC and all data, images, video, and metadata captured, recorded, or otherwise produced by the equipment is the sole property of the Hutchinson Police Department. OPM N, 5. Officers shall not edit, alter, erase, duplicate, copy, share, or otherwise distribute in any manner BWC recordings without prior written authorization and approval of the Chief of Police or his or her designee. 6. Officers are encouraged to inform their supervisor of any recordings which may be of value for training purposes. 7. Requests for deletion of portions of the recordings (e.g., inadvertent personal recordings) must be submitted in writing and approved by the Chief of Police or his or her designee in accordance with state record retention laws. All requests and final decisions will be kept on file. 8. Officers shall note in ICR/CAD report when recordings were made during the incident in question. However, BWC recordings are not a replacement for written reports. ,.�A j 600.5.2 CESSATION OF RECORDING Once activated the BWC/MVR system shall remain on continuously until the officer's direct participation in the incident is complete or the situation no longer fits the criteria for activation. Recording may be temporarily ceased to exchange information with other officers. The reason to cease and resume recording will be noted by the officer either verbally on the BWC/MVR or in a written report. Formal statements recorded on the BWC/MVR shall be recorded as separate recordings. Recordings shall be categorized, titled and ID'd in accordance with established policies and procedures (600.10). 600.5.3 WHEN ACTIVATION IS NOT REQUIRED Activation of the BWC/MVR system is not required: (a) During encounters with undercover officers or informants. (b) When an officer is on break or is otherwise engaged in personal activities. (c) In any location where individuals have a reasonable expectation of privacy, such as a restroom, locker room or break room. (d) When not in service or actively on patrol. (f) Officers will try to avoid recording videos of persons who are nude or when sensitive human areas are exposed. 600.6 PROHIBITED USE OF RECORDERS Intentional interference with the BWC/MVR system is strictly prohibited. Members shall not intentionally record another department member without a court order unless lawfully authorized by the Chief of Police, or authorized designee, for the purpose of conducting a criminal investigation. Officers are prohibited from using department -issued BWC/MVR equipment for personal use and are prohibited from making personal copies of recordings created while on -duty or while acting in their official capacity. There shall be no audio or video recordings made in any court of law, unless authorized by a judge (Minn. Court Rule 4, General Rules of Practice). 600.7 REVIEW OF RECORDINGS All recordings are the property of the Hutchinson Police Department and subject to the provisions of the MGDPA. Dissemination outside of the agency is strictly prohibited except to the extent permitted or required under the MGDPA, Peace Office Discipline Procedures Act (Minn. Stat. § 626.89), or other applicable law. Supervisors are authorized to review recordings whenever such recordings would be beneficial in reviewing the officer's performance or actions. Officers are authorized to access not public (confidential or private) BWC Data for legitimate law enforcement purpose, including but not limited to report writing. Nothing in the policy restricts an officer from reviewing BWC Data created by the BWC issued to and operated by the officer, excepting authorized administrative lockdown. Officers involved in a Critical Incident may view or listen the BWC Data of the incident only after: (a) The officer has met with the Minnesota Public Employee Association representative or legal counsel, if requested and (b) The officer and legal counsel have met with the investigative entity or designee regarding the investigative process to ensure the integrity of the investigative entity's Critical Incident investigation: including but not limited to investigations -Incidents where Serious injury or death results during police custody or involvement. An investigator assigned to a related criminal investigation may review BWC Data relevant to their investigation. Nothing in this policy limits or prohibits the use of BWC Data by the department to evaluate alleged misconduct or as a basis for discipline. Officers may not copy or record BWC Data with smart phones, video cameras, or any other means. Supervisors may not access or review BWC Data for the purpose of surveillance of any employee. However, BWC Data may be accessed by a supervisor investigating a complaint of misconduct. A complaint of misconduct may include any allegation of improper procedure or misconduct, from an informal allegation or question to a formalized internal affairs complaint. Officers needing to access BWC Data from another officer's BWC must make a request to their supervisor to access data from another officer's BWC. Requests may be granted only for a legitimate purpose relating to employment, such as the need to complete a report. Response to Resistance or Aggression Review BWC Data may be accessed as part of the department's review of officer response to resistance or aggression. Only supervisors and department personnel who have the responsibility to review a response to resistance or aggression may access BWC Data pertaining to the incident. Pursuit Review BWC Data showing a vehicle pursuit may be accessed by supervisors and department personnel who have the responsible to review the incident. BWC Data showing an accident may be disclosed to the Accident Review Board pursuant to General Order 640.07. Showing BWC Data to Witnesses Officers may display portions of BWC Data to witnesses as necessary for purposes of investigation as allowed by Minnesota Statutes section 13.82, subdivision 15, which states this is allowable to "aid the law enforcement process, promote public safety, or dispel widespread rumor or unrest." Recorded files may also be reviewed: (a) To assess proper functioning of BWC/MVR systems. (b) By court and prosecutorial personnel through proper process or with permission of the Chief of Police or Police Lieutenant. (c To assess possible training value. (d) Officers will be notified if their recordings may be shown for staff or public safety training purposes. If an involved officer objects to showing a recording, his/her objection will be submitted to the Police Chief to determine if the training value outweighs the officer's objection. (e) Citizens will not typically be allowed to review the recordings; however, a Supervisor may authorize the video recording to viewed by the citizens at the scene in order to mitigate possible complaints or as part of an investigation. Members shall document in the Post Note field of Evidence.com the purpose for accessing any recorded file. This documentation is to clarify the reason for viewing the recording when developing the audit trail. In no event shall any recording be used or shown for the purpose of ridiculing, embarrassing or intimidating any employee; this includes submission of any portion of a video recording to a media organization. 600.8 DOCUMENTING BWC/MVR USE If any incident or video statements are recorded with the BWC/MVR system, the existence of that recording shall be documented in the officer's report. If a citation is issued, the officer shall make a notation on the citation indicating that the incident was recorded. 600.9 RECORDING MEDIA STORAGE AND INTEGRITY At the end of their shift, officers shall place the BWC/MVR into the docking station. This will allow the data to be transferred from the BWC/MVR through the docking station to Evidence.com. The data is considered impounded at this point and the BWC/MVR is cleared of existing data. The BWC/MVR should not be removed from the docking station until the data has been uploaded and the battery has been fully recharged. 600.9.1 COPIES OF RECORDING MEDIA Evidentiary copies of digital recordings will be accessed and copied from Evidence.com for official law enforcement purposes only. Access rights may be given to the McLeod County Attorney, the Hutchinson City Attorney, or other prosecutorial agencies associated with any future prosecution arising from an incident in which the BWC/MVR was utilized. Officers shall ensure relevant recordings are preserved. Officers or BWC/MVR administrators may prevent automatic deletion by changing the category of the media at any time prior to deletion. 600.10 SYSTEM OPERATIONAL STANDARDS (a) BWC/MVR system use should be based on officer safety requirements and device manufacturer recommendations. (b) The BWC/MVR system should be configured to minimally record for 2 minutes prior to activation. (c) For each digital recording, officers shall select the proper category (e.g., case file, citation, extraneous, internal affairs, miscellaneous, permanent, or training). For recordings where a category of case file, citation, internal affairs or permanent has been selected, officers shall enter an ID number and descriptive title. ID numbers should be an 8 -digit case file number (e.g., 16000001) or the full citation number (e.g., 190116900573). The title should clearly describe the nature of the recording. For example: 1. Initial Contact (if use of force was used, add UOF) 2. Booking 3. Transport (if The Wrap was used, add Wrap) 4. Impound 5. Narr (narrative report) 6. IC Jane Doe (implied consent) 7. SS John Doe (suspect statement) 8. VS Jane Doe (victim statement) 9. WS Jane Doe (witness statement) 10. Telephone Call with John Doe (d) Digital recordings shall be retained according to the Department's retention schedule or as required by the rules of evidence, unless a specific request is made to store them for a longer period of time by an authorized person. (e) Officers shall not attempt to delete, alter, reuse, modify or tamper with BWC/MVR recordings. 600.11 BWC/MVR ADMINISTRATOR RESPONSIBILITIES The BWC/MVR administrator is responsible for deleting media: (a) Pursuant to a court order. (b) In accordance with established records retention policies, including reissuing all other media deemed to be of no evidentiary value. (c) In instances where privacy issues are noted. (d) Ordering, issuing, retrieving and storing all BWC/MVR equipment. (e) Logs reflecting BWC/MVR equipment assignments, serial number, the date it was issued, and the officer to which it was issued. 600.12 CLASSIFICATION OF BWC/MVR DATA Nothing in this policy shall be interpreted as changing the underlying classification of data collected by BWC/MVR systems. The classification of data collected by BWC/MVR systems will need to be determined on a case-by-case basis upon application and interpretation of the MGDPA and other laws. NM 600.13 SANCTIONS FOR MISUSE OF RECORDED MEDIA Any member misusing recorded media for other than official law enforcement purposes will be subject to disciplinary action The Chief of Police, or designee, shall meet with the person who is alleged to have violated the policy and determine appropriate sanctions, which may include any or all of the standard discipline policies currently in place at the Hutchinson Police Department including verbal reprimand, written reprimand, suspension or termination. Intentional misuse of recorded media is a serious violation. If criminal behavior is believed to have occurred, appropriate agencies will be notified for further investigation. The specific situation in each case of misuse of recorded media will be looked at with all circumstances considered when determining disciplinary actions. Consideration will be given to the extent of the loss or injury to the system, agency, or other person upon release or disclosure of sensitive or classified information to an unauthorized individual. 600.14 TRAINING Users of the BWC/MVR systems and supervisors shall successfully complete an approved course of instruction prior to being deployed. This training shall be documented by the designated trainer. HRA 2016 YEAR END REPORT HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY The Hutchinson HRA is a public body politic formed by the Hutchinson City Council in 1969 according to MN State Statue. The HRA was created to address a shortage of housing needs for low income families and to address substandard areas in Hutchinson. Since then the HRA has been involved in building and operating Park Towers Apartments with HUD Federal funding and is a HUD High performer. The Hutchinson HRA also helped to redevelop the parcel that is now Prince of Peace Retirement Living. Since 1990, the HRA has obtained over $20M of federal, state or other outside funding for the housing needs in Hutchinson and has been involved with various housing programs including owner occupied rehab, rental rehab, the school construction program and affordability gap for workforce housing. The HRA has been instrumental in obtaining Small Cities Development Program funds, Minnesota Housing Finance Agency Funding, and Greater MN Housing Funds for housing programs within the city of Hutchinson. In 2016, the HRA helped facilitate the use of TIF for construction of Highfield Apartments, a new 87 unit general occupancy rental project, administered rehab programs for owner occupied and rental and owned and managed Park Towers Apartments. Why does Housing matter? Housing matters because: • Decent, affordable housing is shown to stabilize families -for example children who have stable housing do better in school • Housing Programs help improve neighborhoods and maintain property values • Housing Programs provide economic stimulus for the local economy by providing work for local contractors and businesses In 2016, the HRA worked on the following housing objectives: 1. Continue to maintain strong emphasis on property management, property improvements, and energy conservation at Park Towers. 2. Support rehabilitation of housing to preserve housing stock and improve neighborhoods. 3. Facilitate the development of needed general occupancy rental housing. 2016 Hutchinson HRA Year End Report 2/16/2017 Page 1 of 11 Pages Summary of 2016 Activities: Park Towers Apartments: Property improvements and energy conservation remains a priority to maintain 40 year old building 1. Completed a $425,000 elevator renovation project in March 2016. 2. Building Improvements -$60,395.65: Replaced front entrance intercom system, replaced 8 unit carpets, replaced 9 unit air conditioners, replaced 3 way air handler valves, installed air handler emergency stop and installed air handler circulator pump, installed heat circulator pump in laundry room, installed unit vertical blind vane savers, replaced batteries in all unit smoke detectors, replaced 13 fresh air supply vent covers, replaced two water heaters, and replaced rest room exhaust fan motor. 3. Consumption of water, natural gas, and electricity decreased in 2016 from the previous year. Park Towers Property Management 1. Updated/prepared the following: ACOP, Resident Handbook, Smoke Free Policy, 2016 Schedule of Charges and 2017 Park Towers Annual and 5 Year Plan. 2. Maintained a HUD PHAS High Performer Score of 99 out of 100 on Park Towers operation and management. 4. Achieved a 99% average occupancy for 2016 and leased sixteen apartments. 5. Inspected all units, community areas, systems and site. 6. Park Towers continues to be a needed source of one -bedroom apartments for the elderly, the disabled and low income workers. Current demographic report: the average household income is $14,656 and the average tenant rent is $315 including utilities. Tenant Services Continued the focus on providing decent, affordable housing as well as facilitating services needed by the senior and disabled population at Park Towers. A management goal at Park Towers has been to support programs and partnerships that address the needs of residents. Park Towers continued as a Senior Dining Program Site through a lease with Lutheran Social Services. Meals are prepared at the Evergreen Senior Dining kitchen, then delivered and served at Park Towers. $5,695 meals were served at Park Towers in 2016 through the Senior Dining Program. The full cost of a meal is $7.00 and the suggested donation is $4.00. The Park Tower's 2016 budget included funding for Tenant Services to create a monthly activities calendar and newsletter. The Holiday Party and National Night Out Party are two events planned by Park Towers staff that are very popular with residents. Staff also supports the activities planned by the tenant council. 2016 Hutchinson HRA Year End Report 2/16/2017 Page 2 of 11 Pages City Center Operations: Owner Occupied Rehabilitation In 2015, an available balance of $300,000 in city TIF owner occupied housing rehab funds (HILP) was added as a flexible tool for single family owner occupied housing rehab to continue owner occupied rehab efforts throughout the city. The City HILP Deferred Grant program and Minnesota Housing Rehab Loan Program are "full service" programs that are HRA labor intensive, requiring home inspections, work write ups, procurement and bidding, loan closing with the owner(s), construction oversight, and disbursement of loan proceeds to the contractor. The Minnesota Housing Fix Up Loan Program, Community Fix Up Loan Program, City Accessibility Deferred Grant and City HILP Streamlined Deferred Grant requires that the owner submit contractor quotes and that the owner meets loan underwriting criteria to obtain home improvement loan proceeds. However, HRA inspection and construction management is not required. City HILP Deferred Grant Program — Three loans closed and the projects are completed. I This project had issues with the front stoop plus drainage issues that were affecting the foundation. Energy efficiency items were addressed: new insulated front door with storm door and insulation was added to the attic. Minor plumbing & electrical issues were also addressed. HII,P $3,325.50 + Owner funds $3,296.50 = Total $6,622 2016 City HILP Deferred Grants (3 completed projects) $14,623.42 2016 Other leverage funds: 3% HRA Loan or Personal Funds $22,419 + $3,296.50 = $25,715.50 2016 Total for 3 projects $40,338.92 2. City HILP Streamlined Grant Programs - No loans closed. Minnesota Housing (MHFA) Rehabilitation (RLP) Program — No RLP loans were closed. The MHFA Rehabilitation Program is a 0% deferred loan forgiven after fifteen years that stresses safety, livability, and accessibility for families with very low incomes who own their homes. 4. Minnesota Housiniz Finance (MHFA) Fix Un Loan and Communitv Fix Un Loan Home Improvement Programs — Two Fix Up Loans closed. One loan was for windows and handicap accessible bathroom improvements. The other loan was for a roof and furnace. Total of 2 Fix Up Loans $34,580.04 Allocation for Community Fix Up loans at 3% available January 2017 as owner matches to the City HILP Deferred Loan/Grant Program for homeowners with incomes at or below 80% AMI. 5. Minnesota Housing Finance (MHFA) Impact Deferred Loan Program — owner match funds at 0% for City HILP Deferred Grant Program available January 2017. 2016 Hutchinson HRA Year End Report 2/16/2017 Page 3 of 11 Pages Rental Rehabilitation In 2015, the HRA was awarded $364,359 Small Cities Development Program funds for an approved $771,501 downtown area rental rehab project Unit goals are: 3 single family units, 8 units of duplexes and 24 units of 3+ unit complexes for a total of 35 units. # of Unit Goals Completed $72,257 Single Family / 1 Unit above Commercial 1 $42,714 ($25,714 + $17,000) Duplex / 2 Units above Commercial 4 $114,971 3+ Unit Complexes 0 2016 Rental Rehab Projects $25,714 W$17,000 MCity Rental Rehab Loan/Grant ■ Other leverage funds: City Loan M Other leverage funds: Personal Funds Obligated 2016 City Rental Rehab Loan/Grant $72,257 Obligated 2016 Other leverage funds: City Loan or Personal Funds $42,714 ($25,714 + $17,000) Obligated 2016 Total $114,971 Combined Years Obligated City Rental Rehab Loan/Grants $100,089 Combined Years Obligated Other leverage funds: City Loan or Personal Funds $57,042 ($25,714 + $31,328) Combined Years Obligated Program Total $157,131 In January 2016, it became apparent that the SCDP Rental Rehab target area needed to be expanded due to the lack of interest or eligibility for the program. Therefore, time was spent on soliciting additional interested landlords near the original target area. The expanded target area was approved in September 2016. Applications have been received from Gateway Apartments (17 units) and 565 Jefferson (12 units) from the expanded target area. With these applications, goals for the grant are expected to be met by December, 2017. 2016 Hutchinson HRA Year End Report 2/16/2017 Page 4 of 11 Pages Trends: 1. Rental Housing Market Rate General Occupancy Rental The market rate general occupancy rate in the fall of 2016 was 1.76%. A 5.0% vacancy rate is considered a healthy vacancy rate to allow for turnover and consumer choice. A vacancy rate of greater than 5.0% indicates a soft demand or mismatch between supply and demand. Since 1999, the rental vacancy rate has fluctuated from 1.00% to a high of 14.9% in 2009 due to area layoffs. Market Rate General Occupancy Vacancy Rate 14.90% _ 15.00% 110.31% 10.00%'900Y.9-00% 7.54% 8.38% 7.00% ° 5.30% 5.00% 0/d!4.68% °° 2. 1.89% 1.76% 0.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Non -Market Rate General Occupancy Rental The vacancy rate of non -market rate general occupancy projects in the fall of 2016 was 1.28% Vacancies in subsidized developments should typically fall around 2.0% - 3.0%. Senior Housing The 2016 vacancy rate for market rate, apartment style senior housing for the Oaks & Pines and Prince of Peace Retirement Living, (not including memory care) was 0.00%. Prince of Peace Retirement Living has discussed expansion of market rate Congregate Housing at their downtown location. The 2016 vacancy rate for affordable/subsidized senior housing was 1.69%. Vacancies in subsidized developments should typically be around 2.0 -3.0%. 2.00° 1.76% 1.69% ■ Market Rate General 1.28% Occupancy 1.50% ■ Subsidized General Occupancy 1.00% 0.50/ ° 0.00% ■ Senior Market Rate Rental Housing 0.00% ■ Senior Subsidized Rental 2016 Vacancy Rates Housing 2016 Hutchinson HRA Year End Report 2/16/2017 Page 5 of 11 Pages 2. Homeownership The median sales price rose slightly in 2016, reflecting a stable housing market. Foreclosures declined in 2016. Interest rates are currently low; low interest rates and an affordable median sales price provides opportunities for buyers who have good credit and are mortgage ready. The interest rate in December 2016 for a first time homebuyer MHFA Start Up loan for an RD or FHANA loan was 4.00%. According to information from McLeod County, in 2016 there were 329 sales in Hutchinson with a median sales price of $140,000. According to information from the Minneapolis Area Association of Realtors, looking at data for Hutchinson, the 2016 median sales price was $147,200 compared to $145,000 in 2015, an increase of 1.5%. There were 315 sales in 2016 compared to 338 sales in 2015. As of December 2016, there were 71 homes for sales compared to 88 homes for sale in 2015. 7.0% 2016 Hutchinson Home Sale Price Ranges 3.0% 4.6% ■ Under $50,000 ■ $50,000 to $74,999 ■ $75,000 to $99,999 ■ $100,000 to $124,999 ■ $125,000 to $149,999 ■ $150,000 to $174,999 ■ $175,000 to $199,999 0$200,000+ Total 2016 Hutchinson Year End Home Resales = 329 $170,000 $160,000 $150,000 $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $80,000 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 --*-- Median Sales Pricy The 2016 median family income for McLeod County is $69,800. Based on a household being able to afford a home priced at 2.5 times their income, not factoring in savings or debt that they may have, a household would need an income of $58,880 to afford a home priced at $147,200, the MLS 2016 median sales price of a house. 2016 Hutchinson HRA Year End Report 2/16/2017 Page 6 of 11 Pages HOME RESALES CITY OF HUT CHINS ON 2006 throw h 2016 Year 2016 2015 2014 2013 2012 1 2011 2010 2009 2008 2007 2006 Price Range Nom- P, t- Nn- P, t- Nom- P, t- NL P, t- NL P, t- No- P, t- Nom- Prt_ Nom- Prt_ NL P, t- NL P, t- Nom- Pct_ Under $50,000 10 3.0% 15 4.2% 18 5.7 29 10.2 44 15.3 30 12.4 24 11 9 4.2 6 2.7 5 1.8 6 1.6 $50,000 to $74,999 15 4.6% 26 7.3% 1 5.4 3 115 3 -7.8 16 7.4 27 12.5 _ 10 2.6 $75,000 to $99,999 38 1L6% 39 1L0% 34 10.8 36 12.7 62 2L6 46 19.0 32 14.8 36 16.7 23 10.2 17 6.1 22 5.8 $100,000 to $124,999 54 16.4% 58 16.3% 59 18.7 49 _ 52 18. 48 W 38 17.6 47 218 43 19.0 39 = 56 14.8 $125,000 to $149,999 76 23.1% 68 19.1% 68 2L5 59 20.8 41 14.3 33 13.6 38 17.6 46 213 34 15.0 63 22.6 67 17.7 $150,000 to $174 55 16.7% 60 16.9% 5 16.1 29 10.2 16 5.6 22 9. 23 10.6 20 9.3 51 22.6 59 �.L 88 23.2 $175,000 to $199,999 23 7.0% 27 7.6% 2 6.6 16 5.6 13 4.5 9 3.7 12 5.6 12 5.6 22 9.7 36 12.9 45 11.9 $200,000+ 58 17.6% 63 17.7% 48 15.2 31 10.9 26 9. 23 9.5 33 15.3 19 8.8 36 15.9 54 19.4 85 22.4 Total 3291 100.0% 3561 100.0%1 316 100.0 284 100.0 2871 100.0 2421 100.01 216 100.0 216 100.0 226 100.0 279 100.01 379 100.0 Median $140,000 $138,750 1 $133,500 1 $121,000 $101,400 1$109,950 $121,600 $117,750 1$146,750 $157,900 $158,000 S ources : Peterson -Paulsen Associates hie. Realty Maxfield Research hie. McLeod County Assessor's Office 7.0% 2016 Hutchinson Home Sale Price Ranges 3.0% 4.6% ■ Under $50,000 ■ $50,000 to $74,999 ■ $75,000 to $99,999 ■ $100,000 to $124,999 ■ $125,000 to $149,999 ■ $150,000 to $174,999 ■ $175,000 to $199,999 0$200,000+ Total 2016 Hutchinson Year End Home Resales = 329 $170,000 $160,000 $150,000 $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $80,000 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 --*-- Median Sales Pricy The 2016 median family income for McLeod County is $69,800. Based on a household being able to afford a home priced at 2.5 times their income, not factoring in savings or debt that they may have, a household would need an income of $58,880 to afford a home priced at $147,200, the MLS 2016 median sales price of a house. 2016 Hutchinson HRA Year End Report 2/16/2017 Page 6 of 11 Pages 3. Housing Construction in Hutchinson According to the City of Hutchinson, Planning/Zoning/Building Department, there were 30 new construction dwelling units built in 2016. There is an adequate supply of 242 residential lots available January 1, 2016 compared to 279 lots as of January 1, 2015. Residential Lots Available 500 400 300 200 100 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Number of New Dwelling Units Construction 100 93 81 7 80 3 58 60 40 32 19 20 20 12 4 4 5 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 The above charts are based on information from the Department of Planning, Zoning and Building 4. Foreclosure Update 200 100 159 McLeod County and Hutchinson Foreclosure Counts 76 77 44 - -- 28 25 —18 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 12 McLeod County Hutchinson 2016 Hutchinson HRA Year End Report 2/16/2017 Page 7 of 11 Pages Number of Foreclosures in McLeod Coun and Hutchinson Year McLeod Hutchinson 2001 37 2002 43 2003 48 2004 48 14 2005 56 2006 72 2007 142 40 2008 159 42 2009 135 50 2010 200 62 2011 176 77 2012 135 45 2013 93 39 2014 75 28 2015 53 25 2016 44 18 2016 Sheriff Sales Cancelled In Hutchinson 9 2017 Sheriff Sales Scheduled to Date In Hutchinson 4 2017 Predictions from Local Realtors: Q. What do you see for the housing market for Hutchinson in 2017? Are there any factors that will be most influential in 2017? A. Currently there is a shortage in inventory for sale. This is not just Hutchinson, but is a nationwide concern. The shortage of homes for sale is helping the new construction market and will ultimately cause prices of homes to rise. I do anticipate 2017 to still be a good strong market as long as the interest rates don't go up much more than they currently are. Q. The number of permits for new housing construction was 30 in 2016. (23 in 2014, 20 in 2015 and 30 in 2016). What do you think will happen to new housing construction in 2017? A. In the last few months of 2016, there were many more building lots sold to builders than we've seen in quite a while, so we're anticipating that the permits for new housing construction will be strong in 2017. Q. How does the increase in baby boomers affect the housing market? A. For the last couple of years, when a townhome, condo, or twin home comes up for sale, it is sold very quickly and many times with multiple offers. The demand for this type of housing is very strong and will continue because of the number of baby boomers and the fact that many of them currently own homes that they are able to sell quickly. Q. Are people looking to rent rather than buy? How will the addition of Highfield Apartments affect the rental housing market in Hutchinson? A. We are not seeing that trend as much in Hutchinson. There are still many first time buyers waiting to purchase their first homes. I think the addition of Highfield Apartments will affect some of the current rentals that may not be as nice or as maintained as what the new apartments will offer. If a tenant can be in a new apartment vs. an old house or apartment that isn't as well cared for, and the rents are comparable, I think the tenants will move into the new building. 2016 Hutchinson HRA Year End Report 2/16/2017 Page 8 of 11 Pages Hutchinson HRA Priorities for 2017: HRA Park Towers: • Using 2016 CFP funds and operating reserves, convert a regular unit to a handicapped accessible unit, update the first floor lobby, and paint corridors. • Purchase new air conditioners, power flush water saving toilets, or upgrade electrical panels using 2017 CFP funds. • A new HUD rule called the AFFH (Affirmatively Furthering Fair Housing) has been finalized, however with the change in Administration, implementation requirements may change. • With the new HUD rule regarding Smoke Free Housing finalized, implement a revised Smoke Free Policy at Park Towers. • Implement Housing Opportunity through Modernization Act of 2016 (HOTMA as HUD releases guidance. • HUD has published new provisions enhancing the Violence Against Women Act that require implementation in 2017. City Center Operations, Rental Rehab Promram: • Request SCDP grant extension to December 31, 2018, if needed. • Research the need for another SCDP Rental Rehab application. City Center Operations, Owner Occupied Rehab: • Administer the City Deferred Grant Program (TIF available funds) for owner occupied rehab. • Implement Community Fix -Up Loan as leverage funds to the City Deferred Grant Program. • Administer the Minnesota Housing Fix -Up Loan Program. • Administer the Minnesota Housing Rehab Loan Program for owner occupied rehab. City Center Operations, Rental Development: • Highfield Apartments is expected to help relieve the shortage of general occupancy apartments. The first phase of 27 units of Highfield Apartments is expected to be complete in fall 2017. The second phase wasn't expected to begin until May 2017, but due to the strong rental market and economies of scale in building the two phases concurrently, the construction is beginning this winter. The general occupancy vacancy rate was 1.76% in August 2016. City Center Operations: • Continue to request free radon test kits from the Minnesota Department of Health for distribution in Hutchinson. Free radon test kits are available at the Hutchinson Planning, Zoning, & Building front desk. Hutchinson is in a high radon area; radon mitigation is recommended at radon levels above 4.Opc/L. • Research the addition of Facebook social media for HRA. 2016 Hutchinson HRA Year End Report 2/16/2017 Page 9 of 11 Pages 2016 Hutchinson HRA Financial Summary: 2016 Federal & State 2016 Local Funds Funds Obligated Obligated Park Towers: 2016 Federal Operating Funds $98,400.00 2016 Federal Capital Funds $101,112.00 Handicapped Accessible unit & Lobby renovation Operating Reserves Corridor Painting $42,987.00 Operating Reserves Park Towers Building Improvements $60,395.65 Homeowner Rehab Loans closed TIF $13,294.50 HRA Home Improvement Loans $22,419.00 Other Leverage funds - Personal $3,296.50 MHFA: _ CFUF $0.00 _ FUF $34,580.04 Unsecured FUL $0.00 RLP 2016 Obligated SCDP Rental Rehab Loans $72,257.00 2016 Obligated Owner Matches $25,714 Foreclosure Remediation: Total 2016 Federal & State Funds Total 2016 Local Funds Administered $319,643.54 Administered $154,812.15 Total all Funds Administered $474,455.69 Funds Available: SCDP City Revolving Local Income $110,023.07 ($41,636.81 allocated for other programs) SCDP City Revolving Program Income $20,000.00 ($20,000 allocated to Rental Rehab) SCDP Income Received from 9-30-16 to 12-31-16 $5,394.02 TIF Available Balance $285,376.10 Housing Fund Loan Balances: HRA Notes Receivable HHPOP $72,445.56 HRA Notes Receivable Rehab $25,189.32 City SCDP New Construction $302,450.00 City SCDP Rehab (Owner & Rental) $471,002.67 City TIF Owner Rehab $13,294.02 Total Balance of City SCDP Loans Receivable $786,746.69 2016 Budgets Park Towers $524,193.83 City Center _$375,677.80 Total HRA Budget $899,871.63 2016 HRA Personnel 4.0 Total FTE Executive Director HRA City Center Program Coordinator Park Towers Public Housing Specialist _ Park Towers Maintenance/Custodian 2016 Hutchinson HRA Year End Report 2/16/2017 Page 10 of 11 Pages G: HRA/Year End Report/2016 HRA Year End Report 2016 Hutchinson HRA Year End Report 2/16/2017 Page 11 of 11 Pages HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY 2016 Year End by the Numbers General Occupancy Vacancy Rates 16.00% 14.00% 12.00% 0 10.00 0 9.00%9.00% 8.00% 11, 6.00% 4.00% 2.00% 0.00% 14.90% 7.54% ,0% 4.68% 4.07% 2.12% 1 10.31% 1.08% 1.85% 1.89% 1.76% ff,Oeb O` ) ' 10 A % & �1, 05 "*) 10 ,OL,Oe ,O,O re e ,Orf'Oe)'yef'�,Ly,LT,O, 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 2016 Vacancy Rates 1.76% 0.00% 1.69% Market Rate General Occupancy Subsidized General Occupancy Senior Market Rate Rental Housing Senior Subsidized Rental Housing 2016 Home Resales 2016 Hutchinson Home Sale Price Ranges 17.6% 7.0 16.7% Under $50,000 ■ $50,000 to $74,999 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 m. $150,000 to $174,999 ■ $175,000 to $199,999 E$200,000+ Total 2016 Hutchinson Year End Home Resales = 329 $170,000 Hutchinson Median Sales Price $ $160,000 $158,000 $150,000 $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $140,000 $138,750 $157,900 $146,750 $133,500 $121,600 $121,000 $117,750 $109,950 $101,400 $80,000 T 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 Median Sales Price HOME RESALES CITY OF HUTCHINSON 2006 throu h 2016 Year 2016 2015 2014 2013 2012 1 2011 1 2010 2009 2008 2007 2006 Price Range No• Pct. No• Pct• No• Pct. I No• Pct• No• Pct• No• Pct• No• Pct• No• Pct• No• Pct• No• Pct• No• Pct• 5.7 10.2 12.4 Under $50,000 10 _3.0% 15 4.2% 18 29 44 15.3 30 11.1 2!2:14 9 4.2 6 2.7 5 1.8 6 1.6 $50,000 to $74,999 15 4.6% 26 7.3% 17 5.4 35 12.3 33 11.5 31 12.8 .4 27 12.5 11 4.9 6 2.2 10 2.6 $75,000 to $99,999 38 11.6% 39 11.0% 34 10.8 36 12.7 62 21.6 46 19.0 3.8 36 16.7 23 10.2 17 6.1 22 5.8 $100,000 to $124,999 54 16.4% 58 16.3% 59 18.7 49 17.3 52 18.1 48 19.8 3.6 47 21.8 43 19.0 39 14.0 56 14.8 $125,000 to $149,999 76 23.1% 68 19.10/0 68 21.5 59 20.8 41 14.3 33 13.6 38 17.6 46 21.3 34 15.0 63 22.6 67 17.7 $150,000 to $174,999 55 16.7% 60 16.9% 51 16.1 29 10.2 16 5.6 22 9.1 237' 10.6 20 9.3 51 22.6 59 21.1 88 23.2 $175,000 to $199,999 23 7.0% 27 7.6% 21 6.6 16 5.6 13 4.5 9 3.7 12 5.6 12 5.6 22 9.7 36 12.9 45 11.9 $200,000 + 58 17.6% 63 17.7% 48 15.2 31 10.9 _ 26 9.1 23 9.5 33 15.3 19 8.8 36 15.9 54 19.4 85 22.4 Total 3291 100.0%1 3561 100.0% 316 100.0 2841 100.0 2871 100.0 242 100.01 216 100.0 216 100.0 226 100.0 279 100.01 379 100.0 Median $140,000 $138,750 $133,500 $121,000 $101,400 $109,950 $121,600 1$117,750 $146,750 $157,900 $158,000 Sources: Peterson -Paulsen Associates Inc. Realty Maxfield Research Inc. McLeod County Assessor's Office 2016 Hutchinson Home Sale Price Ranges 17.6% 7.0 16.7% Under $50,000 ■ $50,000 to $74,999 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 m. $150,000 to $174,999 ■ $175,000 to $199,999 E$200,000+ Total 2016 Hutchinson Year End Home Resales = 329 $170,000 Hutchinson Median Sales Price $ $160,000 $158,000 $150,000 $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $140,000 $138,750 $157,900 $146,750 $133,500 $121,600 $121,000 $117,750 $109,950 $101,400 $80,000 T 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 Median Sales Price 450 400 350 300 250 200 150 100 50 0 Residential Lots Available 314 309 299 294 279 42 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 100 90 80 70 60 50 40 30 20 10 0 Number of New Dwelling Units Construction 7 4 5 12 23 20 30 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 200 r""`� / 142 150 ` 100 50 I Foreclosures McLeod County and Hutchinson Foreclosure Counts Zoo g / 4%0,176 135 135 93 75 62 77 53 44 42 50 45 39 28 25 18 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 McLeod County Hutchinson 2017 Priorities HRA Park Towers: • Convert a regular unit to a handicapped accessible unit, update the first floor lobby, paint corridors using 2016 CFP Funds and operating reserves, resulting in six total handicapped accessible units available. • Using 2017 CFP funds purchase new air conditioners and power flush water saving toilets or update electrical panels. • Complete plan for 2018 CFP funds • Numerous HUD rules were released the fourth quarter of 2016. Implement as guidance is released. 2017 Priorities City Center Operations, Rental Rehab Program: • Complete the Downtown SCDP Rental Rehab Program by December 311 2017. The goal is 35 units. 1 M 4 ofUnitGoals Out • : • 12 may be re -bid; bids exceed estimates 1 17 Total is 39 Units a s of 12-31-2016 • Request SCDP grant extension to December 31, 2018, if needed. • Research the need for another SCDP Rental Rehab application. 2017 Priorities City Center Operations, Owner Occupied Rehab Programs - City wide • Administer the City Deferred Grant Program (TIF available funds) for owner occupied rehab. • Implement Community Fix -Up Loan as leverage funds to the City Deferred Grant Program. • Administer the Minnesota Housing Fix -Up Loan Program. • Administer the Minnesota Housing Rehab Loan Program for owner occupied rehab. This project had issues with the front stoop plus drainage issues that were affecting the foundation. Energy efficiency items were addressed: new insulated front door with storm door and insulation was added to the attic. Minor plumbing & electrical issues were also addressed. City D.G.P. $3,325.50 + Owner funds $3,296.50 = Total $6,622 2017 Priorities City Center Operations, Rental Development: • Highfield Apartments is expected to help relieve the shortage of general occupancy apartments. The first phase of 27 units of Highfield Apartments is expected to be complete in fall 2017. The second phase wasn't expected to begin until May 2017, but due to the strong rental market and economies of scale in building two phases concurrently, the construction is beginning this winter. The general occupancy vacancy rate was 1.76% in August 2016. City Center Operations: • HRA requests free radon test kits from the Minnesota Department of Health that are available at the Hutchinson Planning, Zoning,& Building front desk. Hutchinson is in a high radon area; radon mitigation is recommended at radon levels above 4.Opc/L. • Research the addition of Facebook social media for HRA. 2017 Trends According to local realtors: Q. What do you see for the housing market for Hutchinson in 2017? Are there any factors that will be most influential in 2017? A. Currently there is a shortage in inventory for sale. This is not just Hutchinson, but is a nationwide concern. The shortage of homes for sale is helping the new construction market and will ultimately cause prices of homes to rise. Ido anticipate 2017 to still be a good strong market as long as the interest rates don't go up much more than they currently are. 2017 Trends According to local realtors: Q. The number of permits for new housing construction was 30 in 2016. (23 in 2014, 20 in 2015). What do you think will happen to new housing construction in 2017? A. In the last few months of 20161, there were many more building lots sold to builders than we've seen in quite a while, so were anticipating that the permits for new housing construction will be strong in 2017. 2017 Trends According to local realtors: Q. How does the increase in baby boomers affect the housing market? A. For the last couple of years, when a townhome, condo, or twin home comes up for sale, it is sold very quickly and many times with multiple offers. The demand for this type of housing is very strong and will continue because of the number of baby boomers and the fact that many of them currently own homes that they are able to sell quickly. 2017 Trends According to local realtors: Q. Are people looking to rent rather than buy? How will the addition of Highfield Apartments affect the rental housing market in Hutchinson? A. Weare not seeing that trend as much in Hutchinson. There are still many first time buyers waiting to purchase their first homes. I think the addition of Highfield Apartments will affect some of the current rentals that may not be as nice oras maintained as what the new apartments will offer. If a tenant can be in a new apartment vs. an old house or apartment that isn't as well cared for, and the rents are comparable, I think the tenants will move into the new building. Questions???? HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-XZ Agenda Item: Calling a Special Workshop Meeting for 3:00 pm on March 9 Department: Administration LICENSE SECTION Meeting Date: 2/28/2017 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 did last year, staff has reached out to the County Commissioners about having a joint workshop meeting to discuss a variety of things affecting both the City and the County. We have settled on a time of March 9 at 3 pm. Staff is asking that the Council officially set that workshop date and time. BOARD ACTION REQUESTED: Approval of calling a special workshop meeting for 3:00 p.m. on March 9 with the McLeod County Commissioners at the Solid Waste Facility in Hutchinson Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON Pedestrian and Bicycle Advisory Committee Wednesday, August 17th' 2016 2:00 p.m. City Center Meeting Minutes Members present: Melissa Goldstein, Ron Johnson, John Lofdahl (CC), David May, Sara Turrell Others Present: Sara Witte (Parks Supervisor), Jean Johnson (McLeod Public Health), Dolf Moon (PRCE Director) Meeting began at 2:05 p.m. 1. Review of last meetings minutes- Melissa G. made a motion to approve the July meeting minutes. Ron seconded. *Sara Turrell noted a change to the number that attended the Rotary ride to 195 2. Education/Promotion/Community Wellness - a) Bike to Walk to School- Oct. Yh'asked John L. for Mayor or council rep. to attend the event. August Bike to Work in Library Square had 50 b) Bike Rides- Mankato in Oct./Glenwood September 17th c) "Move" (H of H) -looking to add biking/running routes to their website: Glow Race 9/10, Luce Line Lace up 9/17, Spooky Sprint Oct. 29th d) Friends of Luce Line -Met on 8/15/16, generate letter to Carver Cty. To support paving of shoulders on Cty. Rd. 33. e) SHIP Grant- Jean in process, Master planning -support fi Wayfznding signage, estimated project cost $92, 000, in process g) Children's Museum: add a bike safety piece for spring -Melissa G. 3. ADA Transition Plan Kent and engineering staff will start working on this summer Curb cut is in along 3rd Avenue, now to put trail in 4. TH 7/Montana Crossing Consultant had camera out in June, no info yet 2 Taller street lights from Washington added to corners 5. Pendine Trail Proiects Quotes out to do the Greens footpath on west side of development Surface treatment put down on Greens footpath east of entrance 6. Street Crossings/Bike Racks Inventory/Study-Sharrow markings -all completed? Bike racks saved from Recreation Center to be put in Park locations 7. Luce Line Trail MNDOT trail use counter install near Arch Street this fall? Kent working on establishing an agreement with DNR about in town trail maint. 8. County Trails Plan Vote at end of August? -seeking to apply for grant NEXT MEETING: Schedule next meeting: August 17th @ 2: 00 pm City Center Main Conference Room Misc: * Wheels of Mercy- local bike group that repairs bikes and gives to those less fortunate. * Check out BikeHutchinson Facebook page *Open Streets discussion, when is best time to have this event? CITY OF HUTCHINSON Pedestrian and Bicycle Advisory Committee Wednesday, October 19th, 2016 2:00 p.m. City Center Meeting Minutes Members present: Melissa Goldstein, John Lofdahl (CC), David May, Sara Turrell Others Present: Sara Witte (Parks Supervisor), Jean Johnson (McLeod Public Health), John Olson (PW Manager), Candace Hoversten (Heart of Hutch) Meeting began at 2:05 p.m. 1. Review of last meetings minutes- John L. made a motion to approve the August meeting minutes. Melissa seconded. 2. Education/Promotion/Community Wellness - a) Bike & Walk to School/Work- 2017 dates TBD, Srh year for Walk to School, lowest participation of 120 children b) Bike Rides- Mankato in Oct. -Sara T. participated in the 42 mile Center for Arts looking loan out free bikes for Sculpture walk c) "Move" (H of H) possibly link to PRCE webpage d) Friends of Luce Line -working on shrub planting along Luce line by E3 e) Bike & Blade bonanza- May 2017, ideas of having it with Mass Registration at Recreation Center, or Bring It Home event with Chamber -Melissa to talk with Mary SHIP grant- Jean, working with Lester Prairie g) Children's Museum- very well received, been very busy h) Pioneer Land Library system- looking to do a bike check out? 3. ADA Transition Plan Just a handful of location left- per John O. 4. TH 7/Montana Crossing Meeting was held the middle of October with MNDOT to review and see what possible plans are out there 5. Pendine Trail Proiects Quotes out to do the Greens footpath on west side of development -2 contractors are interested, but will have to wait until next year 2017 6. Street Crossings/Bike Racks Inventory/Study-Sharrow markings 80 all completed Bike racks saved from Recreation Center to be put in Park locations Possibly talk to businesses that do not have bike racks Sara W. will email Dan Jochum to see if they suggest for new construction 7. Luce Line Trail MNDOT trail use counter install near Arch Street this fall? Update on Winsted connection -FFA issues. Maybe a possible land swap. 8. County Trails Plan Will know in January if County gets awarded grant NEXT MEETING: Schedule next meeting: November 16th @ 2: 00 pm City Center Main Conference Room Misc: * Check out BikeHutchinson Facebook page *Sara T. asked on the biking education component in schools and if this is something that Michelle from Bike Alliance could assist with? Candace said that they do break it into 3-30 minute sessions. John Olson will ask Kent where the Safe routes to school come in with the education in the classroom component. CITY OF HUTCHINSON Pedestrian and Bicycle Advisory Committee Wednesday, November 16th, 2016 2:00 p.m. City Center Meeting Minutes Members present: Melissa Goldstein, John Hassinger, Ron Johnson, John Lofdahl (CC), David May, Sara Turrell Others Present: Kent Exner (City Engineer), Sara Witte (Parks Supervisor), Jean Johnson (McLeod Public Health), John Olson (PW Manager), Candace Hoversten (Heart of Hutch) Meeting began at 2:05 p.m. 1. Review of last meetings minutes- Ron J. made a motion to approve the October meeting minutes. Sara T. seconded. 2. Education/Promotion/Community Wellness - a) Bike & Walk to School/Work- 2017 dates TBD b) Bike Rides -Sara T. mentioned Rotary 2017 will be June 10th with a 75 mile dirt road option "Luce Line Loops "potential name for event? John L. Habitat for Humantiy 25th Anniversary 500 mile ride in mid July 2017 c) "Move" (H of H) - d) Friends of Luce Line - e) Bike & Blade bonanza- Bring It Home event with Chamber -Melissa to update in Jan. f) SHIP grant- Jean -community survey in Lester Prairie g) Children's Museum- still planning to put some type of bike safety exhibit together for spring h) Pioneer Land Library system- looking to do a bike check out- no new news i) New Discoveries- wanting to put on a unit for younger children on bicycle safety. Sara T. will try to get in touch with Michelle from Bike Alliance. Kent also mentioned that ISD423 has yet to adopt the Safe Routes to school plan 3. ADA Transition Plan In the works, Federal funding in 2 years. 4. TH 7/Montana Crossing MNDOT meeting, more than likely be a HAWK system costing $150, 000. Letter of intent, lots of applicants- funding would be in 2021 Grant approval will go to City Council mid- January 5. Pendine Trail Proiects 2017: Denver, Linden, School Road & Roberts to Alan St., South Grade pull up existing sidewalk and put in trail 6. Street Crossings/Bike Racks John O. bike parking to be put in along 1St & Main (SW Shopko corner) Depot directional signage to help with parking lot traffic flow John L. will bring up Bike racks @ businesses at next Planning meeting 7. Luce Line Trail MNDOT trail use counter install near Arch Street this fall -Kent will follow up on this. Update on Winsted connection -FFA issues, decision to be made within the next week or so. 8. County Trails Plan Dakota -sounds like funding is coming, should know by end of Nov. or early Dec. NEXT MEETING: Schedule next meeting 2017: January 18th @ 2: 00 pm City Center Main Conference Room Misc: * Question was asked if "bikes are allowed in Rec center gym? " No, unless someone has a small toddler type bike with training wheels that would be allowed. *John L. to attend the Colliation of Greater MN Cities *Trail counting in 2017- help from this group *Regional group to be formed- bike/ped advocates for City/McLeod & Meeker Cty. District 8 - Kent will keep us updated on this PIPMIOL4A 14UTCHINSON HOUS3NG AND REDEVELOPMENT AUTHORITY Regular Board Meeting Tuesday, January 17, 2017, 7:00 AM Minutes 1. CALL TO ORDER: Chairman Pat Lembeke called the meeting to order. Members Present: Gary Forcier, LouAnn Holmquist and Steve Jensen. Staff Present: Jean Ward and Judy Flemming. 2. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON DECEMBER 20, 2016 LouAnn Holmquist moved to approve the Minutes of the regular board meeting as written. Steve Jensen seconded and the motion carried unanimously. 3. FINANCIAL REPORTS a. Steve Jensen moved to approve the City Center General Fund payments of $11,153.89 for checks 8812 to 8818. LouAnn Holmquist seconded and the motion carried unanimously. b. Steve Jensen moved to approve the City Center December 31, 2016 Financial Reports prior to yearend adjustments. LouAnn Holmquist seconded and the motion carried unanimously. c. Steve Jensen moved to approve the Park Towers operating account payments of $69,726.96 for checks 13830 to 13862. LouAnn Holmquist seconded and the motion carried unanimously. d. LouAnn Holmquist moved to approve the November 30, 2016 Park Towers financial statements. Steve Jensen seconded and the motion carried unanimously. 4. PARK TOWERS UPDATE a. Occupancy Report — 99% occupied. b. FYI the Park Towers' January Newsletter. c. Jean Ward updated the Board on the Renovation Project — handicapped unit, first floor lobby renovations and corridor painting. d. Jean Ward told the Board that currently there are no bed bugs reported at Park Towers. 5. DOWNTOWN SCDP RENTAL REHAB PROGRAM Steve Jensen moved to approve Downtown Rental Rehab Loan #6, T93 Properties: 565 Jefferson Street SE Apartments contingent to the Loan Review Committee's approval. LouAnn Holmquist seconded and the motion carried unanimously. 6. DRAFT OF HRA YEAR END REPORT Jean Ward reviewed with the Board the draft HRA Year End Report. Jean will present the report to the City Council on February 28th. 7. SCHEDULE EXECUTIVE DIRECTOR PERFORMANCE REVIEW The Board agreed to do the performance review after next month's Board meeting. 8. OTHER COMMUNICATIONS a. HUD has changed the environmental review process. January 17, 2017 Minutes Page I of 2 b. Jean will be meeting with Lynn Buckle of the MN Association of Area Agencies on Aging to learn about "Healthy Living as You Age". c. The City Rental Registration inspection will be in February. d. Jean has been contacted by AT & T about the antenna on the building. e. Staff will continue to work on the yearend information. 9. ADJOURNMENT Steve Jensen move to adjourn and LouAnn Holmquist seconded. There being no other business, Chairman Pat Lembeke declared the meeting adjourned. Recorded by Jean Ward, HRA Executive Director Gary Fg(rcier, Secretary/Treasurer January 17, 2017 Minutes Page 2 of 2 MEETING NOTES Public Arts Commission I Feb 9, 2017 Plan for 2017 City Council would like to schedule a workshop with us, perhaps once a year, to see what our goals are and how they line up. They would like to better understand what we do. We could schedule it in April or May, near the sculpture stroll time. Steve will coordinate the date. Talk about possible projects or goals that we can bring to the meeting. Mural on Ace Hardware — Dave (Artist) 14' tall x 24' wide. West side of the building. Up and ready for show for the September Craft Fair. $20K Project $7K grant that was available is no longer available. $9K raised so far - $3K unconfirmed b/c donor needs to wait for finances Dave plans on raising money from private sector donations since the $7K matching grant is gone. Part of the money goes to making a bronze Les Kouba plaque and paying a contractor to mount the piece. Maintenance of mural needs to be discussed in more detail. Owner should be responsible for repairs. Who owns the mural afterward? The mural will be able to be removed if ownership of the Ace Hardware building is passed, but it must be clear that the building owner doesn't own it. Make sure that there is literature stating that the mural doesn't belong to the building owner. Dave (artist) could be the owner, that way he could be in charge of maintenance. There are insurance options for graffiti, natural disasters, etc. Children's sculpture walk idea. Have children meet at the Art Center and create sculpture Placed in a designated area in town, such as Girl Scout Park Auction off at the end of the year Children can donate the money to the food shelf or other nonprofit Perhaps do children's murals Dave needs to contact Coca-Cola regarding the mural, since it features Coca-Cola imagery. Since this is on private property, we are more here for guidance for Dave. Read the Policies & Procedures packet before the next meeting so we better understand how to help and what we can approve for this piece. Dave plans on coming back to our next meeting on March 9. Hours Adjustment We are changing the meeting time to 4 pm, still the 2nd Thursday of each month. Action Items Everyone needs to look through our Policies & Procedures before the March meeting so we are all more informed. 2 HUTCHINSON CITY COUNCIL ci=v-f AFQ� Request for Board Action 7AL =-a Agenda Item: December 2016 Financial and Investment Reports Department: Finance LICENSE SECTION Meeting Date: 2/28/2017 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ Governance Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Attached are the preliminary 2016 financial reports for the General fund and Enterprise funds. As we progress through the audit preparation over the next two months we may have some adjustments but I do not anticipate any material changes. In addition to the financial statements, I've included a memo on the preliminary General fund results. Following the financial statements you will find a few pages showing information regarding cash and fund balances. Overall, 2016 was another good year for our various funds. Low fuel prices throughout 2016 and the mild winter weather translated into substantial savings for both the Fuel and Utilities expenses. Cash balance increased in most funds, with the General, Water and Liquor seeing reductions in cash. The reduction in the General fund is due to using $500,000 of cash reserves to finance the aquatic center construction costs. The reduction in the Water fund is due mostly to the water tower rehabilitation project, but also due to unexpected well repairs/improvements. The reduction in the Liquor fund appears to be related to the timing of inventory purchases. Compost added $410,816 of cash in 2016, however this is not due to 2016 sales activity. Garick Corp, our customer selling to the big boxes, had a $485,000 delinquent receivable balance at 12/31/2015 which was paid in 2016. The lower 2016 production model was basically cash neutral for the year, which is what we expected. Fund balance increased in Liquor, Sewer and Storm Water funds but decreased in General, Water, Compost and Refuse funds. Again, the decrease in the General fund is due to the $500,000 transfer to fund the aquatic center costs. Water's decrease is due to higher than normal capital expenditures, with the water tower rehab of $460,000 on top of the budgeted capital improvements of around $250,000. Compost's decrease is a budgeted decrease with the lower production model. The decrease in the Refuse fund is due to the $55,000 annual transfer out to the Tree Disease Infestation & Mitigation fund (General fund reserves). Feel free to contact me with any questions. Thank you. BOARD ACTION REQUESTED: 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: GENERAL FUND — 2016 Preliminary Financial Results SUMMARY The preliminary 2016 financial statement for the General fund contains a net deficit of $179,014. These results are preliminary and subject to change as we finalize the 2016 financial audit, however I don't anticipate any material adjustments. Actual Budget Variance % Used Total Revenues $11,603,230 $11,463,235 $139,995 101.2% Total Expenses $11,782,244 $11,963,235 $180,991 98.5% Net Revenue $ (179,014) $ (500,000) $320,986 Total revenues exceed budgeted expectations by $139,995 while total expenses are under budget by $180,991. We budgeted for a $500,000 deficit as we planned to use reserve funds to help finance the Aquatic Center construction costs. The $500,000 transfer was made in 2016 to the Capital Projects fund. Although we have a net deficit for the year, it was $320,986 better than expectations. Overall, it was a very good year for the General fund operations. If not for the aquatic center funding, the general fund would have a surplus of $320,986. Our fund balance represents 55% of the 2017 budgeted expenditures, down from 60% last year. This was a planned reduction and we are planning another reduction to approximately 50% in 2017 after the funding of the final construction costs for the aquatic center. Keep in mind that the State Auditor recommends a fund balance reserve of at least 40%, so we continue to maintain a healthy reserve. REVENUES Total revenue exceeds the budget in most revenue categories. The following is a summary of the key activity within each revenue category. Taxes ($13,107greater than budget) Since the repeal of the State's Market Value Homestead Credit at the end of 2011, the City's collection of current general fund property taxes averages approximately 99.2% each year; less than a 1% delinquency rate. The 2016 collection rate was 99.4%. This revenue category normally outperforms the budget due to the collection of delinquent taxes, not only from the general levy but also the debt levy. Our practice with the debt levy is to make the debt service funds "whole" by transferring the delinquency to the general fund. This allows the debt service funds to maintain healthy fund balances to meet scheduled debt service payments on the G.O. Improvement Bonds. For budgeting purposes, we are very conservative with the delinquent taxes simply due to the uncertainty around delinquent collections. Therefore, we expect our actual results in this revenue category to be moderately above budget each year. Other Taxes ($19,910 greater than budget) This category includes the collection of Lodging Taxes ($8,133 over budget) and Cable TV Franchise Fees ($11,777 over budget). With the increased revenue we also see an increase in expense as well (Miscellaneous Expense category). For lodging taxes collected, 95% is remitted to the Hutchinson Convention & Visitors Bureau to fund those operations. Similarly, for the cable TV franchise fees, 50% is remitted to HCVN to help fund the public television network. Licenses & Permits ($9,190 greater than budget) The largest driver in this category is Building Permits, which exceeded the budget by $30,036. This category would have shown better results except we found a software error in 2016 that resulted in $34,425 of SAC & WAC fees being recorded in the general fund Building Permits rather than in the Water and Sewer funds. This error was not caught in the 2015 audit process and resulted in the Water & Sewer fund revenue being understated by $34,425 and the General fund revenue being overstated by $34,425 for 2015. We corrected the issue in 2016 and transferred the appropriate funds to the Water & Sewer funds. Liquor Licenses and Plumbing Permits each missed budgeted expectations, by $8,358 and $12,510, respectively. Intergovernmental Revenue ($33,686 greater than budget) Police Pension Aid from the State exceeded the budget by $20,200. We typically budget conservatively for the pension aid due to uncertainty with the State's funding, however the State increased funding in 2015 and 2016 and we are receiving $37,000 more aid than in 2012. We have increased our budgeted expectations in 2016 and again in 2017. These aid dollars stay in the General fund as an offset to the City's pension contributions to police officers. Fire Pension Aid has also increased since 2012, similar to Police Pension Aid. We received $38,000 more in 2016 than in 2012. Unlike the Police Aid, the Fire Aid is transferred to the Fire Relief Association. The transfer by the City to the FRA is reflected as an Expenditure within the Wages & Benefits category so the net impact on the City's bottom line is -0- regarding the increased pension aid from the State. Charges for Services ($20,895 greater than budget) The areas that outperformed the budget include Civic Arena fees ($31,829) and Campground fees ($19,258). Services that fell below budgeted expectations include Recreation Activity Fees ($15,406) and Building Rentals ($8,431). Miscellaneous Revenues ($23,084 greater than budget) The main factor behind the additional revenue is the unbudgeted insurance proceeds ($34,633) related to a snow plow truck that received major damage in late 2015. The cost to repair the truck ($42,945) is reflected in the Services & Charges Expenditure category. The net cost to the City was $8,312. Investment Earnings continued to underperform, missing budgeted expectations by $10,797. We've experienced extremely low investment returns over the past five years and it has been a challenge to find attractive yields within the City's maximum maturity term for investments of 10 years. Finance also made a conscious effort in the past two years to invest in more in short-term vehicles in order to remain as liquid as possible considering the number of large projects occurring (Airport Runway Reconstruction, Solar Array, Automatic Meter Reading, Cemetery Columbaria and the new Aquatic Center). Investment yields normally decrease as the investment term shortens. As we finalize the Aquatic Center, and with investment yields hopefully continuing to increase, we will be able to contribute additional funds into our investment portfolio and grow our returns. Transfers In ($54,535 greater than budget) The increase is due to the $55,000 transfer from the Refuse fund into the General fund reserves for the Tree Disease Infestation and Mitigation plan. We do not budget for this transfer as it would misrepresent the annual revenues needed to fund our daily General fund operations. The funding plan began in 2010 and we have a balance of $353,588 at the end of 2016. Fines & Forfeitures ($9,412 less than budget) This category consists of the City's portion of court fines, received from the State. We've seen a $15,000 decrease in this category since 2014 when we were receiving $60,000 annually on average. We received $45,000 in 2015 and 2016 and will have to adjust our 2018 budget downward if the trend continues in 2017. Capital Contributions ($25,000 less than budget) The budget in this category basically represents the use of General fund reserves to fund specific operations and to have a balanced budget. In this case, we are budgeting to use $25,000 annually from the Tree Disease Infestation and Mitigation plan. The expenditures related to this activity are within the Street Department's Service & Charges expenditure category. While we budgeted for the use of these reserves in 2016, no expenditures were actually incurred in this regard. EXPENDITURES Total expenditures were less than the budget in most categories. The following is a summary of the key activity within each expenditure category. Wages & Benefits ($16,030 less than budget) On a total budget of $7,595,480, it is pretty amazing that we are within 0.2% of the budgeted amount. Typically, we have a substantial surplus in this category due to turnover with police officers. Knowing that this was an area where we potentially inflated our tax levy unnecessarily, we changed our tactic with the 2016 budget by including a vacancy allowance within the police budget. We decreased the police payroll budget by 5% to account for the anticipated officer turnover. The vacancy percentage will need to be revisited each year. The Motor Vehicle wages and benefits were $10,500 more than expected. While we budgeted for the DMV to be open 5 days a week, starting January 1, 2016, our assumptions were slightly off in a few areas. First, we budgeted with the 5 -day week that the DMV would not stay open late on Thursdays. The DMV continued to stay open later on Thursdays to service those customers who cannot get there earlier due to their work schedules. In addition, with several new staff members at the DMV, additional training hours were needed. We saw a fairly large increase in overtime pay in 2016, exceeding the budget by $24,210 and $30,000 higher than the 2015 actual overtime. The higher overtime also results in additional FICA, Medicare, PERA and Worker's Compensation expense as well, due to the higher gross wages. The majority of this overtime is in the Police department, however other departments had higher overtime as well. Supplies ($133,018 less than budget) The low cost of fuel over the past two years has had a significantly positive impact on our expense budget. We tempered our 2016 budget slightly due to the lower fuel prices but prices remained low all year resulting in a $58,551 savings. The mild winters also have an impact as less snow removal translates into less fuel used. Other expenses contributing to the budget surplus in this category include Equipment Parts ($36,766) and Street Maintenance Materials ($39,396). Services & Charges ($28,356 less than budget) Several factors contribute to the budget surplus, including lower Utilities ($38,436 under budget) due to the mild winter weather, Contract Snow Removal ($17,893) and the Tree Disease Infestation & Mitigation budget of $25,000 not being spent in the year. Another area we saw some savings was with the Compensation Study. We budgeted $45,000 and the actual expense amounted to $28,475. There will be unbudgeted expense of $1,850 in 2017 as additional consultant hours were used as the study was being presented to city departments and the city council for approval. Areas that exceeded the budget include Insurance Deductibles paid on prior claims ($48,641 over budget). Two large claims were settled in 2016 resulting in a $25,000 deductible being paid in each occurrence. Cemetery operations also had a negative impact as a decision was made to use Contracted Lawn Services to mow and maintain the cemetery grass in 2016 as opposed to using Seasonal Labor. The main reason in the change was the difficulty in finding seasonal employees. The extremely wet summer resulted in a mowing through the end of October. This resulted in $40,908 of expenditure that is offset by only $9,000 of wages budgeted to Seasonal labor. We are looking at other alternatives for the 2017 mowing, more than likely going back to seasonal staff. What we planned to be a $6,500 budget overage turned into a $32,000 overage. The Cemetery also exceeded its Contract R&M budget by $7,000 due to improvements made to the Columbaria area. Miscellaneous Expenses ($6,658 greater than budget) As explained in the Other Taxes revenue above, the increase in Lodging Taxes and Cable TV Franchise Fees translates into higher than expected expense as a percentage of the additional revenue is remitted to the Hutchinson Convention & Visitors Bureau ($7,727) and to HCVN ($5,889). Helping to offset this overage is a $6,000 budgeted contribution to the McLeod County Historical Society for a depot research project. As of this date, we have not received any communication from the Historical Society requesting a disbursement of funds. Transfers -Out ($245 less than budget) The small savings is due to the City's funding for the HATS facility. The City's budget was set at a contribution of $100,000 but the actual HATS budget was set at a contribution of $99,755. The other $500,000 in this account is the use of General fund reserves for the 2016 construction costs of the new Aquatic Center. All costs are being accounted for in the Capital Projects fund and the $500,000 was transferred into that fund. Capital Outlay ($10,000 less than budget) The budgeted activity in this account is for the on-going fence improvements at the Cemetery. No fencing improvements were made in 2016. This savings helps to offset the higher Contract R&M expenses incurred with the Cemetery's columbaria improvements. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING DECEMBER 31, 2016 DESCRIPTION 2016 ACTUALS DECEMBER YTD 2016 BUDGET AVAILABLE BALANCE 2016 % BDGT USED 2015 YTD ACTUAL 2015 BUDGET 2015 % BDGT USED General Fund Supplies 95,621 637,575 770,593 133,018 82.7 664,967 782,636 Taxes 2,313,176 4,594,142 4,581,035 (13,107) 100.3 4,500,946 4,491,446 100.2 Other Taxes 62,674 291,910 272,000 (19, 910) 107.3 291,343 257,500 113.1 Licenses & Permits (8,946) 280,690 271,500 (9,190) 103.4 324,109 267,900 121.0 Intergovernmental Revenue 24,340 1,318,016 1,284,330 (33,686) 102.6 1,260,580 1,225,766 102.8 Charges for Services 641,303 2,371,561 2,350,666 (20,895) 100.9 2,030,122 2,031,070 100.0 Miscellaneous Revenues 124,351 314,384 291,300 (23,084) 107.9 688,014 666,225 103.3 Transfers -In 1,171, 604 2,386,939 2,332,404 (54, 535) 102.3 2,215,537 2,160, 537 102.5 Fines & Forfeitures 7,396 45,588 55,000 9,412 82.9 45,449 55,000 82.6 Capital Contributions - - 25,000 25,000 - - 25,000 - TOTAL REVENUES 4,335,898 11,603,230 11,463,235 (139,995) 101.2 11,356,100 11,180,444 101.6 Wages & Benefits 829,193 7,579,450 7,595,480 16,030 99.8 7,434,980 7,491,996 99.2 Supplies 95,621 637,575 770,593 133,018 82.7 664,967 782,636 85.0 Services & Charges 238,952 2,433,580 2,461,936 28,356 98.8 2,299,466 2,303,346 99.8 Miscellaneous Expenses 44,946 531,884 525,226 (6,658) 101.3 535,186 498,116 107.4 Transfers -Out 500,000 599,755 600,000 245 100.0 96,850 96,850 100.0 Capital Outlay (6,984) - 10,000 10,000 - 199,564 192,058 103.9 TOTAL EXPENDITURES 1,701,728 11,782,244 11,963,235 180,991 98.5 11,231,012 11,365,002 98.8 NET REVENUE 2,634,169 (179,014) (500,000) (320,986) 125,087 (184,558) Comments Capital Contributions The budgeted activity is simply a function of using general fund reserves to balance the budget. We budgeted to use $25,000 of reserves for the Tree Disease Infestation & Mitigation plan and $500,000 of reserves to finance the waterpark construction costs. Transfers -Out This expense includes the transfer to fund the HATS facility ($99,755) in addition to the $500,000 transfer to the Capital Projects fund to finance the waterpark construction costs. DESCRIPTION REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING DECEMBER 31, 2016 2016 ACTUALS DECEMBER YTD General Fund Expense by Department 2016 AVAILABLE BUDGET BALANCE 2016 % BDGT 2015 YTD USED ACTUAL 2015 BUDGET 2015 % BDGT USED Mayor & City Council 6,476 38,240 44,290 6,050 86.3 38,892 46,380 83.9 City Administrator 42,942 407,379 430,251 22,872 94.7 389,064 410,458 94.8 Elections 634 13,527 15,950 2,423 84.8 7,950 7,378 107.8 Finance Department 34,370 351,046 361,468 10,422 97.1 367,024 428,830 85.6 Motor Vehicle 23,182 215,428 203,836 (11,592) 105.7 180,939 184,836 97.9 Assessing - 60,953 60,911 (42) 100.1 60,911 60,911 100.0 Legal 37,337 281,533 288,193 6,660 97.7 274,982 243,497 112.9 Planning 20,016 138,202 149,972 11,770 92.2 144,730 145,943 99.2 Information Services 61,061 471,100 504,738 33,638 93.3 437,207 414,288 105.5 City Hall Building 21,714 119,536 131,322 11,786 91.0 93,518 95,343 98.1 Police Department 393,252 3,084,146 3,062,565 (21,581) 100.7 3,018,841 3,072,077 98.3 Hospital Security 39,038 293,009 293,886 877 99.7 274,275 291,299 94.2 Emergency Management 193 9,499 12,800 3,301 74.2 6,586 14,388 45.8 Safety Committee - 8,772 9,500 728 92.3 9,516 9,590 99.2 Fire Department 5,413 295,786 306,733 10,947 96.4 318,069 292,199 108.9 Protective Inspections 21,969 225,171 227,556 2,385 99.0 250,866 233,248 107.6 Engineering 46,927 400,411 402,714 2,303 99.4 385,291 452,058 85.2 Streets & Alleys 135,957 1,382,568 1,517,341 134,773 91.1 1,366,687 1,409,089 97.0 Park/Recreation Administration 23,845 233,618 222,323 (11,295) 105.1 230,875 223,966 103.1 Recreation 13,637 204,589 234,397 29,808 87.3 210,042 222,940 94.2 Senior Citizen Center 9,901 83,391 83,747 356 99.6 87,576 74,795 117.1 Civic Arena 62,394 329,379 323,727 (5,652) 101.7 322,820 324,826 99.4 Park Department 78,895 868,767 852,751 (16,016) 101.9 844,299 839,821 100.5 Recreation Building & Pool 17,133 163,169 170,818 7,649 95.5 191,221 188,732 101.3 Events Center 26,738 237,604 243,017 5,413 97.8 228,892 234,707 97.5 Evergreen Building 1,910 23,827 25,450 1,623 93.6 14,605 12,688 115.1 Library 4,733 206,216 206,365 149 99.9 204,138 198,724 102.7 Cemetery 22,589 152,010 130,785 (21,225) 116.2 298,915 301,398 99.2 Airport 7,749 97,671 104,635 6,964 93.3 84,630 107,159 79.0 Unallocated General Expense 541,722 1,385,697 1,341,194 (44,503) 103.3 887,652 823,434 107.8 TOTAL EXPENDITURES 1,701,728 11,782,244 11,963,235 180,991 98.5 11,231,012 11,365,002 98.8 DESCRIPTION Liquor Fund Sales Miscellaneous Revenues TOTAL REVENUES Cost of Sales Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES NET REVENUE Gross Margin on Sales Labor to Sales Ratio rnMMPnfs REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING DECEMBER 31, 2016 2016 ACTUALS DECEMBER YTD 2016 AVAILABLE BUDGET BALANCE 2016 % BDGT 2015 YTD USED ACTUAL 2015 BUDGET 2015 % BDGT USED 680,947 5,988,472 5,870,000 (118, 472) 102.0 5,851,634 5,697,000 102.7 1,151 1,729 1,000 (729) 172.9 2,655 1,000 265.5 682,098 5,990,201 5,871,000 (119,201) 102.0 5,854,290 5,698,000 102.7 490,450 4,519,724 4,398,810 (120,914) 102.7 4,399,681 4,271,071 103.0 65,179 562,889 568,211 5,322 99.1 526,183 521,408 100.9 1,276 19,888 17,400 (2,488) 114.3 19,027 16,600 114.6 31,434 213,348 198,350 (14, 998) 107.6 203,526 196,793 103.4 - 4,121 5,650 1,530 72.9 4,013 5,500 73.0 475,000 475,000 475,000 - 100.0 465,000 465,000 100.0 - 9,685 20,000 10,315 48.4 - 27,000 - 80,750 80,750 80,200 (550) 100.7 82,273 82,075 100.2 127,686 23,686 128,055 104,369 18.5 27,951 128,305 21.8 1,271,776 5,909,090 5,891,676 (17,414) 100.3 5,727,655 5,713,752 100.2 (589,678) 81,111 (20,676) (101,787) 126,635 (15,752) 24.5% 25.1% 24.8% 25.0% 9.4% 9.7% 9.0% 9.2% Sales revenue is up 2.3% from 2015, with Liquor up 3.8%, Beer up 1%, Wine up 3% and Miscellaneous Sales up 3%. Sales exceeded our 2016 budgeted target by 2%. Cost of Sales expense increased due to the higher sales. The gross margin dropped below our target of 25% due in part to higher freight costs in the last quarter of the year. The Labor to Sales Ratio has traditionally hovered around 9%, however we made an effort to increase employee hours slightly in 2016 to provide a higher level of customer service. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING DECEMBER 31, 2016 DESCRIPTION 2016 ACTUALS DECEMBER YTD 2016 BUDGET AVAILABLE BALANCE 2016 % BDGT USED 2015 YTD ACTUAL 2015 BUDGET 2015 % BDGT USED Water Fund Supplies 6,697 117,147 122,400 5,253 95.7 126,861 123,250 Sales 179,058 2,372,159 2,306,000 (66,159) 102.9 2,405,906 2,300,000 104.6 Local Sales Tax 190,526 636,438 685,000 48,562 92.9 612,423 725,000 84.5 Intergovernmental Revenue - 500 - (500) - - - - Charges for Services 2,066 62,008 50,000 (12,008) 124.0 56,979 50,000 114.0 Miscellaneous Revenues 79,030 47,114 85,000 37,886 55.4 92,981 84,153 110.5 Capital Contributions - - - - - 562,213 - - TOTAL REVENUES 450,681 3,118,218 3,126,000 7,782 99.8 3,730,502 3,159,153 118.1 Wages & Benefits 60,602 484,814 479,983 (4,831) 101.0 452,294 500,766 90.3 Supplies 6,697 117,147 122,400 5,253 95.7 126,861 123,250 102.9 Services & Charges 45,810 476,922 507,350 30,429 94.0 503,357 457,724 110.0 Miscellaneous Expenses 802 13,163 13,500 337 97.5 13,226 16,700 79.2 Transfers -Out 308,497 308,497 43,145 (265,352) 715.0 277,058 43,145 642.2 Capital Outlay - 552,431 250,000 (302,431) 221.0 - 543,750 - Depreciation Expense 1,230,000 1,230,000 1,150,000 (80,000) 107.0 1,159,268 1,104,000 105.0 Debt Service (898,881) 363,482 1,408,611 1,045,129 25.8 389,687 1,312,414 29.7 TOTAL EXPENDITURES 753,527 3,546,455 3,974,989 428,534 89.2 2,921,751 4,101,749 71.2 NET of REVENUES & EXPENDITURES (302,846) (428,237) (848,989) (420,752) 808,752 (942,596) Comments Water Sales Water sales revenue beat the budget by $66,159 mainly due to Industrial water consumption and connection charges. Residential usage finished the year $74,932 under budgeted expectations, Commercial was $11,859 under budget while Industrial was $75,580 over budget. Connection charges are $56,048 over budget. Local Sales Tax A portion of December sales tax is yet to be received from the State but it will be a minor amount. While we won't meet our budgeted expectations, we will beat the 2015 local sales tax revenue. Transfers -Out This expense includes the transfer to the General Fund ($43,145) in addition to the transfer to the 2016 Construction Fund ($265,352) to cover a portion of the water infrastructure related to the project. The construction fund transfer is actually budgeted as a Capital Outlay. Depreciation Expense Depreciation is an estimate at this point and will be adjusted to actual during the year-end audit preparation. DESCRIPTION REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING DECEMBER 31, 2016 2016 2016 ACTUALS 2016 AVAILABLE % BDGT 2015 YTD DECEMBER YTD BUDGET BALANCE USED ACTUAL 2015 BUDGET 2015 % BDGT USED Sewer Fund 613,806 622,085 8,279 98.7 585,706 679,626 86.2 19,461 Sales 275,490 3,279,715 3,233,000 (46,715) 101.4 3,375,651 3,215,000 105.0 Local Sales Tax 190,526 636,438 685,000 48,562 92.9 612,423 725,000 84.5 Intergovernmental Revenue - - - - - 958,369 - - Licenses & Permits - 5,200 7,000 1,800 74.3 6,100 7,000 87.1 Charges for Services 7,865 9,160 4,000 (5,160) 229.0 3,584 4,000 89.6 Miscellaneous Revenues 80,310 54,397 97,000 42,603 56.1 93,967 89,153 105.4 Capital Contributions - - - - - 186,623 - - TOTAL REVENUES 554,192 3,984,909 4,026,000 41,091 99.0 5,236,717 4,040,153 129.6 Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES 65,323 613,806 622,085 8,279 98.7 585,706 679,626 86.2 19,461 181,332 236,100 54,768 76.8 187,609 249,300 75.3 108,441 834,905 742,550 (92, 355) 112.4 681,875 762,511 89.4 841 34,033 24,500 (9,533) 138.9 (7,681) 24,000 (32.0) 79,523 79,523 43,145 (36, 378) 184.3 79,025 43,145 183.2 - 276,930 350,000 73,070 79.1 - 691,250 - 1,620,000 1,620,000 1,530,000 (90, 000) 105.9 1,552,532 1,495,000 103.8 (1,134, 450) 304,958 1,568,854 1,263,896 19.4 337,635 1,573,470 21.5 759,139 3,945,488 5,117,234 1,171,746 77.1 3,416,701 5,518,302 61.9 NET of REVENUES & EXPENDITURES (204,948) 39,421 (1,091,234) (1,130,655) 1,820,016 (1,478,149) Comments Water Sales Sewer sales revenue beat the budget by $46,815 mainly due to connection charges that exceeded the budget by $78,091. Residential revenue finished the year $51,000 under budgeted expectations, Commercial was $13,908 over budget while Industrial was $122 over budget. Local Sales Tax A portion of December sales tax is yet to be received from the State but it will be a minor amount. While we won't meet our budgeted expectations, we will beat the 2015 local sales tax revenue. Transfers -Out This expense includes the transfer to the General Fund ($43,145) in addition to the transfer to the 2016 Construction Fund ($36,378) to cover a portion of the sewer infrastructure related to the project. The construction fund transfer is actually budgeted as a Capital Outlay. Depreciation Expense Depreciation is an estimate at this point and will be adjusted to actual during the year-end audit preparation. DESCRIPTION REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING DECEMBER 31, 2016 2016 2016 ACTUALS 2016 AVAILABLE % BDGT 2015 YTD DECEMBER YTD BUDGET BALANCE USED ACTUAL 2015 BUDGET 2015 % BDGT USED Refuse Fund 173,758 190,804 17,046 91.1 148,995 179,288 83.1 3,913 Sales 98,398 1,169, 965 1,149, 500 (20, 465) 101.8 1,146, 693 1,133, 700 101.1 Intergovernmental Revenue 3,792 12,959 12,500 (459) 103.7 12,608 12,500 100.9 Miscellaneous Revenues (1,583) 5,385 2,500 (2,885) 215.4 6,506 2,500 260.2 TOTAL REVENUES 100,607 1,188,309 1,164,500 (23,809) 102.0 1,165,806 1,148,700 101.5 Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES 15,818 173,758 190,804 17,046 91.1 148,995 179,288 83.1 3,913 50,831 62,400 11,569 81.5 54,054 65,400 82.7 114,396 717,019 704,727 (12, 292) 101.7 698,126 702,650 99.4 729 4,252 3,750 (502) 113.4 10,567 3,250 325.1 55,000 55,000 55,000 - 100.0 55,000 55,000 100.0 - 79,091 95,000 15,909 83.3 - 159,418 - 126,500 126,500 124,000 (2,500) 102.0 122,518 131,500 93.2 (21,863) 1,262 24,260 22,998 5.2 2,139 24,261 8.8 294,494 1,207,712 1,259,941 52,229 95.9 1,091,399 1,320,767 82.6 NET of REVENUES & EXPENDITURES (193,887) (19,404) (95,441) (76,037) 74,407 (172,067) Comments Refuse Sales Refuse sales beat the budget and exceeded last year's revenue mainly due to customers increasing cart sizes. Customer counts have remained stable, however after the change to West Central last October, we found that many customers being billed for a 30 gallon cart were actually using a 45 gallon cart under Waste Management. Many of these customers upgraded to the 60 gallon West Central cart, which is at a higher revenue rate. While there was some initial issues with the change over, we are now more confident that customers are being billed appropriately to cover our cost at the landfill. Transfers -Out This expense is the $55,000 transfer to the General fund for the Tree Disease Infestation and Mitigation program. The funding started in 2010 and has a current balance of $353,588. Depreciation Expense Depreciation is an estimate at this point and will be adjusted to actual during the year-end audit preparation. DESCRIPTION Compost Fund Sales Charges for Services Miscellaneous Revenues TOTAL REVENUES Cost of Sales Inventory Cost Adjustment Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING DECEMBER 31, 2016 2016 2016 ACTUALS 2016 AVAILABLE % BDGT 2015 YTD DECEMBER YTD BUDGET BALANCE USED ACTUAL 2015 BUDGET 2015 % BDGT USED 25,554 2,065,479 1,636,796 (428, 683) 126.2 3,034,022 2,729,160 111.2 53,370 70,811 58,500 (12, 311) 121.0 62,164 58,500 106.3 3,110 41,624 6,000 (35,624) 693.7 19,617 6,000 326.9 82,034 2,177,915 1,701,296 (476,619) 128.0 3,115,802 2,793,660 111.5 33,069 1,370,747 1,117, 265 (253, 482) 122.7 2,337,377 2,357,500 99.1 (50,803) (470,530) (525,746) (55,216) 89.5 (986,638) (1,054,568) 93.6 59,388 559,224 559,899 675 99.9 641,985 797,164 80.5 7,139 86,954 70,257 (16,697) 123.8 127,480 154,500 82.5 46,004 261,982 188,573 (73, 409) 138.9 342,496 344,350 99.5 7,280 15,676 13,500 (2,176) 116.1 43,765 13,500 324.2 110,000 110,000 110,000 - 100.0 110,000 110,000 100.0 7,169 222,438 150,000 (72,438) 148.3 - 250,000 - 140,000 140,000 134,000 (6,000) 104.5 127,631 142,600 89.5 TOTAL EXPENDITURES 359,246 2,296,492 1,817,748 (478,744) 126.3 2,744,096 3,115,046 88.1 NET of REVENUES & EXPENDITURES (277,213) (118,577) (116,452) 2,125 371,706 (321,386) Comments Compost Sales Actual sales under the new lower -production model exceeded our expectations. Our main assumption for the new model was the discontinuation of 1.5 million of bagged product sales to our major customer providing low -margin product to big box retailers. We were able to get some nice price increases from this customer and better payment terms in return for producing nearly 200,000 of bagged product that was not factored into our budget. Depreciation Expense Depreciation is an estimate at this point and will be adjusted to actual during the year-end audit preparation. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING DECEMBER 31, 2016 DESCRIPTION Storm Water Utili Sales Licenses & Permits Charges for Services Miscellaneous Revenues Capital Contributions TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES NET of REVENUES & EXPENDITURES Comments Storm Water Sales Transfers -Out 2016 ACTUALS DECEMBER YTD 2016 AVAILABLE BUDGET BALANCE 2016 % BDGT 2015 YTD USED ACTUAL 2015 BUDGET 2015 % BDGT USED 72,212 863,217 857,367 (5,850) 100.7 797,052 790,200 100.9 500 4,970 - (4,970) - 4,552 - - - - - - - 630 - - 1,953 10,273 5,500 (4,773) 186.8 10,364 6,000 172.7 - - - - - 352,155 - - 74,664 878,461 862,867 (15,594) 101.8 1,164,753 796,200 146.3 30,041 235,337 243,986 8,649 96.5 188,254 241,318 78.0 175 15,603 43,925 28,322 35.5 18,525 34,175 54.2 14,992 156,747 164,100 7,353 95.5 134,994 146,350 92.2 255 9,132 11,250 2,118 81.2 10,071 11,250 89.5 270,097 270,097 - (270,097) - 127,454 - - - 8,140 120,000 111,860 6.8 - 128,000 - 146,000 146,000 133,000 (13, 000) 109.8 134,222 116,000 115.7 (136, 250) 9,383 150,850 9,867 93.5 14,780 193,992 70.2 325,311 850,440 867,111 (114,929) 98.1 628,300 871,085 72.1 (250,647) 28,020 (4,244) 99,336 536,453 (74,885) Storm water sales revenue exceeded the budget by $3,494 and is up 8% over 2015 due to the budgeted rate increase. This expense consists of the transfer to the 2016 Construction Fund to cover a portion of the storm water infrastructure related to the project. The construction fund transfer is actually budgeted as a Capital Outlay. Depreciation Expense Depreciation is an estimate at this point and will be adjusted to actual during the year-end audit preparation. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING DECEMBER 31, 2016 DESCRIPTION HATS Ooeration Intergovernmental Revenue Charges for Services Miscellaneous Revenues Transfers -In TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Capital Outlay TOTAL EXPENDITURES NET of REVENUES & EXPENDITURES Comments Charges for Services Supplies 2016 ACTUALS DECEMBER YTD 2016 AVAILABLE BUDGET BALANCE 2016 % BDGT 2015 YTD USED ACTUAL 2015 BUDGET 2015 % BDGT USED (33, 260) 156,045 156,045 0 100.0 151,138 151,500 99.8 22,213 232,407 530,000 297,593 43.9 279,547 546,000 51.2 7,097 8,367 3,150 (5,217) 265.6 11,550 3,250 355.4 - 99,755 99,755 - 100.0 96,850 96,850 100.0 (3,951) 496,574 788,950 292,376 62.9 539,085 797,600 67.6 4,236 48,785 59,470 10,685 82.0 57,958 57,898 100.1 28,178 233,286 528,600 295,314 44.1 291,881 546,925 53.4 21,598 140,084 161,200 21,116 86.9 154,288 159,700 96.6 5,000 5,025 5,171 146 97.2 5,060 6,550 77.3 - - 33,600 33,600 - 35,910 26,527 135.4 59,013 427,180 788,041 360,861 54.2 545,097 797,600 68.3 (62,964) 69,394 909 (68,485) (6,012) - The main activity in this account is fuel sales to City departments, the State, County and Hutchinson Utilities. Revenue is under -budget mainly due to lower fuel prices and less demand for fuel in 2016. The main activity in this account is the cost of fuel for the fueling system. We benefited from low fuel prices and lower demand for fuel, resulting in a significant expense savings. Report of Cash Balances & Fund Balance Future Year Fund Balance Fund Balance Expenses % of Expense General Fund 2016 6,681,966 12,260,128 55% [4] 2015 6,859,613 11,463,235 60% Enterprise Funds Minimum 2016 Target Cash Balance [5] 1,776,976 1,897,696 278,071 612,242 318,963 Actual 2016 Cash Balance 3,185,674 5,494,957 1,258,652 2,059,123 1,212,123 [1] The large cash increase in the Sewer fund is due to the timing of Xcel grant related to the solar array ($958,369). The grant was accrued as revenue and a receivable in December 2015 but the cash was not actually received until early 2016. [2] The increase in cash is due to cash payments received in 2016 from Garick Corp to pay off their 2015 receivable balance for product sold. The new lower production model was cash neutral, not adding but not decreasing our cash balance. [3] The decrease in fund balance is attributed to the water tower rehabilitation project. [4] The drop in the General fund's fund balance is due to the planned use of cash reserves ($500,000 ) to fund the 2016 waterpark costs. This percentage will drop to around 50% in 2017 as we use up to another $500,000 in cash reserves for the final waterpark costs. [5] The minimum target cash balance is based on 25% of the next year's operating expenses plus one year of debt service payments. General Liquor Water Sewer Storm Water Compost Refuse Cash Balance 12/31/2016 7,005,095 117,327 3,185,674 5,494,957 1,258,652 2,059,123 1,212,123 12/31/2015 7,099,634 177,086 3,415,726 4,155,637 1,230,932 1,648,307 1,161,797 Change (94,539) (59,759) (230,052) 1,339,319 27,720 410,816 50,326 [1l [2] Fund Balance 12/31/2016 6,681,966 1,027,373 12,797,523 19,500,223 4,558,393 4,095,569 2,414,950 12/31/2015 6,859,613 946,262 13,225,760 19,460,701 4,530,373 4,214,146 2,434,354 Change (177,647) 81,111 (428,237) 39,521 28,020 (118,577) (19,404) [3] Future Year Fund Balance Fund Balance Expenses % of Expense General Fund 2016 6,681,966 12,260,128 55% [4] 2015 6,859,613 11,463,235 60% Enterprise Funds Minimum 2016 Target Cash Balance [5] 1,776,976 1,897,696 278,071 612,242 318,963 Actual 2016 Cash Balance 3,185,674 5,494,957 1,258,652 2,059,123 1,212,123 [1] The large cash increase in the Sewer fund is due to the timing of Xcel grant related to the solar array ($958,369). The grant was accrued as revenue and a receivable in December 2015 but the cash was not actually received until early 2016. [2] The increase in cash is due to cash payments received in 2016 from Garick Corp to pay off their 2015 receivable balance for product sold. The new lower production model was cash neutral, not adding but not decreasing our cash balance. [3] The decrease in fund balance is attributed to the water tower rehabilitation project. [4] The drop in the General fund's fund balance is due to the planned use of cash reserves ($500,000 ) to fund the 2016 waterpark costs. This percentage will drop to around 50% in 2017 as we use up to another $500,000 in cash reserves for the final waterpark costs. [5] The minimum target cash balance is based on 25% of the next year's operating expenses plus one year of debt service payments. Report of Cash Balances & Reserved Funds 12/31/2016 Earmarks / Unreserved Fund Cash Balance Reserves Cash Reserves / Earmarks General 7,005,095 (5,814,246) 1,190,849 (4,904,051) Working Capital 40% of 2017 budgeted expenses (353,588) Tree Disease Infestation & Mitigation fund (56,607) Police Drug Forfeiture monies (500,000) Reserves to fund 2017 waterpark costs (5,814,246) Liquor 117,327 117,327 Water 3,185,674 3,185,674 Sewer 5,494,957 5,494,957 Stormwater 1,258,652 1,258,652 Compost 2,059,123 2,059,123 Refuse 1,212,123 1,212,123 Capital Projects 1,240,369 (1,186,737) 53,632 (300,000) Reserves to fund 2017 waterpark costs (415,586) Facilities Plan - fund balance (61,456) Miscellaneous Infrastructure Maintenance Plan (165,445) Planning funds - comprehensive & other plans Note: this fund advanced $402,593 to the Airport Construction fund and the (120,000) 2017 - 2020 Rail Authority Payment 2017 Construction fund to address short term cash deficits in those funds (124,250) 2017 CIP budgeted purchases at 1213112016. The Capital Projects fund will be reimbursed in January 2017. (1,186, 737) Community Improvement 1,753,708 (864,906) 888,802 (750,000) Reserves to fund 2017 waterpark costs (80,000) Dakota trail improvements commitment (15,000) 2017 contribution to Center for the Arts (19,906) 2017 Public Arts funding balance (864,906) Public Sites 341,232 (245,870) 95,362 (17,518) Public Arts original seed money set aside (10,000) Public Arts maintenance ($5K per year; $10K max) (22,588) Police Memorial Park maintenance fund Note: this fund is carrying a receivable of $17,735 from RiverSong related to the roof installed over (38,906) Elks Park playground commitment the stage. RiverSong originally donated $12,000 in 2013 when the roof was constructed but since (56,438) Rotary playground commitment then has only donated $3,000 in 2015. (100,420) Developers tree escrow balance (245, 870) Report of Cash Balances & Reserved Funds 12/31/2016 Earmarks / Unreserved Fund Cash Balance Reserves Cash Reserves / Earmarks Equipment Replacement 1,279,816 (1,279,816) - (932,431) 2017 fleet purchases (347,385) Balance reserved for future fleet purchases (1,279, 816) Self Insurance 786,077 (786,077) - (120,000) 2017 contribution to General Fund HSA expense (666,077) Balance reserved for purpose of fund (786, 077) Rural Fire Fund 19,136 (19,136) - All funds are reserved for the designated purpose of fund HATS Fund 210,286 (210,286) - All funds are reserved for the designated purpose of fund EDA 167,055 (167,055) - All funds are reserved for the designated purpose of fund Economic Dev Loan Fund 437,281 (437,281) - All funds are reserved for the designated purpose of fund Energy Loan Fund 346,656 (346,656) - All funds are reserved for the designated purpose of fund MIF Loan Fund 29,223 (29,223) - All funds are reserved for the designated purpose of fund MIF Loan Fund #2 75,430 (75,430) - All funds are reserved for the designated purpose of fund MIF Loan Fund #3 90,490 (90,490) - All funds are reserved for the designated purpose of fund Hutchinson Enterprise Center 708,994 (708,994) - All funds are reserved for the designated purpose of fund Housing Redevelopment 77,083 (77,083) - All funds are reserved for the designated purpose of fund SCDP Housing Rehab 264,417 (264,417) - All funds are reserved for the designated purpose of fund Development Fund - EDA 27,219 (27,219) - All funds are reserved for the designated purpose of fund Tax Increment 423,014 (423,014) - All funds are reserved for the designated purpose of fund 1994 Tax Increment Const 35,517 (35,517) - All funds are reserved for the designated purpose of fund 1996 Tax Increment Const #11 7,171 (7,171) - All funds are reserved for the designated purpose of fund 1997 Tax Increment Const #12 7,726 (7,726) - All funds are reserved for the designated purpose of fund TIF #4-17 Enterprise Center - - - All funds are reserved for the designated purpose of fund TIF #4-18 - Highfield Apts - - - All funds are reserved for the designated purpose of fund 2006 Debt Service Fund 385,658 (385,658) - All funds are reserved for the designated purpose of fund 2007 Debt Service Fund 197,940 (197,940) - All funds are reserved for the designated purpose of fund Report of Cash Balances & Reserved Funds 12/31/2016 Earmarks / Unreserved Fund Cash Balance Reserves Cash Reserves / Earmarks 2008 Debt Service Fund 139,042 (139,042) - All funds are reserved for the designated purpose of fund 2009 Debt Service Fund 292,666 (292,666) - All funds are reserved for the designated purpose of fund 2010 Debt Service Fund 541,545 (541,545) - All funds are reserved for the designated purpose of fund 2011 Debt Service Fund 636,612 (636,612) - All funds are reserved for the designated purpose of fund 2012 Debt Service Fund 706,021 (706,021) - All funds are reserved for the designated purpose of fund 2013 Debt Service Fund 691,155 (691,155) - All funds are reserved for the designated purpose of fund 2014 Debt Service Fund 468,851 (468,851) - All funds are reserved for the designated purpose of fund 2015 Debt Service Fund 460,848 (460,848) - All funds are reserved for the designated purpose of fund 2016 Debt Service Fund 233,566 (233,566) - All funds are reserved for the designated purpose of fund TIF - 1992 Debt Service 14,051 (14,051) - All funds are reserved for the designated purpose of fund TIF - 2004 GO Tax Incr Refunding 246,865 (246,865) - All funds are reserved for the designated purpose of fund Airport Construction Fund - - - All funds are reserved for the designated purpose of fund 2016 Construction Fund 352,024 (352,024) - All funds are reserved for the designated purpose of fund 2017 Construction Fund - - - All funds are reserved for the designated purpose of fund GRAND TOTALS 34,027,694 (18,471,194) 16,666,600 UBS Financial Services Inc. 6Suite 354 81 Lake Street E. Business Services Account o% UBS Wayzata N 55391-1758 Business G December 216 CNQ7001605335 1 21 5 X12 RP 0 Account name: CITY OF HUTCHINSON Account number: RP 38446 5H Your Financial Advisor: HARNETT/SORLEY Phone: 952-475-94401800-627.2463 Questions about your statement? Call your Financial Advisor or the ResourceLine at 800-762-1000, account 712038446. Visit our website: wwvv.ubs.comlf i nancialservices CITY OF HUTCHINSON 1 1 1 HASSAN STREET 5E HUTCHINSON MN 55350-2522 Value of your account on November 30 {$} Your assets Your liabilities 14,121, 010, 77 0.00 Value of your account $14,121,010.77 Accrued interest in value above $37,924.83 Tracking the value of y our account i Millions on December 30 {$} 14,070,058.60 0.00 $14,070,058.60 $47,168.28 13.4 13.7 13.9 14.1 14.1 1.6 1.6 1.6 / Dec 2010 Dec 201 1 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Nov 2015 Dec 2016 As a service to you, your portfolio value of $14,070,058.60 includes accrued interest. Sources of your account growth during 2016 Value of your account at year end 2015 $13,932,212.75 Net deposits and withdrawals 498.96 Your investment return: Dividend and interest income $218,887.24 Change in value of accrued interest -$5,091.64 Change in market value 475,850.79 Value of your account on Dec 36, 2016 $14,076,058.60 Member SIPC CNo70001001505335 NQ7DO0200539 00001 1216 000000000 AP38446SHO 110000 Page 1 of 20 Business Services Account Account name: CITY OF HUTCHINSON Your Financial Advisor. ot, is U B SAccount number: RP 38446 SH HARNETTISORLEY December 2016 952-475-94401800-627-2463 Your account balance sheet The value of your account includes assets held at UBS and certain assets held away from UBS. See page 1 for more information. Summary of your assets Value on Percentage of December 30 5) your account A Cash and money balances 0.00 0,00%Your current asset allocation r Cash and moneymay include available cash balancceses,, USS Bank USA deposit 8 Cash alternatives 273,785.44 1.95%❑ account balances, UBS AG Stamford Branch B deposit account balances and money market C Equities o.00 0,00% mutual fund sweep balances. See the Important information about your sta tement on the last D Fixed income 13,796,273.16 98.05%a two pages of this statement for details about those balances. E Non-traditional 0.00 0.00% F Commodities 0.04 0.00% G Other 0.00 0.00%0 Total assets $14,074,058.60 100.00% Value of your account $14,070,058.60 D Eye on the markets Percentage change Index December 2016 Year to date S&P Soo 1.98% 11.96% Russell 3000 1.95% 12.74% MSCI - Europe, Australia & Far East 3.44% 1.51% Barclays Capital U.S. Aggregate Bond Index Interest rates on December 30, 2016 3 -month Treasury bills: 0.48% One-month LIBOR: 0,77% 0.14%0 2.65% CNQ70001001605336 NQ7000200539 00001 1216 099000000 RP38446SHO 110000 Page 2 of 20 Business Services Account Account name: CITY OF HUTCHINSON Your Financial Advisor: �� December 2016 Account number: RP 38446 5H HARNETT/SORLEY 952-475-9440/800-527-2463 Change in the value of your account December 2016 {$3 Year to date M opening account value $14,121,010.77 $13,932,212.75 Withdrawals and fees, including investments transferred out -150.00 -98.96 Dividend and interest income 9,561.17 218,887.24 Change in value of accrued interest 9,243.45 -5,091.64 Change in market value -69,606.79 -75,850.79 Closing account value $14,070,058.60 $14,070,058.60 Dividend and interest income earned For purposes of this statement, taxability of interest and dividend income has been determined from a US tax reporting perspective. Based upon the residence of the account holder, account type, or product type, some interest and/or dividend payments may not be subject to United States (U5) and/or Puerto Rim (PR) income taxes. The client monthly statement is not intended to be used and cannot be relied upon for tax purposes. Clients should refer to the applicable tax reporting forms they receive from UBS annually, such as the Forms 1099 and the Forms 480, for tax reporting information. It is the practice of UBS to file the applicable tax reporting forms with the US Internal Revenue Service and PR Treasury Department, and in such forms accurately classify dividends and/or interest as tax exempt or taxable income. Nease consult your individuaf tax preparer. December 2016 M Year to date {$] Taxable dividends 1,378.41 11,178.89 Taxable interest 8,182.76 214,381.27 Taxable accrued interest paid 0.00 -6,672.92 Total current year $9,561.17 $218,887.24 Total dividend & interest $9,561.17 $218,887.24 Summary of gains and losses Values reported below exclude products for which gains and losses are not classified Realized gains and losses Unrealized December 2016 M Year to date ($) gains and losses {$} Short term 0.00 750.00 -81,502.95 Long term 0.00 0,00 -71,926.65 Total $0.00 $750.00 -$153,429.60 Cash activity summary See Account activity this month for details. Balances in your Sweep Options are included in the opening and closing balances value. FDIC insurance applies only to deposits at UBS Bank USA, not to deposits at UBS AG, Stamford Branch or bank deposits placed through the UBS International Deposit Account program. SIPC protection applies to money market sweep fund holdings but not bank deposits See Important information about your statement on the last two pages of this document for details. December 2016 ($] Year to date {$} Opening balances $997.74 -$51.04 Additions Dividend and interest income 9,561.17 218,887.24 Proceeds from investment transactions 2,464,738.22 12,249,723.06 Total additions $2,474,299.39 $12,468,610.30 Subtractions Annual fee -150.00 -150,00 Other funds debited 0.00 51.04 Funds withdrawn for investments bought -2,475,142.13 -12,468,460.30 Total subtractions -$2,475,292,13 -$12,468,559.26 Net cash flow -$992,74 $51.04 Closing balances SO.00 $0.00 CNO70001001605337 N07000200539 00001 1216 000000000 RP38446SKO 110000 Page 3 of 20 UB Business Services Account Account name: CITY OF HUTCHINSON Your Financial Advisor: or: 2016 Account number: RP 38446 SH HARNETTISORLEY 952-475-94401890-627-2463 Loan summary Prior year(s) loan interest adjustment UBS Bank USA Deposit Account APY Interest period Nov 7 - Dec 6 Opening UBS Bank USA Deposit balance Nov 7 451.04 $275.33 Closing UBS Bank USA Deposit balance Dec 6 $322.19 Number of days in interest period 30 Average daily balance $607.55 Interest earned $0.00 Annual percentage yield earned 0.00% Your investment objectives: You have identified the following investment objectives for this account. If you have questions about these objectives, disagree with them, or wish to change them, please contact your Financial Advisor or Branch Manager. You can find a full description of the alternative investment objectives in Important information a bout your statement at the end of this document. Your return objective: Current income Your risk profile: Primary - Conservative Investment eligibility consideration - None selected Your account instructions . Your account cost basis default closing method is FIFO, First In, First Out. CNQ70001001605338 NQ7000200539 00001 1216 000000000 RP38446SHO 110000 Page 4 of 20 Business Services Account Account name: CITY OF HUTCHINSON Your Financial Advisor: t�� December 2016 Account number: RP 38446 SH HARNETT/SORLEY -n952-475-9440/800-627-2463 Your assets Some prices, income and current values shown may be approximate. As a result, gains and losses may not be accurately reflected. See Important informa vion about your statement at the end of this document for more information. Cash Cash and money balances Cash and money balances may include available cash balances, UBS Bank USA deposit account balances, UB5 AG Stamford Branch deposit account balances and money market mutual fund sweep balances. UBS Bank USA deposit account balances are insured by the FDIC within applicable limits, but are not protected by SIPC. UBS AG Stamford Branch deposit account balances are not insured by FDIC and are not protected by SIPC. Money market sweep balances are protected by SIPC but are not insured by the FDIC. See the Important information about your statement at the end of this document for details about those balances. Opening balance Closing balance Holding on Dec 1 (S) on Dec 30 ($) Price per share Average on Dec 30 ($) rate Dividend/lnteresi pays in period period Cap amount {g} Cash -542.71 -213.70 UBS BANK USA DEP ACCT 1,535.45 213.70 250,000.00 Total $992.74 $0.00 Cast alternatives Money market funds Money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Institutional prime and institutional municipal funds must float their net asset values (NAV) per share to the nearest 11100th of a cent.(e.g., 31.0000). Government and retail money market funds will continue to transact at a stable $1.00 net asset value. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lase money by investing in these funds. Total reinvested is the total of all reinvested dividends. It does not indude any cash dividends. It is not a tax lot for the purposes of determining holding periods or cost basis. The shares you receive each time you reinvest dividends become a separate tax lot. Cost basis is the total purchase cost of the security, including reinvested dividends. The cost basis may need to be adjusted for return of capital payments in order to determine the adjusted cost basis for tax reporting purposes. Purchase price/ Number Average price Client Holding of shares per share (S) investment i L16S SEIECT PRIME INSTITUTIONAL FUND 273,785.442 EAI: $1,780 Current yield: 0.65% Unrealized (tax) gain or loss is the difference between the current value and the cost basis and would generally be your taxable gain or loss if the security was sold on this date. The unrealized (tax) gain or loss may need to be adjusted for return of capital payments in order to determine the realized gain or loss for tax reporting purposes. investment return is the current value minus the amount you invested. It does not include shares that are not reflected on your statement, including shares that have been realized as either a gain or a loss. It also does not include cash dividends that were not reinvested. Cost Price per share Value on basis I3] on Dec 30 M Dec 30 [$1 1.0000 273,785.44 Unrealized Investment Holding gain or loss [$1 return I31 period CN070001001605339 NQ7000200539 00001 1216 000000000 RP38446SHO 1 10000 Page 5 of 20 �RQ Business Services Account Account name: CITY OFHUTCHINSCN rlvDn December 2016 Account number: RP 38446 SH Your assets (continued) Fixed income Certificates of deposit Cost basis has been adjusted for accreted original issue discount (CID) on long-term (more than 1 year) CDs. Cost basis has been automatically adjusted for amortization of premium using the constant yield rnethod on long-term lmc, re than 1 yeary CDs. Trade Total face value Purchase Holding date at maturity I5j price I41 STATE 8K INDIA NY US RATE 02.0000% MAT 04127/2017 FIXED RATE CD ACCRUED INTEREST $869.68 CUSIP 856284E34 EAE; $2A80 Current yield: 1,99% Feb 20, 15 248,000.000 100.000 248,000.00 Adjusted Price on test basis (S) Dec 30 [S] Your Financial Advisor: HARNETUSORLEY 9 52 -47 5 -94401800-62 7 -246 3 value on Unrealized Holding Dec 30 {g} gain or lass ISl period' 100.421 249,044.08 1,044.08 LT COMENITY BANK DE US RATE 01.1500% MAT 06/1912 017 FIXED RATE JUMBO CD ACCRUED INTEREST $170.14 CUSIP 981996ED9 EAI: $1,150Current yield: 1.16% Jun 11, 14 200,000.000 100.000 200,000.00 99.444 198,888.90 -1,112.00 LT GOLDMAN SACHS BK U UT U5 RATE 01.7500% MAT 08/03/2017 FIXED RATE CD ACCRUED INTEREST $162.05 CUSIP 36161TDH5 EAI: $1,517 Current yield: 1.74% Jul 31, 12 130,000.000 100.000 130,000.00 100.555 130,721.50 721.50 LT GE CAP RETAIL SK UT U5 RATE 01.7500% MAT 08/03/2017 FIXED RATE CD ACCRUED INTEREST $1,752.68 CUSIP 36157QJMO EAI: $4,323 Current yield: 1.74% Jul 31, 12 247,000.000 100.000 247,000.00 100.555 248,370.85 1,370.85 LT SUN NATL BK NJ U5 RATE 010000% MAT 1010312017 FIXED RATE CD ACCRUED INTEREST $170.95 CUSIP 86682ABV2 EAI: $2,000 Current yield: 1.00% Sep 18,12 240,000.000 100.000 240,000.00 100.076 240,182.40 182.40 LT continued next page CNQ70001001605340 NQ7000200539 00001 1216 000000000 RP38446SHO 110000 Page 6 of 20 Business Services Account Account name: CITY OF HUTCHINSON Your Financial Advisor: FIXED RATE CD Account number: RP 38446 SH HARNETTISORLEY UBS December 2016 EAI: $3,100 Current yield: 1.25% Feb 26, 15 248,000.000 100.000 248,000.00 100.363 248,900.24 9.00.24 LT BANK OF NRTH CAROL INC US RATE 01.0000°% MAT 02/2712 0 18 9 52 -47 5-94401800- 62 7 -2 463 Your assets ► Fixed income ► Certificates of deposit (continued) ACCRUED INTEREST $20.13 Trade Total face value Purchase Adjusted Price on Value on unrealized Holding Holding date at maturity ($) price ($} cost basis (S) Dec 30 (S) Dec 30 ($) gain or loss (S) period GOLDMAN SACHS BK U NY US ACCRUED INTEREST $120.83 RATE 01.3000% MAT 0212612018 EAI: $2,205 Current yield. 0.90% May 04, 16 245,000.000 100.000 245,000,00 99.977 244,943.65 -56.35 5T FIXED RATE CD ACCRUED INTEREST $1,121.77 CUSIP 38148JLN9 EAI: $3,224 Current yield: 1.30°% Feb 25, 15 248,000.000 100 -ODD 248,000.00 100.248 248,615.04 615.04 LT ALLY BK UT U5 RATE 01.2500°% MAT 02/2 512 018 FIXED RATE CD ACCRUED INTEREST $1,070.14 CUSIP 02006LNY5 EAI: $3,100 Current yield: 1.25% Feb 26, 15 248,000.000 100.000 248,000.00 100.363 248,900.24 9.00.24 LT BANK OF NRTH CAROL INC US RATE 01.0000°% MAT 02/2712 0 18 FIXED RATE CD ACCRUED INTEREST $20.13 CU51P 06414QXX2 EAI: $2,450 Current yield: 1.00% May 04, 16 245,000.000 100.000 245,000.00 99.962 244,906.90 -93.10 ST MERRICK BK UT US RATE 00.9000% MAT 05/10/2018 FIXED RATE CD ACCRUED INTEREST $120.83 CUSIP 59013JNV7 EAI: $2,205 Current yield. 0.90% May 04, 16 245,000.000 100.000 245,000,00 99.977 244,943.65 -56.35 5T KEYBANK NA IN US RATE 01 0000% MAT 0 5/1112 018 FIXED RATE CD ACCRUED INTEREST $328.91 CUSIP 49306SWN2 EAI: $2,450 Current yield: 1.00% May D4, 16 245,000.000 100.000 245,000.00 99.975 244,938.75 -61.25 ST CONNECTONE BANK NJ US RATE 01.0000% MAT 05/14/2018 FIXED RATE CD ACCRUED INTEREST $114.12 CUSIP 20786ABM6 EAI: $2,450 Current yield: 1.00°% May 04, 16 245,000.000 100.000 245,000.00 99.972 244,931.40 -68.60 ST continued next page CN070001001605341 NQ 70002 005 39 00001 1216 000000000 RP384465N0 110000 Page 7 of 20 Business Services Account Account name: CITY OF HUTCHINSON Your Financial Advisor: �� Account number: RP 38446 5N HARNETTISORLEY December 2016 952-475-94401800-627-2463 Your assets a FIxed IncOMe r Certificates of deposit (continued) Trade Total face value Purchase Adjusted Price on Value an Unrealized Holding Holding date at maturity (g) price (S) cast basis (3) Dec 30 tai Dec 30 (S) gain ar loss (g) period BANK LEUMI NY U5 RATE 01.2500° MAT 06122/2018 FIXED RATE CD ACCRUED INTEREST $67.13 CUSIP 06324BGE2 EAI: $3,063 Current yield: 1.25% Dec 07, 16 245,000-000 100.000 245,000.00 100-093 245,227.85 227.85 ST ENERBANK UT US RATE 01.3500° MAT 10/04/2018 FIXED RATE CID ACCRUED INTEREST $230.78 CUSIP 29266NVE4 EAI: $3,240 Current yield: 1.35% Sep 26, 12 240,000.000 100.000 240,000.00 100-123 240,295.20 295.20 LT MAIN STREET BK COR WV U5 RATE 01.4500% MAT 02/14/2019 FIXED RATE CD ACCRUED INTEREST $145.99 CUSIP 56034WAP6 EAI: $3,553 Current yield: 1.45% 245,000.000 ---This information was unavailable--- 100.140 245,343.00 WORLD'S FOREMOST B NE US RATE 01.3000% MAT 05/2 812019 FIXED RATE JUMBO CD ACCRUED INTEREST $28.50 CUSIP 915991AFO EAI: $2,600 Current yield: 1.31 °% May 19, 16 200,000.000 100.000 200,000.00 99.261 198,522.00 -1,478.00 ST AMERICAN EXPRESS F UT US RATE 02.1500% MAT 11/1312019 FIXED RATE CD ACCRUED INTEREST $683.81 CUSIP 02587CCR9 EAI: $5,311 Current yield: 2.11 % Nov 14, 14 247,000.000 100.000 247,000.00 101.710 251,223-70 4,223-70 LT CIT BK SALT LAKE C UT US RATE 02.1009% MAT 11/13/2019 FIXED RATE CD ACCRUED INTEREST $648.98 CUSIP 17284C3N2 EAI: $5,040 Current yield: 2.07% Nov 04, 14 240,000.000 100.000 240,000.00 101.571 243,770.40 3,770.40 LT continued next page CNR70001001505342 Na 7000200539 00001 1216 000000000 RP38446SHO 110,000 Page 8 of 20 Business Services Account Account name: CITY OF HUTCHINSON Your Financial Advisor: Account number: RP 38445 SH FIARNETTI54RLEY BS December 2016 9 5 2.47 5 -94401800-62 7 -2463 Your assets ► Fixed income ► Certif"rcate5 of deposit (continued) Trade Total face value Purchase Adjusted Price on value on Unrealized Holding Holding date at maturity I$1 price {$] cos[ basis ($) Dec 30 ($) Dec 30 ($) gain or lass (S) period TBK BANK SSB TX US RATE 01.6000% MAT 12/16/2019 FIXED RATE CD CALLABLE 03/14/2017 0 100.0000 ACCRUED INTEREST $171.84 CUSIP 87219RBC7 EAI; $3,920 Current yield: 1.60% 245,000.000 -This information was unavailable— 100.131 245,320.95 BMW BK OF NA NA UT US RATE 01.5500% MAT 12/16/2019 FIXED RATE CD CUSIP 05580AFT6 EAI: $3,798 Current yield: 1.55% Dec 07, 16 245,000.000 100.000 245,000.00 99.985 244,963.25 -36.75 ST BARCLAYS BK DE US RATE 02.0500% MAT 1 211 7/2019 FIXED RATE CD ACCRUED INTEREST $175.22 CUSIP 06740KJC2 EAI: $4,920 Current yield: 2.02% Dec 09, 14 240,000.000 100.000 240,000.00 101.540 243,696.00 3,696.00 LT AMERICAN EXPRESS C UT US RATE 02.1500% MAT 12/18/2019 FIXED RATE CD ACCRUED INTEREST $70.68 CUSIP 025879X69 EAI: $2,150 Current yield: 2.11 % Dec 09, 14 100,000.000 100.000 100,000.00 101.711 101,711.00 1,71 1.00 LT MB FINL BK NA IL US RATE 01.3000% MAT 05/11/2020 FIXED RATE CD ACCRUED INTEREST $165.79 CUSIP 55266CRK4 EAI: $3,185 Current yield 1.30% May 04, 16 245,000.000 100.000 245,000.00 99.672 244,196.40 -803.60 ST CENTENNIAL BANK AR US RATE 01.3000% MAT 05/20/2020 FIXED RATE CD ACCRUED INTEREST $87.26 CUSIP 15135KBA8 EAI: $3,185 Current yield: 1.31% May 04, 16 245,000.000 100.000 245,000.00 99.484 243,735.80 -1,264.20 ST continued next page CNQ70001001605343 N07000200539 00001 1216 000000000 RP38446SHO 110000 Page 9 of 20 Business Services Account Account name: CITY OF HUTCHINSON Your Financial Advisor: UBS Account number: RP 38446 5H HARNETT150RLEY December 2016 952-475.944018x0-627-2463 Your assets ► Fixed income ► Certificates of deposit (continued) Trade Total face value Purchase Adjusted Price on Value on Unrealized Holding Holding date at maturity (S) price (s) cost basis (S) Dec 30 [s] Dec 30 (s) gain or lass I$j period CAPITAL ONE NA VA US RATE 01.4000% MAT 09/21/2020 FIXED RATE CD ACCRUED INTEREST $939.72 CUSIP 14042RCA7 EAI: $3,430 Current yield: 1.43° Sep 12, 16 245,000.000 100.000 245,000.00 98.225 240,651.25 -4,348.75 5T FIRST BUS BK WI U5 RATE 01.4000% MAT 11/13/2020 FIXED RATE CD ACCRUED INTEREST $479.26 CUSIP 31938QR89 EAI: $3,430 Current yield: 1.42% May 04, 16 245,000.000 100.000 245,000.00 98.530 241,398.50 -3,601.50 ST CAPITAL ONE BANK N VA US RATE 02.0500°% MAT 12/29/2020 FIXED RATE CD ACCRUED INTEREST $13.76 CUSIP 140420543 EAI: $5,023 Current yield: 2.03°% 245,000.000 ---This information was unavailable- 100.846 247,072.70 COMENITY CAP BK UT US RATE 01.6000% MAT 06/07/2021 FIXED RATE CD ACCRUED INTEREST $257.76 CUSIP 20033AQP4 E4 $3,920 Current yield: 1.62% May 26, 16 245,000.000 100.000 245,000.00 98.541 241,425.45 -3,574.55 5T COMMUNITY BK CA US RATE 01.5500% MAT 06/15/2021 FIXED RATE CD ACCRUED INTEREST $156.06 CUSIP 203507BA5 EAI: $3,798 Current yield: 1.57% Jun 13, 16 245,000.000 100.000 245,00000 98.508 241,344.60 -3,655.40 ST EAST BOSTON SVGS 8 MA US RATE 01.5000% MAT 06/23/2021 FIXED RATE CD ACCRUED INTEREST $70.48 CUSIP 27113PBEO EAI, $3,675 Current yield, 1.53% Jun 13, 16 245,000.000 100.000 245,000.00 98 057 240,239.65 -4760.35 ST continued next page CNQ70001001605344 NQ7000200539 00001 1216 000000000 RP38446SH0 110000 Page 10 of 20 Business Services Account Account name: CITY OF HUTCHINSON Your Financial Advisor: �� December 2016 Account number: RP 38446 5H HARNETTISORLEY 952-475-9440/800-627-2463 Your assets , Fixed income � Certificates of deposit (continued) DISCOVER BANK DE U5 RATE 02.4500% MAT 1111812022 FIXED RATE CD ACCRUED INTEREST $690.70 CU51P 254672WU8 EAI: $6,003 Current yield: 2.42% Nov 10, 15 245,000.000 100.000 245,000.00 101.291 248,162 95 3,162.95 LT WELLS FARGO BK NA CA US RATE 01.65003'6 MAT 11/23/2022 STEP RATE CD CALLABLE 1 1/23/2018 0 100.0000 STEP TO 02.2500% ON 11/24/2018 ACCRUED INTEREST $409.78 CU51P 94986TWE3 EAI: $4,043 Current yield: 1.63% Nov 10, 15 245,000000 100.000 245,000.00 101.157 247,834.65 2,834.65 LT conrinued next page CN070001001605345 NQ7000200539 00001 1216 000000000 RP384465H0 110000 Page 11 of 20 trade Total face value Purchase I Adjusted Price on Value on Unrealized Holding Holding date at maturity (S) price [S} cost basis (S) Dec 36 {S} Dec 30 ($} gain or loss [S} period MIZRAHI TEFAHOT 13K CA US RATE 01.2500% MAT 11/30/2021 STEP RATE CD CALLABLE 03/31/2017 0 100.0000 STEP TO 01.7500% ON 12/01/2017 ACCRUED INTEREST $251.71 CU51P 606857Q78 EAI: $3,063 Current yield: 1.25% Nov 10, 15 245,000.000 100.000 245,000,00 100.102 245,249.90 249.90 LT 1PMORGAN CHASE & C DE US RATE 01.2500% MAT 05/31/2022 STEP RATE CD CALLABLE 05/31/2017 @ 100.0000 STEP TO 01.5000% ON 06/01/2018 ACCRUED INTEREST $251.71 CUSIP 48125Y217 EAI: $3,063 Current yield: 1.25% May 19, 16 245,000.000 100.000 245,000.00 99.668 244,186.60 -813.40 ST DISCOVER BANK DE U5 RATE 02.4500% MAT 1111812022 FIXED RATE CD ACCRUED INTEREST $690.70 CU51P 254672WU8 EAI: $6,003 Current yield: 2.42% Nov 10, 15 245,000.000 100.000 245,000.00 101.291 248,162 95 3,162.95 LT WELLS FARGO BK NA CA US RATE 01.65003'6 MAT 11/23/2022 STEP RATE CD CALLABLE 1 1/23/2018 0 100.0000 STEP TO 02.2500% ON 11/24/2018 ACCRUED INTEREST $409.78 CU51P 94986TWE3 EAI: $4,043 Current yield: 1.63% Nov 10, 15 245,000000 100.000 245,000.00 101.157 247,834.65 2,834.65 LT conrinued next page CN070001001605345 NQ7000200539 00001 1216 000000000 RP384465H0 110000 Page 11 of 20 T Business Services Account Account name: CITY OF HUTCHINSON Your Financial Advisor: �J � Account number: RP 38446 5H HARNETT/50RLEY Recemtaer 2016 ACCRUED INTEREST $1,62739 9 52 -4 7 5-94401800- 62 7 - 2 463 Your assets - Fixed income # Certificates of deposit (continued) EAI: $5,400 Current yield: 2.22°% Mar 04, 15 240,000.000 100.000 240,000.00 101.206 242,894.40 2,894.40 LT Trade Total face value Purchase Adjusted Price on Value on. Unrealized Holding Holding date at maturity (S) price {S} cost basis (S) Dec 30 ($) Deo 30 (S) gain or loss ($) period HSBC BANK USA DE US RATE 02.2500% MAT 0311 112 02 5 STEP RATE CD CALLABLE 03/11/20 20 0 100, 0000 STEP TO 04.2500% ON 03/12/2020 ACCRUED INTEREST $1,62739 CU51P 40434A5B6 EAI: $5,400 Current yield: 2.22°% Mar 04, 15 240,000.000 100.000 240,000.00 101.206 242,894.40 2,894.40 LT Total $7,968,000,000 $7,233,000.00 $7,972,909.01 $2,172,35 Total accrued interest: $13,525.71 Total estimated annual income: $116,162 Municipal securities Prices are obtained from independent quotation bureaus that use computerized valuation formulas to discount for securities issued at a discount. when original cost basis is displayed, amortization has been calculate current values. Actual market values may vary and thus gains/losses may not be accurately done using the constant yield method, otherwise amortization has been done using the straight line reflected. Cost basis has been automatical€y adjusted for mandatory amortization of bond premium on method. coupon tax-exempt municipal securities using the constant yield method and for accreted original issue Trade Total face value Purchase Adjusted Price on Value on Unrealized Holding Holding date at maturity ($y price($) cost basis (S) Dec 30 (S)i Dec 30 ($) gain or loss ($) period MASSACHUSETTS DEPT TRANS TAX SR 8 RV BUR/ RATE 02.408% MATURES 01/01/17 ACCRUED INTEREST $5,986.55 CUSiP 57563EAG3 Moody: Aa3 5&P: Not rated EAI: $6,020 Current yield: 2.41 % Apr 17, 12 500,000.000 104.900 524,500.00 100 004 500,020.00 -24,480.00 LT RIVERSIDE CA CMNTY COLGE TAX SR B BEAU RATE 02.345% MATURES 08/01/19 ACCRUED INTEREST $4,852.85 CUSIP 76886PEA6 Moody: Aa2 S&P: AA EAI: $11,725 Current yield: 2.32% Jun 11, 14 500,000.000 101.497 507,485.00 101.252 506,260.00 -1,225.00 LT continued next page CNQ70001001605346 NQ7000200539 00001 1216 000000000 RP39446SHO 110000 Page 12 of 20 Business Services Account UBS December 2016 Your assets r Fixed income r Municipal securities (continued) Trade Total face value Holding date at maturity (S) MASS ST GO CONSOL LN TAX SR B BE/RI RATE 02.090% MATURES 05/01/20 ACCRUED INTEREST $1,712.65 CUSIP 57582P2T6 Mandy: Aa1 5&P: AA+ EAI: $10,450 Current yield: 2.08%. Jun 11, 14 500,000.000 Account name: CITY OF HUTCHINSON Account number: RP 38446 SH Your Financial Advisor: HARNETTISORLEY 952-475-9440/800-627-2463 Purchase Adjusted Price on Value an Unrealized Holding price(S) cost basis (S) Dec 30 ($) Dec 30 (S) gain or lass (S) period 99.999 499,995.00 100.364 501,820,00 1,825.00 LT NEW YORK NY CITY TRANSI TAX A-2 RV BEIR/ RATE 01.650% MATURES 05/01/22 ACCRUED INTEREST $1,352.10 CUSIP 64971 WJ35 Moody' Aa1 5&P: AAA EAI' $8,250 Current yield: 1.73% Oct 26, 16 500,000.000 99.425 497,125.00 95.391 476,955.00 -20,170.00 5T COMMERCE BANK OF SOUTHWE ASSUR TAX OID97.826BEIR1 RATE 03.000% MATURES 08/01/24 ACCRUED INTEREST $6,208.35 CUSIP 20056UAV6 Moody: Not rated S&P: AA EAI: $15,000 Current yield: 3.04% Jul 14, 16 500,000.000 105.319 526,595.00 98.788 493,940.00 -32,655.00 ST NEW YORK CITY TRANSITION TAX C•3 RV BE/R/ RATE 02.600% MATURES 11/01/24 CALLABLE 11101122 0 100.00 ACCRUED INTEREST $2,130.55 CUSIP 64971QJ38 Moody Aa 1 S&P: AAA E4 $13,000 Current yield: 2.71 % Nov 10, 15 500,000.000 97.350 486,750.00 96.000 480,000-00 -6,750.00 LT Total $3,000,000.000 $3,042,450.00 $2,958,995.00 -$83,455.00 Total accrued interest: $22,243.05 Total estimated annual income: $64,445 CN070001001605347 NQ7000200539 00001 1216 000000000 RP38446SHO 110000 Page 13 of 20 T T� Business Services Account Account name. CITY OF HUTCHINSON Your financial Advisor: ot-n U Account number; RP 38446 SN HARNETTISORLEY December 2015 952-475-94401800-627-2463 Your assets . Fixed income (continued) Government securities Prices are obtained from independent quotation bureaus that use computerized valuation formulas to automatically adjusted for amortization of bond premium using the constant yield method. if you have calculate current values. Actual market values may vary and thus gains/losses may not be accurately made a tax election to deduct the premium amortization on taxable debt securities, you may request that reflected. Cost basis has been adjusted for accreted original issue discount 10151. Cost basis has been UB5 adjust cost basis for the bond premium amortization. Trade Purchase Adjusted Price on Value on Unrealized Holding Holding date Quantity price {$y cost basis {S} Dec 30 W Dec 30 {8) gain or loss ($) period FED FARM CREDIT BANK RATE 4.9750% MATURES 01/17/17 ACCRUED INTEREST $9,513.41 CUSIP 31331 XLG5 EAI: $10,506 Current yield: 4,87% May 13, 11 431,000.000 114.390 493,022.83 100.177 431,762 87 -61,259.96 LT FHLMC MTN STEP UP CALL RATE 1.0000% MATURES 10/28/21 INTEREST EARNED FROM 10/28/16 1 ST INTEREST PAYMENT 04/28/17 ACCRUED INTEREST $861.10 CUSIP 3134GA5K1 EAI $5,000 Current yield: 1.01 °/o Oct 28, 16 500,000.000 100.000 500,000.00 99.142 495,710.00 -4,290.00 5T FNMA NTS STEP-UP RATE 1.0000% MATURES 11/19/21 ACCRUED INTEREST $1,025.01 CUSIP 3136G2SA6 EAl $9,000 Current yield: 1.01 % Nov 10, 15 900,000.000 99.900 899,100,00 99.167 892,503.00 -6,597.00 LT FNMA NTS RATE 2.1250% MATURES 12/30/21 INTEREST EARNED FROM 12/30/16 1 ST INTEREST PAYMENT 06/30/17 CUSIP 3136G4KC6 EAI: $10,625 Current yield. 2.14% 500,000.000 -.-This information was unavailable--- 99434 497,170.00 FHLB NTS STEP UP CALL RATE 2.0000% MATURES 12/30/21 INTEREST EARNED FROM 12/30/16 1 ST INTEREST PAYMENT 06/30/17 CUSIP 3130AAE06 EAI: $10,000 Current yield: 2.00% 500,000.000 ---This information was unavailable--- 100-011 500,055.00 Total 2,831,000.000 $1,892,122.83 $2,817,200.87 -$72,146.96 Total accrued interest: $11,399.52 Total estimated annual income: $45,131 CNQ700.01001605349 NQ7000200539 0000.1 12.16 000000000 RP38446SHO 110000 Page 14 of 20 Business Services Account UBS December 2016 Your assets (continued) Your total assets Account name: CITY OF HUTCHINSON Account number: RP 38446 SH Percentage of Value on Dec 30 {$] your account Cost Estimated basis ($) annual income M Cash alternatives * Money market funds 273.785.44 1.95% 1,780.00 Fixed income Your Financial Advisor: HARNETT/SORLEY 952-475-94401800-627-2463 Unrealized gain or loss (S) " Certificates of deposits ------------ 7,972,909.01 -- 7,233,000.00 116,162-00 2,172.36 Municipal securities 2.958,995.()0 3,042,450 Qa 64,445-00.. 83,455-00 r Government securities 2,817,200.87 1,892,122.83 45,131-00 -72,146.96 ------ -------- .......................................... Total accrued interest ------------- 47,168.28 --------------------- --- -- Total fixed income 13,796,273.16 98.05% 12,167,572.83 225,738.00 -153,429.60 Total $14,470,058.60 100.00% $12,167,572.83 5727,518.04 -$153,429,60 Missing cost basis information. Account activity this month For more information about the pricelvalue shown for restricted securities, see important information about yourstamment at the end of this document. Your Date Activity Description expense code Quantity/ Cash Cash and Face value Price/value (S) amount (g) money balance {SJ Nov 30 Cash and money balance $992.74 Dec 1 Interest MIZRAHI TEFAHOT BK CA US RT 01.2500% MAT 771.92 11/30/21 STEP RATE CD PAID ON 245000 AS OF 11/30/16 CUSIP 606857Q78 Dec 1 Interest MIZRAHl TEFAHOT BK CA US RT 01.2500% MAT -771.92 11/30/21 STEP RATE CD A5 OF 08/30/16 CU51P: 606857Q78 Dec 1 Bought U65 5ELECT PRIME INSTITUTIONAL FUND 992-541 -992.74 Dec 5 Interest COMENITY BANK DE US RT 01-1500% MAT 06/19/17 189.04 FIXED RATE ]UMBO CD PAID ON 200000 AS OF 12/03/16 C USIP: 981996ED9 Dec 5 Interest SUN NAIL BK N1 U5 RT 01.00D0% MAT 10/03/17 197-26 FIXED RATE CD PAID ON 240000 A5 OF 12/03/16 CUSI P. 86682ABV2 continued next page C NQ 70001 Co 16 0 53 49 NQ7 0002 00 53 9 00001 1216 000000000 RP3 8446SHO 110000 Page 15 of 20 T S Bu51ne55 SefV ces Account Account name: CITY OF HUTCHINSON Your Financial Advisor: � �jDecember Account number. RP 38446 SH HARNETT/SOREEY 2015 952-475-9440/800-627-2463 Account activity this month (continued) Your Quantity/ Cash Cash and Date Activity Description expense code Face value PriceNalue (S) amount (S) money balance {S} Dec 5 Interest ENERBANK UT US RT 01.3500°/o MAT 10/04/18 FIXED 266.30 652.60 RATE CD PAID ON 240000 AS OF 12/04116 CUSIP: 29266NVE4 Dec 6 Fee Charge ANNUAL FEE CHARGE -150.00 Dec 6 Bought UBS SELECT PRIME INSTITUTIONAL FUND 652.470 -652.60 Dec 6 Interest COMENITY CAP BK UT US RT 01.6000% MAT 322.19 172.19 06/07/21 FIXED RATE CD PAID ON 245000 CUSIP: 20033AQP4 Dec 12 Interest FIRSTBANK P R SANT PR RT 00.9500% MAT 12/12/16 187.40 FIXED RATE CD PAID ON 240000 CUSIP: 33767AGM7 Dec 12 Interest MB FINL BK NA IL US RT 01.300036 MAT 05/11/20 261.78 FIXED RATE CD PAID ON 245000 AS OF 12/11/16 CUSIP: 55266CRK4 Dec 12 Interest MERRICK BK UT US RT 00.9000% MAT 05/10/18 181.23 FIXED RATE CD PAID ON 245000 AS OF 12/10/16 CUSIP: 590131NV7 Dec 12 St Cap Gain UBS SELECT PRIME INSTITUTIONAL FUND 403.22 Dec 12 Reinvestment UBS SELECT PRIME INSTITUTIONAL FUND SHORT 403.220 -403..22 TERM CAPITAL GAIN AT 1.00 NAV ON 12/12/16 Dec 12 Bought UBS SELECT PRIME INSTITUTIONAL FUND 172.156 -172.19 Dec 12 Call FIRSTBANK P R SANT PR RT 00.9500% MAT 12/12/16 -240,000.000 240,D00.00 240,630.41 Redemption FIXED RATE CD CUSIP: 33767AGM7 Dec 13 Bought UBS SELECT PRIME INSTITUTIONAL FUND 240,630.410 -240,630.41 Dec 13 Interest CONNECTONE BANK NJ US RT 01.0000% MAT 201.37 201.37 05/14118 FIXED RATE CD PAID ON 245000 CUSIP: 20786ASM6 Dec 14 Receive Dtc TBK BANK SSB TX US RT 01.6000% MAT 12/16/19 245,000.000 245,568.40 -245,000.00 FIXED RATE CD CUSIP: 87219RBC7 Dec 14 Sold UBS SELECT PRIME INSTITUTIONAL FUND -490,000.000 490,000.00 Dec 14 Bought BMW 8K OF NA NA UT US RT 01.5500% MAT 245,000.000 100.0000000 -245,000.00 201.37 12/16/19 FIXED RATE CD YTM = 1.550 CUSIP: 05580AFT6 continued next page CNQ70001001605350 NQ7000200539 00001 1216 000000000 RP38446SHO 110000 Page 16 of 20 Business Services Account UBS December 2016 Account activity this month (continued) Date Activity Description Account name: CITY OF HUTCHINSON Your Financial Advisor: Account number: RP 38446 SH HARN£TTISORLEY 952.475.94401800.627.2463 Your Quantity/ Cash Cash and expense code Face value PriceNalue (S) amount (3) money balance ($'r Dec 15 Interest COMMUNITY BK CA US RT 01.5500% MAT 06/15/21 312.12 FIXED RATE CD PAID ON 245000 CUSIP: 203507BA5 Dec 15 Sold UBS SELECT PRIME INSTITUTIONAL FUND -245,000.000 245,000.00 Dec 15 Receive Dtc MAIN STREET 8K COR WV U5 RT 01.4500% MAT 245,000.000 245,147.00 -245,000.00 513.49 02/14/19 FIXED RATE CD CUSIP: 56034WAP6 Dec 16 Bought UBS SELECT PRIME INSTITUTIONAL FUND 513.490 -513.49 Dec 19 Interest AMERICAN EXPRESS C UT US RT 02.1500% MAT 1,077.95 12/18/19 FIXED RATE CD PAID ON 100000 CU51 P: 02587DXB9 Dec 19 Interest BARCLAYS BK DE US RT 02.0500% MAT 12/17/19 2,466.74 3,544.69 FIXED RATE CD PAID ON 240000 CUSIP; 06740KJCZ Dec 20 Bought UBS SELECT PRIME INSTITUTIONAL FUND 3,544.690 -3,544.69 Dec 20 Interest CENTENNIAL BANK AR U5 RT 01.3000% MAT 261.78 261.78 05/20/20 FIXED RATE CD PAID ON 24500a CUSIP: 15135KEA8 Dec 22 Bought BANK LEUMI NY US RT 01.2500% MAT 06/22/18 FIXED RATE CD YTM = 1.250 CUSIP: 063248GE2 Dec 22 Sold UBS SELECT PRIME INSTITUTIONAL FUND Dec 23 Interest EAST BOSTON SVGS B MA US RT 01.5000% MAT 06/23121 FIXED RATE CD PAID ON 245000 CUSIP: 27113PBE0 245,000.000 100.0000000 -245,000.00 244,738.220 244,738.22 1,842.53 1,842.53 Dec 27 Bought UBS SELECT PRIME INSTITUTIONAL FUND 1,842.530 -1,842.53 Dec 27 Interest BANK OF NRTH CAROL NC US RT 01.0000% MAT 201.37 201.37 02/27/18 FIXED RATE CD PAID ON 2450D0 CUSIP: 06414QXX2 Dec 28 Bought UBS SELECT PRIME INSTITUTIONAL FUND Dec 29 Interest WORLD'S FOREMOST B NE US RT 01.3000% MAT 05/28/19 FIXED RATE JUMBO CD PAID ON 200000 AS OF 12/25/16 CUSIP: 915991 AFO Dec 29 Sold UBS SELECT PRIME INSTITUTIONAL FUND 201.370 -245,000.000 201.37 213.70. 245,000.00 continued next page CN4.70001C01605351 N0700020053900001 121600000-0000RP384465H0110000 Page 17 of 20 Business Services Account Account name: CITY OF HUTCHINSON Your Financial Advisor; UBS Account number: RP 38446 SH HARNETf150RLEY December 2016 957.475-94401800-627-2463 Account activity this month (continued) CU51P: 3136G4KC6 Your Ouantityi Cash Cash and Date Activity Description expense code Face value Price/Value ($) amount ($) money balance ($) Dec 29 Receive Dtc CAPITAL ONE BANK N VA US RT 02.0500% MAT 245,000.000 247,403.45 -245,000.00 213.70 12/29/20 FIXED RATE CD CUSI P: 140420543 Dec 30 Receive FNMA NTS 02.125 % DUE 123021 DTD 123016 FC 500,000.000 497,170.00 -500,000.00 06302017 CU51P: 3136G4KC6 Dec 30 Receive FHLB NTS STEP UP CALL 02.006 % DUE 123021 DTD 500,000.000 500,055.00 -500,000.00 123016 FC 06302017 CUSIP: 3130AAED6 Dec 30 Dividend UBS SELECT PRIME INSTITUTIONAL FUND 975.19 Dec 30 Reinvestment UBS SELECT PRIME INSTITUTIONAL FUND DIVIDEND 975.190 -975.19 REINVESTED AT 1.00 NAV ON 12/30/16 Dec 30 Sold UBS SELECT PRIME INSTITUTIONAL FUND -1,000,000.000 1,000,6D0.00 Dec 30 Bought UBS SELECT PRIME INSTITUTIONAL FUND 213.700 -213.70 Dec 30 Closing cash and money balance $0.00 Proceeds from investment transactions $4,199,738.22 Funds used for investment transactions -$740,142.13 Date Activi"y Description Amount {$1 Money balance activities Nov 30 Balance forward $1,535.45 Dec 1 Withdrawal UBS BANK USA DEPOSIT ACCOUNT AS OF 11/30/16 -542.71 Dec 2 Withdrawal UBS BANK USA DEPOSIT ACCOUNT AS OF 12/01/16 -992.74 Dec 6 Deposit UBS BANK USA DEPOSIT ACCOUNT 652.60 Dec 7 Withdrawal UBS BANK USA DEPOSIT ACCOUNT A5 OF 12/06/16 -330.41 Dec 7 Withdrawal UBS BANK USA DEPOSIT ACCOUNT -150.00 Dec 13 Deposit UBS BANK USA DEPOSIT ACCOUNT 240,458.22 Dec 14 Withdrawal UBS BANK USA DEPOSIT ACCOUNT AS OF 12/13/16 -240,429.04 Dec 14 Withdrawal UBS BANK USA DEPOSIT ACCOUNT -201.37 Dec 15 Deposit UBS BANK USA DEPOSIT ACCOUNT 201.37 Dec 16 Deposit USS BANK USA DEPOSIT ACCOUNT 312.12 Dec 19 Withdrawal UBS BANK USA DEPOSIT ACCOUNT A5 OF 12/16/16 -513.49 Dec 20 Deposit UBS BANK USA DEPOSIT ACCOUNT 3,544.69 Dec 21 Withdrawal UBS BANK USA DEPOSIT ACCOUNT AS OF 12/20/16 -3,282.91 Dec 22 Withdrawal UBS BANK USA DEPOSIT ACCOUNT -261.78 continued next page CNQ70001001605352 NO 7000200539 00001 1216 000000000 RP394465HO 110000 Page 18 of 20 Business Services Account Account name: CITY OF HUTCHINSON Account number: RP 38446 5H 4�UBS December 2016 Account activity th[S month (continued) Date Activity Description Amount ($) Money balance activities (continued) Dec 27 Deposit UBS BANK USA DEPOSIT ACCOUNT 1,842.53 Dec 28 Withdrawal UBS BAND USA DEPOSIT ACCOUNT A5 OF 12/27/16 -1,641.16 Dec 29 Withdrawal UBS BANK USA DEPOSIT ACCOUNT AS OF 17/28/16 -201.37 Dec 30 Deposit UBS BANK LISA DEPOSIT ACCOUNT 213.70 Your Financial Advisor: HARNETTISORLEY 952.475.9440MO-62 7.2463 Dec 30 Closing UBS Bank USA Deposit Account $213.70 The U85 Bank USA Deposit Account is your primary sweep optkon. Unsettled transaction activity The following transactions) are pending settlement. Trade Settlement date date Activity Description Quantity Price 1 Value (S) Amount ($) Dec 28, 16 Jan 03, 17 Bought MARYSVILLE MI PUB SCHS TAX SR B BE/R/ 500,000.000 98.8460000 -496,225.19 2.317 050122 DTD 042116 2.550% YIELD TO MATURITY ACCRUED INT PAID $1,995.19 Total pending investments purchased -$496,225.19 Realized gains and losses The estimated realized gains and losses shown below are not fortax purposes. Please nate that gain or lass information. We may not adjust gains and losses for all capital changes. We automatically adjust cost basis for recognized on the sale or redemption of certain Structured Products, like Contingent Debt Securities, may be tax-exempt and AMT coupon municipal securities for estimated amortization of bond premiums and for accreted OID ordinary, and not capital, gain or foss. Please check with your tax advisor. To calculate gains and losses, we for securities issued at a discount. If you requested that UBS adjust cost basis for the bond premium amortization on liquidate the oldest security lot first. This is known as the first -in, first -out or FIFO accounting method We use taxable debt securities then cast basis reflected for these securities has been adjusted. Estimates in the tinclassr{ied this method unless you specified which tax lot to close when you placed your order. This is known as a versus section can not be classified as short term or long term because information is missing, or the product is one in which purchases or VSP order. See important rn►prmafion abovt your statement at the end of this document for more the gain/loss calculation is not provided - Long -term capital gains and losses Wash sale Quantity or Purchase sale Sale Cost cost basis Security description Method face value date date amount ($) basis ($} adjustrnenl(Sy Loss ($) Gain [$1 FIRSTBANK P R SANT PR RT 00.9500% MAT 12/12/16 FIXED RATE CD FIFO 244,000.000 Dec 09, 14 Dec 12, 16 240,000.00 240,000.00 CNQ70001001605353 NQ7000200539 00001 1216 000000000 RP38446SH0 110000 Page 19 of 20 HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-WZ Agenda Item: January 2017 Financial and Investment Reports Department: Finance LICENSE SECTION Meeting Date: 2/28/2017 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 January Financial Reports for the general fund and enterprise funds. Also attached is the January Investment Report. Regarding the financial reports, you may notice that Service & Charges are running higher in 2017 as compared to 2016. This is simply due to a timing difference with the January utility bill, with it being expensed in January 2017 compared to it being expensed in February 2016. Typically it is expensed in the month it is paid but we received it earlier this year and it slipped into January. Feel free to contact me with any questions. Thank you. BOARD ACTION REQUESTED: 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: DESCRIPTION General Fund Taxes Other Taxes Licenses & Permits Intergovernmental Revenue Charges for Services Miscellaneous Revenues Transfers -In Fines & Forfeitures Capital Contributions TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay TOTAL EXPENDITURES NET REVENUE REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2017 2017 ACTUALS JANUARY YTD 2017 2017 AVAILABLE % BDGT BUDGET BALANCE USED 2015 YTD 2016 ACTUAL BUDGET 2016 % BDGT USED - - 4,763,796 4,763,796 - - 4,581,035 - - - 300,000 300,000 - - 272,000 - 228,687 228,687 283,550 54,863 80.7 27,958 271,500 10.3 - - 1,423,830 1,423,830 - 3,000 1,284,330 0.2 196,385 196,385 2,817,291 2,620,906 7.0 165,389 2,350,666 7.0 19,625 19,625 299,500 279,875 6.6 30,265 291,300 10.4 - - 2,292,161 2,292,161 - - 2,332,404 - - - 55,000 55,000 - - 55,000 - - - 25,000 25,000 - - 25,000 - 444,697 444,697 12,260,128 11,815,431 3.6 226,612 11,463,235 2.0 357,183 357,183 8,175, 052 7,817,869 4.4 301,289 7,595,480 4.0 44,840 44,840 866,545 821,705 5.2 26,778 770,593 3.5 164,789 164,789 2,556,456 2,391,667 6.4 61,434 2,461,936 2.5 39,244 39,244 552,075 512,831 7.1 43,432 525,226 8.3 - - 100,000 100,000 - - 600,000 - 1,000 1,000 10,000 9,000 10.0 - 10,000 - 607,056 607,056 12,260,128 11,653,072 5.0 432,934 11,963,235 3.6 (162,360) (162,360) - 162,360 (206,322) (500,000) DESCRIPTION REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2017 2017 ACTUALS JANUARY General Fund Exoense by Deoartment YTD 2017 AVAILABLE BUDGET BALANCE 2017 % BDGT 2015 YTD USED ACTUAL 2016 BUDGET 2016 % BDGT USED Mayor & City Council 1,894 1,894 49,962 48,068 3.8 1,330 44,290 3.0 City Administrator 19,848 19,848 395,266 375,419 5.0 9,897 430,251 2.3 Elections - - 6,850 6,850 - - 15,950 - Finance Department 13,015 13,015 355,653 342,638 3.7 13,240 361,468 3.7 Motor Vehicle 8,562 8,562 217,890 209,328 3.9 9,108 203,836 4.5 Assessing - - 46,496 46,496 - - 60,911 - Legal 11,524 11,524 294,100 282,576 3.9 9,618 288,193 3.3 Planning 6,643 6,643 151,585 144,942 4.4 4,336 149,972 2.9 Information Services 28,325 28,325 535,168 506,843 5.3 20,598 504,738 4.1 City Hall Building 9,331 9,331 173,368 164,037 5.4 3,158 131,322 2.4 Police Department 148,081 148,081 3,176,585 3,028,504 4.7 125,643 3,062,565 4.1 Hospital Security 13,023 13,023 296,977 283,954 4.4 12,933 293,886 4.4 Emergency Management 706 706 10,000 9,295 7.1 - 12,800 - Safety Committee 8,484 8,484 10,000 1,516 84.8 8,298 9,500 87.3 Fire Department 16,966 16,966 343,461 326,495 4.9 16,925 306,733 5.5 Protective Inspections 11,164 11,164 236,552 225,388 4.7 8,234 227,556 3.6 Engineering 22,980 22,980 418,877 395,897 5.5 19,295 402,714 4.8 Streets & Alleys 38,205 38,205 1,548,036 1,509,831 2.5 38,034 1,517,341 2.5 Park/Recreation Administration 19,234 19,234 233,898 214,664 8.2 10,340 222,323 4.7 Recreation 16,090 16,090 232,724 216,634 6.9 10,112 234,397 4.3 Senior Citizen Center 5,970 5,970 84,801 78,831 7.0 4,097 83,747 4.9 Civic Arena 31,720 31,720 333,284 301,564 9.5 12,846 323,727 4.0 Park Department 40,729 40,729 879,100 838,371 4.6 30,840 852,751 3.6 Recreation Building & Pool 12,978 12,978 211,726 198,748 6.1 4,638 170,818 2.7 Events Center 19,651 19,651 259,478 239,827 7.6 10,239 243,017 4.2 Evergreen Building 2,396 2,396 26,225 23,829 9.1 927 25,450 3.6 Library 4,503 4,503 211,842 207,339 2.1 2,899 206,365 1.4 W aterpark 6,000 6,000 424,753 418,753 1.4 - - - Cemetery 6,202 6,202 132,974 126,772 4.7 7,210 130,785 5.5 Airport 4,655 4,655 103,679 99,024 4.5 3,341 104,635 3.2 Unallocated General Expense 78,176 78,176 858,818 780,642 9.1 34,798 1,341,194 2.6 TOTAL EXPENDITURES 607,056 607,056 12,260,128 11,653,072 5.0 432,934 11,963,235 3.6 DESCRIPTION Liquor Fund Sales Miscellaneous Revenues TOTAL REVENUES Cost of Sales Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES NET REVENUE Gross Margin on Sales Labor to Sales Ratio REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2017 2017 ACTUALS JANUARY YTD 2017 AVAILABLE BUDGET BALANCE 2017 % BDGT 2015 YTD USED ACTUAL 2016 BUDGET 2016 % BDGT USED 380,051 380,051 6,124, 500 5,744,449 6.2 387,915 5,870,000 6.6 45 45 2,500 2,455 1.8 62 1,000 6.2 380,095 380,095 6,127,000 5,746,905 6.2 387,977 5,871,000 6.6 294,710 294,710 4,591,390 4,296,680 6.4 295,854 4,398,810 6.7 25,032 25,032 651,377 626,345 3.8 23,367 568,211 4.1 836 836 24,250 23,414 3.4 513 17,400 2.9 18,388 18,388 218,550 200,162 8.4 10,487 198,350 5.3 - - 5,850 5,850 - - 5,650 - - - 500,000 500,000 - - 475,000 - - - 20,000 20,000 - - 20,000 - - - 80,000 80,000 - - 80,200 - 104,000 - 127,635 127,635 - - 128,055 - 442,965 338,965 6,219,052 5,880,087 5.5 330,221 5,891,676 5.6 (62,870) 41,130 (92,052) (133,182) 57,756 (20,676) 22.5% 25.0% 23.7% 25.1% 6.6% 10.6% 6.0% 9.7% DESCRIPTION REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2017 2017 ACTUALS JANUARY YTD 2017 2017 AVAILABLE % BDGT BUDGET BALANCE USED 2015 YTD 2016 ACTUAL BUDGET 2016 % BDGT USED Water Fund Sales 201,472 201,472 2,387,950 2,186, 478 8.4 177,547 2,306,000 7.7 Local Sales Tax - - 625,000 625,000 - - 685,000 - Intergovernmental Revenue - - - - - - - - Charges for Services 29,738 29,738 50,000 20,262 59.5 30,926 50,000 61.9 Miscellaneous Revenues 53,919 1,919 89,000 87,081 2.2 - 85,000 - Capital Contributions - - - - - - - - TOTAL REVENUES 285,130 233,130 3,151,950 2,918,821 7.4 208,473 3,126,000 6.7 Wages & Benefits 21,809 21,809 461,635 439,826 4.7 19,080 479,983 4.0 Supplies 10,184 10,184 126,600 116,416 8.0 972 122,400 0.8 Services & Charges 27,330 27,330 522,250 494,920 5.2 6,208 507,350 1.2 Miscellaneous Expenses 6,781 6,781 12,200 5,419 55.6 7,395 13,500 54.8 Transfers -Out - - 60,000 60,000 - - 43,145 - CapitalOutlay - - 250,000 250,000 - - 250,000 - Depreciation Expense - - 1,205,000 1,205,000 - - 1,150,000 - Debt Service 72,705 72,705 1,481,305 1,408,600 4.9 94,659 1,408,611 6.7 TOTAL EXPENDITURES 138,809 138,809 4,118,990 3,980,181 3.4 128,313 3,974,989 3.2 NET of REVENUES & EXPENDITURES 146,320 94,320 (967,040) (1,061,360) 80,160 (848,989) DESCRIPTION REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2017 2017 ACTUALS JANUARY YTD 2017 2017 AVAILABLE % BDGT 2015 YTD BUDGET BALANCE USED ACTUAL 2016 BUDGET 2016 % BDGT USED Sewer Fund Sales 312,851 312,851 3,350,000 3,037,149 9.3 280,138 3,233,000 8.7 Local Sales Tax - - 625,000 625,000 - - 685,000 - Intergovernmental Revenue - - - - - - - - Licenses & Permits 5,100 5,100 6,500 1,400 78.5 5,200 7,000 74.3 Charges for Services - - 3,500 3,500 - - 4,000 - Miscellaneous Revenues 55,184 3,184 103,000 99,816 3.1 - 97,000 - Capital Contributions - - - - - - - - TOTAL REVENUES 373,136 321,136 4,088,000 3,766,864 7.9 285,338 4,026,000 7.1 Wages & Benefits 25,221 25,221 655,584 630,363 3.8 25,604 622,085 4.1 Supplies 6,721 6,721 219,650 212,929 3.1 16,896 236,100 7.2 Services & Charges 73,781 73,781 780,450 706,669 9.5 32,515 742,550 4.4 Miscellaneous Expenses 274 274 32,500 32,226 0.8 292 24,500 1.2 Transfers -Out - - 60,000 60,000 - - 43,145 - CapitalOutlay 5,072 5,072 350,000 344,928 1.4 199,807 350,000 57.1 Depreciation Expense - - 1,623,000 1,623,000 - - 1,530,000 - Debt Service 294,567 294,567 1,460,650 1,166,083 20.2 383,450 1,568,854 24.4 TOTAL EXPENDITURES 405,635 405,635 5,181,834 4,776,199 7.8 658,563 5,117,234 12.9 NET of REVENUES & EXPENDITURES (32,500) (84,500) (1,093,834) (1,009,334) (373,225) (1,091,234) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2017 Wages & Benefits 7,291 7,291 188,733 2017 3.9 1,516 2016 0.8 2017 ACTUALS 2017 AVAILABLE % BDGT 2015 YTD 2016 % BDGT DESCRIPTION JANUARY YTD BUDGET BALANCE USED ACTUAL BUDGET USED Refuse Fund 704,727 0.8 Miscellaneous Expenses 533 533 5,750 5,217 Sales 98,329 98,329 1,193, 300 1,094,971 8.2 95,814 1,149, 500 8.3 Intergovernmental Revenue - - 12,500 12,500 - - 12,500 - Miscellaneous Revenues 738 738 7,000 6,262 10.5 - 2,500 - TOTAL REVENUES 99,067 99,067 1,212,800 1,113,733 8.2 95,814 1,164,500 8.2 Wages & Benefits 7,291 7,291 188,733 181,442 3.9 1,516 190,804 0.8 Supplies 622 622 62,400 61,778 1.0 188 62,400 0.3 Services & Charges 12,781 12,781 731,550 718,769 1.7 5,842 704,727 0.8 Miscellaneous Expenses 533 533 5,750 5,217 9.3 - 3,750 - Transfers -Out - - 805,000 805,000 - - 55,000 - CapitalOutlay - - 190,374 190,374 - - 95,000 - Depreciation Expense - - 138,000 138,000 - - 124,000 - Debt Service (580) (580) 24,261 24,841 (2.4) (1,136) 24,260 (4.7) TOTAL EXPENDITURES 20,646 20,646 2,146,068 2,125,422 1.0 6,411 1,259,941 0.5 NET of REVENUES & EXPENDITURES 78,421 78,421 (933,268) (1,011,689) 89,403 (95,441) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2017 Cost of Sales 66,571 66,571 1,348,002 2017 4.9 42,278 2016 3.8 2017 ACTUALS 2017 AVAILABLE % BDGT 2015 YTD 2016 % BDGT DESCRIPTION JANUARY YTD BUDGET BALANCE USED ACTUAL BUDGET USED Compost Fund 559,899 4.4 Supplies 3,532 3,532 78,626 75,094 Sales 105,158 105,158 1,991,476 1,886,318 5.3 71,617 1,636,796 4.4 Charges for Services - - 58,500 58,500 - - 58,500 - Miscellaneous Revenues 1,226 1,226 7,000 5,774 17.5 - 6,000 - TOTAL REVENUES 106,384 106,384 2,056,976 1,950,592 5.2 71,617 1,701,296 4.2 Cost of Sales 66,571 66,571 1,348,002 1,281,431 4.9 42,278 1,117,265 3.8 Inventory Cost Adjustment (10,245) (10,245) (538,028) (527,783) 1.9 (17,616) (525,746) 3.4 Wages & Benefits 24,031 24,031 582,363 558,332 4.1 24,578 559,899 4.4 Supplies 3,532 3,532 78,626 75,094 4.5 4,713 70,257 6.7 Services & Charges 18,631 18,631 231,004 212,373 8.1 597 188,573 0.3 Miscellaneous Expenses 772 772 14,000 13,228 5.5 - 13,500 - Transfers -Out - - 110,000 110,000 - - 110,000 - CapitalOutlay - - 623,000 623,000 - - 150,000 - Depreciation Expense - - 174,000 174,000 - - 134,000 - TOTAL EXPENDITURES 103,292 103,292 2,622,967 2,519,675 3.9 54,548 1,817,748 3.0 NET of REVENUES & EXPENDITURES 3,092 3,092 (565,991) (569,083) 17,069 (116,452) DESCRIPTION REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2017 2017 ACTUALS JANUARY YTD 2017 2017 AVAILABLE % BDGT BUDGET BALANCE USED 2015 YTD 2016 ACTUAL BUDGET 2016 % BDGT USED Storm Water Utility Sales 72,633 72,633 882,975 810,342 8.2 68,013 857,367 7.9 Licenses & Permits 100 100 1,500 1,400 6.7 - - - Charges for Services - - - - - - - - Miscellaneous Revenues 692 692 5,500 4,808 12.6 - 5,500 - Capital Contributions - - - - - - - - TOTAL REVENUES 73,425 73,425 889,975 816,550 8.3 68,013 862,867 7.9 Wages & Benefits 11,850 11,850 256,432 244,582 4.6 9,734 243,986 4.0 Supplies 64 64 38,800 38,736 0.2 - 43,925 - Services & Charges 3,711 3,711 163,600 159,889 2.3 626 164,100 0.4 Miscellaneous Expenses 194 194 11,250 11,056 1.7 188 11,250 1.7 Transfers -Out - - - - - - - - CapitalOutlay - - 170,000 170,000 - - 120,000 - Depreciation Expense - - 153,000 153,000 - - 133,000 - Debt Service 145,750 145,750 150,850 9,867 93.5 140,983 193,992 70.2 TOTAL EXPENDITURES 161,569 161,569 943,932 787,130 17.1 151,530 910,253 16.6 NET of REVENUES & EXPENDITURES (88,143) (88,143) (53,957) 29,419 (83,517) (47,386) DESCRIPTION HATS Ooeration Intergovernmental Revenue Charges for Services Miscellaneous Revenues Transfers -In TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Capital Outlay TOTAL EXPENDITURES Comments Charges for Services REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JANUARY 31, 2017 2017 ACTUALS JANUARY YTD 2017 AVAILABLE BUDGET BALANCE 2017 % BDGT 2015 YTD USED ACTUAL 2016 BUDGET 2016 % BDGT USED 6,650 6,650 162,280 155,630 4.1 46,050 156,045 29.5 21,014 21,014 325,000 303,986 6.5 18,192 530,000 3.4 132 132 3,500 3,368 3.8 - 3,150 - - - 100,000 100,000 - - 99,755 - 27,796 27,796 590,780 562,984 4.7 64,241 788,950 8.1 1,003 1,003 39,495 38,492 2.5 2,527 59,470 4.2 16,528 16,528 341,650 325,122 4.8 11,862 528,600 2.2 12,181 12,181 162,000 149,819 7.5 2,629 161,200 1.6 - - 5,600 5,600 - - 5,171 - - - 42,035 42,035 - - 33,600 - 29,713 29,713 590,780 561,067 5.0 17,018 788,041 2.2 (1,917) (1,917) - 1,917 47,224 909 The main activity in this account is fuel sales to City departments, the State, County and Hutchinson Utilities. Supplies The main activity in this account is the cost of fuel for the fueling system. � UBS Executive summary as of January 31, 2017 Asset allocation review Equity sector analysis Portfolio does not contain applicable holdings - exhibit intentionally left blank. Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Expected cash flow $ Thousands 59 49 39 29 — 20 10 0 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2017 2018 0 Taxable income Total taxable income: $229,512.59 Total expected cash flow: $229,512.59 Cash flows displayed account for known events such as maturities and mandatory puts. Credit quality of bond holdings Value on % of Effective credit rating Issues 01/31/2017 ($) port. A Aaa/AAA/AAA 6 3,355,105.92 25.12 B Aa/AA/AA 4 2,013,101.25 14.97 C A/A/A 0 0.00 0.00 D Baa/BBB/BBB Value on % of 01/31/2017 ($) portfolio A Cash 731,092.89 5.19 Cash 731,092.89 5.19 B Fixed Income 13,363,608.34 94.81 us 13,363,608.34 94.81 C Equity 0.00 0.00 D Commodities 0.00 �A 0.00 E Non -Traditional 0.00 0.00 F Other 0.00 0.00 Total Portfolio $14,094,701.23 100% e Balanced mutual funds are allocated in the 'Other' category Equity sector analysis Portfolio does not contain applicable holdings - exhibit intentionally left blank. Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Expected cash flow $ Thousands 59 49 39 29 — 20 10 0 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2017 2018 0 Taxable income Total taxable income: $229,512.59 Total expected cash flow: $229,512.59 Cash flows displayed account for known events such as maturities and mandatory puts. Credit quality of bond holdings Value on % of Effective credit rating Issues 01/31/2017 ($) port. A Aaa/AAA/AAA 6 3,355,105.92 25.12 B Aa/AA/AA 4 2,013,101.25 14.97 C A/A/A 0 0.00 0.00 D Baa/BBB/BBB 0 0.00 0.00 E Non -investment grade 0 0.00 0.00 F Certificate of deposit 34 7,995,401.17 59.91 G Not rated 0 0.00 0.00 Total 44 $13,363,608.34 100% Report created on: February 01, 2017 Page 1 of 3 Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income summaryIncludes all fixed-rate securities in the selected porfolio. Average yields and durations exclude Structured Product, Pass -Through, Perpetual Preferred, and Foreign securities. as of January 31, 2017 Bond overview Total quantity 13,367,000 Total market value $13,318,337.34 Total accrued interest $45,271.00 Total market value plus accrued interest $13,363,608.34 Total estimated annual bond interest $226,424.00 Average coupon 1.69% Average current yield 1.70% Average yield to maturity 1.80% Average yield to worst 1.77% Average modified duration 3.17 Average effective maturity 3.81 Credit quality of bond holdings Value on % of Effective credit rating Issues 01/31/2017 ($) port. A Aaa/AAA/AAA 6 3,355,105.92 25.12 B Aa/AA/AA 4 2,013,101.25 14.97 C A/A/A 0 0.00 0.00 D Baa/BBB/BBB 0 0.00 0.00 E Non -investment grade 0 0.00 0.00 F Certificate of deposit 34 7,995,401.17 59.91 G Not rated 0 0.00 0.00 Total 44 $13,363,608.34 100% W A F ArV—B Investment type allocation % of Tax-exempt / bond Investment type Taxable ($) deferred ($) Total ($) port. Certificates of deposit 7,995,401.17 0.00 7,995,401.17 59.83 Municipals 2,976,383.75 0.00 2,976,383.75 22.27 U.S. federal agencies 2,391,823.42 0.00 2,391,823.42 17.90 Tota I $13,363,608.34 $0.00 $13,363,608.34 100% Bond maturity schedule $ Millions 4 3 2 0 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2028 + Other 0 Effective maturity schedule Cash, mutual funds and some preferred securities are not included. 25.2% Report created on: February 01, 2017 Page 1 of 2 as of January 31, 2017 Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income SIncludes all fixed-rate securities in the selected porfolio. Average yields and durations exclude Structured Product, Pass -Through, Perpetual Preferred, and Foreign securities. Summary of bond holdings Maturity Year Issues Quantity Est. annual income ($) Current Yield to yield (%) maturity (%) Yield to Modified worst (%) duration Adjusted cost basis ($) Unrealized gain/loss ($) Mkt. value ($) 2017 4 817,000 11,297.50 1.38% 1.19 % 1.19 % 0.52 817,000 1,238.52 820,892.42 2018 8 1,961,000 22,181.50 1.13% 1.02 % 1.02 % 1.25 1,961,000 2,502.77 1,967,642.641 2019 9 2,262,000 43,015.50 1.88% 1.57 % 1.45 % 2.20 2,269,485 12,823.40 2,292,784.861 2020 6 1,725,000 28,702.50 1.67% 1.72 % 1.72 % 3.36 1,724,995 -3,566.05 1,726,786.461 2021 8 3,380,000 49,080.00 1.46% 2.03 % 2.03 % 4.38 3,379,100 -22,475.00 3,362,263.051 2022 6 1,982,000 38,747.00 1.98% 2.46 % 2.46 % 4.95 1,726,355 232,407.50 1,965,017.711 2023 0 0 NA NA NA 1 2024 2 1,000,000 28,000.00 2.87% 3.18 % 3.18 % 6.73 1,013,345 -39,145.00 984,950.001 2025 1 240,000 5,400.00 2.22% NA NA NA 240,000 3,271.20 243,271.201 2026 0 0 NA NA NA 1 2027 0 0 NA NA NA 1 2028 0 0 NA NA NA 1 2029 0 0 NA NA NA 1 2030 0 0 NA NA NA 1 2031 0 0 NA NA NA 1 2032 0 0 NA NA NA 1 2033 0 0 NA NA NA 1 2034 0 0 NA NA NA 1 2035 0 0 NA NA NA 1 2036 0 0 NA NA NA 1 2037 0 0 NA NA NA 1 2038 0 0 NA NA NA 1 2039 0 0 NA NA NA 1 2040 0 0 NA NA NA 1 2041 0 0 NA NA NA 1 2042 0 0 NA NA NA 1 2043 0 0 NA NA NA 1 2044 0 0 NA NA NA 1 2045 0 0 NA NA NA 1 2046 0 0 NA NA NA 1 2046+ 0 0 NA NA NA 1 Other 0 0 NA NA NA 1 Total 44 13,367,000 $226,424.00 1.70% 1.80% 1.77 % 3.17 $13,131,280.00 $187,057.34 $13,363,608.34 _ 7.31 % 1.83% % of bond 6.14% _ 14.74% 17.14% 12.93% 25.2% 14.71% maturi Report created on: February 01, 2017 Page 1 of 7 Bond holdings - as of January 31, 2017 (continued) Details of bond holdings Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. g/I ($) price ($) Accr. interest ($) port. 13,367,000 1.69% 11/22/2020 NA $226,424.00 1.80% 3.17 $13,131,280.00 NA $13,318,337.34 100% Total Bond Portfolio 1.70% 1.77% $187,057.34 $45,271.00 Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2017 $13,363,608.34 Report created on: February 01, 2017 Page 2 of 7 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2017 COMENITY BANK DE US RT CD 200,000 1.15% 06/19/2017 2,300.00 2.65% 0.38 200,000.00 99.433 198,865.00 1.49% 01.1500% MAT 06/19/17 FIXED 1.16% 2.65% -1,135.00 176.44 RATE JUMBO CD /DE GE CAP RETAIL BK UT US RT CD 247,000 1.75% 08/03/2017 4,322.50 0.68% 0.50 247,000.00 100.536 248,323.92 1.86% 01.7500% MAT 08/03/17 FIXED 1.74% 0.68% 1,323.92 2,131.64 RATE CD /UT GOLDMAN SACHS BK U UT US CD 130,000 1.75% 08/03/2017 2,275.00 0.68% 0.50 130,000.00 100.536 130,696.80 0.98% RT 01.7500% MAT 08/03/17 1.74% 0.68% 696.80 168.29 FIXED RATE CD /UT SUN NATL BK NJ US RT CD 240,000 1.00% 10/03/2017 2,400.00 0.78% 0.67 240,000.00 100.147 240,352.80 1.80% 01.0000% MAT 10/03/17 FIXED 1.00% 0.78% 352.80 177.53 RATE CD /NJ Total 2017 817,000 1.38% 08/10/2017 $11,297.50 1.19% 0.52 $817,000.00 $818,238.52 6.14% 1.38% 1.19% $1,238.52 $2,653.90 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2018 ALLY BK UT US RT 01.2500% CD 248,000 1.25% 02/26/2018 3,100.00 0.89% 1.06 248,000.00 100.378 248,937.44 1.87% MAT 02/26/18 FIXED RATE CD 1.25% 0.89% 937.44 1,341.92 /UT GOLDMAN SACHS BK U NY US CD 248,000 1.30% 02/26/2018 3,224.00 1.04% 1.06 248,000.00 100.271 248,672.08 1.87% RT 01.3000% MAT 02/26/18 1.30% 1.04% 672.08 1,404.43 FIXED RATE CD /NY BANK OF NRTH CAROL NC US RT CD 245,000 1.00% 02/27/2018 2,450.00 1.00% 1.07 245,000.00 100.005 245,012.25 1.84% 01.0000% MAT 02/27/18 FIXED 1.00% 1.00% 12.25 26.85 RATE CD /NC MERRICK BK UT US RT 00.9000% CD 245,000 0.90% 05/10/2018 2,205.00 0.88% 1.26 245,000.00 100.023 245,056.35 1.84% MAT 05/10/18 FIXED RATE CD 0.90% 0.88% 56.35 126.86 /UT Report created on: February 01, 2017 Page 2 of 7 Bond holdings - as of January 31, 2017 (continued) Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Report created on: February 01, 2017 Page 3 of 7 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2018 KEYBANK NA IN US RT CD 245,000 1.00% 05/11/2018 2,450.00 0.98% 1.26 245,000.00 100.021 245,051.45 1.84% 01.0000% MAT 05/11/18 FIXED 1.00% 0.98% 51.45 543.70 RATE CD /IN CONNECTONE BANK NJ US RT CD 245,000 1.00% 05/14/2018 2,450.00 0.99% 1.27 245,000.00 100.018 245,044.10 1.84% 01.0000% MAT 05/14/18 FIXED 1.00% 0.99% 44.10 120.82 RATE CD /NJ �ft It BANK LEUMI NY US RT CD 245,000 1.25% 06/22/2018 3,062.50 1.15% 1.37 245,000.00 100.134 245,328.30 1.84% 01.2500% MAT 06/22/18 FIXED 1.25% 1.15% 328.30 335.62 RATE CD /NY ENERBANK UT US RT 01.3500% CD 240,000 1.35% 10/04/2018 3,240.00 1.25% 1.65 240,000.00 100.167 240,400.80 1.81% MAT 10/04/18 FIXED RATE CD 1.35% 1.25% 400.80 239.67 /UT Total 2018 1,961,000 1.13% 05/07/2018 $22,181.50 1.02% 1.25 $1,961,000.00 $1,963,502.77 14.74% 1.13% 1.02% $2,502.77 $4,139.87 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2019 MAIN STREET BK COR WV US RT CD 245,000 1.45% 02/14/2019 3,552.50 1.37% 2.00 245,000.00 100.168 245,411.60 1.84% 01.4500% MAT 02/14/19 FIXED 1.45% 1.37% 411.60 457.45 RATE CD /WV WORLD'S FOREMOST B NE US RT CD 200,000 1.30% 05/28/2019 2,600.00 1.63% 2.28 200,000.00 99.250 198,499.00 1.49% 01.3000% MAT 05/28/19 FIXED 1.31% 1.63% -1,501.00 35.62 RATE JUMBO CD /NE i RIVERSIDE CA CMNTY COLGE Aa2/NR/AA 500,000 2.35% 08/01/2019 11,725.00 1.80% 2.39 507,485.00 101.334 506,670.00 3.80% TAX SR B BE/R/ 2.345 NR/NR/NR 2.31% 1.80% -815.00 5,862.50 080119 DTD 052914 /CA AMERICAN EXPRESS F UT US RT CD 247,000 2.15% 11/13/2019 5,310.50 1.49% 2.69 247,000.00 101.790 251,421.30 1.89% 02.1500% MAT 11/13/19 FIXED 2.11% 1.49% 4,421.30 1,149.40 RATE CD /UT CIT BK SALT LAKE C UT US RT CD 240,000 2.10% 11/13/2019 5,040.00 1.49% 2.69 240,000.00 101.654 243,969.60 1.83% 02.1000% MAT 11/13/19 FIXED 2.07% 1.49% 3,969.60 1,090.85 RATE CD /UT BMW BK OF NA NA UT US RT CD 245,000 1.55% 12/16/2019 3,797.50 NA NA 245,000.00 100.125 245,306.25 1.84% 01.5500% MAT 12/16/19 FIXED 1.55% NA 306.25 499.40 RATE CD /UT TBK BANK SSB TX US RT CD 245,000 1.60% 12/16/2019 03/14/2017 3,920.00 1.56% 0.11 245,000.00 100.117 245,286.65 1.84% 01.6000% MAT 12/16/19 FIXED 100.00 1.60% 0.58% 286.65 515.51 RATE CD /TX Report created on: February 01, 2017 Page 3 of 7 Bond holdings - as of January 31, 2017 (continued) Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Maturing 2020 Effective rating/ Est. annual Adjusted % of Underlying rating Aa1/AA+/AA+ 500,000 Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond 502,870.00 (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2019 2,612.50 052814 /MA BARCLAYS BK DE US RT CD 240,000 2.05% 12/17/2019 4,920.00 1.47% 2.78 240,000.00 101.640 243,936.00 1.83% 02.0500% MAT 12/17/19 FIXED 245,000.00 99.830 244,583.50 1.84% 2.02% 1.47% 3,936.00 606.58 1.30% RATE CD /DE -416.50 174.52 RATE CD /IL AMERICAN EXPRESS C UT US RT CD 100,000 2.15% 12/18/2019 2,150.00 1.51% 2.78 100,000.00 101.808 101,808.00 0.76% 02.1500% MAT 12/18/19 FIXED 3,185.00 1.41% 3.23 245,000.00 2.11% 1.51% 1,808.00 01.3000% MAT 05/20/20 FIXED 259.18 RATE CD /UT 1.30% 1.41% -874.65 95.99 RATE CD /AR Total 2019 2,262,000 1.90% 09/20/2019 $43,015.50 1.57% 2.20 $2,269,485.00 $2,282,308.40 17.14% CAPITAL ONE NA VA US RT CD 245,000 1.40% 09/21/2020 1.88% 1.45% $12,823.40 245,000.00 $10,476.46 240,994.25 1.81% Effective rating/ Est. annual 1.42% Adjusted -4,005.75 % of 1,240.44 Underlying rating RATE CD /VA Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2020 MASS ST GO CONSOL LN TAX SR Aa1/AA+/AA+ 500,000 2.09% 05/01/2020 10,450.00 1.91% 3.11 499,995.00 100.574 502,870.00 3.78% B BE/R/ 2.090 050120 DTD NR/NR/NR 2.08% 1.91% 2,875.00 2,612.50 052814 /MA MB FINL BK NA IL US RT CD 245,000 1.30% 05/11/2020 3,185.00 1.35% 3.20 245,000.00 99.830 244,583.50 1.84% 01.3000% MAT 05/11/20 FIXED 1.30% 1.35% -416.50 174.52 RATE CD /IL CENTENNIAL BANK AR US RT CD 245,000 1.30% 05/20/2020 3,185.00 1.41% 3.23 245,000.00 99.643 244,125.35 1.83% 01.3000% MAT 05/20/20 FIXED 1.30% 1.41% -874.65 95.99 RATE CD /AR CAPITAL ONE NA VA US RT CD 245,000 1.40% 09/21/2020 3,430.00 1.87% 3.51 245,000.00 98.365 240,994.25 1.81% 01.4000% MAT 09/21/20 FIXED 1.42% 1.87% -4,005.75 1,240.44 RATE CD /VA FIRST BUS BK WI US RT CD 245,000 1.40% 11/13/2020 3,430.00 1.77% 3.66 245,000.00 98.641 241,670.45 1.81% 01.4000% MAT 11/13/20 FIXED 1.42% 1.77% -3,329.55 779.97 RATE CD /WI CAPITAL ONE BANK N VA US RT CD 245,000 2.05% 12/29/2020 5,022.50 1.81% 3.74 245,000.00 100.892 247,185.40 1.86% 02.0500% MAT 12/29/20 FIXED 2.03% 1.81% 2,185.40 454.09 RATE CD /VA Total 2020 1,725,000 1.67% 07/27/2020 $28,702.50 1.72% 3.36 $1,724,995.00 $1,721,428.95 12.93% 1.67% 1.72% $-3,566.05 $5,357.51 Report created on: February 01, 2017 Page 4 of 7 Bond holdings - as of January 31, 2017 (continued) Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Report created on: February 01, 2017 Page 5 of 7 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2021 COMENITY CAP BK UT US RT CD 245,000 1.60% 06/07/2021 3,920.00 1.90% 4.19 245,000.00 98.733 241,895.85 1.82% 01.6000% MAT 06/07/21 FIXED 1.62% 1.90% -3,104.15 268.49 RATE CD /UT COMMUNITY BK CA US RT CD 245,000 1.55% 06/15/2021 3,797.50 1.86% 4.22 245,000.00 98.709 241,837.05 1.82% 01.5500% MAT 06/15/21 FIXED 1.57% 1.86% -3,162.95 166.47 RATE CD /CA EAST BOSTON SVGS B MA US RT CD 245,000 1.50% 06/23/2021 3,675.00 1.91% 4.22 245,000.00 98.273 240,768.85 1.81% 01.5000% MAT 06/23/21 FIXED 1.53% 1.91% -4,231.15 392.67 RATE CD /MA FHLMC MTN STEP UP CALL Aaa/AAA/AA+ 500,000 1.00% 10/28/2021 04/28/2017 5,000.00 NA NA 500,000.00 99.224 496,120.00 3.73% 01.000 % DUE 102821 DTD NR/NR/NR 100.00 1.01% NA -3,880.00 1,291.67 102816 FC 04282017 FNMA NTS STEP-UP 01.000 % Aaa/AAA/AA+ 900,000 1.00% 11/19/2021 02/19/2017 9,000.00 NA NA 899,100.00 99.252 893,268.00 6.71% DUE 111921 DTD 111915 FC NR/NR/NR 100.00 1.01% NA -5,832.00 1,800.00 05192016 MIZRAHI TEFAHOT BK CA US RT CD 245,000 1.25% 11/30/2021 03/31/2017 3,062.50 NA NA 245,000.00 100.045 245,110.25 1.84% 01.2500% MAT 11/30/21 STEP 100.00 1.25% NA 110.25 0.00 RATE CD /CA FHLB NTS STEP UP CALL 02.000 Aaa/NR/AA+ 500,000 2.00% 12/30/2021 03/30/2017 10,000.00 NA NA 500,000.00 100.010 500,050.00 3.75% % DUE 123021 DTD 123016 FC NR/NR/NR 100.00 2.00% NA 50.00 833.33 06302017 FNMA NTS 02.125 % DUE Aaa/AAA/AA+ 500,000 2.13% 12/30/2021 06/30/2017 10,625.00 2.23% 4.63 500,000.00 99.515 497,575.00 3.74% 123021 DTD 123016 FC NR/NR/NR 100.00 2.14% 2.23% -2,425.00 885.42 06302017 Total 2021 3,380,000 1.45% 10/26/2021 $49,080.00 2.03% 4.38 $3,379,100.00 $3,356,625.00 25.20% 1.46% 2.03% $-22,475.00 $5,638.05 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2022 STATE BK INDIA NY US RT CD 247,000 2.35% 01/26/2022 5,804.50 2.02% 4.69 0.00 101.565 250,865.55 1.88% 02.3500% MAT 01/26/22 FIXED 2.31% 2.02% 250,865.55 79.51 RATE CD /NY MARYSVILLE MI PUB SCHS TAX Aa1/NR/NR 500,000 2.32% 05/01/2022 11,585.00 2.70% 4.88 494,230.00 98.136 490,680.00 3.68% SR B BE/R/ 2.317 050122 A2/NR/NR 2.36% 2.70% -3,550.00 2,896.25 DTD 042116 /Ml NEW YORK NY CITY TRANSI TAX Aa1/AAA/AAA 500,000 1.65% 05/01/2022 8,250.00 2.56% 4.96 497,125.00 95.556 477,780.00 3.59% A-2 RV BE/R/ 1.650 050122 NR/NR/NR 1.73% 2.56% -19,345.00 2,062.50 DTD 072816 /NY Report created on: February 01, 2017 Page 5 of 7 Bond holdings - as of January 31, 2017 (continued) Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. g/I ($) price ($) Accr. interest ($) port. 13,367,000 1.69% 11/22/2020 NA $226,424.00 1.80% 3.17 $13,131,280.00 NA $13,318,337.34 100% Total Bond Portfolio 1.70% 1.77% $187,057.34 $45,271.00 $13,363,608.34 Report created on: February 01, 2017 Page 6 of 7 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2022 JPMORGAN CHASE & C DE US RT CD 245,000 1.25% 05/31/2022 05/31/2017 3,062.50 NA NA 245,000.00 99.573 243,953.85 1.83% 01.2500% MAT 05/31/22 STEP 100.00 1.26% NA -1,046.15 0.00 RATE CD /DE DISCOVER BANK DE US RT CD 245,000 2.45% 11/18/2022 6,002.50 2.24% 5.36 245,000.00 101.115 247,731.75 1.86% 02.4500% MAT 11/18/22 FIXED 2.42% 2.24% 2,731.75 1,216.95 RATE CD /DE WELLS FARGO BK NA CA US RT CD 245,000 1.65% 11/23/2022 11/23/2018 4,042.5 NA NA 245,000.00 101.123 247,751.35 1.86% 01.6500% MAT 11/23/22 STEP 100.00 1.63% NA 2,751.35 0.00 RATE CD /CA Total 2022 1,982,000 1.96% 06/13/2022 $38,747.00 2.46% 4.95 $1,726,355.00 $1,958,762.50 14.71% 1.98% 2.46% $232,407.50 $6,255.21 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2024 COMMERCE BANK OF SOUTHWE NR/NR/AA 500,000 3.00% 08/01/2024 15,000.00 3.18% 6.56 526,595.00 98.802 494,010.00 3.71% ASSUR TAX OID97.826BE/R/ NR/NR/A 3.04% 3.18% -32,585.00 7,500.00 3.000 080124 DTD 033016 /CA NEWYORK CITY TRANSITION Aa1/AAA/AAA 500,000 2.60% 11/01/2024 11/01/2022 13,000.00 3.18% 6.90 486,750.00 96.038 480,190.00 3.61% TAX C-3 RV BE/R/ 2.600 NR/NR/NR 100.00 2.71% 3.18% -6,560.00 3,250.00 1 10124 DTD 120412 /NY Total 2024 1,000,000 2.80% 09/16/2024 $28,000.00 3.18% 6.73 $1,013,345.00 $974,200.00 7.31% 2.87% 3.18% $-39,145.00 $10,750.00 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. g/I ($) price ($) Accr. interest ($) port. Maturing 2025 HSBC BANK USA DE US RT CD 240,000 2.25% 03/11/2025 03/11/2020 5,400.00 NA NA 240,000.00 101.363 243,271.20 1.83% 02.2500% MAT 03/11/25 STEP 100.00 2.22% NA 3,271.20 0.00 RATE CD /DE Total 2025 240,000 2.25% 03/11/2025 $5,400.00 NA $240,000.00 $243,271.20 1.83% 2.22% NA $3,271.20 $0.00 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. g/I ($) price ($) Accr. interest ($) port. 13,367,000 1.69% 11/22/2020 NA $226,424.00 1.80% 3.17 $13,131,280.00 NA $13,318,337.34 100% Total Bond Portfolio 1.70% 1.77% $187,057.34 $45,271.00 $13,363,608.34 Report created on: February 01, 2017 Page 6 of 7