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HomeMy WebLinkAbout2020 [09] Sep 21 www.cityofstjoseph.com St. Joseph City Council September 21, 2020 6:00 PM 1. 6:00 PM Call to order - Pledge of Allegiance 2. Public Comments Up to 3 speakers will be allowed for up to 3 minutes each to address the council with questions/concerns/comments (regarding an item NOT on the agenda). No Council response or action will be given/taken other than possible referral to Administration. 3. Approve Agenda 4. Consent Agenda a. Minutes – Requested Action: Approve the minutes of September 8, 2020. b. Bills Payable – Requested Action: Approve check numbers 05684-05739 and Payroll EFT # 111940-111953, Accounts Payables EFT # 1942-1944, Regular Pay Period 18 and Council Pay Period 8. c. Treasurer’s Report – Requested Action: Accept the treasurer’s report as presented. d. Donations – Requested Action: Accept the donations and contributions as presented. e. 2020 Bond Issues/2011A Early Bond Call – Requested Action: Adopt Resolution 2020- 040 Approving the Issuance of GO Bonds, 2020B; adoption of Resolution 2020-041 Approving the Issuance of GO Crossover Refunding Bonds, Series 2020C; and adopt Resolution 2020-042 Calling for the Redemption of the Outstanding GO Bonds, Series 2011A. f. Meeting Video Attendant – Requested Action: Hire Maria Hamilton as the meeting video attendant and allow staff to hire community center employees as fill ins and backup as needed. g. Parklet – Requested Action: Approve parklet to be installed in spring/summer 2021 through October 2021 weather permitting. h. Stearns County & City CARES Funding Agreement – Requested Action: Approve Stearns County Subrecipient Agreement for CARES funding between Stearns County and the City of St. Joseph. 5. 2021 Preliminary Budget Adoption 6. Interim Use Permit Requests a. 110 College Ave N b. 13 Ash St E 7. Engineer Reports 8. Department Head Reports a. Administration/Community Development b. Finance c. Police d. Public Works 9. Mayor Reports 10. Adjourn 75 Callaway Street East | Saint Joseph, Minnesota 56374 Email: cityoffices@cityofstjoseph.com | Phone: 320.363.7201 | Fax 320.363.0342 September 8, 2020 Page 1 of 2 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Tuesday, September 8, 2020 at 6:00 PM at the St. Joseph Government Center, opening with the pledge of allegiance. Members Present: Mayor Rick Schultz. Councilors Troy Goracke, Brian Theisen, Anne Buckvold City Representatives Present:Interim Administrator Therese Haffner, Police Chief Dwight Pfannenstein, Public Works Director Terry Thene, Finance Director Lori Bartlett, City Clerk Kayla Klein, City Engineer Randy Sabart, City Attorney Susan Dege Public Comments: NA Approve Agenda:Buckvoldmade a motion to approve the agendawith the additions of item 4i. Squad Lease Buyout and item 11. Closed meeting; seconded by Theisen and passed unanimously by those present. Consent Agenda: Theisen made a motion to approve the consent agenda with the addition of item 4i Squad Lease Buyout; seconded by Schultz and passed unanimously by those present. a. Minutes –Approvedthe minutes ofSeptember 1, 2020. b. Bills Payable – Approved check numbers 056587-056664 and Payroll EFT #111926-111932 and Accounts Payables EFT #1939-1940 and Regular Pay Period 17. c.Second Quarter Gambling Report – Accepted the Second Quarter Gambling Report for 2020. d. Transfers - Authorized the 2020 transfers as presented. e. Fire Department Hire – Approved the hiring of Jacob Richter, Dominic Bonacci, and Tyler Koepke upon successful completion of the pre-employment physical. f. City Administrator Hire – Appointed Therese Haffner as City Administrator at step 3 on the wage scale. g. Public Works Superintendent Hire – Appointed Ryan Wensmann as Public Works Superintendent at step 1 on the wage scale. h. Community Development Director/Utility Lead Worker Openings – Authorized staff to begin the hiring process for Utility Lead Worker and Community Development Director. i. Squad Lease Buyout – Authorized the purchase of the 2016 Chevy Tahoe from Fleet Services for $21,125.00. Public Hearing, Bond Issuance: The Council adopted the 2020 budget/capital improvement plan and authorized the building committee to review options for the Public Works building expansion. The capital improvement plan and proposed bonds are the maximum issuance amount. The final bond issue is expected to be lower after proceeds from the sale of the current building are received. The City Council will have the opportunity to adopt a resolution for the final bond amount as the project progresses. Goracke moved to adopt Resolution 2020-037 Approving Issuing GO Capital Improvement Bonds and Adopt the Capital Improvement Plan for the public works facility expansion; seconded by Theisen and passed unanimously by those present. thth Public Hearing, 2020 20Avenue SE Improvements: SEH presented the assessment hearing on the 20 Avenue SE Improvements. Schultz opened the public hearing and read into record a contention notice submitted by River Bats LLC. st Dan Rassier, 29748 91Avenue: Rassier owns one of the properties being assessed for the project and feels it is unfair for others to pay for the development of the Sand property. Rassier was recently annexed and opposed that decision as well. Rassier feels that the Council decides what they want without considering how the residents feel. As no one else present wished to speak, Schultz closed the public hearing. September 8, 2020 Page 2 of 2 Goracke and Buckvold sympathized with Rassier and Goracke suggested having the deferred assessments for the Rassier and River Bats property be deferred with zero interest accruing for the first fifteen years. th Schultz moved to adopt Resolution 2020-035 Adopting Final Assessment for the 2020 20Avenue SE Improvements; seconded by Goracke. Aye: Schultz, Buckvold, Goracke Motion Carried 3:1 Nay: Theisen nd The bid opening was completed on September 2and C&L Excavating was the lowest responsible bidder. th Goracke moved to adopt Resolution 2020-036 Awarding Bid for the 2020 20Avenue SE Improvements; seconded by Buckvold. Aye: Schultz, Buckvold, Goracke Motion Carried 3:1 Nay: Theisen 2021 Preliminary Budget: Bartlett presented the draft preliminary budget for 2021 and requested the Council change the way members are paid going from permeeting rate to a monthly salary. The pay rate structure for council can only occur on election years. With what is known today, the tax rate is showing a reduction based on the estimated 8% increase in the net tax capacity provided by the County. The City urban tax rate is estimated to decrease by 4% based st on the levy need. The budget will be brought back on September 21 for adoption. Buckvold moved to approve the 2021 City Council pay structure as straight monthly salary at the following rates: Mayor $650/month, Council $435/month. The motion was seconded by Goracke and passed unanimously by those present. Engineering Reports, Supplemental Agreement: Loso moved to execute the Supplemental Agreement for the 2021 Capital Improvement Projects with SEH; seconded by Schultz and passed unanimously. Mayor Reports: Schultz congratulated and welcomed Therese Haffner as the City Administrator. Closed Meeting: Schultz moved to enter into closed session pursuant to MN Statute 13D.05, Subd 3(a), to discuss employee performance evaluations for City Administrator, Therese Haffner; seconded by Theisen and passed unanimously by those present. No decisions were made in closed session. Adjourn: Buckvold made a motion to adjourn at 7:25 PM; seconded by Goracke and passed unanimouslyby those present. Kayla Klein City Clerk Council Agenda Item 4b MEETING DATE:September 21, 2020 AGENDA ITEM: Bills Payable SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None PREVIOUS COUNCIL ACTION: See below BACKGROUND INFORMATION: The council approved staff to make the following payments through the payroll contracts, regular monthly invoices with due dates prior to the next scheduled council meeting, or actions taken at previous council meetings. The information here is to provide you all checks and electronic payments made for verification of the disbursement completeness. BUDGET/FISCAL IMPACT: Bills Payable – Checks Mailed Prior to Council Approval VOID EFT #1941, 111926-111939 $ - Check Numbers 056684 - 05714 $345,331.78 Reg PP 18, Council PP 8 $69,240.98 Accounts Payable EFT #1942-1944 $3,764.81 Payroll EFT #111940-111953 $62,447.46 Total $480,785.03 Bills Payable – Checks Awaiting Council Approval Check Numbers 05715 – 05739 $81,723.07 Total $81,723.07 Total Budget/Fiscal Impact: $562,508.10 Various Funds ATTACHMENTS: Request for Council Action – Bills Payable Bills Payable – Checks Mailed Prior to Council Approval REQUESTED COUNCIL ACTION: Approval of the following: Check Numbers 05684-05739 Payroll EFT 111940-111953 Accounts Payable EFT 1942-1944 Reg PP 18, Council PP 8 CITY OF ST JOSEPH Bills Payable – Checks Not Mailed Awaiting Council Approval Check#Search NameCommentsAmountFUNDDEPARTOBJ 056715BLUE CROSS BLUE SHIELD MN October 2020 Health Insurance$30,508.70101 056715BLUE CROSS BLUE SHIELD MN April 2020 Health Insurance Credit($6,101.76)101 056716BROCK WHITE COMPANY, LLC Straw & Staples$463.4810145202220 056717CINTAS CORPORATION NO. 2 August 2020 PW Uniforms$52.0960249450171 056717CINTAS CORPORATION NO. 2 August 2020 PW Uniforms$3.9960343230171 056717CINTAS CORPORATION NO. 2 August 2020 PW Uniforms$4.4165149900171 056717CINTAS CORPORATION NO. 2 August 2020 PW Uniforms$52.3060149440171 056717CINTAS CORPORATION NO. 2 August 2020 PW Uniforms$23.1110145202171 056717CINTAS CORPORATION NO. 2 August 2020 PW Uniforms$23.7410143120171 056717CINTAS CORPORATION NO. 2 August 2020 Operating Supplies$124.4960249490210 056717CINTAS CORPORATION NO. 2 August 2020 Operating Supplies$124.4960149490210 056717CINTAS CORPORATION NO. 2 August 2020 Operating Supplies$124.4810145201210 056717CINTAS CORPORATION NO. 2 August 2020 Operating Supplies$23.5210142120210 056717CINTAS CORPORATION NO. 2 August 2020 Operating Supplies$230.5210141430210 056718CITY OF WAITE PARK August 2020 Bike Share Portion$32.6210145204 056719COMPLETE ELECTRONICS, INC Camera & Recorder - Wobegon Center$665.2110145202300 056720DRS STYLES, COTTON & MILBERT CARES Refund$7,500.0010446500588 056721EMERGENCY RESPONSE SOLUTIONS 5 SCBA Masks & 22 Air Tanks$30,233.7110442220580 056721EMERGENCY RESPONSE SOLUTIONS Strap Assembly for Mask$60.1510542220210 056722EO JOHNSON BUSINESS TECH Blockade Silver - October 2020$352.0010141710215 056723HAWKINS, INC Chemicals$810.7560149420210 056723HAWKINS, INC Chemicals$2,336.6160149421210 056724HOFFMAN, JUNE August 2020 Fire Hall Cleaning$97.5010542281300 056725INSPECTRON INC August 2020 Inspection Services$7,500.0010142401300 056726JACKS OIL DISTRIBUTING, INC. Dyed Fuel$144.7110143120235 056726JACKS OIL DISTRIBUTING, INC. Dyed Fuel$144.7110145202235 056726JACKS OIL DISTRIBUTING, INC. Dyed Fuel$144.7160149440235 056726JACKS OIL DISTRIBUTING, INC. Dyed Fuel$144.7160249450235 056727KWIK TRIP August 2020 Fuel Purchases$108.8310542220235 056727KWIK TRIP August 2020 Fuel Purchases$160.4910143120235 056727KWIK TRIP August 2020 Fuel Purchases$160.4910145202235 056727KWIK TRIP August 2020 Fuel Purchases$212.4960149440235 056727KWIK TRIP August 2020 Fuel Purchases$333.3860249450235 056727KWIK TRIP August 2020 Excise Tax Credit($12.26)10542220235 056727KWIK TRIP August 2020 Excise Tax Credit($16.66)10143120235 056727KWIK TRIP August 2020 Excise Tax Credit($15.92)10145202235 056727KWIK TRIP August 2020 Excise Tax Credit($23.51)60149440235 056727KWIK TRIP August 2020 Excise Tax Credit($36.02)60249450235 056728LITTLE FALLS MACHINE, INC Wing Bolt & Nut$92.5310143125230 056729MINNESOTA FIRE SERVICE BOARD Recertification for Expiring Fire Fighters$175.0010542240443 056730MOTION INDUSTRIES Quick Release Valve$193.4860149420220 056731O REILLY AUTO PARTS Wiper Blades$28.7810145202230 056732SECURITY LOCKSMITHS, INC Duplicate Keys$50.2510141942210 056733SHIFT TECHNOLOGIES, INC. Managed Services - September 2020$297.5010141710215 056734ST. CLOUD TIMES Ordinance 2020-07$144.8710145202340 056735ST. JOSEPH MEAT MARKET, INC September Fire Dept Dinner$90.68101 056736STEARNS ELECTRIC ASSOCIATION August 2020 Electric$1,407.7965243160386 056736STEARNS ELECTRIC ASSOCIATION August 2020 Electric$59.4810141942381 056736STEARNS ELECTRIC ASSOCIATION August 2020 Electric$551.3510145201381 056736STEARNS ELECTRIC ASSOCIATION August 2020 Electric$118.6260249473381 056736STEARNS ELECTRIC ASSOCIATION August 2020 Electric$78.0560249472381 056736STEARNS ELECTRIC ASSOCIATION August 2020 Electric$103.3260249471381 056737TIREMAXX SERVICE CENTERS Tire Repair - #26$7.4910143120230 056737TIREMAXX SERVICE CENTERS Tire Repair - #26$7.4910145202230 056737TIREMAXX SERVICE CENTERS Tire Repair - #26$7.4960149440230 056737TIREMAXX SERVICE CENTERS Tire Repair - #26$7.4860249450230 CITY OF ST JOSEPH Bills Payable – Checks Not Mailed Awaiting Council Approval Check#Search NameCommentsAmountFUNDDEPARTOBJ 056738UNUM LIFE INSURANCE October 2020 LTD Insurance$1,101.16101 056739WRUCK SEWER & PORTABLE RENTALPortable Toilets$504.0020545203410 $81,723.07 Total Bills Payables - Waiting Council Approval Summary: EFTs & Payroll 135,453.25 Bills Paid Prior to Council 345,331.78 81,723.07 Bills Waiting for Council 562,508.10 Total Bills Payable CITY OF ST JOSEPH EFTs & Payroll – Paid Prior To Council Approval Check#Search NameCommentsAmountFUNDDEPARTOBJ ACHPAYROLLReg PP 18, Council PP 8 69,240.98 001942SENTRY BANK August bank fees wire fee$15.0010141430317 001942SENTRY BANK August bank fees payroll ach$40.0010141430317 001942SENTRY BANK August bank fees rent/loan ach fees$20.0010141430317 001942SENTRY BANK August bank fees nsf fees$8.0060149490317 001942SENTRY BANK August bank fees$753.9160100000 001942SENTRY BANK August Bank Fee - Wire Fee$15.0010141430317 001943PAYMENT SERVICE NETWORK August 2020 PSN Fees$206.9010141530300 001944COMMISSIONER OF REVENUE August 2020 Sales/Use Tax$36.4210141430441 001944COMMISSIONER OF REVENUE August 2020 Sales/Use Tax$3.4310142120441 001944COMMISSIONER OF REVENUE August 2020 Sales/Use Tax$7.5710145205441 001944COMMISSIONER OF REVENUE August 2020 Sales/Use Tax$4.4210141430 001944COMMISSIONER OF REVENUE August 2020 Sales/Use Tax($82.78)10145202 001944COMMISSIONER OF REVENUE August 2020 Sales/Use Tax$858.9960100000 001944COMMISSIONER OF REVENUE August 2020 Sales/Use Tax$1,877.9560300000 111940SENTRY BANK Employee HSA Contribution - Reg PP 17$1,487.91101 111941EFTPS Withholdings - Reg PP 17$5,817.70101 111941EFTPS Withholdings - Reg PP 17$6,694.68101 111942COMMISSIONER OF REVENUE State Withholding - Reg PP 17$2,519.22101 111943PERA Retirement - Reg PP 17$12,969.14101 111944VOYA FINANCIAL Deferred Comp - Reg PP 17$1,510.00101 111945AMERICAN FUNDS 529 College Savings Plan - Reg PP 17$150.00101 111946MINNESOTA CHILD SUPPORT CENTERChild Support - Reg PP 17$154.13101 111947SENTRY BANK Employee HSA Contribution - Reg PP 18$1,287.91101 111948EFTPS Withholding Taxes - Reg PP 18, CC PP 8$5,485.90101 111948EFTPS Withholding Taxes - Reg PP 18, CC PP 8$6,775.96101 111949COMMISSIONER OF REVENUE State Withholding - Reg PP 18, CC PP 8$2,544.84101 111950PERA Retirement - Reg PP 18, CC PP 8$13,235.94101 111951VOYA FINANCIAL Deferred Comp - Reg PP 18$1,510.00101 111952AMERICAN FUNDS 529 College Savings Plan - Reg PP 18$150.00101 111953MINNESOTA CHILD SUPPORT CENTERChild Support - Reg PP 18$154.13101 EFT Total 135,453.25 CITY OF ST JOSEPH Bills Payable – Paid Prior To Council Approval Check#Search NameCommentsAmountFUNDDEPARTOBJ 056684ALL CARE TOWING, INC. 8/18/20 - Toyota Camry - ICR 20802352$76.0010142120436 056685CITY OF ST. CLOUD July 2020 Sewer Rental Charge$18,978.0160249480419 056685CITY OF ST. CLOUD July 2020 RUE Project$23,200.0460249480418 056685CITY OF ST. CLOUD July 2020 NR2 Project$8,319.4860249480418 056685CITY OF ST. CLOUD July 2020 Phase IV, Main Lift Station$9,085.5060249480418 056686DESIGN ELECTRIC, INC Repair Lights at Millstream$480.5010145202220 056686DESIGN ELECTRIC, INC Drop Down Cord for Flag Pole - Maintenance Bldg$195.0010143120220 056686DESIGN ELECTRIC, INC Re-Mount Cord Reel at Fire Station$235.0010542280220 056687EXPONENTIAL CHIROPRACTIC CARES Refund$7,500.0010446500588 056688FIRSTNET August 2020 Cell Phones$133.4810143120321 056688FIRSTNET August 2020 Cell Phones$133.4810145202321 056688FIRSTNET August 2020 Cell Phones$97.7660149440321 056688FIRSTNET August 2020 Cell Phones$84.5160249450321 056688FIRSTNET August 2020 Cell Phones$85.8565149900321 056688FIRSTNET August 2020 Cell Phones$45.2610145204321 056688FIRSTNET August 2020 Cell Phones$23.8110145205321 056688FIRSTNET August 2020 Cell Phones$23.8110141942321 056688FIRSTNET August 2020 Cell Phones$38.2310141430321 056688FIRSTNET August 2020 Cell Phones$50.3110141530321 056688FIRSTNET August 2020 Cell Phones$76.4510542250321 056689FIRSTNET August 2020 PD Cell Phone$238.1010142151321 056690FLAHERTY & HOOD, P.A. Real Estate Matters$3,765.0010141910304 056691FLEET & SURPLUS SERVICES Buy Out Lease - Squad 703$18,000.0040942152550 056691FLEET & SURPLUS SERVICES Buy Out Lease - Squad 703$3,125.0049042152550 056692GALL S INC Embroidery - Magaard$9.9910142120171 056692GALL S INC Trousers (3) - Luethmers$344.9710142120171 056692GALL S INC Badge & State Seal - Johnson$315.9810142120210 056693GOPHER STATE ONE CALL August 2020 Locates$42.5360149440319 056693GOPHER STATE ONE CALL August 2020 Locates$42.5260249490319 056694GUGGENBERGER APPRAISAL SERVICEBuilding Appraisal for PW Expansion$2,000.0049045201520 056695JACKS OIL DISTRIBUTING, INC. Replacement Fuel Hose & Filter$21.1010145202230 056695JACKS OIL DISTRIBUTING, INC. Replacement Fuel Hose & Filter$21.1010143120230 056695JACKS OIL DISTRIBUTING, INC. Replacement Fuel Hose & Filter$21.1060149440230 056695JACKS OIL DISTRIBUTING, INC. Replacement Fuel Hose & Filter$21.1060249450230 056696KWIK TRIP August 2020 PD Fuel Purchases$1,438.8010142152235 056696KWIK TRIP August 2020 Excise Tax Credit($171.70)10142152235 056697LASER DENTISTRY LTD CARES Refund$7,500.0010446500588 056698LEES ACE HARDWARE Millstream Shelter Supplies$12.9910145202210 056698LEES ACE HARDWARE Fly Paper$8.5810145202210 056699MINNESOTA COMPUTER SYSTEMS,INC3rd Quarter 2020 SJPD Software Support$55.1710142120215 056700MVTL LABORATORIES, INC Testing$123.0060249480312 056701NORTHLAND SECURITIES, INC 2011A GO Bonds$135,000.0033843120600 056701NORTHLAND SECURITIES, INC 2011A GO Bonds$3,165.0033843120611 056701NORTHLAND SECURITIES, INC 2011A GO Bonds$495.0033843120620 056701NORTHLAND SECURITIES, INC 2011A GO Bonds$40,000.0034647100600 056701NORTHLAND SECURITIES, INC 2011A GO Bonds$980.0034647100611 056702POSTMASTER September 2020 Utility Bill Mailing$226.3810141430322 056702POSTMASTER September 2020 Utility Bill Mailing$226.3860149490322 056702POSTMASTER September 2020 Utility Bill Mailing$226.3760249490322 056702POSTMASTER September 2020 Utility Bill Mailing$226.3760343230322 056703PROMOTIONAL RESOURCES INC CARES Refund$7,500.0010446500588 056704REPUBLIC SERVICES August 2020 Refuse/Recycling - Residential$21,563.0560343230384 056704REPUBLIC SERVICES August 2020 Refuse/Recycling - Water Plant 1$49.1060343230384 056704REPUBLIC SERVICES August 2020 Refuse/Recycling - Water Plant 2$15.2460343230384 056704REPUBLIC SERVICES August 2020 Refuse/Recycling - Millstream/Memorial Park$49.1060343230384 056704REPUBLIC SERVICES August 2020 Refuse/Recycling - Maintenance Garage$49.1060343230384 056704REPUBLIC SERVICES August 2020 Refuse/Recycling - Fire Hall$42.1110542220384 056705ROLLING RIDGE EVENT CENTER CARES Refund$7,500.0010446500588 056705ROLLING RIDGE EVENT CENTER CARES Refund$7,500.0010446500588 056705ROLLING RIDGE EVENT CENTER CARES Refund($7,500.00)10446500588 056705ROLLING RIDGE EVENT CENTER CARES Refund($7,500.00)10446500588 056706SHIFT TECHNOLOGIES, INC. Antivirus - August 2020$178.5010141710215 056707SHRED-IT August 2020 Shred Service$36.9810142120300 056707SHRED-IT August 2020 Shred Service$36.9710141430300 056708SUMMIT FIRE PROTECTION Annual Fire Sprinkler Inspection - Community Center$293.0010145205300 056709TIREMAXX SERVICE CENTERS Shift Cable Repair - #702$163.4110142152230 056710TRAUT WELLS, INC Water Testing$200.0060149420312 056711VERIZON WIRELESS August 2020 PD Data$175.0510142151320 056712XCEL ENERGY August 2020 Electric/Gas Usage$3.4810141941383 CITY OF ST JOSEPH Bills Payable – Paid Prior To Council Approval Check#Search NameCommentsAmountFUNDDEPARTOBJ 056712XCEL ENERGY August 2020 Electric/Gas Usage$1,338.1310141942381 056712XCEL ENERGY August 2020 Electric/Gas Usage$299.7510141942383 056712XCEL ENERGY August 2020 Electric/Gas Usage$6.9010142500326 056712XCEL ENERGY August 2020 Electric/Gas Usage$76.6210143120381 056712XCEL ENERGY August 2020 Electric/Gas Usage$2.0510143120383 056712XCEL ENERGY August 2020 Electric/Gas Usage$17.9810145123381 056712XCEL ENERGY August 2020 Electric/Gas Usage($9.87)10145123383 056712XCEL ENERGY August 2020 Electric/Gas Usage$51.0810145201381 056712XCEL ENERGY August 2020 Electric/Gas Usage($7.72)10145201383 056712XCEL ENERGY August 2020 Electric/Gas Usage$161.8710141941381 056712XCEL ENERGY August 2020 Electric/Gas Usage$366.7210145202381 056712XCEL ENERGY August 2020 Electric/Gas Usage$26.7510145202383 056712XCEL ENERGY August 2020 Electric/Gas Usage$2,163.1710145205381 056712XCEL ENERGY August 2020 Electric/Gas Usage$48.7310145205383 056712XCEL ENERGY August 2020 Electric/Gas Usage$659.4510542280381 056712XCEL ENERGY August 2020 Electric/Gas Usage$52.1410542280383 056712XCEL ENERGY August 2020 Electric/Gas Usage$467.3060149410381 056712XCEL ENERGY August 2020 Electric/Gas Usage$56.2460149410383 056712XCEL ENERGY August 2020 Electric/Gas Usage$924.5160149420381 056712XCEL ENERGY August 2020 Electric/Gas Usage$19.8560149420383 056712XCEL ENERGY August 2020 Electric/Gas Usage$3,366.5460149421381 056712XCEL ENERGY August 2020 Electric/Gas Usage$226.1460149421383 056712XCEL ENERGY August 2020 Electric/Gas Usage$206.9160149435381 056712XCEL ENERGY August 2020 Electric/Gas Usage$257.6960249470381 056712XCEL ENERGY August 2020 Electric/Gas Usage($11.62)60249471383 056712XCEL ENERGY August 2020 Electric/Gas Usage$454.7060249480381 056712XCEL ENERGY August 2020 Electric/Gas Usage$26.7560249480383 056712XCEL ENERGY August 2020 Electric/Gas Usage$2,384.6265243160386 056713ROLLING RIDGE EVENT CENTER CARES Refund$7,500.0010446500588 056714THE LA, LLC CARES Refund$7,500.0010446500588 $345,331.78 Total Bills Payable - Mailed Prior to Council Approval Council Agenda Item 4c MEETING DATE:September 21,2020 AGENDA ITEM: Treasurer’s Report – August 2020 SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: N/A PREVIOUS COUNCIL ACTION: None BACKGROUND INFORMATION: Cash/investment presented as August 31, 2020. Budget to actual reports attached for Council review. The cash and investment balance increased $2,223,842 since the beginning of the year. The first half taxes and state aids were received in June/July. The CARES Act grant proceeds were received. The final draw of the BDPI grant reimbursement from the State for the industrial park project has been received ($155K). Annual reporting will be required for five years regarding this grant. The City received $415,000 municipal street construction aid for the 2019 street project. The equipment certificates th proceeds were received on March 4. The projects are ongoing and will be spending down the remaining bond proceeds. The General fund spent 62% of the expenditure budget and received 54% of the revenue budget at the end of August. It was a relatively quiet first few months; mainly operational. Spending was slowed down where possible due to COVID-19. The public works equipment partially funded by the equipment certificates were ordered. The Enterprise funds spent 42% (without depreciation) and received 45% of the revenue budget. The revenue represents the Jan-Jun billing received in March through August. It was anticipated the late receipts would increase due to COVID-19. Late notices and penalties are being sent, but shut offs due to delinquencies have halted during the peacetime emergency. There was a water main break that was repaired in January and a lift station pump repair in February. The revenues/expenses are mainly operational in nature through August. CARES Funding: Staff is meeting with businesses and ordering supplies/equipment agreed to under the st Coronavirus Relief Funding Act (the $551,340). As of August 31 the city expended $45,033.43. BUDGET/FISCAL IMPACT: Information Only ATTACHMENTS: Request for Council Action – Treasurer’s Report 2020 Treasurer’s Reports: Cash Balances Month End Revenue Summary Month End Revenue Summary – General Fund Month End Revenue Summary – Enterprise Funds Month End Expenditure Summary Month End Expenditure Summary – General Fund Month End Expense Summary – Enterprise Funds REQUESTED COUNCIL ACTION: Accept the Treasurer’s as presented. Council Agenda Item 4d ______ MEETING DATE: September 21, 2020 AGENDA ITEM: Donations and Contributions SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: N/A PREVIOUS COUNCIL ACTION: None BACKGROUND INFORMATION: Minnesota Statute 465.03 requires that all gifts and donations of real or personal property be accepted only with the adoption of a resolution approved by two-thirds of the members of the City Council. By accepting the donations, the city is accepting the intent of the donations. The in-kind donations are estimates. Total Dog Park cash donations received through 8/31/20 = $5,850 + $1,149 for pavers and refreshments. Total Jacob Wetterling Rec Center donations received through 8/31/20 = $3,040.91. BUDGET/FISCAL IMPACT: $414.00 ATTACHMENTS: Request for Council Action: Donations Resolution 2020-038 Accepting Donations REQUESTED COUNCIL ACTION: Consider approval Resolution 2020-038 Accepting Donations. RESOLUTION 2020-038 RESOLUTION ACCEPTED DONATION(S) WHEREAS, The City of St. Joseph is generally authorized to accepts gifts and bequests pursuant to Minnesota Statutes Section 465.03 and Minnesota Statutes Section 471.17 for the benefit of its citizens; and WHEREAS, said Minnesota Statute 465.03 requires that all gifts and donations of real or personal property be accepted only with the adoption of a resolution approved by two-thirds of the members of the City Council; and WHEREAS, the following person/persons and/or entity/entities has/have donated real and/or personal property as follows: DONOR METHOD PURPOSE AMOUNT Anonymous Cash Disc Golf $110.00 Anonymous Cash Dog Park $17.00 Anonymous Cash RV Dump $116.00 Anonymous Cash Fire Operations $40.00 Anonymous Cash Archery Range $131.00 WHEREAS, all such donations have been contributed to assist the various city departments and programs as allowed by law; and WHEREAS, the City Council finds that it is appropriate to accept the donations offered. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH, MINNESOTA, AS FOLLOWS: 1. The donations described above are accepted. 2. The Finance Department is hereby directed to issue receipts to each donor acknowledging the city’s receipt of the donors’ donations. ADOPTED by the City Council this 21st day of September , 2020. Rick Schultz, Mayor ATTEST Therese Haffner, Administrator Council Agenda Item 4e MEETING DATE:September 21, 2020 AGENDA ITEM: 2020 Bond Issues/2011A Early Bond Call SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The Planning Commission approved a resolution declaring the PW building purchase is consistent with the comprehensive plan. th PREVIOUS COUNCIL ACTION: Council ordered improvements for the 20Ave SE improvements and approved the capital plan for the PW building purchase. Council concurred to refinance the 2013A and 2014A bonds and calling the 2011A bonds early. BACKGROUND INFORMATION: The upcoming bond issue is separated into 2020B and 2020C. The 2020 projects plus the 2013A bond current refinancing are included in the 2020B bonds; the 2014 advanced refinancing is included in the 2020C bonds. Attached you will find the following documents related to your upcoming bond issuances, for st consideration at the council meeting next Monday, Sept 21: - Trigger Resolutions – Authorizes the Mayor and Finance Director to approve the 2020B and 2020C bond pricings. This allows the bond sale to occur and lock into the best rate. - Finance Plans – Provides a detailed overview of the series 2020B and 2020C bond issues (for reference only; no action needed). -Call Resolution for 2011A Bonds–Authorizes the redemption of your remaining outstanding th 2011A bonds on Oct 27. The City needs to provide a 30-day notice to the investor that the City intends to call the bonds early. BUDGET/FISCAL IMPACT: Up to $4,625,000 bond issue for 2020B and 2020C $185,000 early call of 2011A Bonds ATTACHMENTS: Request for Council Action – Bond Issues/Early Bond Call Resolution 2020-040 Approving the Issuance of GO Bonds, 2020B Resolution 2020-041 Approving the Issuance of GO CO Bonds, 2020C Resolution 2020-042 Calling for the Redemption of GO Bonds, 2011A Financing Plan 2020B Financing Plan 2020C REQUESTED COUNCIL ACTION: Consider adoption of Resolution 2020-040 Approving the Issuance of General Obligation Bonds, Series 2020B; adoption of Resolution 2020-041 Approving the Issuance of General Obligation Crossover Refunding Bonds, Series 2020C; and Resolution 2020-042 Calling for the Redemption of the Outstanding General Obligation Bonds, Series 2011A. CERTIFICATION OF MINUTES RELATING TO GENERAL OBLIGATION BONDS, SERIES 2020B ISSUER:City of St. Joseph, Minnesota BODY:City Council KIND, DATE, TIME AND PLACE OF MEETING: A regular meeting held on Monday, September 21, 2020, at 6:00 p.m., in the City Offices MEMBERS PRESENT: MEMBERS ABSENT: Documents Attached: Extract of Minutes of said meeting. B I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS MY HAND officially as such recording officer on September 21, 2020. City Clerk EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, STATE OF MINNESOTA HELD: Monday, September 21, 2020 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of St. Joseph, State of Minnesota, was duly held on Monday, September 21, 2020 at 6:00 p.m. Member ___________________ introduced the following resolution and moved its adoption: RESOLUTION 2020-040 APPROVING THE ISSUANCE OF GENERAL OBLIGATION BONDS,SERIES 2020B BE IT RESOLVED by the City Council of the City of St. Joseph, Minnesota(herein, the “City”), as follows: 1. The City Council hereby finds and declares that it is necessary and expedient for the City to sell and issue its fully registered general obligation bonds in the total aggregate principal amount not to exceed $2,775,000 (herein, the “Bonds”). A portion of the proceeds of the th Bonds will be used to finance the 20Avenue street improvements and a public works building (the “new money portion”) and a portion of the proceeds will be used to finance a current refunding (the “refunding portion”) of all or a portion of the December 1, 2021 through 2028maturities, aggregating up to $1,265,000 in principal amount, of the City’s General Obligation Bonds, Series 2013A, dated September 1, 2013 as date of original issue (the “Refunded Bonds”) and to pay the costs of issuing the Bonds. 2.The City Councildesires to proceed with the sale of the Bonds by direct negotiation with Northland Securities, Inc. (herein, “NSI”). NSI will purchase the Bonds in an arm’s-length commercial transaction with the City. 3.The Mayorand Finance Directorare hereby authorized to approve the sale of the Bonds in an aggregate principal amount not toexceed $2,775,000 and to execute a bond purchase agreement for the purchase of the Bonds with NSI, provided the trueinterest cost is less than 4.00%on the new money portion and the total net savings on the refunding portion is at least $70,000. 4.Upon approval of the sale of the Bonds by the Mayor and the Finance Director: a.The City Council will take action at its next regularly scheduled or special meeting thereafter to adopt the necessary approving resolutions as prepared by the City's bond counsel (the “Ratifying Resolutions”); and b.The Refunded Bonds will be redeemed and prepaid in accordance with the terms and conditions set forth in the Ratifying Resolutions and Northland Trust Services Inc., as registrar and paying agent on the Refunded Bonds, is hereby authorized and directed to cause notice of such redemption to be given to each registered holder of the Refunded Bonds not less than thirty (30) days prior to the redemption date, and to notify DTC. 5. NSI is authorized to prepare an Official Statement related to the sale of the Bonds. 6. If the Mayor and the Finance Directorhave not approved the sale of the bonds to NSI and executed the related bond purchase agreement by February 28, 2021, this resolution shall expire. The motion for the adoption of the foregoing resolution was duly seconded by Member __________________, and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. CITY OF ST JOSEPH By Rick Schultz, Mayor ATTEST By Therese Haffner, Administrator CERTIFICATION OF MINUTES RELATING TO TAXABLE GENERAL OBLIGATION CROSSOVER REFUNDING BONDS,SERIES 2020C ISSUER: City of St. Joseph, Minnesota BODY: City Council KIND, DATE, TIME AND PLACE OF MEETING: A regular meeting held on Monday,September 21, 2020, at 6:00p.m., in the City Offices MEMBERS PRESENT: MEMBERS ABSENT: Documents Attached: Extract of Minutes of said meeting. RESOLUTION 2020-041 APPROVING THE ISSUANCE OF TAXABLE GENERAL OBLIGATION CROSSOVER REFUNDING BONDS, SERIES 2020C I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS MY HAND officially as such recording officer on September 21, 2020. City Clerk EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, STATE OF MINNESOTA HELD: Monday, September 21, 2020 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of St. Joseph, State of Minnesota, was duly held on Monday, September 21, 2020 at 6:00 p.m. Member ___________________ introduced the following resolution and moved its adoption: RESOLUTION 2020-041 APPROVING THE ISSUANCE OF TAXABLE GENERAL OBLIGATION CROSSOVER REFUNDING BONDS, SERIES 2020C BE IT RESOLVED by the City Council of the City of St. Joseph, State of Minnesota (herein, the “City”), as follows: 1. The City Council hereby finds and declares that it is necessary and expedient for the City to sell and issue its fully registered taxable general obligation crossover refunding bonds in the total aggregate principal amount not to exceed $1,850,000 (herein, the “Bonds”). The proceeds of the Bonds will be used, together with any additional funds of the City which might be required for (i) a crossover refunding of all or a portion of the December 1, 2022 through 2032 maturities, aggregating up to $1,740,000 in principal amount, of the City’s General Obligation Bonds, Series 2014A, dated June 15, 2014 as date of original issue, and (ii) to pay the costs associated with issuing the Bonds. 2. The City Council desires to proceed with the sale of the Bonds by direct negotiation with Northland Securities, Inc. (“NSI”). NSI will purchase the Bonds in an arm’s-length commercial transaction with the City. 3. The Mayor and the Finance Director are hereby authorized to approve the sale of the Bonds in an aggregate principal amount not to exceed $1,850,000 and to execute a bond purchase agreement for the purchase of the Bonds with NSI, provided the total net savings meet the 3% savings test as set forth in Minnesota Statutes 475.67, subdivision 12. 4. Upon approval of the sale of the Bonds by the Mayor and the Finance Director, the City Council will take action at its next regularly scheduled or special meeting thereafter to adopt the necessary approving resolutions as prepared by the City's bond counsel. 5. NSI is authorized to prepare an Official Statement related to the sale of the Bonds. 6. If the Mayor and Finance Director have not approved the sale of the bonds to NSI and executed the related bond purchase agreement by February 28, 2021, this resolution shall expire. The motion for the adoption of the foregoing resolution was duly seconded by Member __________________, and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. CITY OF ST JOSEPH By Rick Schultz, Mayor ATTEST By Therese Haffner, Administrator EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCILOF THE CITY OF ST. JOSEPH, MINNESOTA Held: September 21, 2020 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of St. Joseph, Stearns County, Minnesota, was duly called to order on September 21, 2020, at 6:00 P.M. The following members were present: and the following members were absent: Member __________ introduced the following resolution and moved its adoption: RESOLUTION 2020-042 CALLING FOR THE REDEMPTION OF THE OUTSTANDING GENERAL OBLIGATION BONDS, SERIES 2011A WHEREAS: A. The City Council of the City of St. Joseph, Minnesota issued $2,280,000 General Obligation Bonds, Series 2011A, dated November 1, 2011; and B. All of said bonds maturing on October 1, 2019 and thereafter are subject to redemption, in whole or in part, and prepayment at the option of the City on October 1, 2018, and on any date thereafter at par plus accrued interest, all as provided in the resolution of the City authorizing the issuance of said bonds; and C. The City deems it desirable and in the best interest of the City to call the remaining $185,000 outstanding bonds maturing in the year 2021 for redemption on October 27, 2020 in accordance with said resolution authorizing the issuance of said bonds, and NOW THEREFORE, BE IT RESOLVED by the City Council of the City of St. Joseph, Minnesota as follows: 1. $185,000 of the General Obligation Bonds, Series 2011A, dated November 1, 2011, of the City of St. Joseph, Minnesota, maturing in the year 2021, shall be redeemed and prepaid on October 27, 2020 at 100% of their principal amount plus accrued interest for each such bond called. 2. The City Finance Director is hereby authorized and directed to give mailed notice of call to the bank where said bonds are payable and said bank shall provide such notice to the holders of the bonds as may be required by law. Said notice shall be in substantially the attached form. 3. The City Finance Directoris hereby authorized and directed to deposit with the bank where said bonds are payable prior to said call date sufficient funds to pay all principal and interest due on the bonds as of the call date. The motion for the adoption of the foregoing resolution was duly seconded by member __________and upon a vote taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. CITY OF ST JOSEPH By Rick Schultz, Mayor ATTEST By Therese Haffner, Administrator STATE OF MINNESOTA COUNTY OF STEARNS CITY OF ST. JOSEPH I, the undersigned,being the duly qualified and acting City Finance Director of the City of St. Joseph,Stearns County, Minnesota, DO HEREBY CERTIFY, that I have carefully compared the preceding extract of minutes of a meeting of the City Councilof saidCityheld on the date therein indicated with the original minutes thereof on file in my office and that the same is a full, true and correct transcript thereof insofar as said minutes relate to the topic described in the title of the resolution set forth in the extract. WITNESS my hand officially and the official seal of the Cityon September 21, 2020 ____________________________________ City Finance Director (SEAL) NOTICE OF CALL FOR REDEMPTION GENERAL OBLIGATION BONDS, SERIES 2011A DATED: NOVEMBER 1, 2011 CITY OF ST. JOSEPH, MINNESOTA NOTICE IS HEREBY GIVEN that by order of the City Council of the City of St. Joseph, Minnesota, there have been called for redemption and prepayment on OCTOBER 27, 2020 those outstanding bonds of the City designated as General Obligation Bonds, Series 2011A, dated November 1, 2011, maturing in the year 2021, totaling $185,000 in principal amount and with the following CUSIP number: Maturity Principal Amount CUSIP 2021$185,000 790739UY0 The bonds are being called for redemption at a price of 100% of their principal amount plus accrued interest to October 27, 2020 on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment to Northland Trust th Services, Inc., 150 South 5 Street, Suite 3300, Minneapolis, Minnesota 55402, on or before October 27, 2020. Dated: September 21, 2020 BY ORDER OF THE CITY COUNCIL /s/ Lori Bartlett Finance Director Important Notice: In compliance with the Economic Growth and Tax Relief reconciliation Act of 2001, federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the time of the payment by the redeeming institutions if they are not provided with your social security number or federal employer identification number, properly certified. This requirement is fulfilled by submitting a W-9 Form, which may be obtained at a bank or other financial institution. Additional Information may be obtained from: NORTHLAND SECURITIES, INC. th 150 South 5 Street, Suite 3300 Minneapolis, Minnesota 55402 Attn: Public Finance Phone: 612-851-5900 or 800-851-2920 Finance Plan City of St. Joseph, Minnesota $2,675,000 General Obligation Bonds, Series 2020B September 21, 2020 150 South 5th Street, Suite 3300 Minneapolis, MN 55402 612-851-5900 800-851-2920 www.northlandsecurities.com Member FINRA and SIPC | Registered with SEC and MSRB Contents Executive Summary Issue Overview Purpose Authority Structure Security and Source of Repayment Plan Rationale Issuing Process Attachment 1 Debt Service Comparison Attachment 2 Preliminary Debt Service Schedules Attachment 3 Estimated Levy Schedule Attachment 4 Related Considerations Bank Qualified Arbitrage Compliance Continuing Disclosure Premiums Rating Attachment 5 Calendar of Events Attachment 6 - Risk Factors Executive Summary The following is a summary of the recommended terms for the issuance of $2,675,000 General Obligation Bonds, Series 2020B Additional information on the proposed finance plan and issuing process can be found after the Executive Summary, in the Issue Overview and Attachment 4 Related Considerations. th Purpose Proceeds from the Bonds will be used to finance the 20 Avenue street improvements, to finance a public works building expansion, to current refund the outstanding maturities of the s 2013A, and to pay costs associated with the issuance of the Bonds. Security The Bonds will be a general obligation of the City. The City will pledge special assessments collected from benefitted properties, net revenues of the sewer utility, and property tax levies for payment of the Bonds. Repayment Term The Bonds will mature annually each December 15 in the years 2021 through 2033. Interest on the Bonds will be payable on June 15, 2021 and semiannually thereafter on each June 15 and December 15. Estimated Interest Rate Average coupon: 0.84% True interest cost (TIC): 1.12% Refunding Summary Estimated Savings: Gross savings $112,845 Net Present Value $107,601 Net PV Percent 7.701% Prepayment Option Bonds maturing on and after December 15, 2029 will be subject to redemption on December 15, 2028 and any day thereafter at a price of par plus accrued interest. Rating A rThe -" by S&P. Tax Status The Bonds will be tax-exempt, bank qualified obligations. Risk Factors There are certain risks associated with all debt. Risk factors related to the Bonds are discussed in Attachment 6. Type of Bond Sale Negotiated Sale Estimated Pricing Day Monday, October 19, 2020 Council Consideration Monday, October 19, 2020 Northland Securities, Inc. Page 1 Issue Overview Purpose Proceeds from the Bonds will be used to finance the following: th 20 Avenue street improvement project (ortion, a public works building expansion , a current refunding of the December 1, 2021 through December 1, 2028 maturities of the on December 1, 2020 Proceeds of the Bonds will also be used to pay costs associated with the issuance of the Bonds. The Bonds have been sized based on bids received and awarded on August 17 and September 8 and based on proceeds required to refund the outstanding maturities of the Refunded Bonds. The table below contains the sources and uses of funds for the bond issue. The Refunded Bonds will become eligible for prepayment on December 1, 2020. The 2021 through . Proceeds of the Bonds will be wired to Northland Trust Services, Inc., the Paying Agent for the Refunded Bonds, on Closing Day (estimated to be November 12, 2020). The projected annual savings are shown in in Attachment 1. Authority The Bonds will be issued pursuant to the authority of Minnesota Statutes, Chapters 429, 444 and 475, and Section 475.521. Under Chapter 429, an Improvement means any type of improvement made under authority granted by section 429.021, which includes, but is not limited to, improvements to streets and sidewalks, storm and sanitary sewer systems, and street lighting systems. Before issuing bonds under Chapter 429, the City must hold a public hearing on the improvements and the proposed bonds and must then pass a resolution ordering the improvements by at least a 4/5 majority. A public hearing was held on September 8, 2020 for the Improvement Projects and the resolution ordering the improvements was adopted with a 4/5 majority at the meeting. Northland Securities, Inc. Page 2 Under Section 475.521, a capital improvement is a major expenditure of City funds for the acquisition or betterment of public lands, buildings, or other improvements used, such as a city hall, library, public safety, or public works facility, which has a useful life of five years or more. The maximum amount of principal and interest for capital improvement bonds cannot exceed market value is $478,575,600 ($478,575,600 x 0.0016 = $765,721). The maximum amount of principal and interest is expected to be approximately $386,343, which is less than $765,721. Before issuing bonds under a CIP, the City must hold a public hearing on the CIP and the proposed bonds and must then approve the CIP and authorize the issuance of the bonds by at least a 3/5 majority. The City held the required public hearing and approved the CIP on September 8, 2020. If a petition signed by voters equal to at least 5 percent of the votes cast in the last general election requesting a vote on the issuance of bonds is received by the clerk within 30 days after the public hearing, then the bonds may not be issued unless approved by the voters at an election. The Calendar of Events provided in attachment 4 indicates that the Bonds will not be sold until after the 30-day period has expired on October 8, 2020. Under Chapter 444, general obligation utility revenue bonds may be issued to build, construct, reconstruct, repair, enlarge, improve, or in any other manner obtain sanitary sewer, water and limits. Structure The Improvement Portion of the Bonds has been structured to result in relatively equal annual principal payments over 10 years and CIP Portion of the Bonds has been structured to result in relatively equal annual principal payments over 12 years. The special assessments for the Improvement Portion have also been structured to result in equal annual principal payments. The Refunding Portion has been structured to result in relatively level annual savings; however a change in payment dates from December 1 and June 1 to December 15 and June 15 are being and to allow additional time between receipt of tax levy and special assessment collections and payment on the Bonds. The proposed structure for the bond issue and preliminary debt service projections are illustrated in Attachment 2 and the estimated levy is illustrated in Attachment 3. Security and Source of Repayment The Bonds will be a general obligation of the City. The finance plan relies on the following assumptions for the revenues used to pay debt service, as provided by City staff: Special Assessments. The City is expected to levy special assessments against benefited properties in the amount of $38,417 for the Improvement Portion of the Bonds. The assessments will be payable over 10 years, with an interest rate of 1.50 (as provided by the City) and structured for level annual payments of principal. The Plan assumes that the assessments will be levied in 2020 for initial payment in 2021. Special assessments in the amount of $106,480 are deferred for up to 30 years or when construction begins on the property or sale of the property happens, whichever occurs first. Accrued interest of 1.50% will not start until year 15 or when deferment concludes, whichever occurs first. Northland Securities, Inc. Page 3 Sewer Utility Revenues. Net revenues of the sewer utility (operating fund) will be pledged for payment of the 2013A Sewer Revenue Portion of the Refunding Portion of Bonds. The City will covenant to adopt water rates and charges that are sufficient to produce net revenues equal to at least 105% of the debt service requirements on the Sewer Revenue Portion of the Refunding Portion of the Bonds. In the event there is a deficiency in the amount of net revenues available for payment of debt service, the City may levy taxes to cover the insufficiency, but only on a temporary basis until rates are adjusted. Property Taxes. The remaining revenues needed to pay debt service on the Bonds are expected to come from property tax levies. The initial projections show an annual tax levy averaging approximately $135,365 is needed to produce the statutory requirement of 105% of debt service, after accounting for assessments. The levy may be adjusted annually based on actual special assessment collections and additional monies in the debt service fund. The initial tax levy will be made in 2021 for taxes payable in 2022 for the Improvement Portion and CIP Portion of the Bonds. Given the timing of the initial revenue from the tax levy, capitalized interest will be included in the bond issue to cover the first interest payments due through December 15, 2021, before the first tax collections are received. Plan Rationale The Finance Plan recommended in this report is based on a variety of factors and information provided by the City related to the financed project and City of the City and our experience in working with similar cities and projects. The issuance of General Obligation Bonds provides the best means of achieving the cost-effective financing. The City has successfully issued and managed this type of debt for previous projects. Issuing Process The City has engaged Northland to act as underwriter for the Bonds pursuant to federal securities calendar of events for the issuing process can be found in Attachment 4. Underwriter: Northland Securities, Inc., Minneapolis, Minnesota Bond Counsel: Taft Stettinius & Hollister, LLP, Minneapolis, Minnesota Paying Agent: Northland Trust Services, Inc. Minneapolis, Minnesota Northland Securities, Inc. Page 4 Attachment 1 Debt Service Comparison Refunding Portion 2013A Sewer Revenue Portion Existing DateTotal P+ID/SNet New D/SOld Net D/SSavings 12/15/2020-138,271.25137,779.91138,271.25491.34 12/15/2021141,511.79-141,511.79154,022.5012,510.71 12/15/2022140,560.00-140,560.00155,842.5015,282.50 12/15/2023145,087.50-145,087.50157,530.0012,442.50 12/15/2024139,597.50-139,597.50153,890.0014,292.50 12/15/2025143,990.00-143,990.00154,990.0011,000.00 12/15/2026143,220.00-143,220.00155,535.0012,315.00 12/15/2027142,310.00-142,310.00155,915.0013,605.00 12/15/2028141,260.00-141,260.00155,550.0014,290.00 Total$1,137,536.79$138,271.25$1,275,316.70$1,381,546.25$106,229.55 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings.....................102,458.19 Net PV Cashflow Savings @ 0.832%(Bond Yield).....102,458.19 Contingency or Rounding Amount....................491.34 Net Present Value Benefit $102,949.53 Net PV Benefit / $1,197,662.03 PV Refunded Debt Service8.596% Net PV Benefit / $1,075,000 Refunded Principal...9.577% Net PV Benefit / $1,105,000 Refunding Principal..9.317% Northland Securities, Inc. Page 5 2013A Improvement Portion Northland Securities, Inc. Page 6 Attachment 2 Preliminary Debt Service Schedules Combined *Based on estimated bank qualified rates as September 11, 2020. Northland Securities, Inc. Page 7 Improvement Portion CIP Portion DatePrincipalCouponInterestTotal P+IFiscal Total 11/12/2020----- 06/15/2021--3,656.503,656.50- 12/15/2021--3,090.003,090.006,746.50 06/15/2022--3,090.003,090.00- 12/15/202260,000.000.350%3,090.0063,090.0066,180.00 06/15/2023--2,985.002,985.00- 12/15/202360,000.000.350%2,985.0062,985.0065,970.00 06/15/2024--2,880.002,880.00- 12/15/202460,000.000.450%2,880.0062,880.0065,760.00 06/15/2025--2,745.002,745.00- 12/15/202560,000.000.550%2,745.0062,745.0065,490.00 06/15/2026--2,580.002,580.00- 12/15/202660,000.000.650%2,580.0062,580.0065,160.00 06/15/2027--2,385.002,385.00- 12/15/202760,000.000.750%2,385.0062,385.0064,770.00 06/15/2028--2,160.002,160.00- 12/15/202860,000.000.900%2,160.0062,160.0064,320.00 06/15/2029--1,890.001,890.00- 12/15/202960,000.001.050%1,890.0061,890.0063,780.00 06/15/2030--1,575.001,575.00- 12/15/203060,000.001.150%1,575.0061,575.0063,150.00 06/15/2031--1,230.001,230.00- 12/15/203160,000.001.250%1,230.0061,230.0062,460.00 06/15/2032--855.00855.00- 12/15/203260,000.001.350%855.0060,855.0061,710.00 06/15/2033--450.00450.00- 12/15/203360,000.001.500%450.0060,450.0060,900.00 Total$720,000.00-$56,396.50$776,396.50- Northland Securities, Inc. Page 8 2013A Sewer Revenue Portion 2013A Improvement Portion Northland Securities, Inc. Page 9 Attachment 3 Estimated Levy Schedule Improvement Portion CIP Portion Northland Securities, Inc. Page 10 Attachment 4 Related Considerations Bank Qualified We understand the City (in combination with any subordinate taxing jurisdictions or debt issued ame by 501(c)3 corporations) anticipates issuing $10,000,000 or less in tax-exempt debt during this calendar year. Therefore, the Bonds will obligations pursuant to Federal Tax Law. Arbitrage Compliance Project/Construction Fund. All tax-exempt bond issues are subject to federal rebate requirements which require all arbitrage earned to be rebated to the U.S. Treasury. A rebate exemption the City expects to qualify for is small issuer exemption. Debt Service Fund. The City must maintain a bona fide debt service fund for the Bonds or be subject to yield restriction in the debt service fund. A bona fide debt service fund involves an equal matching of revenues to debt service expense with a balance forward permitted equal to the greater of the investment earnings in the fund during that year or 1/12 of the debt service of that year. The City should become familiar with the various Arbitrage Compliance requirements for this bond issue. The Resolution for the Bonds prepared by Bond Counsel explains the requirements in greater detail. Continuing Disclosure Type: Full Dissemination Agent: Northland Securities The requirements for continuing disclosure are governed by SEC Rule 15c2-12. The primary requirements of Rule 15c2-12 actually fall on underwriters. The Rule sets forth due diligence needed prior to purchase of municipal securities. Part of this requirement is obtaining commitment from the issuer to provide continuing disclosure. The document describing the continuing discnder Official Statement that will be prepared to offer the Bonds to investors. continuing disclosure. Full disclosure requires annual posting of the audit and a separate events set forth in the Rule, including, but not limited to, bond rating changes, call notices, and issuance agreements) must be reported within ten days of occurrence. The report contains annual financial Statement. The specific contents of the annual report will be described in the Undertaking that appears in the appendix of the Official Statement. Northland currently serves as dissemination agent for the City, assisting with the annual reporting. The information for the Bonds will be incorporated into the reporting. Premiums In the current market environment, it is likely that the proposed pricing will include premiums. A premium price occurs when the underwriter pays the City an amount in excess of the par amount of a maturity in exchange for a higher coupon (interest rate). The use of premiums reflects Northland Securities, Inc. Page 11 factors. City, regardless of premium. A premium price produces additional funds that can be used in several ways: The premium means that the City needs less bond proceeds and can reduce the size of the issue by the amount of the premium. The premium can be deposited in the Construction Fund and used to pay additional project costs, rather than used to reduce the size of the issue. The premium can be deposited in the Debt Service Fund and used to pay principal and interest. Northland will work with City staff prior to the day of pricing to determine use of premium (if any). Rating obligation debt is currently rated "AA-" by S&P. The rating process will include a conference call with the rating analyst. Northland will assist City staff in preparing for and conducting the rating call. Northland Securities, Inc. Page 12 Attachment 5 Calendar of Events The following checklist of items denotes each milestone activity as well as the members of the finance team who will have the responsibility to complete it. Please note this proposed timetable assumes regularly scheduled City Council meetings. Ɏ Date Action Responsible Party August 10 Resolution for Public Hearing on the Capital Bond Counsel Improvement Plan (CIP) and Intent to Issue CIP Bonds to finance public works building distributed to City City Council Action August 17 Construction Bid Award Resolution Calling for Public Hearing on the Capital Improvement Plan (CIP) and Intent to Issue CIP Bonds to finance public works building August 18 Draft CIP distributed to City staff Bond Counsel August 20 General Information Certificate sent to City for Northland completion August 24 City to submit hearing notices for CIP to the City Staff newspaper by this date August 25 Public Hearing Notice for CIP Hearing Published no City Staff later than this date August 27 City returns General Information Request to Northland City Staff September 1 Council to discuss proposed refunding of existing City Staff, City bonds and provide direction to City Staff on Council Action proceeding September 2 Northland and Bond Counsel to distribute documents Northland, Bond for September 8 City Council meeting Counsel Northland Securities, Inc. Page 13 DateActionResponsible Party September 8 City to approve resolution rescinding resolution calling City Staff, City for Improvement Hearing (to combine project) Council Action Public Hearing Resolution Approving the Capital Improvement Plan and Issuance of the bonds Adopted (3/5 vote required) September 15 Preliminary Official Statements Sent Rating Agency Northland and to City for Sign Off September 15 Finance Plans and Trigger Resolutions sent to City Northland September 21 City Council to Review Finance Plans and Resolutions Northland, City Council Action 2020C Bonds adopted (Mayor and Finance Director to be given the authority to sign bond purchase agreements for the 2020B Bonds and the 2020C Bonds) 6:00 p.m. City provides pre-paid assessment amount to Northland Pricing Opinion RFQ information provided to City Week of September Rating Call Northland, City, 21 or 28 Rating Agency October 7 Rating Received Northland, City, Rating Agency October 13 Awarding Resolutions sent to City Northland, Bond Counsel October 7 Pricing Opinion RFQ due (Series 2020B issue only) City Staff Municipal Advisor Selected by City to provide Pricing Opinion for 2020B October 8 Reverse Referendum Period for CIP over October 15 Pre-pricing call to discuss proposed bond rate scale City Staff, Northland, call to be held after 2 p.m. Municipal Advisor October 19 Pricing Date City Staff, MA, Post-Pricing call to discuss results of order period Northland, City Council Action approximately 11:30 a.m. Bond Purchase Contracts for the 2020B and the 2020C Signed and Awarding Resolution adopted 6:00 p.m. Debt study to be presented to City Council November 12 Closing on the Bonds. 2020B New Money Proceeds Northland, City Staff, Wired to City. 2020B Refunding Proceeds Wired to Bond Counsel Paying Agent of the Refunded Bonds. 2020C Refunding Proceeds Wired to Escrow Agent. Northland Securities, Inc. Page 14 Attachment 6 - Risk Factors Property Taxes: Property tax levies shown in this Finance Plan are based on projected debt service and other revenues. Final levies will be set based on the results of sale. Levies should be reviewed annually and adjusted as needed. The debt service levy must be included in the preliminary levy for annual Truth in Taxation hearings. Future Legislative changes in the property tax system, including the imposition of levy limits and changes in calculation of property values, would affect plans for payment of debt service. Delinquent payment of property taxes would reduce revenues available to pay debt service. Special Assessments: Special assessments for the financed projects have not been levied at this time. This Finance Plan is based on the assumptions listed earlier in this report. Changes in the terms and timing for the actual assessments will alter the projected flow of funds for payment of debt service on the Bonds. Also, special assessments may be prepaid. It is likely that the income earned on the investment of prepaid assessments will be less than the interest paid if the assessments remained outstanding. Delinquencies in assessment collections would reduce revenues needed to pay debt service. The collection of deferred assessments, if any, have not been included in the revenue projections. Projected assessment income should be reviewed annually and adjusted as needed. Sewer Utility Revenues: The City pledges the net revenues of the sewer utility to the payment of principal and interest on the Bonds. The failure to adjust rates and charges as needed and the loss of significant customers will affect available net revenues. If the net revenues are insufficient, the City is required to levy property taxes or use other revenues to cover the deficiency. Property taxes can only be used on a temporary basis and may not be an ongoing source of revenue to pay debt service. General: In addition to the risks described above, there are certain general risks associated with the issuance of bonds. These risks include, but are not limited to: Failure to comply with covenants in bond resolution. Failure to comply with Undertaking for continuing disclosure. Failure to comply with IRS regulations, including regulations related to use of the proceeds and arbitrage/rebate. The IRS regulations govern the ability of the City to issue its bonds as tax-exempt securities and failure to comply with the IRS regulations may lead to loss of tax- exemption. Northland Securities, Inc. Page 15 Finance Plan City of St. Joseph, Minnesota $1,800,000 Taxable General Obligation Crossover Refunding Bonds, Series 2020C September 21, 2020 th 150 S 5 Street Suite 3300 Minneapolis, MN 55402 612-851-5900 800-851-2920 www.northlandsecurities.com Member FINRA and SIPC | Registered with SEC and MSRB Contents Executive Summary Issue Overview Purpose Authority Structure Security and Source of Repayment Plan Rationale Issuing Process Attachment 1 Preliminary Debt Service Comparison Attachment 2 Preliminary Debt Service Schedule Attachment 3 Related Considerations Not Bank Qualification Arbitrage Compliance Continuing Disclosure Premiums Rating Attachment 4 Calendar of Events Attachment 5 - Risk Factors Executive Summary The following is a summary of the recommended terms for the issuance of $1,800,000 Taxable General Obligation Crossover Refunding Bonds, Series 2020C ). Additional information on the proposed finance plan and issuing process can be found after the Executive Summary, in the Issue Overview and Attachment 3 Related Considerations. Purpose Proceeds from the Bonds will be used to crossover refund the 2022 t Bonds, Series 2014A and to pay the costs associated with the issuance of the Bonds. Security The Bonds will be a general obligation of the City. The City will pledge special assessments collected from benefitted properties, net revenues of the sewer and water utilities, and property tax levies for payment of the Bonds. Repayment Term The Bonds will mature annually each December 15 in the years 2022 through 2032. Interest on the Bonds will be payable on June 15, 2021 and semiannually thereafter on each June 15 and December 15. Refunding Summary Estimated Savings: Dollar savings $119,159 Net Present Value $111,754 Net PV Percent 5.891% Estimated Interest Rate Average coupon: 1.17% True interest cost (TIC): 1.44% Prepayment Option Bonds maturing on and after December 15, 2029 will be subject to redemption on December 15, 2028 and any day thereafter at a price of par plus accrued interest. Rating A r A-" by S&P. Tax Status The Bonds will be taxable and non-bank qualified. Risk Factors There are certain risks associated with all debt. Risk factors related to the Bonds are discussed in Attachment 5. Type of Bond Sale Negotiated Sale Estimated Pricing Day Monday, October 19, 2020 Council Consideration Monday, October 19, 2020 Northland Securities, Inc. Page 1 Issue Overview Purpose Proceeds from the Bonds will be used to crossover refund the 2022 through 2032 maturities of 4A Refunded on December 1, 2021 and to pay the costs associated with the issuance of the Bonds. The Bonds have been sized based on the proceeds required to refund the outstanding maturities of the Refunded Bonds. The table below contains the sources and uses of funds and preliminary interest rates for the bond issue. The Refunded Bonds maturing on and after December 1, 2022 are eligible for call and prepayment on December 1, 2021 . Proceeds of Bonds will be deposited in an escrow account for the Refunded Bonds until December 1, 2021. At that time, monies in the escrow account will be used to prepay all outstanding principal of the Refunded Bonds plus accrued interest. The City will continue to pay principal and interest on the Refunded Bonds until the Call Date. Prior to that date, funds in the escrow account will be used to make the interest payments on the new Series 2020C Bonds. After the Call D and begin paying a portion of the debt service on the Series 2020C Bonds, beginning with the interest payment due on December 15, 2021. The projected annual savings are shown in in Attachment 1. Authority The Bonds will be issued pursuant to the authority of Minnesota Statutes, Chapters 429, 444 and 475. Under Chapter 429, an Improvement means any type of improvement made under authority granted by section 429.021, which includes, but is not limited to, improvements to streets and sidewalks, storm and sanitary sewer systems, and street lighting systems. Prior to issuing the Refunded Bonds under Chapter 429, the City held a public hearing on the improvements and the proposed bonds and passed a resolution ordering the improvements by at least a 4/5 majority. Under Chapter 444, general obligation utility revenue bonds may be issued to build, construct, reconstruct, repair, enlarge, improve, or in any other manner obtain sanitary sewer, water and limits. Northland Securities, Inc. Page 2 Structure The Bonds have been structured to result in relatively level annual savings; however a change in payment dates from December 1 and June 1 to December 15 and June 15 are being and to allow additional time between receipt of tax levy and special assessment collections and payment on the Bonds. The proposed structure for the bond issue and preliminary debt service projections are illustrated in Attachment 2. Security and Source of Repayment The Bonds will be general obligations of the City. The finance plan relies on the following assumptions for the revenues used to pay debt service, as provided by City staff: Special Assessments. There are remaining in special assessment collections for the Improvement Portion of the Refunded Bonds. These remaining amounts were charged at an interest rate of 4.50% and structured for equal annual payments of principal over the term of the Improvement Portion of the Bonds. The City is expected to continue levying special assessments against benefited properties. The assessments originally certified for the Refunded Bonds will be used to pay a portion of the new issue. Water and Sewer Utility Revenues. Net revenues of the water and sewer utilities (operating fund) will be pledged for payment of the Utility Portion of the Refunding Portion of Bonds. The City will covenant to adopt water and sewer rates and charges that are sufficient to produce net revenues equal to at least 105% of the debt service requirements on the Utility Portion of Bonds. In the event there is a deficiency in the amount of net revenues available for payment of debt service, the City may levy taxes to cover the insufficiency, but only on a temporary basis until rates are adjusted. Property Taxes. The remaining revenues needed to pay debt service on the Bonds are expected to come from a property tax levy. The levy will be adjusted annually based on actual special assessment collections, water and sewer utility revenue contributions and additional monies in the debt service fund. Plan Rationale The Finance Plan recommended in this report is based on a variety of factors and information provided by the City related to financed projects and City the City and our experience in working with similar cities and projects. The issuance of General Obligation Crossover Refunding Bonds objectives and cost-effective financing. The City has successfully issued and managed this type of general obligation debt for previous projects. A crossoverue is recommended to achieve the refunding objective for the Refunded Bonds. The remaining average interest rate on the Refunded Bonds is 2.66%. Given current market conditions, Northland estimates the eligible maturities could be refunded with a new bond issue at an average yield of approximately 1.17%. This interest rate spread between the old and new bonds would result in a total debt service cost savings of approximately $119,159 with a present value benefit of $111,754. The savings is net of all financing costs and is an estimated amount. Northland Securities, Inc. Page 3 Issuing Process The City has engaged Northland to act as underwriter for the Bonds pursuant to federal securities regulations. Northland will purchase the Bonds in an The calendar of events for the issuing process can be found in Attachment 4. Underwriter: Northland Securities, Inc., Minneapolis, Minnesota Bond Counsel: Taft Stettinius & Hollister, LLP, Minneapolis, Minnesota Paying Agent: Northland Trust Services, Inc. Minneapolis, Minnesota Northland Securities, Inc. Page 4 Attachment 1 Preliminary Debt Service Comparison Combined Improvement Portion DateTotal P+IPCFExisting D/SNet New D/SOld Net D/SSavings 12/15/2020--142,417.50139,453.49142,417.502,964.01 12/15/202114,339.04(1,322,771.54)1,482,435.00174,002.50167,435.00(6,567.50) 12/15/2022158,135.00--158,135.00169,935.0011,800.00 12/15/2023162,555.00--162,555.00171,685.009,130.00 12/15/2024156,805.00--156,805.00167,635.0010,830.00 12/15/2025160,862.50--160,862.50168,585.007,722.50 12/15/2026159,662.50--159,662.50169,385.009,722.50 12/15/2027158,237.50--158,237.50170,035.0011,797.50 12/15/2028161,587.50--161,587.50170,535.008,947.50 12/15/2029159,650.00--159,650.00170,730.0011,080.00 12/15/2030162,480.00--162,480.00170,610.008,130.00 Total$1,454,314.04(1,322,771.54)$1,624,852.50$1,753,430.99$1,838,987.50$85,556.51 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings.....................77,700.91 Net PV Cashflow Savings @ 1.172%(Bond Yield).....77,700.91 Contingency or Rounding Amount....................2,964.01 Net Present Value Benefit $80,664.92 Net PV Benefit / $1,425,896.24 PV Refunded Debt Service5.657% Net PV Benefit / $1,315,000 Refunded Principal...6.134% Net PV Benefit / $1,360,000 Refunding Principal..5.931% Northland Securities, Inc. Page 5 Utility Portion Northland Securities, Inc. Page 6 Attachment 2 Preliminary Debt Service Schedule Combined Northland Securities, Inc. Page 7 Improvement Portion Utility Portion Northland Securities, Inc. Page 8 Attachment 3 Related Considerations Not Bank Qualification The Bonds will not Arbitrage Compliance Since the Bonds are taxable, rather than tax-exempt, they will not be subject to rebate. Continuing Disclosure Type: Full Dissemination Agent: Northland Securities The requirements for continuing disclosure are governed by SEC Rule 15c2-12. The primary requirements of Rule 15c2-12 actually fall on underwriters. The Rule sets forth due diligence needed prior to purchase of municipal securities. Part of this requirement is obtaining commitment from the issuer to provide continuing disclosure. The document describing the continuinnder Official Statement that will be prepared to offer the Bonds to investors. The City has more than $10,000,000 of outstanding debt continuing disclosure. Full disclosure requires annual posting of the audit and a separate events set forth in the Rule, including, but not limited to, bond rating changes, call notices, and lease agreements) must be reported within ten days of occurrence. The report contains annual nformation presented in the Official Statement. The specific contents of the annual report will be described in the Undertaking that appears in the appendix of the Official Statement. Northland currently serves as dissemination agent for the City, assisting with the annual reporting. The information for the Bonds will be incorporated into the reporting. Premiums In the current market environment, it is unlikely that the proposed pricing will include premiums due to the taxable status of the Bonds. Rating A r currently rated "AA-" by S&P. The rating process will include a conference call with the rating analyst. Northland will assist City staff in preparing for and conducting the rating call. Northland Securities, Inc. Page 9 Attachment 4 Calendar of Events The following checklist of items denotes each milestone activity as well as the members of the finance team who will have the responsibility to complete it. Please note this proposed timetable assumes regularly scheduled City Council meetings. Ɏ Date Action Responsible Party August 10 Resolution for Public Hearing on the Capital Bond Counsel Improvement Plan (CIP) and Intent to Issue CIP Bonds to finance public works building distributed to City City Council Action August 17 Construction Bid Award Resolution Calling for Public Hearing on the Capital Improvement Plan (CIP) and Intent to Issue CIP Bonds to finance public works building August 18 Draft CIP distributed to City staff Bond Counsel August 20 General Information Certificate sent to City for Northland completion August 24 City to submit hearing notices for CIP to the City Staff newspaper by this date August 25 Public Hearing Notice for CIP Hearing Published no City Staff later than this date August 27 City returns General Information Request to Northland City Staff September 1 Council to discuss proposed refunding of existing City Staff, City bonds and provide direction to City Staff on Council Action proceeding September 2 Northland and Bond Counsel to distribute documents Northland, Bond for September 8 City Council meeting Counsel Northland Securities, Inc. Page 10 DateActionResponsible Party September 8 City to approve resolution rescinding resolution calling City Staff, City Council Action for Improvement Hearing (to combine project) Public Hearing Resolution Approving the Capital Improvement Plan and Issuance of the bonds Adopted (3/5 vote required) September 15 Preliminary Official Statements Sent Rating Agency Northland and to City for Sign Off September 15 Finance Plans and Trigger Resolutions sent to City Northland September 21 City Council to Review Finance Plans and Resolutions Northland, City Council Action 2020C Bonds adopted (Mayor and Finance Director to be given the authority to sign bond purchase agreements for the 2020B Bonds and the 2020C Bonds) 6:00 p.m. City provides pre-paid assessment amount to Northland Pricing Opinion RFQ information provided to City Week of September Rating Call Northland, City, 21 or 28 Rating Agency October 7 Rating Received Northland, City, Rating Agency October 13 Awarding Resolutions sent to City Northland, Bond Counsel October 7 Pricing Opinion RFQ due (Series 2020B issue only) City Staff Municipal Advisor Selected by City to provide Pricing Opinion for 2020B October 8 Reverse Referendum Period for CIP over October 15 Pre-pricing call to discuss proposed bond rate scale City Staff, Northland, call to be held after 2 p.m. Municipal Advisor October 19 Pricing Date City Staff, MA, Post-Pricing call to discuss results of order period Northland, City Council Action approximately 11:30 a.m. Bond Purchase Contracts for the 2020B and the 2020C Signed and Awarding Resolution adopted 6:00 p.m. Debt study to be presented to City Council November 12 Closing on the Bonds. 2020B New Money Proceeds Northland, City Staff, Wired to City. 2020B Refunding Proceeds Wired to Bond Counsel Paying Agent of the Refunded Bonds. 2020C Refunding Proceeds Wired to Escrow Agent. Northland Securities, Inc. Page 11 Attachment 5 - Risk Factors Property Taxes: Final levies will be set based on the results of sale. Levies should be reviewed annually and adjusted as needed. The debt service levy must be included in the preliminary levy for annual Truth in Taxation hearings. Future Legislative changes in the property tax system, including the imposition of levy limits and changes in calculation of property values, would affect plans for payment of debt service. Delinquent payment of property taxes would reduce revenues available to pay debt service. Special Assessments: Special assessments for the financed projects have not been levied at this time. This Finance Plan is based on the assumptions listed earlier in this report. Changes in the terms and timing for the actual assessments will alter the projected flow of funds for payment of debt service on the Bonds. Also, special assessments may be prepaid. It is likely that the income earned on the investment of prepaid assessments will be less than the interest paid if the assessments remained outstanding. Delinquencies in assessment collections would reduce revenues needed to pay debt service. The collection of deferred assessments, if any, have not been included in the revenue projections. Projected assessment income should be reviewed annually and adjusted as needed. Water and Sewer Utility Revenues: The City pledges the net revenues of the water and sewer utilities to the payment of principal and interest on the Bonds. The failure to adjust rates and charges as needed and the loss of significant customers will affect available net revenues. If the net revenues are insufficient, the City is required to levy property taxes or use other revenues to cover the deficiency. Property taxes can only be used on a temporary basis and may not be an ongoing source of revenue to pay debt service. General: In addition to the risks described above, there are certain general risks associated with the issuance of bonds. These risks include, but are not limited to: Failure to comply with covenants in bond resolution. Failure to comply with Undertaking for continuing disclosure. Failure to comply with IRS regulations, including regulations related to use of the proceeds and arbitrage/rebate. The IRS regulations govern the ability of the City to issue its bonds as tax-exempt securities and failure to comply with the IRS regulations may lead to loss of tax- exemption. Northland Securities, Inc. Page 12 Council Agenda Item 4f MEETING DATE: September 21, 2020 AGENDA ITEM: Meeting Video Attendant SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION:The positionof meeting video attendant has been posted for a couple months and an application was received. Staff interviewed for the Meeting Video Attendant to record the City Council and Planning Commission Meetings. The recommendation is to hire Maria Hamilton with an anticipated start date in December. Untilthen, staff recommends reaching out to community center employees to see if they would like to fill in and be backup once Maria starts. BUDGET/FISCAL IMPACT: ATTACHMENTS: Request for Council Action REQUESTED COUNCIL ACTION: Approve the hiring of Maria Hamilton as meeting video attendant and allow staff the ability to hire community center employees to serve as fill ins and backup as needed. Council Agenda Item 4g MEETING DATE: September 21, 2020 AGENDA ITEM: Parklet SUBMITTED BY: Administration/Community Development BOARD/COMMISSION/COMMITTEE RECOMMENDATION: Approve parklet for 2021 season. PREVIOUS COUNCIL ACTION: On July 6, 2020 the City Council approved the pilot parklet for the summer/fall 2020 season. BACKGROUND INFORMATION:Matt Lindstrom, resident and CSB/SJU Professor is leading the construction of the parklet. The parklet was planned to be installed in front of MN Street Market in August through the end of October weather permitting as a pilot project. Up to $1,000 in grant funding from Stearns County Public Health through the Statewide Health Improvement Program (SHIP), along with matching funds of $1,000 from the Eugene McCarthy Center for Public Policy and Civic Engagement would fund the project, along with in-kind support through Lindstrom. There has been a delay in the construction of parklet; therefore, installation is now planned in the spring/summer2021 through October 2021 weather permitting. BUDGET/FISCAL IMPACT: ATTACHMENTS: REQUESTED COUNCIL ACTION: Approve parklet to be installed in spring/summer 2021 through October 2021 weather permitting. Council Agenda Item 4h MEETING DATE: September 21, 2020 AGENDA ITEM: Stearns Co & City CARES funding Agreement SUBMITTED BY: Administration/Community Development STAFF RECOMMENDATION: Approve Stearns County/City of St. Joseph subrecipient agreement PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION: Stearns County is willing to send CARES funding to the City in order for the City of St. Joseph to grant each individual applicant up to $15,000 for eligible costs. The City of St. Joseph committed $56.000 toward CARES funding grants to St. Joseph Businesses. The City had more requests than funding available. The subrecipient agreement would need to be completed, signed and returned to Stearns County prior to the County releasing funds to the City. BUDGET/FISCAL IMPACT: ATTACHMENTS: Draft Stearns County Subrecipient Agreement REQUESTED COUNCIL ACTION: Approve Stearns County subrecipient agreement for CARES funding between Stearns Co. & City of St. Joseph. T F A R D T F A R D T F A R D T F A R D Council Agenda Item 5 MEETING DATE:September 21, 2020 AGENDA ITEM: 2021 Preliminary Budget SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The EDA, and Fire Board submitted their budget proposals and are included in the preliminary city budget. PREVIOUS COUNCIL ACTION: Councilmembers were given the opportunity to discuss their budget priorities at each meeting since April. Updates were added to the agenda as recommendations were received. City council agreed to bond refinancing and early payoffs with the upcoming bond issue. th BACKGROUND INFORMATION: The draft budget presented to the city council at the Sept. 8 council meeting. The budgeted reflected a tax rate decrease of 3%. The levy is proposed to increase 2%; however, the taxable market value is estimated to increase 6.5% and the annexed commercial/industrial properties are paying 6.59% higher in the tax rate per the OAA agreement. The estimated effect on an urban $150,000 home is a tax decrease of $42.85. This same home may see about a $5.00 increase if the home sees the 6.5% market value increase. To reiterate previous budget discussions, the following items impacted the 2021budget: Staffing Changes: COPS grant police officer continues Add full time police officer in July 2021 Add a winter seasonal PW staff Operations: Union contracts: LELS and AFSCME contracts are settled through 12/31/22. The second year contract agreed to a 2% general wage increase. Professional services: based on historical costs, anticipated projects and notification of fee increases, the professional services budget increased. Membership Dues/Community Support agreed by city council in August Capital Equipment Plan: The following equipment purchases are anticipated in 2021: Public Admin Police WorksFireEDAPark Board NoneMobile RadiosSeal CoatTurnout Business Monument Park GearDevelopmentRepairs Squad lease Dredge Ladder Millstream Irrigation buyoutMillstream Truck Pond Tasers Fuel Tank East Park Development Squad Equip Old Amphitheatre Garage Updates Centennial Park Toddler Play Equip Rec Center Planning? Capital Improvement Plan: Capital improvements for 2021 have been approved by city council for the feasibility studies: ~ Minnesota Streetscape Repairs th ~ 18 Ave Improvements ~ Street Overlays ~ West Alley Improvements Levy: Below is a summary of the current and estimated 2021 levies summary. Preliminary 2020 Final 2021 Est. Estimated City of St. JosephFinal 2020Levy 2021 LevyTax Rate Tax Rate TMV chg Urban Residential $2,633,076$2,652,11562,55% 59.16% 6.5% OAA Rural Residential$80,839 $80,541 22.29% 21.11% 5.2% OAA Commercial/Industrial$179,070$225,21928.51%35.10%2.2% BUDGET/FISCAL IMPACT: $4,122,315 general fund expenditure budget $4,100,000 general fund revenue budget $2,957,875 operating levy $875,500 debt levy ATTACHMENTS: Request for Council Action– 2021 Preliminary General Budget/Levy Resolution 2020-039 Adopting 2021 Preliminary Budget and Tax Levy 2021 Preliminary General Revenue Budget 2021 Preliminary General Expenditure Budget 2021 Preliminary Tax Capacities and Debt Levy REQUESTED COUNCIL ACTION: If the Council is accepting of the preliminary budget, the resolution could be executed stating the public hearing for the final budget will be held on December 7, 2020 at 6:00 PM in the council chambers. Resolution 2020-039 adopting the preliminary 2021 General Fund Budget and proposed 2020 tax levy, collectible in 2021. RESOLUTION 2020-39 RESOLUTION ADOPTING THE PRELIMINARY 2021 GENERAL FUND BUDGET AND PROPOSED 2020 TAX LEVY, COLLECTIBLE IN 2021 NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH, MINNESOTA, AS FOLLOWS: That a preliminary 2021 General Fund Budget of $4,122,315 is hereby adopted and that the following is the preliminary tax levy collectible in 2021, to be levied upon taxable property in the City of St. Joseph, for the following purposes: General Fund (TAGS 8402/8403) $ 1,776,615 General Fund (TAGS 8404/8406) 80,541 General Fund (TAGS 8405/8407) 225,219 Bonded Indebtedness (TAGS 8402/8403): 2010 Bonds 15,000 2014 Bonds 110,000 2015 Bonds 175,000 2016 Bonds 270,000 2017 Bonds 20,000 2018 Bonds 57,500 2019 Bonds 155,000 2020 Bonds 73,000 Total Preliminary Levy $ 2,957,875 The City Administrator is hereby instructed to transmit a copy of this Resolution to the Stearns County Auditor/Treasurer in the State of Minnesota. The motion for adoption of the foregoing Resolution was duly seconded by Council Member ___________________ and, upon vote taken thereon, the following voted in favor thereof: And the following voted against the same: And the following were absent: st WHEREUPON, the Resolution was declared passed and adopted this 21day of September, 2020. Rick Schultz, Mayor ATTEST Therese Haffner, Administrator City of St. Joseph, Minnesota Debt Levy Summary For the Year Payable 2021 TAGS 8402,8403 2021 Levy Sum FundProject NameDebt Levy Year by Year 3452010B GO Improvement Bonds $790K15,000.00 10 15,000.00 3502020C GO CO Refunding Bonds $1.36M 110,000.00 14 110,000.00 3512015A GO Improvement Bonds $595K25,000.00 3532015B GO Exempt Abatement Bonds $1.840M150,000.00 15 175,000.00 3012016A GO Capital Improvement Bonds $4.335M265,000.00 3042016B GO Improvement Bonds $740K5,000.00 16 270,000.00 3052017B GO Improvement Bonds $378K20,000.00 17 20,000.00 3062018A GO Equipment Certificates $265K57,500.00 18 57,500.00 3072019A GO Improvement Bonds $1.535M155,000.00 3082019A GO Improvement Bonds $2.17M- 19 155,000.00 3092020A GO Equipment Certificates $220K48,000.00 3482020B GO Refunding Bonds $195K 25,000.00 3502020C GO CO Refunding Bonds $1.36M - 3102020B GO Improvement Bonds- 3112020B GO CIP Bonds -20 73,000.00 875,500.00 875,500.00 2020 Debt Levy 838,910.00 increase 36,590.00 Misc:25 City of St. Joseph, Minnesota 2021 Net Tax Capacity Draft as of September 8, 2020 Net Tax Capacity 4,483,1144,209,497(Stearns County Estimate) 20202021 2021 Levy Limitn/a 9.12%6.50% TAGS 8402,8403TAGS 8402,8403 Estimated Tax Impact of the 2021 Budget Adopted 2020Draft 2021 Tax Rate LevyLevy Change General Fund Levy1,664,936 39.552%1,697,795 37.871%-1.681% Country Manor's Abate - EDA15,000 0.356%21,000 0.468%0.112% EDA Levy 2.602%98,905109,530 2.206%-0.396% Park Dedication Fund 0.475%30,00020,000 0.669%0.194% General Equip Fund134,700 3.200%78,915 1.760%-1.440% sales tax abatement(150,000) -3.563% -3.346%0.217%(150,000) Bond 201010,000 0.238%15,000 0.335%0.097% Bond 201180,910 1.922%- 0.000%-1.922% Bond 201325,000 0.594%- 0.000%-0.594% Bond 2014105,000 2.494%110,000 2.454%-0.041% Bond 2015205,000 4.870%175,000 3.904%-0.966% Bond 2016260,000 6.177%270,000 6.023%-0.154% Bond 201720,000 0.475%20,000 0.446%-0.029% Bond 201858,000 1.378%57,500 1.283%-0.095% Bond 201975,000 1.782%155,000 3.457%1.676% Bond 2020- 0.000%73,000 1.628%1.628% 2,652,112,633,0765-0.183% 62.551% 59.15792,957,875%debt levy 2,892,985 w/OAA Properties Operational Levy % change 20 to 21-0.90%Urban Tax Cap. Chg-3.393%$ 64,890.00 Operational Levy $ change 20 to 21(17,551)$ urban levy change$ 19,039 2.243% Debt Levy % change 20 to 21-5.29%levy % change 0.72% Debt Levy $ change 20 to 21(36,410)$ 2021 Net Tax2021 Tax Impact Analysis2020 NTC2020 TaxCapacityImpact 150,000 Homestead 1263790.02 1,263 747.16 Increase in taxes-5.42% (42.85) 200,000 Homestead 18081,130.92 1,808 1,069.57 Increase in taxes-5.42% (61.34) 250,000 Homestead 23531,471.82 2,353 1,391.98 Increase in taxes-5.42% (79.84) 500,000 Business 5,785.959,250 9,250 5,472.10 Increase in taxes-5.42% (313.85) 1,000,000 Business 12,041.0419,250 19,250 11,387.89 Increase in taxes-5.42% (653.15) $1 M 20 Unit Apt. 7,818.8612,500 12,500 7,394.73 Increase in taxes-5.42% (424.12) Tax Capacity rate change by 1%$ 46,000 City of St. Joseph, Minnesota 2021 Net Tax Capacity Draft as of September 8, 2020 Net Tax Capacity 381,475362,721 628,031 641,597(Stearns County Est.) 20205.17%202120202.16%2021 2021 Levy Limitn/a ruralruralcomm/indcomm/ind TAG 8404,8406TAG 8404,8406TAG 8405,8407TAG 8405,8407 Estimated Tax Impact of the 2021 Budget Adopted 2020Draft 2021Draft 2021Adopted 2020 Rural Residential LevyRural Residential LevyOAA Comm/Ind LevyOAA Comm/Ind Levy General Fund Levy80,839 22.287%80,541 21.113%179,070 28.513%225,219 35.103% 80,54180,839 179,070 225,219 22.2868%305,760259,909 21.1130%28.513%35.103% increase 20 to 2145,851 2020 Net Tax2020 Tax2021 Net Tax2021 Tax2020 Net Tax2020 Tax2021 Net Tax2021 Tax Impact AnalysisCapacityImpactCapacityImpactCapacityImpactCapacityImpact 150,000 Homestead 281.481,263 1,263 266.66 1,263 360.12 1,263 443.35 Increase in taxes-1.17%(14.83) 6.59%83.23 200,000 Homestead 402.951,808 1,808 381.72 1,808 515.51 1,808 634.66 Increase in taxes-1.17%(21.22) 6.59%119.15 250,000 Homestead 524.412,353 2,353 496.79 2,353 670.91 2,353 825.97 Increase in taxes-1.17%(27.62) 6.59%155.06 CouncilAgenda Item 6 MEETING DATE:September21, 2020 AGENDA ITEM: Interim Use Permit Requests: a. 110 College Ave N b. 13 Ash St. E SUBMITTED BY: Community Development BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The Planning Commission (5-0) and staff recommend approval of Interim Use Permits for non-owner-occupied residential rentals. PREVIOUS COUNCIL ACTION: On February 13, 2017, the Planning Commission approved interim use permits for the subject properties to allow for non-owner residential rental units for three years. BACKGROUND INFORMATION:Brandon Novak, owner is requesting interim use permits to allow for the continuation of non-owner-occupied residential rentals in the existing single-family homes at the properties addressed 110 College Ave. N & 13 Ash St. E. The properties are in a B-1 Central Business District and are currently rentals. The interim use permits have recently expired. The properties are identified commercial redevelopment areas. Existing single-family dwelling units in the B-1 District are allowed as an interim use for a maximum term of five years but may be less as approved by the City Council after a review and recommendation by the Planning Commission. The maximum density for rental units under the interim use permit shall be limited to the density which is allowed in the R-1, Single Family Residential District. ATTACHMENTS: Resolution 2020-043 Resolution 2020-044 REQUESTED PLANNING COMMISSION ACTION: Motion 1: Move to Approve Resolution 2020-043Adopting Findings of Fact recommending the City Council issue an Interim Permit for five years to allow for a non-owner single family residential rental at 110 College Ave N. Motion 2: Move to Approve Resolution 2020-044 Adopting Findings of Fact recommending the City Council issue an Interim Permit for five years to allow for a non-owner single family residential rental at 18 Ash St. E. RESOLUTION 2020-043 A RESOLUTION ADOPTING FINDINGS OF FACT AND APPROVING AN INTERIM USE PERMIT FOR THE PURPOSES OF A NON-OWNER-OCCUPIED RESIDENTIAL RENTAL WHEREAS, Brandon Novak, hereinafter referred to as “Applicant,” has properly applied for an interim use permit for a non-owner-occupied residential rental on the property generally described as 110 College Avenue North St. Joseph, MN (“Subject Property”); and WHEREAS, the St. Joseph Planning Commission held a public hearing on the interim use permit on h September 14t, 2020, at which time all persons wishing to be heard regarding the matter were given an opportunity to be heard; and WHEREAS, the St. Joseph Planning Commission recommended approval of the interim use permit on September 14, 2020; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA, hereby adopts the following Findings of Fact: 1. That the Subject Property is zoned B-1, Central Business District and a non-owner-occupied single-family residential rental is a permitted interim use. 2. That the Subject Property has been identified as a downtown redevelopment area and the purpose of the redevelopment area is to achieve the highest and best use of the property in accordance with the City’s Comprehensive Plan. 3. That the B-1 District provides for commercial uses, including office, retail, food, beverage, civic and mixed-use developments. 4. That the interim use will not be detrimental to or endanger public health, safety, morals, comfort, or general welfare of the neighborhood and will be harmonious to the to the objectives of the Comprehensive Plan of the City. 5. That the residential rental will be located within the existing single family detached dwelling on the Subject Property and is designed and constructed and will be operated and maintained so as to be harmonious and appropriate in appearance with character of the area and will not be hazardous or disturbing to existing or future neighboring uses. 6. That adequate utilities and services, including utilities, streets, drainage and other necessary facilities have been provided and will not create excessive additional costs for services and/or be detrimental to the economic welfare of the community. 7. That the interim use will not involve activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons, property, or general welfare because of excessive production of traffic, noise, smoke, fumes, glare or odors. 8. That the existing access from College Avenue North provides access to the Subject Property which will not create traffic congestion or interfere with traffic or surrounding public thoroughfares. Page 1 of 2 110 College Ave. N InterimUse Permit 9. That the existing driveway will provide sufficient off-street parking and loading space to serve the proposed use. 10. That the interim use will not result in the loss or damage of natural, scenic or historic feature and the soil conditions are adequate to accommodate the use. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA, as follows: 1. Based on the aforementioned Findings of Fact, the Joseph City Council grants an interim use permit (“Permit”) to allow a non-owner-occupied single-family residential rental on the Subject Property. 2. The property owner shall obtain a rental license prior to renting and annually thereafter. Typical rental permit and inspection fees will apply and be the responsibility of the property owner. 3. The property owner will manage the Subject Property in compliance with the St. Joseph Code of Ordinances. 4. The residential rental on the Subject Property shall be limited to a family as defined within the St. Joseph Code of Ordinances. 5. The dwelling shall be maintained as a single-family dwelling defined as a dwelling occupied by one family and so designed and arranged as to provide cooking and kitchen accommodations and sanitary facilities for one family only. 6. The property owner is responsible for meeting all Federal, State, Local, and City requirements and obtaining any and all permits and licenses. 7. Revocation: The City Council shall revoke the interim use permit when it determines that the terms and conditions of the permit as issued are no longer being complied with. 8. Expiration: The Permit shall expire within five years on September 21, 2025. If within one (1) year after issuance of granting an interim use permit, the use permitted has not started, then the permit is null and void, unless the City Council has approved a petition for an extension. The interim use permit shall expire if the authorized use ceases for any reason for more than one (1) year. 9. The City Administrator and/or his/her designee shall have the right to inspect the premises for compliance and safety purposes annually or at any time upon reasonable request. st Whereupon said resolution was declared duly passed and adopted by the St. City Council this 21day of September, 2020. CITY OF ST. JOSEPH By Rick Schultz, Mayor By Therese Haffner, City Administrator Page 2 of 2 110 College Ave. N InterimUse Permit RESOLUTION 2020-044 A RESOLUTION ADOPTING FINDINGS OF FACT AND APPROVING AN INTERIM USE PERMIT FOR THE PURPOSES OF A NON-OWNER-OCCUPIED RESIDENTIAL RENTAL WHEREAS, Brandon Novak, hereinafter referred to as “Applicant,” has properly applied for an interim use permit for a non-owner-occupied residential rental on the property generally described as 18 Ash Street East St. Joseph, MN (“Subject Property”); and WHEREAS, the St. Joseph Planning Commission held a public hearing on the interim use permit on h September 14t, 2020, at which time all persons wishing to be heard regarding the matter were given an opportunity to be heard; and WHEREAS, the St. Joseph Planning Commission recommended approval of the interim use permit on September 14, 2020; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA, hereby adopts the following Findings of Fact: 1. That the Subject Property is zoned B-1, Central Business District and a non-owner-occupied single-family residential rental is a permitted interim use. 2. That the Subject Property has been identified as a downtown redevelopment area and the purpose of the redevelopment area is to achieve the highest and best use of the property in accordance with the City’s Comprehensive Plan. 3. That the B-1 District provides for commercial uses, including office, retail, food, beverage, civic and mixed-use developments. 4. That the interim use will not be detrimental to or endanger public health, safety, morals, comfort, or general welfare of the neighborhood and will be harmonious to the to the objectives of the Comprehensive Plan of the City. 5. That the residential rental will be located within the existing single family detached dwelling on the Subject Property and is designed and constructed and will be operated and maintained so as to be harmonious and appropriate in appearance with character of the area and will not be hazardous or disturbing to existing or future neighboring uses. 6. That adequate utilities and services, including utilities, streets, drainage and other necessary facilities have been provided and will not create excessive additional costs for services and/or be detrimental to the economic welfare of the community. 7. That the interim use will not involve activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons, property, or general welfare because of excessive production of traffic, noise, smoke, fumes, glare or odors. 8. That the existing access from Ash Street East provides access to the Subject Property which will not create traffic congestion or interfere with traffic or surrounding public thoroughfares. Page 1 of 2 18 Ash St. E Interim Use Permit 9. That the existing driveway will provide sufficient off-street parking and loading space to serve the proposed use. 10. That the interim use will not result in the loss or damage of natural, scenic or historic feature and the soil conditions are adequate to accommodate the use. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA, as follows: 1. Based on the aforementioned Findings of Fact, the Joseph City Council grants an interim use permit (“Permit”) to allow a non-owner-occupied single-family residential rental on the Subject Property. 2. The property owner shall obtain a rental license prior to renting and annually thereafter. Typical rental permit and inspection fees will apply and be the responsibility of the property owner. 3. The property owner will manage the Subject Property in compliance with the St. Joseph Code of Ordinances. 4. The residential rental on the Subject Property shall be limited to a family as defined within the St. Joseph Code of Ordinances. 5. The dwelling shall be maintained as a single-family dwelling defined as a dwelling occupied by one family and so designed and arranged as to provide cooking and kitchen accommodations and sanitary facilities for one family only. 6. The property owner is responsible for meeting all Federal, State, Local, and City requirements and obtaining any and all permits and licenses. 7. Revocation: The City Council shall revoke the interim use permit when it determines that the terms and conditions of the permit as issued are no longer being complied with. 8. Expiration: The Permit shall expire within five years on September 21, 2025. If within one (1) year after issuance of granting an interim use permit, the use permitted has not started, then the permit is null and void, unless the City Council has approved a petition for an extension. The interim use permit shall expire if the authorized use ceases for any reason for more than one (1) year. 9. The City Administrator and/or his/her designee shall have the right to inspect the premises for compliance and safety purposes annually or at any time upon reasonable request. st Whereupon said resolution was declared duly passed and adopted by the St. City Council this 21day of September, 2020. CITY OF ST. JOSEPH By Rick Schultz, Mayor By Therese Haffner, City Administrator Page 2 of 2 18 Ash St. E Interim Use Permit THERESE HAFFNER CITY ADMINISTRATOR 75 Callaway Street East St Joseph, MN 56374 thaffner@cityofstjoseph.com ADMINISTRATION & COMM.DEV.REPORT TO: HONERABLE MAYOR ANDCITY COUNCIL DATE:September 17, 2020 SUMMARY Lori and I reviewed 16 CARES grant applications from local businesses and funded 8 St. Joseph businesses.I have been working with Stearns County on funding those who had additional eligible expenses that exceeded the maximum grant award and those that the City was unable to fund at all since we had more requests than funding available. I had the September Planning Commission meeting and Rick and I attended a St. Joseph Convention and Visitor’s Bureau’s (CVB) meeting. STAFF Met with several staff members individually to provide updates and expectations and will continue to meet on a regular basis. Hannah Kurkowski and I interviewed an applicant to record the city council and planning commission meetings. The Community Development Director position was posted on the city’s and nd League of MN Cities’ websites. The application deadline is Friday, October 2. After that, I will review and score applications with key staff to determine top candidates to interview. The City Council will be interviewing the candidates. Date of interviews to be determined. UPCOMING MEETINGS& EVENTS st Department Head meeting scheduled the week on Sept. 21. I will be meeting with the owner of potential property the city is considering to purchase for public works facilities. A City Council workshop is th scheduled for September 28at 6pm. In early October, I have Zoom meeting with Sue Palmer with CSB. -THERESE LORI BARTLETT FINANCEDIRECTOR 75 Callaway Street East St Joseph, MN 56374 lbartlett@cityofstjoseph.com FINANCE DEPARTMENT REPORT TO: HONORABLE MAYOR AND CITY COUNCIL DATE: September 16, 2020 SUMMARY 2021 Budget: Preliminary included in the packet. I am working with ClearGov to updated the numbers reflecting the preliminary budget. CARES Funds:Dept Heads have been ordering approved items. A few products will be on back-order th due to low supplies. Staff is monitoring to ensure spent by Nov. 15. The grants to small businesses received well over the budget request set aside in the City’s CARES funding. Therese is working with them and Stearns County for applications of any unfunded expenses. Stearns County set up a large fund for business grants for amounts not granted by the cities. Bond issue: Separate agenda item included in the packet. These bonds will also go through a bond rating before they are sold on the market. S&P Global will rate the bonds. Assisted with interviewing Public Works Superintendent. th The July/August utility bills and newsletter were mailed on Sept. 11. Delinquent accounts will be th reviewed for certification at the Oct. 5council meeting. Staff is not shutting off water at this time. STAFF nd Vicky Granite will start Sept. 22. Hannah has done a fantastic job covering the Account Tech workload and was able to get the utility bills mailed on time. She is also updating the SOPs for utility billing to create a smoother transition for Vicky. UPCOMING MEETINGS& EVENTS MnGFOA Webinar: Annual conference – Hannah and Lori will attend Banyon: Utility Billing training scheduled the end of Sept for Hannah, Vicky and Lori VOYA/Insurance Update: VOYA will provide an overview of products they have for employees including the deferred comp program. Peter Omann will provide an update on what health insurance rates and plans are available for 2021. Employees will have the option of individual meetings with VOYA representatives also. -LORI DWIGHT PFANNENSTEIN POLICE CHIEF 75 Callaway Street East St Joseph, MN 56374 POLICE dpfannenstein@cityofstjoseph.com POLICE DEPARTMENT REPORT TO: HONERABLE MAYOR ANDCITY COUNCIL DATE:September 16, 2020 SUMMARY Life has just been busy. Officer Eric Brutger began his first shift with the city on 09/09/2020 andis currently training with the Sergeants. College Students have returned and we have seen an increase in foot traffic, alcohol related medicals and lack of social distancing. This is not something unique only to St. Joe however. The mortality faced by people that fit into that age group doesn’t register that people need to avoid large crowds and wearing of masks. Last year in 2019 the police department used ICRs’ 1862 to 2112 in August for a total of 250 ICRS. This year in 2020 we used ICRS 2188 to 2509 for a total of 321 for the month and YES that is an increase of 71 ICRS from last year. As of the date of this report on 9/16/2020 we are using ICR 2694. That rd ICR last year in 2019 wasn’t used until Oct 23, 2019 after homecoming and Tommy weekend. So, we are still running about a month and a half ahead of past years. We are slowly receiving equipment in from the CARES th money and we are told we will hear the outcome of the body camera grant on or before September 30. Unit 703, a 2016 Chevy Tahoe lease was due up in August 2020 and it was my recommendation with council approval to buy these leases out and run them a bit longer to get full life out of them and decrease the cost to the city. As of the buyout of this lease that unit had 71,000 miles onit and 19,000 more miles of powertrain warranty which will give us 2 more years of life out of the vehicle before selling it off and replacing it. STAFF Nothing to report here. UPCOMING MEETINGS& EVENTS Nothing to report here. -Dwight TERRY THENE PUBLIC WORKS DIRECTOR 75 Callaway Street East St Joseph, MN 56374 tthene@cityofstjoseph.com PUBLIC WORKSREPORT TO: HONERABLE MAYOR AND CITY COUNCIL DATE:September 17, 2020 SUMMARY The PW’s department has been busy maintaining the City through normal task,The remodelproject at the PW’s Department has been started and progressing steadily. The water mains and fire hydrants have been flushed removing natural sediment from the system and verifying the fire hydrant operations throughout the entire City. Street seal coatings is complete for 2020. Trail maintenance will be completed next week. Fog seal on trails is complete. The trail from Jasmine Ln south to the Northland park will have a micro surface installed on the trail next week. Tree’s and planters have been removed from the Mn St scape. Staff is preparing the City th for winter. The 20Ave water main project had its pre-construction meeting and the project will start mid- October. Staff have been working with contractors on multiple projects. STAFF Staff have been flushing water mains and fire hydrants, mowing, preparing for park reservations, mowing turf, ditch cutting, picking up trash, repairing vandalism, repairing sod, patching pot holes, flushing sanitary sewers, reading and repairing water meters, building maintenance and cleaning, equipment maintenance, operations of the two water treatment plants, 5 lift stations and systems, storm sewer system, water sewer inspections, weed control, customer concerns and questions, working with contractors on various items, GSOC Locates. UPCOMING MEETINGS& EVENTS st Bid opening for the Street Scape project will be October 1. Staff will be attending the CMWEA meeting to continue with storm water training and education. Randy Torborg will be taking his boilers exam th next week.Ryan will start October 5. -Terry