The URL can be used to link to this page

Home My WebLink About09.18.23CITY OF ST. JOSEPH www.cityofstjoseph.com St. Joseph City Council September 18, 2023 6:00 PM **The City Council meeting will be conducted in-person in the council chambers of the St. Joseph Government Center. Members of the public can attend in-person or via Zoom. ** Join Zoom Meeting https://us06web.zoom.us/j/83898106483?pwd=BCTpeoB0WURaSmPSqaYx97VoAnRgiE.1 Meeting ID: 838 9810 6483 Passcode: 655634 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 5, 2023. b.Bills Payable – Requested Action: Approve Check Numbers 60964-60988, Account Payable and Payroll EFT #3135-3144, Regular Pay Period 18. c.Treasurer’s Report – Requested Action: Approve the August financial reports as presented. d.Gambling Report – Requested Action: Approve the 1st & 2nd quarter gambling reports. e.Donations – Requested Action: Accept the donations as presented. f.Millstream Dugout Roofs – Requested Action: Approve the quote from Jerome Hartung for new roofs on the dugouts for the east field in Millstream Park in the amount of $6,960.00. g.Vacating Interior Easements Northland Heights Lots 4&5, Block 6 – Requested Action: Approve Resolution 2023-044 Vacating Interior Easements for Lots 4 & 5, Block 6 of Northland Heights. h.Interim Use Permit Renewal – 119 College Ave N – Requested Action: Approve Resolution 2023-045 Adopting Findings of Fact for Issuance of an Interim Use Permit. i.Interim Use Permit Renewal – 119 1st Ave NE – Requested Action: Approve Resolution 2023-046 Adopting Findings of Fact for Issuance of an Interim Use Permit. j.Interim Use Permit Renewal – 30 Birch St E – Requested Action: Approve Resolution 2023-047 Adopting Findings of Fact for Issuance of an Interim Use Permit. k.Interim Use Permit Renewal – 104 1st Ave NW – Requested Action: Approve Resolution 2023-048 Adopting Findings of Fact for Issuance of an Interim Use Permit. 5.Public Hearing – Amendment to Special Event Permit for Rocktoberfest 6.Northland Securities – Tammy Omdal a.Issuance of General Obligation Bonds, Series 2023A b.Debt Management Study c.Early Redemption 2017B GO Improvement Bonds 7.2024 Preliminary Budget 8.Classification and Compensation Study 9.Department Reports 10.Mayor and Council Reports/Updates 75 Callaway Street East | Saint Joseph, Minnesota 56374 Email: cityoffices@cityofstjoseph.com | Phone: 320.363.7201 | Fax 320.363.0342 CITY OF ST. JOSEPH www.cityofstjoseph.com 75 Callaway Street East | Saint Joseph, Minnesota 56374 Email: cityoffices@cityofstjoseph.com | Phone: 320.363.7201 | Fax 320.363.0342 11. Adjourn September 05th, 2023 Page 1 of 3 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Tuesday, September 5th, 2023, at 6:00PM in the St. Joseph Government Center. Members Present: Mayor Rick Schultz, Councilmembers Kevin Kluesner, Bob Loso, Adam Scepaniak, Kelly Beniek City Representatives Present: Administrator David Murphy, Public Works Director Ryan Wensmann, Police Chief Dwight Pfannenstein, City Engineer Randy Sabart, Community Development Director Nate Keller, City Clerk Kayla Klein, Finance Director Lori Bartlett Public Comments: None. Approve Agenda: Kluesner motioned to approve the agenda; adding item 9.5 Change of Venue Request; the motion was seconded by Scepaniak and passed unanimously. Consent Agenda: Loso made a motion to approve the consent agenda; seconded by Kluesner. Schultz pulled item e. for discussion. The motion to approve consent agenda items a. – d. passed unanimously. Consent Agenda: a. Minutes – Requested Action: Approve the minutes of August 21, 2023 and August 22, 2023. b. Bills Payable – Requested Action: Approve Check Numbers 059439-059500, Account Payable EFT #002077-002078; Payroll EFT 112279-112284, Regular Pay Period 17. c. Transfers – Requested Action: Approve the budget transfers as presented. d. Application for Payment 1, 2023 Street Improvements – Requested Action: Approve application for payment 1 to Larson Excavating Contractors, Inc. in the amount of $53,488.45 for the 2023 Street Improvement Project. e. Joint Powers Agreement with School District 742 – Requested Action: Suspend the Joint Powers Agreement with School District 742 indefinitely. Schultz asked Police Chief Pfannenstein to provide clarification regarding the decision to suspend the Joint Powers Agreement (J.P.A.) with School District 742 indefinitely. Pfannenstein explained the St. Joseph Police Department has a J.P.A. with district 742. The J.P.A. blankets the entire St. Joseph Police Department as agents of the school even though the City does not have a dedicated School Resource Officer. Recently, the legislature has changed some language regarding how agents of schools are able to respond to calls. After meeting with Police Chiefs in St. Cloud, Waite Park, Sauk Rapids, and the Stearns County Sherriff, SJPD would like to suspend the J.P.A. indefinitely until the legislature can re-update language. SJPD will continue to have a presence and respond to calls at Kennedy School; the only difference is SJPD officers will no longer be an “agent of the school” following the J.P.A. suspension. Loso made a motion to approve Consent Agenda Item e.; seconded by Beniek and passed unanimously. Conditional Use Permit Request – KAB Land LLC: Keller shared KAB Land LLC has submitted a Conditional Use Permit for a special event facility. The proposed special event facility is an approximately 14,500 square foot building located at 28617 Jade Road, is approximately 60 acres, and zoned rural residential. In May, Council approved an Ordinance Amendment which allowed a special event facility as a Conditional Use in rural residential districts. August 14th the Planning Commission held a Public Hearing, the applicant was the only person to speak. Comments from ISD 742 were received and read aloud by the Community Development Director, Nate Keller. The Planning Commission recommended approval 6-0 of the Finding of Fact resolution with conditions at their special meeting held August 28th. Keller gave a review of the proposed site plan. The proposed outdoor ceremony space is located on the NE corner of the site in a bermed area and is about 10-15’ from grade to the top of the berm. Keller reviewed possible conditions that could be included in the Conditional Use Permit (C.U.P.). Staff recommends a Developers Agreement (D.A.) be executed as a condition of approval which clarifies the location of water and sewer extension. The request for inclusion of a right turn lane has been removed from the D.A. due to criteria not meeting MnDOT requirements. September 05th, 2023 Page 2 of 3 Council and Staff discussed the Finding of Fact Resolution 2023-001 C.U.P. approved by the Planning Commission August 28th. The Council agreed with the Planning Commission recommendations but had the following changes: • Include within the Development Agreement the requirement to have the applicant construct a right turn lane once MnDOT thresholds are met. • Elimination of the language within condition 8 minus the reference to the City Noise Ordinance. • The Council changed the hours of operation for event uses to Sunday – Thursday; 8AM-10PM and Friday-Saturday 6AM–12AM. • Requiring water/sewer to be extended to the driveway entrance. Schultz made a motion to approve the Finding of Fact Resolution 2023-042 with the noted changes to the findings of the CUP as referenced above; seconded by Kluesner and passed unanimously. Variance Request – KAB Land LLC: Keller provided an update to the Council regarding a Variance Request received by KAB Land LLC. The applicant is proposing to surface the parking lots at the Special Event Facility with gravel. The driveway, entrance and drop-off areas will be paved. City Code requires parking lots to be hard surface (asphalt, concrete, pavers, etc.) which is the reason for the variance request. The Planning Commission conducted a public hearing August 28th, the applicant was the only person to speak. The variance was denied by the Planning Commission 5-1 citing the variance request did not meet certain criteria outlined in City Code which would permit the variance. Council and Staff discussed previously approving similar variance requests. Councilmember Loso noted gravel parking lots may help with runoff due to the topography of the site. Loso moved to approve Resolution 2023-043 A Resolution Approving A Variance to the Parking Lot Material Requirements; seconded by Scepaniak. Aye: Beniek, Scepaniak, Loso Motion Prevails: 3:2 Nay: Kluesner, Schultz 2024 Capital Equipment Budget: Bartlett included a summary in the packet of the anticipated 2024 capital projects. Bartlett as well as the City Engineer presented those projects to Council at a workshop held in May. Bartlett informed the Council there are two projects in City of St. Cloud which will need to be completed in 2024 that were not presented at the Council workshop. Those projects include improvements to the main lift station and metro force main replacement. The City of St. Cloud has provided notice to the City of St. Joseph regarding these projects as they have been on their capital plan for the past five years. Bartlett explained she provided each Council member a budget book with a listing that details the equipment and projects split out by department. The EDA and Park Board have reviewed their projects, those proposals are included as well. Loso asked if a timeline of the St. Cloud sewer system projects is available. Bartlett shared they are in the pre-design phase and plan to begin construction on the project late summer of 2024. Council and Staff continued to discuss when the City will have to being making payments on our portion of the project as well as the preliminary estimate of St. Joseph’s portion. Schultz asked Bartlett the cost per year of the meter conversion project. Bartlett responded the City has done about $150,000 to $175,000 in the past and is looking at doubling that so the meter replacement program can be completed within five years. Council agreed to provide feedback regarding the 2024 Capital Equipment Budget to City Administrator David Murphy and Finance Director Lori Bartlett. East Park Final Design Services Agreement: Keller shared the Council approved the LCCMR Grant agreement August 7th, 2023, and the DNR Grant agreement August 15, 2022. Construction of East Park is scheduled to begin in spring of 2024. Before construction can begin, a design proposal and agreement detailing the work S.E.H. will be completing needs to be completed. Keller informed the Council the September 05th, 2023 Page 3 of 3 design work will come with an upfront cost of $82,000 which will be reimbursed as part of the LCCMR funds. After Staff and Council discussion, Council came to consensus and directed Staff to open the East Park Project to an R.F.P. (Request for Proposal). Once those bids come in, the Park Board should review them and provide recommendation. Consideration of Approval of Lobbyist Contract with Flaherty & Hood: City Administrator David Murphy presented the contract for Lobbyist services with Flaherty & Hood. Previously, Council directed Staff to prepare a contract with Flaherty & Hood to lobby on the Cities behalf to include CR 2 Infrastructure Extension and to advocate for the Community Center Project. The contract would begin immediately after execution and continue through June 2024. The contract is $20,000 to be paid in two increments of $10,000. Loso made a motion to Approve the Contract and Authorize the Mayor and City Administrator to execute the contract; seconded by Kluesner and passed unanimously. Change of Venue Request: City Administrator David Murphy informed the Council a Change of Venue Request that was received by the St. Joseph Booster Club for Rocktoberfest, scheduled for September 30th. Staff were informed today that the initial Special Event Permit application had an error and listed the incorrect location for the Rocktoberfest event. The Booster Club would like to hold the event at the St. Joseph Church east parking lot (12 MN St W) instead of the previous location; the St. Joseph Church north parking lot (32 MN St W). Special Event Permits initiate a public hearing because residents within 350 feet of the event need to be notified; a new public hearing would need to be held to allow the change of venue request. Additionally, The Booster Club would need to re-pay the fees to cover the administrative and public hearing costs. Loso made a motion calling for a public hearing on September 18, 2023, to consider an amendment to the Rocktoberfest Special Event Permit; seconded by Kluesner and passed unanimously. Loso asked Staff how much the fee will be for the Booster Club to move the Rocktoberfest location. Murphy replied, the fee will be $500. Loso made a motion to waive $250 of the fee. The motion died on the floor as there was not a second. Mayor and Council Reports and Miscellaneous Business: Schultz referred to the parking incident that occurred on Saturday, August 19th where parking spaces had been blocked off for a local civic group event on the east and west sides of College Ave N. Schultz has since met with those involved and meant no disrespect to any of the local businesses or civic groups but was highlighting the need to be proactive in the future communicating with the city, local businesses and civic groups who hold events where parking may be affected. Schultz gave an overview of the bridge replacement project on CR 75 near the Fleet Farm intersection that is slated to begin Oct/Nov 2023 and end in April/May 2024. Stearns County has proposed and shared two detour routes. One detour route will be taking CR 134 into St. Cloud, the other is to take CR 2 to HWY 94 into St. Cloud. Schultz would like Staff to consider ways to inform businesses, residents, and those in the industrial park about the closure. Schultz suggested reaching out to the Newsleader for publication. Adjourn: Loso made a motion to adjourn at 7:18PM; seconded by Scepaniak and passed unanimously. Kayla Klein City Clerk STAFF MEMO Prepared by: Debbie Kulzer Meeting Date: 9/18/23 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4b Reviewed by: Item: Bills Payables ACTION REQUESTED Approve the bills payables as presented. BOARD/COMMISSION/COMMITTEE RECOMMENDATION none PREVIOUS COUNCIL ACTION See below REFERENCE AND BACKGROUND 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 IMPACT Bills Payable – Checks Mailed Prior to Council Approval Regular PP 18 $63,526.31 Payroll & Accounts Payable EFT #3135 - #3144 $52,361.63 Check Numbers #60964 - #60998 $309,891.74 __________________________________________________ Total $425,779.68 Bills Payable – Checks Awaiting Council Approval Check Numbers #- #60999 - #61008 $32,747.76 Total $32,747.76 Total Budget/Fiscal Impact: $458,527.44 Various Funds STAFF RECOMMENDED ACTION Approve the bills payables as presented. SUPPORTING DATA/ATTACHMENTS Bill listing by EFT, paid prior to council approval and awaiting to be paid upon council approval. GL Check Check Vendor Invoice Invoice Check Period Issue Date Number Number Payee Number GL Account Amount 23-Sep 9/6/2023 ACH PAYROLL REG PP 18 VARIOUS 63,526.31$ 23-Sep 9/1/2023 3135 104139 SENTRY BANK-CREDIT CARD August 23 STMT 601-49420-220 1,296.47$ 23-Sep 9/1/2023 3135 104139 SENTRY BANK-CREDIT CARD August 23 STMT - Fire 210-42210-200 1,110.54$ 23-Sep 9/1/2023 3135 104139 SENTRY BANK-CREDIT CARD August 23 STMT - Kayla 101-41430-331 423.37$ 23-Sep 9/1/2023 3135 104139 SENTRY BANK-CREDIT CARD August 23 STMT - Lori 101-41430-36300 1,505.59$ 23-Sep 9/1/2023 3135 104139 SENTRY BANK-CREDIT CARD August 23 STMT - Nate 250-46500-310 1.00$ 23-Sep 9/1/2023 3135 104139 SENTRY BANK-CREDIT CARD August 23 STMT - PD 101-42152-230 349.53$ 23-Sep 9/1/2023 3135 104139 SENTRY BANK-CREDIT CARD August 23 STMT - Rhonda 101-45204-210 16.17$ 23-Sep 9/1/2023 3136 106705 SPEEDWAY AUGUST 23 STMT 101-43120-205 1,649.51$ 23-Sep 9/1/2023 3137 108126 WEX 0001789946-IN 101-41430-300 3.75$ 23-Sep 9/6/2023 3138 106468 AMERICAN FUNDS PR0901231 101-21705 150.00$ 23-Sep 9/6/2023 3139 1224 EFTPS PR0901231 101-21703 17,918.74$ 23-Sep 9/6/2023 3140 897 MN DEPARTMENT OF REVENUE PR0901231 101-21702 3,834.79$ 23-Sep 9/6/2023 3141 106563 PAYMENT SERVICE NETWORK 282183 101-41530-300 363.40$ 23-Sep 9/6/2023 3142 63 PERA 09/06/23 PP 18 101-41110-121 (0.01)$ 23-Sep 9/6/2023 3142 63 PERA PR0901231 101-21704 19,000.20$ 23-Sep 9/6/2023 3143 105209 SENTRY BANK PR0901231 101-21715 2,188.58$ 23-Sep 9/6/2023 3144 106189 VOYA FINANCIAL PR0901231 101-21705 2,550.00$ 23-Sep 9/1/2023 60964 1238 AFSCME COUNCIL 65 7 101-21707 793.00$ 23-Sep 9/1/2023 60965 102106 ALL CARE TOWING, INC.23-21356 101-42120-436 61.00$ 23-Sep 9/1/2023 60966 38 AUTO VALUE PARTS STORES - WEST 8001930 101-45202-230 327.97$ 23-Sep 9/1/2023 60967 108249 BROWNIE, JANICE 8/28/2023 001-10105 115.46$ 23-Sep 9/1/2023 60968 106494 BRUNO PRESS 7 220-46500-300 750.00$ 23-Sep 9/1/2023 60969 160 CITY OF ST. CLOUD AR029147 602-49480-602 64,063.60$ 23-Sep 9/1/2023 60970 102941 COALITION OF GREATER MN CITIES03.21.23 101-41310-331 170.00$ 23-Sep 9/1/2023 60970 102941 COALITION OF GREATER MN CITIES2023 CGMC Summer Conference101-41310-331 175.00$ 23-Sep 9/1/2023 60971 108248 DOMAIN NETWORKS 9/9/23 - 9/9/24 220-46500-310 289.00$ 23-Sep 9/1/2023 60972 107471 DONE RIGHT CONTRACTING 1434 101-43120-300 13,958.00$ 23-Sep 9/1/2023 60973 592 GALLS, INC 252341430 101-42120-171 116.99$ 23-Sep 9/1/2023 60974 983 LEAGUE OF MN CITIES INS TRUST 08/08/23 - 08/08/24 651-49900-151 92,122.00$ 23-Sep 9/1/2023 60975 1 LEES ACE HARDWARE July 23 STMT Fire 210-42220-585 377.88$ 60976 23-Sep 9/1/2023 60976 151 MACQUEEN EMERGENCY, INC P52079 101-43220-230 1,507.79$ 23-Sep 9/1/2023 60977 107058 METERING & TECHNOLOGY SOLUT INV3210 601-49430-210 173.06$ 23-Sep 9/1/2023 60978 108072 MOMENTUM TRUCK GROUP X194164760:01 101-43125-230 105.38$ 23-Sep 9/1/2023 60979 1616 MVTL LABORATORIES, INC 1213379 602-49480-312 512.60$ 23-Sep 9/1/2023 60979 1616 MVTL LABORATORIES, INC 1214075 602-49480-312 206.80$ 23-Sep 9/1/2023 60980 102301 OFFICE DEPOT August 23 STMT 101-41430-200 138.06$ 23-Sep 9/1/2023 60981 108207 Pomp's Tire Service Inc 900064480 101-43120-230 772.72$ 23-Sep 9/1/2023 60981 108207 Pomp's Tire Service Inc 900064514 101-43120-230 30.00$ 23-Sep 9/1/2023 60982 103323 POWERPLAN July 23 STMT 101-43125-230 116.37$ 23-Sep 9/1/2023 60983 48 SEH, INC 447831 101-43131-303 2,910.00$ 23-Sep 9/1/2023 60984 307 TRAUT COMPANIES 362208 601-49410-300 17,792.50$ 23-Sep 9/1/2023 60984 307 TRAUT COMPANIES 362209 601-49410-300 12,255.50$ 23-Sep 9/1/2023 60985 2022 UNUM LIFE INSURANCE SEPTEMBER 23 LTD, STD 101-21713 2,092.76$ 23-Sep 9/1/2023 60986 108127 WHEELCO INV398983 101-43125-230 576.67$ 23-Sep 9/1/2023 60986 108127 WHEELCO INV398994 101-43125-230 78.63$ 23-Sep 9/1/2023 60986 108127 WHEELCO INV399790 101-43125-230 101.23$ 23-Sep 9/1/2023 60987 108233 WHITE CAP 50023339169 651-49900-220 20.23$ 23-Sep 9/6/2023 60988 105553 CIVICPLUS 272250 109-41430-582 2,576.40$ 23-Sep 9/6/2023 60989 108160 KINETIC 15927 110-45205-300 17,500.00$ 23-Sep 9/6/2023 60990 108251 LARSON EXCAVATING CONTRACTO ST JOE 170731 417-43120-530 50,814.03$ 23-Sep 9/6/2023 60991 1145 LAW ENFORCEMENT LABOR SERVIC 7 101-21707 742.50$ 23-Sep 9/6/2023 60992 108250 LEAGUE OF MINNESOTA CITIES Sept 2023 - Aug 2024 101-41110-433 30.00$ 23-Sep 9/6/2023 60993 15 LEAGUE OF MN CITIES 389184 101-41110-433 8,134.00$ 23-Sep 9/6/2023 60994 106764 O REILLY AUTO PARTS 5771-306794 101-43201-210 14.79$ 23-Sep 9/6/2023 60994 106764 O REILLY AUTO PARTS 5771-307578 101-42152-230 127.40$ 23-Sep 9/6/2023 60995 107773 STERICYCLE, INC.8004598595 101-41430-300 73.95$ 23-Sep 9/6/2023 60996 690 VERIZON WIRELESS 9942746262 101-49302-39260 1,693.33$ 23-Sep 9/6/2023 60997 100136 XCEL ENERGY STMT 842706174 210-42280-383 14,803.29$ 23-Sep 9/12/2023 60998 178 POSTMASTER 09.12.23 602-49490-201 671.85$ 23-Sep 9/13/2023 60999 38 AUTO VALUE PARTS STORES - WEST 8004061 602-49450-230 26.60$ 23-Sep 9/13/2023 60999 38 AUTO VALUE PARTS STORES - WEST 8004397 602-49450-230 127.98$ 23-Sep 9/13/2023 60999 38 AUTO VALUE PARTS STORES - WEST 8004707 101-43201-210 45.48$ 23-Sep 9/13/2023 61000 104694 BADGER METER, INC 80135691 601-49430-210 369.85$ 23-Sep 9/13/2023 61001 105401 BEST-WAY FABRICATING, INC.27646 101-43125-230 75.00$ 23-Sep 9/13/2023 61002 1265 CINTAS CORPORATION NO. 2 Aug 23 STMT 101-41430-210 1,005.50$ 23-Sep 9/13/2023 61003 160 CITY OF ST. CLOUD AR029203 101-41110-433 1,200.00$ 23-Sep 9/13/2023 61004 106971 EO JOHNSON BUSINESS TECH INV1395617 101-41710-310 401.00$ 23-Sep 9/13/2023 61005 108253 HEADSETS.COM 3107409 652-43160-220 249.10$ 23-Sep 9/13/2023 61006 107354 NORTH CENTRAL INTERNATIONAL X220075101:01 101-43125-230 66.24$ 23-Sep 9/13/2023 61007 13 REPUBLIC SERVICES 0891-001298856 603-43230-384 28,627.01$ 23-Sep 9/13/2023 61008 105615 SHIFT TECHNOLOGIES, INC.61904 101-41710-310 241.50$ 23-Sep 9/13/2023 61008 105615 SHIFT TECHNOLOGIES, INC.61955 101-41710-310 312.50$ Payroll $63,526.31 Accounts Payable & Payroll EFT $52,361.63 Check #'s $309,891.74 458,527.44$ Council Approval Checks $32,747.76 STAFF MEMO Prepared by: Lori Bartlett Meeting Date: 9-18-23 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4c Reviewed by: Item: August Treasurer’s Report ACTION REQUESTED Consider acceptance of the treasurer’s reports through August 2023. BOARD/COMMISSION/COMMITTEE RECOMMENDATION none PREVIOUS COUNCIL ACTION none REFERENCE AND BACKGROUND Cash/investment presented as August 31, 2023. Budget to actual reports attached for Council review. The cash and investment balance increased $774,109 since the beginning of the year. The first half taxes and state aids were received until June/July and will be spent down until the second half taxes and aids are received in Dec. The first half of bond interest was paid in June. In addition, a few large assessments were paid off from the industrial park. The bond fund has a sizable balance from prepaid assessments that will be used towards future bond payments. The General fund spent 28% of the expenditure budget and received 32% of the revenue budget at the end of August. Revenues and expenditures are operational in nature. Building permit and development revenue over budget with the positive developments in the industrial park and new apartments along College Ave S. Capital expenditures include squad equipment, capital campaign, tools, surveillance cameras, front end loader and pumper/tanker truck. A large expenditure has been in ice & snow removal with the snow winter we had. Some equipment repairs were incurred on the plow equipment with the heavy, wet, excessive snows. Finance expenditures were higher in this period due to the ABDO consulting contract. Engineering fees are high, but will be reimbursed with project escrows and bonds when issued. The Enterprise funds spent 70% (without depreciation) and received 50% of the revenue budget. The revenue represents the Jan- June usage billed through July. Revenue represents six months received, eight months expensed. The funds represent mainly operational activity. BUDGET IMPACT Information only STAFF RECOMMENDED ACTION Accept the treasurer’s reports through August 2023. SUPPORTING DATA/ATTACHMENTS Cash and Investment Trial Balance Summary Fund Summaries – General Fund Fund Summaries - Enterprise Funds CITY OF ST JOSEPH COMBINED CASH INVESTMENT AUGUST 31, 2023 FOR ADMINISTRATION USE ONLY 67 % OF THE FISCAL YEAR HAS ELAPSED 09/14/2023 01:52PM PAGE: 1 COMBINED CASH ACCOUNTS 001-10100 GENERAL CHECKING 22,884,644.18 TOTAL COMBINED CASH 22,884,644.18 001-10106 VIOLATIONS CASH CLEARING ( 234.53) 001-10107 BUILDING PERMIT CASH CLEARING 234.53 001-10199 CASH ALLOCATED TO OTHER FUNDS ( 22,884,528.72) TOTAL UNALLOCATED CASH 115.46 CASH ALLOCATION RECONCILIATION 101 ALLOCATION TO FUND 101 2,334,445.85 102 ALLOCATION TO EMPLOYEE RETIREMENT RESERVE 369,781.45 104 ALLOCATION TO COVID-19 GRANTS 276,061.54 108 ALLOCATION TO CABLE ACCESS FEE 13,617.65 109 ALLOCATION TO FUND 109 537,999.32 110 ALLOCATION TO FUND 110 326,231.97 200 ALLOCATION TO STATE COLLECTED SALES TAX 1,826,837.08 205 ALLOCATION TO PARK DEDICATION 159,965.56 210 ALLOCATION TO FUND 210 545,000.26 215 ALLOCATION TO CHARITABLE GAMBLING ( 158.42) 220 ALLOCATION TO LODGING TAX 17,989.57 225 ALLOCATION TO DEED CDAP GRANT 54,363.97 250 ALLOCATION TO REVOLVING LOAN FUND 40,026.76 251 ALLOCATION TO FUND 251 468,931.97 253 ALLOCATION TO FUND 253 24,504.30 257 ALLOCATION TO FUND 257 39,966.29 259 ALLOCATION TO FUND 259 990.34 301 ALLOCATION TO 2016 CIP BONDS [GOVT CENTER] 305,768.77 302 ALLOCATION TO 2022A GO ABATE BONDS[COMMCTR1] 228,627.77 304 ALLOCATION TO 2016 STREET IMP [FIELD ST] 234,873.92 305 ALLOCATION TO 2017B STREET IMP [CBD ALLEYS] 27,640.27 306 ALLOCATION TO 2018 EQUIPMENT CERTIFICATES 30,572.47 307 ALLOCATION TO 2019A STREET IMP [OVERLAYS] 306,373.04 308 ALLOCATION TO 2019A STREET IMP [IND PARK] 1,022,794.03 309 ALLOCATION TO 2020A EQUIPMENT CERTIFICATES 21,372.81 310 ALLOCATION TO 2020B GO IMP [20TH AVE SE] 108,545.65 311 ALLOCATION TO 2021 IMPROVE [MN ST/OVERLAYS] 159,314.55 312 ALLOCATION TO 2020B CIP BONDS [PW BLDG] 39,587.88 313 ALLOCATION TO 2020B REFUND BONDS [2013 STR.] 49,189.86 314 ALLOCATION TO 2020C CO REFUND [2014 PARK TER 106,549.70 315 ALLOCATION TO 2022 GO IMPROVEMENT BONDS 115,117.27 316 ALLOCATION TO 2022A GO EQUIP CERT.[FD TRUCK] 305,985.56 317 ALLOCATION TO FUND 317 12,714.19 402 ALLOCATION TO COMMUNITY CENTER PHASE I 6,124,498.96 410 ALLOCATION TO 2020 20TH AVE WATERMAIN LOOP 386,103.76 411 ALLOCATION TO 2021 MN/ALLEY/18/20/NORTHLAND 427,380.43 415 ALLOCATION TO 2022 STREET OVERLAYS 47,467.70 417 ALLOCATION TO 2023 STREET IMP/ELM ST ROW ACQ 14,716.41 418 ALLOCATION TO FUND 418 ( 132,070.00) 501 ALLOCATION TO WAC FUND 543,541.14 502 ALLOCATION TO SAC FUND 169,182.80 CITY OF ST JOSEPH COMBINED CASH INVESTMENT AUGUST 31, 2023 FOR ADMINISTRATION USE ONLY 67 % OF THE FISCAL YEAR HAS ELAPSED 09/14/2023 01:52PM PAGE: 2 601 ALLOCATION TO WATER FUND 1,550,525.93 602 ALLOCATION TO SEWER FUND 2,863,809.68 603 ALLOCATION TO REFUSE COLLECTION 189,850.36 651 ALLOCATION TO STORM WATER UTILITY 472,081.25 652 ALLOCATION TO STREET LIGHT UTILITY 115,857.10 TOTAL ALLOCATIONS TO OTHER FUNDS 22,884,528.72 ALLOCATION FROM COMBINED CASH FUND - 001-10199 ( 22,884,528.72) ZERO PROOF IF ALLOCATIONS BALANCE .00 CITY OF ST JOSEPH FUND SUMMARY FOR THE 8 MONTHS ENDING AUGUST 31, 2023 FUND 101 PERIOD ACTUAL YTD ACTUAL BUDGET VARIANCE PCNT FOR ADMINISTRATION USE ONLY 67 % OF THE FISCAL YEAR HAS ELAPSED 09/14/2023 03:10PM PAGE: 1 REVENUE COUNCIL ( 1,736.54) ( 5,791.09) ( 4,945.00) 846.09 (117.1) LEGISLATIVE COMMITTEES .00 .00 ( 50.00) ( 50.00) .0 ORDINANCE & PROCEEDINGS ( 418.45) ( 3,633.60) ( 1,500.00) 2,133.60 (242.2) MAYOR ( 720.64) ( 2,875.25) ( 1,450.00) 1,425.25 (198.3) GENERAL ADMINSTRATION 45,128.95 2,225,533.36 ( 4,035,220.00) ( 6,260,753.36) 55.2 FINANCE ( 991.12) ( 11,474.06) ( 20,510.00) ( 9,035.94) ( 55.9) CITY ATTORNEY ( 607.50) ( 3,230.00) ( 20,000.00) ( 16,770.00) ( 16.2) INFORMATION TECHNOLOGY ( 1,063.00) ( 14,020.75) ( 14,130.00) ( 109.25) ( 99.2) PLANNING AND ZONING ( 401.50) ( 3,216.47) ( 6,635.00) ( 3,418.53) ( 48.5) GENERAL GOVERNMENT .00 ( 2,599.56) ( 3,160.00) ( 560.44) ( 82.3) GOVERNMENT CENTER ( 2,323.08) ( 25,106.62) ( 37,675.00) ( 12,568.38) ( 66.6) CABLE ACCESS .00 ( 14.99) ( 125.00) ( 110.01) ( 12.0) CRIME CONTROL & INVESTIGATION 25,281.81 59,846.53 ( 309,440.00) ( 369,286.53) 19.3 POLICE TRAINING .00 ( 2,377.95) ( 5,000.00) ( 2,622.05) ( 47.6) COMMUNICATION SERVICE ( 1,178.14)( 8,254.36) ( 11,260.00) ( 3,005.64) ( 73.3) BUILDING INSPEC. ADMISTRATION .00 ( 888.36) ( 285.00) 603.36 (311.7) EMERGENCY MANAGEMENT ( 234.16)( 1,037.83) ( 1,395.00) ( 357.17) ( 74.4) STREET MAINTANENCE 2,915.22 84,050.20 ( 156,990.00) ( 241,040.20) 53.5 ENGINEERING FEE ( 7,810.81) ( 69,824.59) ( 40,000.00) 29,824.59 (174.6) DEPARTMENT 43201 ( 1,453.76) ( 17,255.93) ( 25,735.00) ( 8,479.07) ( 67.1) SKATE PARK AND ICE RINK ( 93.03) ( 844.17) ( 830.00) 14.17 (101.7) BALL PARK .00 2,890.00 ( 1,160.00) ( 4,050.00) 249.1 PARK AREAS 210.56 ( 8,525.30) ( 59,955.00) ( 51,429.70) ( 14.2) RECREATION DEPARTMENT 572.06 378.79 ( 11,560.00) ( 11,938.79) 3.3 OTHER FINANCING SOURCES .00 154,907.94 .00 ( 154,907.94) .0 55,076.87 2,346,635.94 ( 4,769,010.00) ( 7,115,645.94) 49.2 EXPENDITURES COUNCIL 3,639.00 43,174.45 67,340.00 24,165.55 64.1 LEGISLATIVE COMMITTEES .00 1,050.00 4,750.00 3,700.00 22.1 ORDINANCE & PROCEEDINGS 418.45 3,633.60 1,500.00 ( 2,133.60) 242.2 MAYOR 1,742.92 9,275.68 10,850.00 1,574.32 85.5 ELECTIONS .00 .00 6,300.00 6,300.00 .0 GENERAL ADMINSTRATION ( 12,397.21) ( 1,964,581.11) 4,440,830.00 6,405,411.11 ( 44.2) FINANCE 20,677.63 175,960.52 262,305.00 86,344.48 67.1 AUDIT SERVICE 23,500.00 30,500.00 30,500.00 .00 100.0 ASSESSING .00 28,137.34 28,500.00 362.66 98.7 CITY ATTORNEY 607.50 3,230.00 20,000.00 16,770.00 16.2 INFORMATION TECHNOLOGY 1,063.00 15,045.55 14,130.00 ( 915.55) 106.5 PLANNING AND ZONING 41,329.06 92,854.33 160,770.00 67,915.67 57.8 GENERAL GOVERNMENT 1,125.21 13,922.48 9,485.00 ( 4,437.48) 146.8 GOVERNMENT CENTER 5,043.97 42,939.11 60,635.00 17,695.89 70.8 CABLE ACCESS 35.98 1,498.39 4,165.00 2,666.61 36.0 CRIME CONTROL & INVESTIGATION 142,578.22 995,808.79 2,173,115.00 1,177,306.21 45.8 POLICE TRAINING 2,109.60 9,928.90 16,500.00 6,571.10 60.2 COMMUNICATION SERVICE 1,533.14 8,609.36 12,110.00 3,500.64 71.1 AUTOMOTIVE SERVICES 4,187.99 48,982.13 74,060.00 25,077.87 66.1 CITY OF ST JOSEPH FUND SUMMARY FOR THE 8 MONTHS ENDING AUGUST 31, 2023 FUND 101 PERIOD ACTUAL YTD ACTUAL BUDGET VARIANCE PCNT FOR ADMINISTRATION USE ONLY 67 % OF THE FISCAL YEAR HAS ELAPSED 09/14/2023 03:10PM PAGE: 2 BUILDING INSPEC. ADMISTRATION .00 67,549.88 108,320.00 40,770.12 62.4 EMERGENCY MANAGEMENT 234.16 1,647.83 3,345.00 1,697.17 49.3 ANIMAL CONTROL .00 .00 150.00 150.00 .0 STREET MAINTANENCE 49,557.09 131,532.26 535,775.00 404,242.74 24.6 ICE & SNOW REMOVAL 6,141.15 146,161.68 173,775.00 27,613.32 84.1 ENGINEERING FEE 7,810.81 69,824.59 40,000.00 ( 29,824.59) 174.6 DEPARTMENT 43201 25,680.28 49,740.98 36,670.00 ( 13,070.98) 135.6 STREET CLEANING 1,572.53 17,516.80 23,885.00 6,368.20 73.3 SKATE PARK AND ICE RINK 240.03 6,392.77 9,615.00 3,222.23 66.5 BALL PARK 690.31 ( 799.69) 3,210.00 4,009.69 ( 24.9) PARK AREAS 82,500.83 278,024.94 359,545.00 81,520.06 77.3 RECREATION DEPARTMENT 2,712.10 19,436.33 46,215.00 26,778.67 42.1 OTHER FINANCING SOURCES .00 ( 154,907.94) .00 154,907.94 .0 414,333.75 192,089.95 8,738,350.00 8,546,260.05 2.2 ( 359,256.88) 2,154,545.99 ( 13,507,360.00) ( 15,661,905.99) 16.0 CITY OF ST JOSEPH FUND SUMMARY FOR THE 8 MONTHS ENDING AUGUST 31, 2023 EMPLOYEE RETIREMENT RESERVE PERIOD ACTUAL YTD ACTUAL BUDGET VARIANCE PCNT FOR ADMINISTRATION USE ONLY 67 % OF THE FISCAL YEAR HAS ELAPSED 09/14/2023 03:10PM PAGE: 3 REVENUE GENERAL ADMINSTRATION .00 ( 5,988.42) .00 5,988.42 .0 OTHER FINANCING SOURCES .00 .00 ( 56,360.00) ( 56,360.00) .0 .00 ( 5,988.42) ( 56,360.00) ( 50,371.58) ( 10.6) EXPENDITURES GENERAL ADMINSTRATION .00 5,988.42 .00 ( 5,988.42) .0 OTHER FINANCING SOURCES .00 .00 56,360.00 56,360.00 .0 .00 5,988.42 56,360.00 50,371.58 10.6 .00 ( 11,976.84) ( 112,720.00) ( 100,743.16) ( 10.6) CITY OF ST JOSEPH FUND SUMMARY FOR THE 8 MONTHS ENDING AUGUST 31, 2023 COVID-19 GRANTS PERIOD ACTUAL YTD ACTUAL BUDGET VARIANCE PCNT FOR ADMINISTRATION USE ONLY 67 % OF THE FISCAL YEAR HAS ELAPSED 09/14/2023 03:10PM PAGE: 4 REVENUE GENERAL ADMINSTRATION .00 328,908.06 .00 ( 328,908.06) .0 .00 328,908.06 .00 ( 328,908.06) .0 EXPENDITURES GENERAL ADMINSTRATION .00 ( 313,558.66) .00 313,558.66 .0 FINANCE .00 59,063.50 50,630.00 ( 8,433.50) 116.7 CRIME CONTROL & INVESTIGATION 353.60 13,068.62 90,880.00 77,811.38 14.4 353.60 ( 241,426.54) 141,510.00 382,936.54 (170.6) ( 353.60) 570,334.60 ( 141,510.00) ( 711,844.60) 403.0 CITY OF ST JOSEPH FUND SUMMARY FOR THE 8 MONTHS ENDING AUGUST 31, 2023 CABLE ACCESS FEE PERIOD ACTUAL YTD ACTUAL BUDGET VARIANCE PCNT FOR ADMINISTRATION USE ONLY 67 % OF THE FISCAL YEAR HAS ELAPSED 09/14/2023 03:10PM PAGE: 5 REVENUE CABLE ACCESS 197.68 2,888.29 ( 5,800.00) ( 8,688.29) 49.8 197.68 2,888.29 ( 5,800.00) ( 8,688.29) 49.8 EXPENDITURES CABLE ACCESS ( 197.68) ( 2,888.29) 5,800.00 8,688.29 ( 49.8) ( 197.68) ( 2,888.29) 5,800.00 8,688.29 ( 49.8) 395.36 5,776.58 ( 11,600.00) ( 17,376.58) 49.8 CITY OF ST JOSEPH FUND SUMMARY FOR THE 8 MONTHS ENDING AUGUST 31, 2023 FUND 109 PERIOD ACTUAL YTD ACTUAL BUDGET VARIANCE PCNT FOR ADMINISTRATION USE ONLY 67 % OF THE FISCAL YEAR HAS ELAPSED 09/14/2023 03:10PM PAGE: 6 REVENUE DEPARTMENT 41430 .00 49,846.24 ( 111,825.00) ( 161,671.24) 44.6 DEPARTMENT 49302 7,990.00 76,990.00 ( 103,500.00) ( 180,490.00) 74.4 7,990.00 126,836.24 ( 215,325.00) ( 342,161.24) 58.9 EXPENDITURES DEPARTMENT 41430 .00 ( 47,733.51) 119,075.00 166,808.51 ( 40.1) DEPARTMENT 42120 .00 .00 11,775.00 11,775.00 .0 DEPARTMENT 42152 .00 60,594.05 19,850.00 ( 40,744.05) 305.3 DEPARTMENT 42500 .00 .00 1,500.00 1,500.00 .0 DEPARTMENT 43120 .00 6,195.00 2,700.00 ( 3,495.00) 229.4 DEPARTMENT 43125 .00 98,721.23 28,300.00 ( 70,421.23) 348.8 DEPARTMENT 43201 .00 .00 10,000.00 10,000.00 .0 DEPARTMENT 43220 .00 .00 4,000.00 4,000.00 .0 DEPARTMENT 45202 .00 49,697.82 26,450.00 ( 23,247.82) 187.9 DEPARTMENT 49302 ( 7,990.00) ( 76,990.00) 103,500.00 180,490.00 ( 74.4) ( 7,990.00) 90,484.59 327,150.00 236,665.41 27.7 15,980.00 36,351.65 ( 542,475.00) ( 578,826.65) 6.7 CITY OF ST JOSEPH FUND SUMMARY FOR THE 8 MONTHS ENDING AUGUST 31, 2023 FUND 110 PERIOD ACTUAL YTD ACTUAL BUDGET VARIANCE PCNT FOR ADMINISTRATION USE ONLY 67 % OF THE FISCAL YEAR HAS ELAPSED 09/14/2023 03:10PM PAGE: 7 REVENUE DEPARTMENT 41430 .00 5,000.00 ( 10,000.00) ( 15,000.00) 50.0 DEPARTMENT 43120 .00 16,982.39 ( 115.00) ( 17,097.39) 14767. .00 21,982.39 ( 10,115.00) ( 32,097.39) 217.3 EXPENDITURES DEPARTMENT 41430 4,225.00 44,748.90 10,000.00 ( 34,748.90) 447.5 DEPARTMENT 41910 .00 3,543.36 .00 ( 3,543.36) .0 DEPARTMENT 41942 3,400.00 3,400.00 2,000.00 ( 1,400.00) 170.0 DEPARTMENT 42120 3,400.00 3,400.00 2,000.00 ( 1,400.00) 170.0 DEPARTMENT 43120 3,400.00 ( 13,582.39) 2,115.00 15,697.39 (642.2) DEPARTMENT 43201 1,818.12 12,620.56 50,000.00 37,379.44 25.2 DEPARTMENT 45202 3,400.00 3,400.00 22,000.00 18,600.00 15.5 DEPARTMENT 45205 35,000.00 157,539.24 20,000.00 ( 137,539.24) 787.7 54,643.12 215,069.67 108,115.00 ( 106,954.67) 198.9 ( 54,643.12) ( 193,087.28) ( 118,230.00) 74,857.28 (163.3) CITY OF ST JOSEPH FUND SUMMARY FOR THE 8 MONTHS ENDING AUGUST 31, 2023 WATER FUND PERIOD ACTUAL YTD ACTUAL BUDGET VARIANCE PCNT FOR ADMINISTRATION USE ONLY 67 % OF THE FISCAL YEAR HAS ELAPSED 09/14/2023 03:11PM PAGE: 1 REVENUE UTILITIES 3,177.24 639,663.06 ( 1,348,140.00) ( 1,987,803.06) 47.5 POWER AND PUMPING ( 1,072.09) ( 5,000.44) ( 3,390.00) 1,610.44 (147.5) PURIFICATION-PLANT 1 ( 2,045.19) ( 13,577.42) ( 18,415.00) ( 4,837.58) ( 73.7) PURIFICATION-PLANT 2 ( 7,476.40) ( 36,317.08) ( 61,545.00) ( 25,227.92) ( 59.0) WELLHEAD PROTECTION ( 445.50) ( 21,370.55) ( 8,500.00) 12,870.55 (251.4) STORAGE-TOWER 1 ( 669.15) ( 4,912.67) ( 7,760.00) ( 2,847.33) ( 63.3) WATER MAINTENANCE ( 2,250.86) ( 27,656.87) ( 28,875.00) ( 1,218.13) ( 95.8) ADMINISTRATION AND GENERAL ( 106.59) ( 3,734.16) ( 8,425.00) ( 4,690.84) ( 44.3) ( 10,888.54) 527,093.87 ( 1,485,050.00) ( 2,012,143.87) 35.5 EXPENDITURES UTILITIES ( 3,177.24) ( 639,663.06)1,348,140.00 1,987,803.06 ( 47.5) BOND PAYMENT (P & I) 5,800.00 43,410.00 662,750.00 619,340.00 6.6 OTHER FINANCING USES .00 .00 2,510.00 2,510.00 .0 POWER AND PUMPING 31,937.49 36,665.84 48,390.00 11,724.16 75.8 PURIFICATION-PLANT 1 7,014.80 32,147.51 91,415.00 59,267.49 35.2 PURIFICATION-PLANT 2 15,553.55 77,194.68 150,445.00 73,250.32 51.3 DISTRIBUTION 106,041.67 136,424.48 26,000.00 ( 110,424.48) 524.7 WELLHEAD PROTECTION 445.50 21,370.55 8,500.00 ( 12,870.55) 251.4 STORAGE-TOWER 1 669.15 4,912.67 30,060.00 25,147.33 16.3 WATER MAINTENANCE 25,245.60 118,174.76 287,730.00 169,555.24 41.1 ADMINISTRATION AND GENERAL 2,291.27 23,827.04 61,335.00 37,507.96 38.9 DEPRECIATION EXPENSE .00 .00 465,000.00 465,000.00 .0 191,821.79 ( 145,535.53) 3,182,275.00 3,327,810.53 ( 4.6) ( 202,710.33) 672,629.40 ( 4,667,325.00) ( 5,339,954.40) 14.4 CITY OF ST JOSEPH FUND SUMMARY FOR THE 8 MONTHS ENDING AUGUST 31, 2023 SEWER FUND PERIOD ACTUAL YTD ACTUAL BUDGET VARIANCE PCNT FOR ADMINISTRATION USE ONLY 67 % OF THE FISCAL YEAR HAS ELAPSED 09/14/2023 03:11PM PAGE: 2 REVENUE UTILITIES 7,722.69 722,165.34 ( 1,314,688.00) ( 2,036,853.34) 54.9 SANITARY SEWER MAINTENANCE ( 81.18) ( 14,291.75) ( 16,395.00) ( 2,103.25) ( 87.2) LIFT STATION-BAKER STREET ( 300.23) ( 2,617.26) ( 3,925.00) ( 1,307.74) ( 66.7) LIFT STATION-RIDGEWOOD/DBL ( 173.62) ( 1,117.59) ( 1,695.00) ( 577.41) ( 65.9) LIFT STATION-NORTHLAND ( 90.13) ( 666.25) ( 1,060.00) ( 393.75) ( 62.9) LIFT STATION-CR 121 ( 134.24) ( 1,139.79) ( 1,660.00) ( 520.21) ( 68.7) LIFT STATION-MAIN ( 2,415.05) ( 13,053.69) ( 20,260.00) ( 7,206.31) ( 64.4) ADMINISTRATION AND GENERAL ( 164.65) ( 4,597.14) ( 10,290.00) ( 5,692.86) ( 44.7) 4,363.59 684,681.87 ( 1,369,973.00) ( 2,054,654.87) 50.0 EXPENDITURES UTILITIES ( 7,722.69) ( 722,165.34)1,314,688.00 2,036,853.34 ( 54.9) BOND PAYMENT (P & I) .00 6,960.00 144,170.00 137,210.00 4.8 OTHER FINANCING USES .00 .00 25,730.00 25,730.00 .0 SANITARY SEWER MAINTENANCE 14,847.05 38,668.59 290,165.00 251,496.41 13.3 LIFT STATION-BAKER STREET 300.23 ( 972.44) 7,700.00 8,672.44 ( 12.6) LIFT STATION-RIDGEWOOD/DBL 173.62 1,150.53 5,620.00 4,469.47 20.5 LIFT STATION-NORTHLAND 90.13 727.78 4,760.00 4,032.22 15.3 LIFT STATION-CR 121 134.24 1,418.79 15,360.00 13,941.21 9.2 LIFT STATION-MAIN 129,623.03 468,202.09 879,900.00 411,697.91 53.2 ADMINISTRATION AND GENERAL 2,349.33 22,222.13 63,350.00 41,127.87 35.1 DEPRECIATION EXPENSE .00 .00 555,000.00 555,000.00 .0 139,794.94 ( 183,787.87) 3,306,443.00 3,490,230.87 ( 5.6) ( 135,431.35) 868,469.74 ( 4,676,416.00) ( 5,544,885.74) 18.6 CITY OF ST JOSEPH FUND SUMMARY FOR THE 8 MONTHS ENDING AUGUST 31, 2023 REFUSE COLLECTION PERIOD ACTUAL YTD ACTUAL BUDGET VARIANCE PCNT FOR ADMINISTRATION USE ONLY 67 % OF THE FISCAL YEAR HAS ELAPSED 09/14/2023 03:11PM PAGE: 3 REVENUE UTILITIES ( 1,561.45) 227,689.41 ( 446,770.00) ( 674,459.41) 51.0 WASTE COLLECTION ( 28,733.61) ( 203,433.18) ( 374,800.00) ( 171,366.82) ( 54.3) ( 30,295.06) 24,256.23 ( 821,570.00) ( 845,826.23) 3.0 EXPENDITURES UTILITIES 1,561.45 ( 227,689.41) 446,770.00 674,459.41 ( 51.0) WASTE COLLECTION 34,348.66 264,094.62 488,745.00 224,650.38 54.0 DEPRECIATION EXPENSE .00 .00 6,675.00 6,675.00 .0 35,910.11 36,405.21 942,190.00 905,784.79 3.9 ( 66,205.17) ( 12,148.98)( 1,763,760.00) ( 1,751,611.02) ( .7) CITY OF ST JOSEPH FUND SUMMARY FOR THE 8 MONTHS ENDING AUGUST 31, 2023 STORM WATER UTILITY PERIOD ACTUAL YTD ACTUAL BUDGET VARIANCE PCNT FOR ADMINISTRATION USE ONLY 67 % OF THE FISCAL YEAR HAS ELAPSED 09/14/2023 03:11PM PAGE: 4 REVENUE UTILITIES 1,201.88 97,669.18 ( 220,275.00) ( 317,944.18) 44.3 ADMINISTRATION AND GENERAL ( 106.60) ( 3,289.99) ( 4,405.00) ( 1,115.01) ( 74.7) STORM WATER MAINTENANCE ( 81.14) ( 1,488.61) ( 22,005.00) ( 20,516.39)( 6.8) 1,014.14 92,890.58 ( 246,685.00) ( 339,575.58) 37.7 EXPENDITURES UTILITIES ( 1,201.88) ( 97,669.18) 220,275.00 317,944.18 ( 44.3) OTHER FINANCING USES .00 .00 30,680.00 30,680.00 .0 ADMINISTRATION AND GENERAL 1,257.88 11,166.19 20,390.00 9,223.81 54.8 STORM WATER MAINTENANCE 3,023.01 22,930.65 103,000.00 80,069.35 22.3 DEPRECIATION EXPENSE .00 .00 155,000.00 155,000.00 .0 3,079.01 ( 63,572.34) 529,345.00 592,917.34 ( 12.0) ( 2,064.87) 156,462.92 ( 776,030.00) ( 932,492.92) 20.2 CITY OF ST JOSEPH FUND SUMMARY FOR THE 8 MONTHS ENDING AUGUST 31, 2023 STREET LIGHT UTILITY PERIOD ACTUAL YTD ACTUAL BUDGET VARIANCE PCNT FOR ADMINISTRATION USE ONLY 67 % OF THE FISCAL YEAR HAS ELAPSED 09/14/2023 03:11PM PAGE: 5 REVENUE UTILITIES 346.83 43,790.57 ( 87,720.00) ( 131,510.57) 49.9 STREET LIGHTING ( 4,478.66) ( 31,184.27) ( 50,570.00) ( 19,385.73) ( 61.7) ( 4,131.83) 12,606.30 ( 138,290.00) ( 150,896.30) 9.1 EXPENDITURES UTILITIES ( 346.83) ( 43,790.57) 87,720.00 131,510.57 ( 49.9) STREET LIGHTING 5,802.87 39,775.51 102,625.00 62,849.49 38.8 5,456.04 ( 4,015.06) 190,345.00 194,360.06 ( 2.1) ( 9,587.87) 16,621.36 ( 328,635.00) ( 345,256.36) 5.1 STAFF MEMO Prepared by: Lori Bartlett, Finance Director Meeting Date: 9-18-23 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4d Reviewed by: Item: 1st and 2nd Quarter Gambling Reports ACTION REQUESTED Consider acceptance of the 1st and 2nd quarter 2023 gambling reports. BOARD/COMMISSION/COMMITTEE RECOMMENDATION none PREVIOUS COUNCIL ACTION Gambling Premise permits were approved for the St. Joseph Lion’s, St. Joseph Jaycees, Granite City Lumberjacks, Veterans Support Brigade, American Legion Post #328 and St. Joseph Booster Club. REFERENCE AND BACKGROUND Per City Ordinance No. 62 each organization conducting lawful gambling within the City of St. Joseph is required to submit copies of their monthly state tax returns to City Hall on a quarterly and annual basis. Per review of the tax returns the organizations are sufficiently supporting the local community with their gambling proceeds. Examples of how the organizations are giving back to the community include the following items: Tri School Donation Committee Lumberjack Hockey Kennedy Community School Jaycees Easter Party Mills Softball Association River Lakes Hockey Egg Scavenger Hunt St. Joseph Dollars for Scholars Waite Park Babe Ruth Baseball Boy/Girl Scouts All Saints Academy St. Joseph Church Local Medical Bills St. Cloud Fireworks Fund St. Joseph Township Stearns County 4H Local Memorials Joe Boys Poker Run Veteran’s Honor Guard Downtown Flowers Rocori Vex Robotics Art in the Park St. Cloud VA Street Barricades Catholic Charities River Lakes Hockey Schneider Field Maintenance Resurrection Church American Legion Baseball Place of Hope Required St. Joseph Community Organization Net Profits Donation Donations % Donated American Legion Post 328 $59,473 $5,947 $9,176 15% St. Joseph Lion's $52,159 $5,216 $40,631 78% St. Joseph Jaycees $30,897 $3,090 $4,901 16% Granite City Lumberjacks $32,232 $3,223 $172,500 >100% Veterans Support Brigade $8,899 $890 $2,500 28% St. Joseph Booster Club $0 $0 $0 n/a Note: Some organizations provided substantial donations to the St. Joseph community in other quarters. St. Joseph Booster Club did not begin gambling operations as of second quarter 2023. BUDGET IMPACT Information only STAFF RECOMMENDED ACTION Accept the 1st and 2nd quarter 2023 gambling reports. SUPPORTING DATA/ATTACHMENTS none STAFF MEMO Prepared by: Lori Bartlett, Finance Meeting Date: 8-21-23 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4e Reviewed by: Item: Donations and Contributions ACTION REQUESTED Consider approval Resolution 2023-051 accepting donations as presented. BOARD/COMMISSION/COMMITTEE RECOMMENDATION none PREVIOUS COUNCIL ACTION none REFERENCE AND BACKGROUND 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 8/31/23 = $7,074 + $1,149 for pavers and refreshments. Total Community Center/YMCA donations received through 8/31/23 = $13,041. BUDGET IMPACT $7,444.50 STAFF RECOMMENDED ACTION Accept the donations as presented in Resolution 2023-051. SUPPORTING DATA/ATTACHMENTS Resolution 2023-051 Accepting Donations RESOLUTION 2023-051 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 $118.00 Anonymous Cash RV Dump $138.00 Anonymous Cash Archery Range $59.00 Anonymous Cash Dog Park $1.00 Elijah Ziegler Cash Police Operations $68.50 Tacohlics Gift Card Scavanger Hunt $20.00 Cloud 9 Gift Card Scavanger Hunt $10.00 Obbink Distillery T-shirt/Drink Card Scavanger Hunt $30.00 City of Minneapolis Voting Booths (35) Elections $7,000.00 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 18th day of September, 2023. CITY OF ST. JOSEPH Rick Schultz, Mayor ATTEST David Murphy, City Administrator STAFF MEMO Prepared by: Ryan Wensmann / Rhonda Juell Meeting Date: 9-18-2023 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4f Reviewed by: David Murphy Item: Award quote Millstream dugouts roofs to Jerome Hartung ACTION REQUESTED Motion to approve the consent agenda will automatically approve this item. If pulled, then the following motion would be requested. Motion to approve the quote for new roofs on the dugouts for the east field in Millstream Park to Jerome Hartung for the amount of$6960.00. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Park board recommends approving this project and funding with left over funds from the Klinefelter bathroom project. PREVIOUS COUNCIL ACTION Council recommended fixing up the east field in the Millstream softball park. REFERENCE AND BACKGROUND Rhonda has done an exceptional job revitalizing the youth programs within the community to include boys T-ball/Baseball and girls’ softball at the Millstream softball park. Millstream has been a long-time topic for the park board and council on what the future looks for this park. It was recommended by both boards that we look into fixing up the east field and get it back to standards for the success of the youth programs. BUDGET IMPACT Utilize $6960.00 from the Klinefelter bathroom project funds that are remaining. STAFF RECOMMENDED ACTION Motion to approve the consent agenda will automatically approve this item. If pulled, then the following motion would be requested. Motion to approve the quote for new roofs on the dugouts for the east field in Millstream Park to Simmons Construction for the amount of$6960.00. SUPPORTING DATA/ATTACHMENTS MHI Quote Richard Wallin Const Quote Jerome Hartung Const Quote STAFF MEMO Prepared by: Community Development Meeting Date: Sept. 18th 2023 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4g Reviewed by: Item: Vacating interior easements Northland Heights Lots 4 and 5, Block 6 ACTION REQUESTED Approval of resolution 2023-044 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Planning Commission held a public hearing and voted unanimously to approve the proposed vacation on 09/11/23. No one spoke at the public hearing. PREVIOUS COUNCIL ACTION None REFERENCE AND BACKGROUND Applicant Information: Lumber One Development Company, LLC Existing Zoning: R-1 Single Family Residential Future Land Use: Low density Residential Location: 1324 and 1328 Iris Lane Access: Access will be provided off Iris Lane WCA/Wetlands: N/A Vacation of Easements Request: Lumber One Company (applicant) is proposing to combine lots 4 and 5 and construct a house over the interior easement area which runs between the lots. Structures are not allowed over easements. The request therefore requires applicant to vacate the interior easements between the two lots. These easements were the original drainage easements dedicated in the Northland Heights plat. Both easements are standard 5’ interior easements and do not contain any private or public utilities. The remaining easements along the perimeter of the lots and in the rear will remain. The request only impacts the easements between the two lots (interior). The combining of lots 4 and 5 will occur through the Administrative Subdivision application (no Council action needed). BUDGET IMPACT None STAFF RECOMMENDED ACTION Approval of resolution 2023-044 SUPPORTING DATA/ATTACHMENTS 1. Vacation application with signed copies from area utility providers 2. Certificate of Survey 3. Resolution 2023-044 REQUESTED COUNCIL ACTION: 1. Motion on resolution 2023-044 Document drafted by City of St. Joseph RESOLUTION 2023-044 RESOLUTION VACATING EASEMENTS AS LEGALLY DESCRIBED FOR LOTS 004, 005, OF BLOCK 006 OF NORTHLAND HEIGHTS WHEREAS, the Planning Commission of the City of St. Joseph held a public hearing on September 11th, 2023 following a publication, mailed and posted notice for the purpose of hearing those present to consider the vacation of drainage and utility easements; and WHEREAS, the easements to be vacated are the interior drainage easements between lots 4, and 5, block 6 of Northland Heights and legally described as: -On the North by a line measured 10.00 feet South of, as measured at a right angle to and parallel with, the North line of Lot 4, Block 6, said NORTHLAND HEIGHTS. -On the East by the East line of Said Lot 4. -On the South by the following described line: Commencing at the southeast corner of Lot 5, said Block 6; thence North 08 degrees 28 minutes 12 seconds East, assumed bearing, along the east line of said Lot 5, a distance of 73.95 feet, to the point of beginning of the line to be described; thence North 89 degrees 55 minutes 01 seconds West, 51.76 feet, to the west line of said Lot 5; thence South 79 degrees 38 minutes 32 seconds West, 52.36 feet, to the west line of said Lot 4, and said line there terminating. -On the West by a line measured 5.00 feet West of, as measured at a right angle to and parallel with, the East line of said Lot 4. AND -On the North by a line measured 10.00 feet South of, as measured at a right angle to and parallel with, the North line of Lot 5, Block 6, said NORTHLAND HEIGHTS. -On the East by a line measured 5.00 feet East of, as measured at a right angle to and parallel with, the West line of said Lot 5. -On the South by the following described line: Commencing at the southeast corner of said Lot 5; thence North 08 degrees 28 minutes 12 seconds East, assumed bearing, along the east line of said Lot 5, a distance of 73.95 feet, to the point of beginning of the line to be described; thence North 89 degrees 55 minutes 01 seconds West, 51.76 Document drafted by City of St. Joseph feet, to the west line of said Lot 5; thence South 79 degrees 38 minutes 32 seconds West, 52.36 feet, to the west line of Lot 4, said Block 6, and said line there terminating. -On the West by the West line of Said Lot 5. ;and WHEREAS, it appeared in the best interests of the public and the City of St. Joseph that such a vacation of easements be vacated and discontinued; and BE IT RESOLVED that the City Administrator and Mayor are hereby authorized to execute the vacation of easements; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH, MINNESOTA, duly assembled that the following described easements hereby vacated to wit: -On the North by a line measured 10.00 feet South of, as measured at a right angle to and parallel with, the North line of Lot 4, Block 6, said NORTHLAND HEIGHTS. -On the East by the East line of Said Lot 4. -On the South by the following described line: Commencing at the southeast corner of Lot 5, said Block 6; thence North 08 degrees 28 minutes 12 seconds East, assumed bearing, along the east line of said Lot 5, a distance of 73.95 feet, to the point of beginning of the line to be described; thence North 89 degrees 55 minutes 01 seconds West, 51.76 feet, to the west line of said Lot 5; thence South 79 degrees 38 minutes 32 seconds West, 52.36 feet, to the west line of said Lot 4, and said line there terminating. -On the West by a line measured 5.00 feet West of, as measured at a right angle to and parallel with, the East line of said Lot 4. AND -On the North by a line measured 10.00 feet South of, as measured at a right angle to and parallel with, the North line of Lot 5, Block 6, said NORTHLAND HEIGHTS. -On the East by a line measured 5.00 feet East of, as measured at a right angle to and parallel with, the West line of said Lot 5. -On the South by the following described line: Commencing at the southeast corner of said Lot 5; thence North 08 degrees 28 minutes 12 seconds East, assumed bearing, along the east line of said Lot 5, a distance of 73.95 feet, to the point of beginning of the line to be described; thence North 89 degrees 55 minutes 01 seconds West, 51.76 feet, to the west line of said Lot 5; thence South 79 degrees 38 minutes 32 seconds West, 52.36 feet, to the west line of Lot 4, said Block 6, and said line there terminating. -On the West by the West line of Said Lot 5. ADOPTED by the City Council this 18th day of September 2023. CITY OF ST. JOSEPH By Rick Schultz, Mayor ATTEST By David Murphy, City Administrator STAFF MEMO Prepared by: Community Development Meeting Date: Sept. 18th 2023 ☒Consent Agenda Item ☐Regular Agenda Item Agenda Item # 4h Reviewed by: Item: Interim Use Permit Renewal – 119 College Ave North ACTION REQUESTED Approval of resolution 2023-045 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Planning Commission held a public hearing and voted unanimously to renew the IUP for five more years. No one spoke at the public hearing. PREVIOUS COUNCIL ACTION None REFERENCE AND BACKGROUND Deutz Properties (owner) is requesting approval to renewal their Interim Use permit. The IUP allows for the continuation of a residential rental in an existing single-family home at property addressed 119 College Ave N. The property is located in a B-1 Central Business District. Code 502.50 Subd. 11 allows for single family properties in the B-1 area to be used as rental through the IUP process. An annual rental license and inspection also apply. The Interim Use permit can be renewed for a maximum term of five years but may be less as approved by the City Council. The Planning Commission recommended a renewal of five years. The block where the subject property is located has a mix of other IUP’s and Commercial. Of the six other properties from Birch – Ash ST three are Commercial, three are rental IUP’s including the subject property. Two residential rentals and one commercial are located across the street to the East of the subject property. BUDGET IMPACT None STAFF RECOMMENDED ACTION Approval of resolution 2023-045 SUPPORTING DATA/ATTACHMENTS 1. IUP application 2. Finding of Fact Resolution 2023-045 REQUESTED COUNCIL ACTION: 1. Consent gives approval on Finding of Fact Resolution 2023-045 which renews the IUP for five years. If item is pulled staff requests action on resolution 2023-045. RESOLUTION 2023-045 A RESOLUTION ADOPTING FINDINGS OF FACT AND APPROVING AN INTERIM USE PERMIT RENEWAL FOR THE PURPOSE OF A RESIDENTIAL RENTAL IN A B-1 COMMERCIAL DISTRICT WHEREAS, Deutz Investments LLC, owner, has properly applied for an Interim Use permit renewal for a residential rental in a B-1 Central Business District on the property generally described as 119 College Ave N, St. Joseph, MN; Property ID 84.53902.0000 and legally described as follows: Lot 004 Block 012 of TOWNSITE OF ST JOSEPH N66' OF S132' OF LOTS 4-5 & 6 BLK 12 “Subject Property” WHEREAS, the St. Joseph Planning Commission held a public hearing on the Interim Use permit on September 11th, 2023, at which time all persons wishing to be heard regarding the matter were given an opportunity to be heard; and WHEREAS, The public hearing notice was duly published and notice provided to all property owners within three hundred and fifty (350’) of the subject property; and WHEREAS, on September 11th, 2023, the St. Joseph Planning Commission reviewed the proposed Interim Use permit and adopted Findings of Fact in support of granting an Interim use permit and recommended approval of the request for an Interim use permit to the City Council. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA, hereby makes the following Findings of Fact: 1. That the Subject Property is zoned B-1 Central Business District and a single-family residential rental is a permitted Interim use. 2.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. 3.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. 4.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. 5.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. 6.That the existing access from College Ave N provides access to the Subject Property which will not create traffic congestion or interfere with traffic or surrounding public thoroughfares. 7.That the existing driveway will provide sufficient off-street parking and loading space to serve the proposed use. 8. 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, an Interim Use permit (“Permit”) renewal to allow for a residential rental unit on the Subject Property is hereby approved. 2. The property owner shall obtain yearly rental licenses prior to renting and license should be renewed annually. 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 18th, 2028. 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. 10. St. Joseph Code of Ordinances 520.50 Subd. 11 provides property owners in a B1 Central Business Zoning district to seek an Interim Use Permit to allow a residential rental unit until the property is ready for transition to the business use. Said provisions allow the Planning Commission and City Council to place a termination date on the Interim Use Permit and require an annual review of the same. Whereupon said resolution was declared duly passed and adopted by the St. Joseph City Council this 18th day of September 2023. CITY OF ST. JOSEPH By ATTEST Rick Schultz, Mayor By David Murphy, City Administrator STAFF MEMO Prepared by: Community Development Meeting Date: Sept. 18th 2023 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4i Reviewed by: Item: Interim Use Permit Renewal – 119 1st Ave NE ACTION REQUESTED Approval of resolution 2023-046 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Planning Commission held a public hearing (no one spoke) and voted unanimously to renew the IUP (5 yrs) PREVIOUS COUNCIL ACTION None REFERENCE AND BACKGROUND Michael Deutz, owner is requesting approval of a renewal for their Interim Use permit. The IUP allows for the continuation of a residential rental in an existing single-family home at the property addressed 119 1st AVE NE. The property is located in a B-2 Highway 75 Commercial District. The property is in an identified commercial redevelopment area. An existing single-family dwelling unit in the B-2 District is allowed as an Interim Use for a maximum term of five years but may be less as approved by the City Council. The Planning Commission recommended a renewal of five years. The block where the subject property is located has a mix of other IUP’s and Commercial. Of the seven other properties from College – 1st Ave NE four are Commercial, three are rental IUP’s. If counting subject property, the block is exactly half IUP rentals and half Commercial uses. Residential exists to the South and East of the Subject property however those properties are zoned Residential. ATTACHMENTS: IUP application and Finding of Fact resolution 2023-046 BUDGET IMPACT None STAFF RECOMMENDED ACTION Approval of resolution 2023-046 SUPPORTING DATA/ATTACHMENTS 1. IUP application 2. Finding of Fact Resolution 2023-046 REQUESTED COUNCIL ACTION: 1. Consent gives approval on Finding of Fact Resolution 2023-046 which renews the IUP for five years. If item is pulled staff requests action on resolution 2023-046. RESOLUTION 2023-046 A RESOLUTION ADOPTING FINDINGS OF FACT AND APPROVING AN INTERIM USE PERMIT RENEWAL FOR THE PURPOSE OF A RESIDENTIAL RENTAL IN A B-2 COMMERCIAL DISTRICT WHEREAS, Michael Deutz, owner, has properly applied for an Interim Use permit renewal for a residential rental in a B-2 Highway 75 District on the property generally described as 119 1st Ave NE, St. Joseph, MN; Property ID 84.53691.0000 and legally described as follows: Lot 003 Block 001 of LOSO'S 5TH ADD LOT 3 & FR PART OF LT 4 BEG AT A PT ON W L 50' N OF SW COR-N TO NW COR-E TO NE COR- SWLY TO PT OF BEG BLK 1 “Subject Property” WHEREAS, the St. Joseph Planning Commission held a public hearing on the Interim Use permit on September 11th, 2023, at which time all persons wishing to be heard regarding the matter were given an opportunity to be heard; and WHEREAS, The public hearing notice was duly published and notice provided to all property owners within three hundred and fifty (350’) of the subject property; and WHEREAS, on September 11th, 2023, the St. Joseph Planning Commission reviewed the proposed Interim use permit and adopted Findings of Fact in support of granting an Interim use permit and recommended approval of the request for an Interim Use permit to the City Council. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA, hereby makes the following Findings of Fact: 1. That the Subject Property is zoned B-2 Highway 75 Business District and a single-family residential rental is a permitted Interim Use. 2.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. 3.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. 4.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. 5.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. 6.That the existing access from the alleyway off Birch St provides access to the Subject Property which will not create traffic congestion or interfere with traffic or surrounding public thoroughfares. 7. That the existing driveway will provide sufficient off-street parking and loading space to serve the proposed use. 8. 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, an Interim Use permit (“Permit”) to allow for a residential rental unit on the Subject Property is hereby approved. 2. The property owner shall obtain yearly rental licenses prior to renting and license should be renewed annually. 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 18th, 2028. 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. 10. St. Joseph Code of Ordinances 520.50 Subd. 11 provides property owners in a B1 Central Business Zoning district to seek an Interim Use Permit renewal to allow a residential rental unit until the property is ready for transition to the business use. Said provisions allow the Planning Commission and City Council to place a termination date on the Interim Use Permit and require an annual review of the same. Whereupon said resolution was declared duly passed and adopted by the St. Joseph City Council this 18th day of September 2023. CITY OF ST. JOSEPH By ATTEST Rick Schultz, Mayor By David Murphy, City Administrator STAFF MEMO Prepared by: Community Development Meeting Date: Sept. 18th 2023 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4j Reviewed by: Item: Interim Use Permit Renewal – 30 Birch St E ACTION REQUESTED Approval of resolution 2023-047 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Planning Commission held a public hearing and voted unanimously to renew the IUP for five more years. No one spoke at the public hearing. PREVIOUS COUNCIL ACTION None REFERENCE AND BACKGROUND Deutz Housing, LLC owner is requesting approval of a renewal for their Interim Use permit. The IUP allows for the continuation residential rental in the existing single-family home at property addressed 30 Birch St E. The property is located in a B-2 Highway 75 Business District. The property is in an identified commercial redevelopment area. An existing single-family dwelling unit in the B-2 District is allowed as an Interim Use for a maximum term of five years but may be less as approved by the City Council. The Planning Commission recommended renewal for five years. The block where the subject property is located has a mix of other IUP’s and Commercial. Of the seven other properties from Birch to Ash ST three are Commercial, three are rental IUP’s including the subject property. BUDGET IMPACT None STAFF RECOMMENDED ACTION Approval of resolution 2023-047 SUPPORTING DATA/ATTACHMENTS 1. IUP application 2. Finding of Fact Resolution 2023-047 REQUESTED COUNCIL ACTION: 1. Consent gives approval on Finding of Fact Resolution 2023-047 which renews the IUP for five years. If item is pulled staff requests action on resolution 2023-047. Rental Subject Property RESOLUTION 2023-047 A RESOLUTION ADOPTING FINDINGS OF FACT AND APPROVING AN INTERIM USE PERMIT RENEWAL FOR THE PURPOSE OF A RESIDENTIAL RENTAL IN A B-2 COMMERCIAL DISTRICT WHEREAS, Deutz Housing LLC, owner, has properly applied for an Interim Use permit renewal for a residential rental in a B-2 Highway 75 District on the property generally described as 30 Birch St E, St. Joseph, MN; Property ID 84.53569.0000 and legally described as follows: Lot 005 Block 013 of LOSO'S ADD Lot 012 Block 013 of LOSO'S ADD ALL LOT 12 BLK13 ALSO E11' OF LOT 5 BLK 13TOWNSITE OF ST. JOSEPH “Subject Property” WHEREAS, the St. Joseph Planning Commission held a public hearing on the Interim Use permit on September 11th, 2023, at which time all persons wishing to be heard regarding the matter were given an opportunity to be heard; and WHEREAS, The public hearing notice was duly published and notice provided to all property owners within three hundred and fifty (350’) of the subject property; and WHEREAS, on September 11th, 2023, the St. Joseph Planning Commission reviewed the proposed Interim Use permit and adopted Findings of Fact in support of granting an Interim Use permit and recommended approval of the request for an Interim Use permit to the City Council. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA, hereby makes the following Findings of Fact: 1. That the Subject Property is zoned B-2 Highway 75 Business District and a single-family residential rental is a permitted Interim use. 2.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. 3.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. 4.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. 5.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. 6.That the existing access from Birch St provides access to the Subject Property which will not create traffic congestion or interfere with traffic or surrounding public thoroughfares. 7. That the existing driveway will provide sufficient off-street parking and loading space to serve the proposed use. 8. 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, an Interim Use permit (“Permit”) to allow for a residential rental unit on the Subject Property is hereby approved. 2. The property owner shall obtain yearly rental licenses prior to renting and license should be renewed annually. 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 18th, 2028. 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. 10. St. Joseph Code of Ordinances 520.50 Subd. 11 provides property owners in a B2 Zoning district to seek an Interim Use Permit to allow a residential rental unit until the property is ready for transition to the business use. Said provisions allow the Planning Commission and City Council to place a termination date on the Interim Use Permit and require an annual review of the same. Whereupon said resolution was declared duly passed and adopted by the St. Joseph City Council this 18th day of September 2023. CITY OF ST. JOSEPH By ATTEST Rick Schultz, Mayor By David Murphy, City Administrator STAFF MEMO Prepared by: Community Development Meeting Date: Sept. 18th 2023 ☒ Consent Agenda Item ☐ Regular Agenda Item Agenda Item # 4k Reviewed by: Item: Interim Use Permit Renewal – 104 1st Ave NW ACTION REQUESTED Approval of resolution 2023-048 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Planning Commission held a public hearing and voted unanimously to renew the IUP for five more years. No one spoke at the public hearing. PREVIOUS COUNCIL ACTION None REFERENCE AND BACKGROUND Robin Grzybowski owner is requesting approval of a renewal for their Interim Use permit. The IUP allows residential rental in the existing single-family home at the property addressed 104 1st Ave NW. The property is located in a B-1 Downtown Business District. The property is an identified commercial redevelopment area. An existing single-family dwelling unit in the B-1 District is allowed as an Interim Use for a maximum term of five years but may be less as approved by the City Council. The Planning Commission recommended a renewal of five years. The block where the subject property is located has mix of residential (non-rental), IUP’s, and Commercial uses. All the properties are zoned B-1 however. To the West is mix of residential and Commercial but to the Southwest on the neighboring block along Ash St there is significant conversion from residential – Commercial occurring. BUDGET IMPACT None STAFF RECOMMENDED ACTION Approval of resolution 2023-048 SUPPORTING DATA/ATTACHMENTS 1. IUP application 2. Finding of Fact Resolution 2023-048 REQUESTED COUNCIL ACTION: 1. Consent gives approval on Finding of Fact Resolution 2023-048 which renews the IUP for five years. If item is pulled staff requests action on resolution 2023-048. C}TY ffT ST'" J*SEPH Interim Use Permit Application Residential Rental S'EE:4fi1 Date Received 6 *S -Jz Appliation is hereby made for: (applicant must check appropriate request) . .V Non-Owner Occupied Resideatial Rental Owner Oceupied Residential Rental OWI{trR INFORMAfiON: owner: Robin Grzybowski phone: 320-828-2178 Emai1 robingrzyhpwski@gmail. gom MailingAddress:29414 Kiwi Ct, Saint Joseph, MN 56374 PROPERTY INFORMATION: Property Address (proposed rental)1A4 1st Ave NW, Saint Joseph, MN 56374 Parcel Identification Number (PIN): 94. 53904.Q000 Legal Description of Property (attach a separate document if needed): N54' of S1 16' of LOT 7 BLK 12 Proposed date for start ofrental: Reason forrental: [l]N**R*t*t 0R El**,rr*gnental Where will the parkingbe met?Driveway Are you making any structural or other improvements withia the space? [ "*.E[*o lf yes, describe the improvements: INTERIM USE PENMIT APPROVAL PROCEDURE Singte-fsmily residential dwelling units in areas that have been rezoued to commercial &om residential shall be allowed an interim use perrrit as a reirtal unit for a limited period of time to allow for a transition Interim Use Permit Application - Residential Rental, City of St. Joseph Page 1 of2 in uss to cofrmercial. When a majority of the block is a commercial use, no additional ioterim use permits shall be grauted or extended and single family rental dwellings shall kansition to a permitted use in compliance with City Ordinance. 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 Dishict. Submission Requirements: Application for an Interim Use Permit shall be on this form and include the established application fee. The application shall be submitted three (3) weeks prior to the next Planning Commission meeting in which you wish to be heard. The City may request additional data deemed reasonable aud nocessary related to the itterim use. Review and Deeision by the City Council The City Council shall review the application after the planning Commission has held a public hearing and made its recornmendatiou asd will make a final determioation to either approve or deny the application. In the grantiag of approval, the City Council may impose conditions regarding &e strucfire or use as it may deern necessary. The maximum term for anint*nm use permit shall be five years but may be less as approved by the governing body. I hereby certi$ that I have read, examined, and understand thi* applieation and that the informatien submitted herein and attached hereto is true, accurats, and correctly states my intentions. Prope(yowner rr*r* *"'*8'233 Queetious: Phone (320) 229-9424. Submit eompleted applicotion to: St. Jossph Goverrment Center 75 Callaway St E St. Joseph, MN 56374 Intetim Use Permit Application - Residential Rental, City of St. Joseph Page 2 of2 RESOLUTION 2023-048 A RESOLUTION ADOPTING FINDINGS OF FACT AND APPROVING AN INTERIM USE PERMIT RENEWAL FOR THE PURPOSE OF A RESIDENTIAL RENTAL IN A B-1 COMMERCIAL DISTRICT WHEREAS, Robin Grzbowski, owner, has properly applied for an Interim Use permit renewal for residential rental in a B-1 Central Business District on the property generally described as 104 1ST Avenue NW, St. Joseph, MN; Property ID 84.53904.0000 and legally described as follows: The North 54 feet (N54’) of the South 116 feet (S116’) of Lot 7, Block 12, Townsite of St. Joseph, Stearns County, Minnesota. “Subject Property” WHEREAS, the St. Joseph Planning Commission held a public hearing on the Interim Use permit on September 11th, 2023, at which time all persons wishing to be heard regarding the matter were given an opportunity to be heard; and WHEREAS, The public hearing notice was duly published and notice provided to all property owners within three hundred and fifty (350’) of the subject property; and WHEREAS, on September 11th, 2023, the St. Joseph Planning Commission reviewed the proposed Interim Use permit and adopted Findings of Fact in support of granting an Interim Use permit and recommended approval of the request for an Interim Use permit to the City Council. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA, hereby makes the following Findings of Fact: 1. That the Subject Property is zoned B-1 Central Business District and a residential rental is a permitted Interim use. 2.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. 3.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. 4.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. 5.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. 6.That the existing access from 1st Ave NW provides access to the Subject Property which will not create traffic congestion or interfere with traffic or surrounding public thoroughfares. 7. That the existing driveway will provide sufficient off-street parking and loading space to serve the proposed use. 8. 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, an Interim Use permit (“Permit”) to allow for a residential rental unit on the Subject Property is hereby approved. 2. The property owner shall obtain yearly rental licenses prior to renting and license should be renewed annually. 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 18th, 2028. 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. 10. St. Joseph Code of Ordinances 520.50 Subd. 11 provides property owners in a B1 Central Business Zoning district to seek an Interim Use Permit renewal to allow a residential rental unit until the property is ready for transition to the business use. Said provisions allow the Planning Commission and City Council to place a termination date on the Interim Use Permit and require an annual review of the same. Whereupon said resolution was declared duly passed and adopted by the St. Joseph City Council this 18th day of September 2023. CITY OF ST. JOSEPH By ATTEST Rick Schultz, Mayor By David Murphy, City Administrator STAFF MEMO Prepared by: City Clerk Meeting Date: 9/18/23 ☐ Consent Agenda Item ☒ Regular Agenda Item Agenda Item # 5 Reviewed by: City Administrator Item: Public Hearing – Amendment to Special Event Permit for Rocktoberfest ACTION REQUESTED Motion to approve the amendment to the Special Event Permit for Rocktoberfest. BOARD/COMMISSION/COMMITTEE RECOMMENDATION N/A PREVIOUS COUNCIL ACTION Council held a public hearing on July 17, 2023, and approved the Special Event Permit for Rocktoberfest. Staff was contacted on September 5th regarding a possible amendment to the location of the event. At the September 5th City Council meeting, the Council called for the public hearing to consider the amendment for this evening, September 18th. REFERENCE AND BACKGROUND Rocktoberfest is an annual festival put on by the St. Joseph Booster Club. The event is scheduled for September 30th and includes music, food, and drinks. Typically, the event is held in the parking lot to the north of Heritage Hall and this was the location Council approved on July 17th. Staff received notice that organizers intended on having the event in the parking lot to the east of the church, the same one where Joetown Rocks is held. Because a public hearing is required for these types of events, a location change would trigger the process to start over. The Booster Club has submitted a revised site plan and hearing notices have been sent to property owners within 350 feet of the new location. The applicant is also requesting that parking (7 spots) along MN Street from College Ave to the alley be blocked off for Uber and handicap drop off. All other requirements as noted on the initial permit would still apply. BUDGET IMPACT STAFF RECOMMENDED ACTION Motion to approve the amendment to the Special Event Permit for Rocktoberfest, allowing the event to be moved to the eastern church parking lot. Consider whether to allow for parking stalls to be blocked off for uber and handicap drop offs along MN Street from College Ave to the alleyway. SUPPORTING DATA/ATTACHMENTS Initial Application New location site plan COLLEGE AVENUE EAST MINNESOTA STREET ALLEYWAY 50' X 170' TENT 50' X 60' TENT SIDEWALK SIDEWALK FOOD TRUCK8'X31' 30' X 60' TENT LiftLift FOODTRUCK 8'X16' RHINO TRAILER DIMENSION? AXE THROWING DIMENSIONS? SIDEWALK SIDEWALK POLKA RHINO 2 STAFF MEMO Prepared by: Lori Bartlett, Finance Director Meeting Date: 9-18-23 ☐ Consent Agenda Item ☒ Regular Agenda Item Agenda Item # 6a Reviewed by: Item: Issuance General Obligation Bonds, Series 2023A ACTION REQUESTED Consider adoption of Resolution 2023-050 providing for the issuance and sale of General Obligation Bonds, Series 2023A. BOARD/COMMISSION/COMMITTEE RECOMMENDATION None PREVIOUS COUNCIL ACTION Council ordered improvements for the 2023 street improvements and purchase general city equipment as budgeted in the five-year capital plan. Council approved trigger resolution 2023-033 and financial plan for the 2023A bonds. REFERENCE AND BACKGROUND Tammy Omdal, bond financial advisor from Northland Securities, has been working with city staff on the upcoming 2023A bond issue. The 2023A bond issue includes four parts, GO Improvement Bonds (broken down by streets, sewer and stormwater) and Equipment Certificates. With an issuance of this size, the City engaged S&P Global to rate the series, 2023A bonds. S&P Global rated the bonds AA- with a stable outlook. The summary report prepared by S&P Global is included in this agenda item following the bond resolution. The GO Improvement Bonds fund the 2023 street overlays in Northland Plats 3, 4, 5; Loso’s Add, Add 4, Add 5 and Townsite of St. Joseph; and portion of the Elm Street E extension. The project also includes sewer main replacement and paving alleys in the downtown block 2. The street overlays will be paid for with special assessments and debt levies. The City issues two 5-year equipment certificates on a rolling basis to purchase general city equipment that is difficult to fully fund with general levies. In 2023, the equipment needs include scanners, computers, mailing system, squads, defibulators, tractors, front-end loader, utility and pickup trucks, and snow plow. The equipment certificates will be paid for with debt levies. The trigger resolution 2023-033 adopted by city council in June allowed for city staff and the Mayor to sell the bonds prior to the Sept 18th council meeting. The City hired Blue Rose Advisors to opine the pricing of the bonds ahead of presenting to the bond market. The pre-pricing will be completed on Sept. 13th (after the agenda is prepared). The final bond issue pricing and sell will be presented by Tammy Omdal at the Sept. 18th council meeting. BUDGET IMPACT $2,500,000 bond issue for 2023A Bonds STAFF RECOMMENDED ACTION Adopt Resolution 2023-050 for the issuance of General Obligation Bonds, Series 2023A SUPPORTING DATA/ATTACHMENTS Resolution 2023-050 providing the Issuance and sale of General Obligation Bonds, Series 2023A S&P Global bond rating summary 127647057v1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA HELD: SEPTEMBER 18, 2023 Pursuant to due call, a regular or special meeting of the City Council of the City of St. Joseph, Stearns County, Minnesota, was duly held at the City Hall on September 18, 2023, at 6:00 P.M., for the purpose, in part, of authorizing the issuance and awarding the sale of $2,500,000 General Obligation Bonds, Series 2023A. The following members were present: and the following were absent: Member ______________ introduced the following resolution and moved its adoption: RESOLUTION NO. 2023-050 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $2,500,000 GENERAL OBLIGATION BONDS, SERIES 2023A, PLEDGING FOR THE SECURITY THEREOF SPECIAL ASSESSMENTS AND LEVYING A TAX FOR THE PAYMENT THEREOF A. WHEREAS, the City Council of the City of St. Joseph, Minnesota (the "City") has heretofore determined and declared that it is necessary and expedient to issue $2,500,000 General Obligation Bonds, Series 2023A (the "Bonds" or individually a "Bond"), pursuant to Minnesota Statutes, Chapter 475; and 1. Chapter 429 to finance street improvements within the City (the "Improvements"); and 2. Section 412.301 to finance the purchase of capital equipment for the City (the "Equipment"); and 3. Section 444.075, to finance improvements to the municipal sanitary sewer system and storm water system (the "Utility Improvements"); and B. WHEREAS, the Improvements and all their components have been ordered prior to the date hereof, pursuant to the procedural requirements of Minnesota Statutes, Chapter 429; and C. WHEREAS, each item of Equipment to be financed by the Equipment Portion of the Bonds, as hereinafter defined, has an expected useful life at least as long as the term of the Equipment Portion of the Bonds; and 127647057v1 2 D. WHEREAS, the principal amount of the Equipment Portion of the Bonds does not exceed one-quarter of one percent (0.25%) of the estimated market value of the taxable property in the City ($613,717,300 times 0.25% is $1,534,293); and E. WHEREAS, the City owns and operates municipal sewer system (the "Sewer System") and a municipal storm water system (the "Storm Water System") as separate revenue producing public utilities; and F. WHEREAS, the net revenues of the Sewer System are pledged to the payment of the City's outstanding (i) General Obligation Sewer Revenue Bonds, Series 2013B, in the original principal amount of $650,000, dated November 1, 2013; and (ii) General Obligation Sewer Revenue Bonds, Series 2016, in the original principal amount of $4,062,885, dated July 1, 2016; and (iii) the "System Refunding Portion" of the Taxable General Obligation Crossover Refunding Bonds, Series 2020C, in the original principal amount of $1,810,000, dated November 12, 2020 (together, the "Outstanding Sewer Bonds"); and G. WHEREAS, the City has no outstanding obligations of the Storm Water System which constitute a prior lien upon the net revenues of the Storm Water System; and H. WHEREAS, the City has retained Blue Rose Capital Advisors, in Minneapolis, Minnesota, as its independent municipal advisor for the sale of the Bonds and was therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); and I. WHEREAS, it is in the best interests of the City that the Bonds be issued in book-entry form as hereinafter provided; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Joseph, Minnesota, as follows: 1. Acceptance of Proposal. The offer of Northland Securities, Inc. (the "Purchaser"), to purchase the Bonds of the City (or individually, a "Bond"), in accordance with the terms and at the rates of interest hereinafter set forth, and to pay therefor the sum of $_________, plus interest accrued to settlement, is hereby accepted. 2. Bond Terms. (a) Original Issue Date; Denominations; Maturities; Term Bond Option. The Bonds shall be dated October 17, 2023, as the date of original issue and shall be issued forthwith on or after such date in fully registered form, shall be numbered from R-1 upward in the denomination of $5,000 each or in any integral multiple thereof of a single maturity (the "Authorized Denominations") and shall mature on December 15 in the years and amounts as follows: 127647057v1 3 Year Amount Year Amount 2024 $ 2029 $ 2025 2030 2026 2031 2027 2032 2028 2033 As may be requested by the Purchaser, one or more term Bonds may be issued having mandatory sinking fund redemption and final maturity amounts conforming to the foregoing principal repayment schedule, and corresponding additions may be made to the provisions of the applicable Bond(s). (b) Allocation. The aggregate principal amount of $______ maturing in each of the years and amounts hereinafter set forth are issued to finance the Improvements (the "Improvement Portion"); the aggregate principal amount of $_______ maturing in each of the years and amounts hereinafter set forth are issued to finance the Equipment (the "Equipment Portion"); the aggregate principal amount of $_______ maturing in each of the years and amounts hereinafter set forth are issued to finance the Utility Improvements (the "Utility Portion"): Year Improvement Portion Equipment Portion Utility Portion Total Amount 2024 $ $ $ 2025 2026 2027 2028 2029 2030 2031 2032 2033 If Bonds are prepaid, the prepayments shall be allocated to the portions of debt service (and hence allocated to the payment of Bonds treated as relating to a particular portion of debt service) as provided in this paragraph. If the source of prepayment moneys is the general fund of the City, or other generally available source, including the levy of taxes, the prepayment may be allocated to any portions of debt service in such amounts as the City shall determine. If the source of the prepayment is special assessments pledged to the Improvements, the prepayment shall be allocated to the Improvement Portion of debt service. If the source of a prepayment is 127647057v1 4 excess net revenues of the Sewer System and Storm Water System pledged to the Utility Improvements, the prepayment shall be allocated to the Utility Portion of debt service (c) Book Entry Only System. The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York or any of its successors or its successors to its functions hereunder (the "Depository") will act as securities depository for the Bonds, and to this end: (i) The Bonds shall be initially issued and, so long as they remain in book entry form only (the "Book Entry Only Period"), shall at all times be in the form of a separate single fully registered Bond for each maturity of the Bonds; and for purposes of complying with this requirement under paragraphs 5 and 10 Authorized Denominations for any Bond shall be deemed to be limited during the Book Entry Only Period to the outstanding principal amount of that Bond. (ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond register maintained by the Bond Registrar (as hereinafter defined) in the name of CEDE & CO., as the nominee (it or any nominee of the existing or a successor Depository, the "Nominee"). (iii) With respect to the Bonds neither the City nor the Bond Registrar shall have any responsibility or obligation to any broker, dealer, bank, or any other financial institution for which the Depository holds Bonds as securities depository (the "Participant") or the person for which a Participant holds an interest in the Bonds shown on the books and records of the Participant (the "Beneficial Owner"). Without limiting the immediately preceding sentence, neither the City, nor the Bond Registrar, shall have any such responsibility or obligation with respect to (A) the accuracy of the records of the Depository, the Nominee or any Participant with respect to any ownership interest in the Bonds, or (B) the delivery to any Participant, any Owner or any other person, other than the Depository, of any notice with respect to the Bonds, including any notice of redemption, or (C) the payment to any Participant, any Beneficial Owner or any other person, other than the Depository, of any amount with respect to the principal of or premium, if any, or interest on the Bonds, or (D) the consent given or other action taken by the Depository as the Registered Holder of any Bonds (the "Holder"). For purposes of securing the vote or consent of any Holder under this Resolution, the City may, however, rely upon an omnibus proxy under which the Depository assigns its consenting or voting rights to certain Participants to whose accounts the Bonds are credited on the record date identified in a listing attached to the omnibus proxy. (iv) The City and the Bond Registrar may treat as and deem the Depository to be the absolute owner of the Bonds for the purpose of payment of the principal of and premium, if any, and interest on the Bonds, for the purpose of giving notices of redemption and other matters with respect to the Bonds, for the purpose of obtaining any consent or other action to be taken by Holders for the purpose of registering transfers with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as paying agent hereunder, shall pay all principal of and premium, if any, and interest on the Bonds only to the Holder or the Holders of 127647057v1 5 the Bonds as shown on the bond register, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. (v) Upon delivery by the Depository to the Bond Registrar of written notice to the effect that the Depository has determined to substitute a new Nominee in place of the existing Nominee, and subject to the transfer provisions in paragraph 10, references to the Nominee hereunder shall refer to such new Nominee. (vi) So long as any Bond is registered in the name of a Nominee, all payments with respect to the principal of and premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, by the Bond Registrar or City, as the case may be, to the Depository as provided in the Letter of Representations to the Depository required by the Depository as a condition to its acting as book-entry Depository for the Bonds (said Letter of Representations, together with any replacement thereof or amendment or substitute thereto, including any standard procedures or policies referenced therein or applicable thereto respecting the procedures and other matters relating to the Depository's role as book-entry Depository for the Bonds, collectively hereinafter referred to as the "Letter of Representations"). (vii) All transfers of beneficial ownership interests in each Bond issued in book-entry form shall be limited in principal amount to Authorized Denominations and shall be effected by procedures by the Depository with the Participants for recording and transferring the ownership of beneficial interests in such Bonds. (viii) In connection with any notice or other communication to be provided to the Holders pursuant to this Resolution by the City or Bond Registrar with respect to any consent or other action to be taken by Holders, the Depository shall consider the date of receipt of notice requesting such consent or other action as the record date for such consent or other action; provided, that the City or the Bond Registrar may establish a special record date for such consent or other action. The City or the Bond Registrar shall, to the extent possible, give the Depository notice of such special record date not less than fifteen calendar days in advance of such special record date to the extent possible. (ix) Any successor Bond Registrar in its written acceptance of its duties under this Resolution and any paying agency/bond registrar agreement, shall agree to take any actions necessary from time to time to comply with the requirements of the Letter of Representations. (d) Termination of Book-Entry Only System. Discontinuance of a particular Depository's services and termination of the book-entry only system may be effected as follows: (i) The Depository may determine to discontinue providing its services with respect to the Bonds at any time by giving written notice to the City and discharging its responsibilities with respect thereto under applicable law. The City may terminate the services of the Depository with respect to the Bond if it determines 127647057v1 6 that the Depository is no longer able to carry out its functions as securities depository or the continuation of the system of book-entry transfers through the Depository is not in the best interests of the City or the Beneficial Owners. (ii) Upon termination of the services of the Depository as provided in the preceding paragraph, and if no substitute securities depository is willing to undertake the functions of the Depository hereunder can be found which, in the opinion of the City, is willing and able to assume such functions upon reasonable or customary terms, or if the City determines that it is in the best interests of the City or the Beneficial Owners of the Bond that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds shall no longer be registered as being registered in the bond register in the name of the Nominee, but may be registered in whatever name or names the Holder of the Bonds shall designate at that time, in accordance with paragraph 10. To the extent that the Beneficial Owners are designated as the transferee by the Holders, in accordance with paragraph 10, the Bonds will be delivered to the Beneficial Owners. (iii) Nothing in this subparagraph (d) shall limit or restrict the provisions of paragraph 10. (e) Letter of Representations. The provisions in the Letter of Representations are incorporated herein by reference and made a part of the resolution, and if and to the extent any such provisions are inconsistent with the other provisions of this resolution, the provisions in the Letter of Representations shall control. 3. Purpose. The Improvement Portion of the Bonds shall provide funds to finance the Improvements. The Equipment Portion of the Bonds shall provide funds to finance the acquisition of the Equipment. The Utility Portion of the Bonds shall provide funds to finance the Utility Improvements. The Improvements, the Equipment, and the Utility Improvements are herein referred to together as (the “Project”). The total cost of the Project, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. The City covenants that it shall do all things and perform all acts required of it to assure that work on the Project proceeds with due diligence to completion and that any and all permits and studies required under law for the Project are obtained. 4. Interest. The Bonds shall bear interest payable semiannually on June 15 and December 15 of each year (each, an "Interest Payment Date"), commencing June 15, 2024, calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per annum set forth opposite the maturity years as follows: 127647057v1 7 Maturity Year Interest Rate 2024 % 2025 2026 2027 2028 2029 2030 2031 2032 2033 5. Redemption. All Bonds maturing on December 15, 2032 and thereafter, shall be subject to redemption and prepayment at the option of the City on December 15, 2031, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and the principal amounts within each maturity to be redeemed shall be determined by the City; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected registered holder of the Bonds at least thirty (30) days prior to the date fixed for redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by the Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 6. Bond Registrar. Northland Trust Services, Inc., in Minneapolis, Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith. 127647057v1 8 The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12. 7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in substantially the following form: 127647057v1 9 UNITED STATES OF AMERICA STATE OF MINNESOTA STEARNS COUNTY CITY OF ST. JOSEPH R-_______ $_________ GENERAL OBLIGATION BOND, SERIES 2023A Interest Rate Maturity Date Date of Original Issue CUSIP % December 15, October 17, 2023 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: THE CITY OF ST. JOSEPH, STEARNS COUNTY, MINNESOTA (the "Issuer"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, unless called for earlier redemption, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, and to pay interest thereon semiannually on June 15 and December 15 of each year (each, an "Interest Payment Date"), commencing June 15, 2024, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of Northland Trust Services, Inc., in Minneapolis, Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the first (1st) day of the calendar month of such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. So long as this Bond is registered in the name of the Depository or its Nominee as provided in the Resolution hereinafter described, and as those terms are defined therein, payment of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be made as provided in the Letter of Representations, as defined in the Resolution, and surrender of this Bond shall not be required for payment of the redemption price upon a partial redemption of this Bond. Until termination of the book-entry only system pursuant to the Resolution, Bonds may only be registered in the name of the Depository or its Nominee. 127647057v1 10 Optional Redemption. All Bonds of this issue (the "Bonds") maturing on December 15, 2032, and thereafter, are subject to redemption and prepayment at the option of the Issuer on December 15, 2031, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and the principal amounts within each maturity to be redeemed shall be determined by the Issuer; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected registered holder of the Bonds thirty (30) days prior to the date fixed for redemption. Prior to the date on which any Bond or Bonds are directed by the Issuer to be redeemed in advance of maturity, the Issuer will cause notice of the call thereof for redemption identifying the Bonds to be redeemed to be mailed to the Bond Registrar and all Bondholders, at the addresses shown on the Bond Register. All Bonds so called for redemption will cease to bear interest on the specified redemption date, provided funds for their redemption have been duly deposited. Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by the Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal amount of $2,500,000, all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination and redemption privilege, issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council on September 18, 2023 (the "Resolution"), for the purpose of providing money to finance various projects within the jurisdiction of the Issuer. This Bond is payable out of the General Obligation Bonds, Series 2023A Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. 127647057v1 11 Denominations; Exchange; Resolution. The Bonds are issuable solely in fully registered form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the office of the Bond Registrar. Transfer. This Bond is transferable by the Holder in person or the Holder's attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized Denomination or Denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided herein with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. Qualified Tax-Exempt Obligation. This Bond has been designated by the Issuer as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law; that the Issuer has covenanted and agreed with the Holders of the Bonds that it will impose and collect charges for the service, use and availability of its sanitary sewer system and storm water system at the times and in amounts necessary to produce net revenues, together with other sums pledged to the payment of the Utility Portion of the Bonds, as defined in the Resolution, adequate to pay all principal and interest when due on the Utility Portion of the Bonds; and that the Issuer will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property of the Issuer, without limitation as to rate or amount, for the years and in amounts sufficient to pay the principal and interest on Utility Portion of the Bonds as they respectively become due, if the net revenues from the sanitary sewer system and storm water system, and any other sums irrevocably appropriated to the Debt Service Account are insufficient therefor; and that this 127647057v1 12 Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and the date of its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of St. Joseph, Stearns County, Minnesota, by its City Council has caused this Bond to be executed on its behalf by the facsimile signatures of its Mayor and its City Administrator, the corporate seal of the Issuer having been intentionally omitted as permitted by law. Date of Registration: BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the Resolution mentioned within. NORTHLAND TRUST SERVICES, INC. Minneapolis, Minnesota, Bond Registrar By: Authorized Signature Registrable by: NORTHLAND TRUST SERVICES, INC. Payable at: NORTHLAND TRUST SERVICES, INC. CITY OF ST. JOSEPH, STEARNS COUNTY, MINNESOTA /s/ Facsimile Mayor /s/ Facsimile City Administrator 127647057v1 13 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - ___________ as custodian for ______________ (Cust) (Minor) under the _____________________ Uniform (State) Transfers to Minors Act Additional abbreviations may also be used though not in the above list. ___________________________________________________________ ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ________________________________________________________________ the within Bond and does hereby irrevocably constitute and appoint _________________ attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated:_____________________ ___________________________ Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: ___________________________ Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges or any other "Eligible Guarantor Institution" as defined in 17 CFR 240.17 Ad-15(a)(2). The Bond Registrar will not affect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: ________________________________________ ________________________________________ ________________________________________ (Include information for all joint owners if the Bond is held by joint account.) 127647057v1 14 8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of the City by the signatures of its Mayor and City Administrator and be sealed with the seal of the City; provided, as permitted by law, both signatures may be photocopied facsimiles and the corporate seal has been omitted. In the event of disability or resignation or other absence of either officer, the Bonds may be signed by the manual or facsimile signature of the officer who may act on behalf of the absent or disabled officer. In case either officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. 9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication on the Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue, which date is October 17, 2023. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Registration; Transfer; Exchange. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no Bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the Holder making the exchange is entitled to receive. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City. All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. 127647057v1 15 Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the Holder thereof or the Holder's attorney duly authorized in writing. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond and any legal or unusual costs regarding transfers and lost Bonds. Transfers shall also be subject to reasonable regulations of the City contained in any agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close its transfer books between record dates and payment dates. The Finance Director is hereby authorized to negotiate and execute the terms of said agreement. 11. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest Payment; Record Date. Interest on any Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Registrar and at the address appearing thereon at the close of business on the first (1st) day of the calendar month of such Interest Payment Date (the "Regular Record Date"). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Holders not less than ten (10) days prior to the Special Record Date. 13. Treatment of Registered Owner. The City and Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subject to the payment provisions in paragraph 12) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 14. Delivery; Application of Proceeds. The Bonds when so prepared and executed shall be delivered by the Finance Director to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. Fund and Accounts. There is hereby established a special fund to be designated "General Obligation Bonds, Series 2023A Fund" (the "Fund") to be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. The Operation and Maintenance Accounts heretofore established by the City for the Sewer System and Strom Water System shall continue to be maintained in the manner heretofore and herein provided by the City. All moneys remaining after paying or providing for the items set forth in the resolution(s) establishing the Operation and Maintenance Accounts shall constitute or are 127647057v1 16 referred to as "net revenues" until the Utility Portion of the Bonds have been paid. In such records there shall be established accounts of the Fund for the purposes and in the amounts as follows:, (a) Capital Account. To the Capital Account there shall be credited the proceeds of the sale of the Bonds, plus any special assessments levied with respect to the Improvements and collected prior to completion of the Improvements and payment of the costs thereof. From the Capital Account there shall be paid all costs and expenses of making the Project, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in the Capital Account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the receipt of the collection of taxes or special assessments herein levied or covenanted to be levied; and provided further that if upon completion of the Project, there shall remain any unexpended balance in the Capital Account, the balance (other than any special assessments) may be transferred to the Debt Service Account or any funds attributable to the Improvement Portion of the Bonds may be transferred to the fund of any other improvement instituted pursuant to Minnesota Statutes, Chapter 429, and provided further that any special assessments credited to the Capital Account shall only be applied towards payment of the costs of the Improvements upon adoption of a resolution by the City Council determining that the application of the special assessments for such purpose will not cause the City to no longer be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. (b) Debt Service Account. There shall be maintained separate subaccounts in the Debt Service Account to be designated the "Improvements Debt Service Subaccount", the "Equipment Debt Service Subaccount", and the "Utility Improvements Debt Service Subaccount". There are hereby irrevocably appropriated and pledged to, and there shall be credited to the separate subaccounts of the Debt Service Account: (i) Improvements Debt Service Subaccount. To the Improvements Debt Service Subaccount there shall be credited: (A) all collections of special assessments herein covenanted to be levied with respect to the Improvements; (B) all collections of taxes herein or hereinafter levied for the payment of the Improvement Portion of the Bonds and interest thereon; (C) a pro rata share of all funds remaining in the Capital Account after completion of the Improvements and payment of the costs thereof; (D) all investment earnings on funds held in the Improvements Debt Service Subaccount; and (E) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Improvements Debt Service Subaccount. The Improvements Debt Service Subaccount shall be used solely to pay the principal and interest and any premium for redemption of the Improvement Portion of the Bonds. (ii) Equipment Debt Service Subaccount. To the Equipment Debt Service Subaccount there shall be credited: (A) all collections of taxes herein or hereinafter levied for the payment of the Equipment Portion of the Bonds and interest thereon; (B) a pro rata share of all funds remaining in the Capital Account after completion of the Project and payment of the costs thereof; (D) all investment earnings on funds held in the Equipment Debt Service Subaccount; and (E) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Equipment Debt Service Subaccount. The Equipment Debt Service Subaccount shall be 127647057v1 17 used solely to pay the principal and interest and any premium for redemption of the Equipment Portion of the Bonds. (iii) Utility Improvements Debt Service Subaccount. To the Utility Improvements Debt Service Subaccount there shall be credited: (1) the net revenues of the Sewer System and Storm Water System not otherwise pledged and applied to the payment of other obligations of the City, in an amount, together with other funds which may herein or hereafter from time to time be irrevocably appropriated to the Utility Improvements Debt Service Subaccount, sufficient to meet the requirements of Minnesota Statutes, Section 475.61 for the payment of the principal and interest of the Utility Portion of the Bonds; (2) all collections of taxes which may hereafter be levied in the event that the net revenues of the Sewer System and Storm Water System and other funds herein pledged to the payment of the principal and interest on the Utility Portion of the Bonds are insufficient therefore; (3) a pro rata share of all funds remaining in the Capital Account after completion of the Project and payment of the costs thereof; (4) all investment earnings on funds held in the Utility Improvements Debt Service Subaccount; and (5) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Utility Improvements Debt Service Subaccount. The Utility Improvements Debt Service Subaccount shall be used solely to pay the principal and interest on the Utility Portion of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from said subaccount as provided by law. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued and (2) in addition to the above in an amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Capital Account, Operation and Maintenance Accounts or Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. Money in the Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"). 16. Covenants Relating to the Improvement Portion of the Bonds. (a) Special Assessments. It is hereby determined that no less than twenty (20%) percent of the cost to the City of each Improvement financed hereunder within the meaning of Minnesota Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be levied against every assessable lot, piece and parcel of land benefited by any of the Improvements. The City hereby covenants and agrees that it will let all construction contracts not heretofore let within one year after ordering each Improvement financed hereunder unless the resolution ordering the Improvement specifies a different time limit for the letting of 127647057v1 18 construction contracts. The City hereby further covenants and agrees that it will do and perform as soon as they may be done all acts and things necessary for the final and valid levy of such special assessments, and in the event that any such assessment be at any time held invalid with respect to any lot, piece or parcel of land due to any error, defect, or irregularity in any action or proceedings taken or to be taken by the City or the City Council or any of the City officers or employees, either in the making of the assessments or in the performance of any condition precedent thereto, the City and the City Council will forthwith do all further acts and take all further proceedings as may be required by law to make the assessments a valid and binding lien upon such property. The special assessments have heretofore been authorized. Subject to such adjustments as are required by conditions in existence at the time the assessments are levied, it is hereby determined that the assessments shall be payable in equal, consecutive, annual installments, including both principal and interest, with interest at a rate per annum set forth below: Improvement Designation Amount Levy Years Collection Years Rate See Attached Schedule in Exhibit A At the time the assessments are in fact levied the City Council shall, based on the then- current estimated collections of the assessments, make any adjustments in any ad valorem taxes required to be levied in order to assure that the City continues to be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. (b) Tax Levy. To provide moneys for payment of the principal and interest on the Improvement Portion of the Bonds there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: Year of Tax Levy Year of Tax Collection Amount See Attached Schedule in Exhibit B (c) Coverage Test. The tax levies are such that if collected in full they, together with estimated collections of special assessments and other revenues herein pledged for the payment of the Improvement Portion of the Bonds, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Improvement Portion of the Bonds. The tax levies shall be irrepealable so long as any of the Improvement Portion of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 17. Covenants Relating to the Equipment Portion of the Bonds; Tax Levy; Coverage Test. To provide moneys for payment of the principal and interest on the Equipment Portion of the Bonds there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: 127647057v1 19 Levy Years Collection Years Amount See attached schedule in Exhibit B The tax levies are such that if collected in full they, together with other revenues herein pledged for the payment of the Equipment Portion of the Bonds, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Equipment Portion of the Bonds. The tax levies shall be irrepealable so long as any of the Equipment Portion of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 18. Covenants Relating to the Utility Portion of the Bonds. (a) Sufficiency of Net Revenues. It is hereby found, determined and declared that the net revenues of the Sewer System and Storm Water System are sufficient in amount to pay when due the principal and interest on the Utility Portion of the Bonds and a sum at least five percent in excess thereof. The net revenues of the Sewer System and Storm Water System are hereby pledged on a parity lien with the Outstanding Sewer Bonds and shall be applied for that purpose, but solely to the extent required to meet, together with other pledged sums, the principal and interest requirements of the Utility Portion of the Bonds as the same become due. Nothing contained herein shall be deemed to preclude the City from making further pledges and appropriations of the net revenues of the Sewer System and Storm Water System for the payment of other or additional obligations of the City, provided that it has first been determined by the City Council that the estimated net revenues of the Sewer System and Storm Water System will be sufficient in addition to all other sources, for the payment of the Utility Portion of the Bonds and such additional obligations and any such pledge and appropriation of the net revenues of the Sewer System and Storm Water System may be made superior or subordinate to, or on a parity with the pledge and appropriation herein. (b) Excess Net Revenues. Net revenues in excess of those required for the foregoing may be used for any proper purpose. (c) Covenant to Maintain Rates and Charges. In accordance with Minnesota Statutes, Section 444.075, the City hereby covenants and agrees with the Holders of the Bonds that it will impose and collect charges for the service, use, availability and connection to the Sewer System and Storm Water System at the times and in the amounts required to produce net revenues adequate to pay all principal and interest when due on the Utility Portion of the Bonds. Minnesota Statutes, Section 444.075, Subdivision 2, provides as follows: "Real estate tax revenues should be used only, and then on a temporary basis, to pay general or special obligations when the other revenues are insufficient to meet the obligations." 19. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the net revenues of the Sewer System and Storm Water System appropriated and pledged to the payment of principal and interest on the Utility Portion of the Bonds, together with other funds irrevocably appropriated to Commented [JB1]: I believe this is duplicate language 127647057v1 20 the Utility Improvements Debt Service Subaccount herein established, shall at any time be insufficient to pay such principal and interest when due, the City covenants and agrees to levy, without limitation as to rate or amount an ad valorem tax upon all taxable property in the City sufficient to pay such principal and interest as it becomes due. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 20. Defeasance. When all Bonds have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered holders of the Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with respect to any Bonds which are due on any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 21. Compliance With Reimbursement Bond Regulations. The provisions of this paragraph are intended to establish and provide for the City's compliance with United States Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the "reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the City to reimburse itself for any expenditure which the City paid or will have paid prior to the Closing Date (a "Reimbursement Expenditure"). The City hereby certifies and/or covenants as follows: (a) Not later than 60 days after the date of payment of a Reimbursement Expenditure, the City (or person designated to do so on behalf of the City) has made or will have made a written declaration of the City's official intent (a "Declaration") which effectively (i) states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional description of the property, project or program to which the Declaration relates and for which the Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the general functional purpose thereof from which the Reimbursement Expenditure was to be paid (collectively the "Project"); and (iii) states the maximum principal amount of debt expected to be issued by the City for the purpose of financing the Project; provided, however, that no such Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for 127647057v1 21 the Project, defined in the Reimbursement Regulations to include engineering or architectural, surveying and soil testing expenses and similar prefatory costs, which in the aggregate do not exceed 20% of the "issue price" of the Bonds, and (ii) a de minimis amount of Reimbursement Expenditures not in excess of the lesser of $100,000 or 5% of the proceeds of the Bonds. (b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the Bonds or any of the other types of expenditures described in Section 1.150-2(d)(3) of the Reimbursement Regulations. (c) The "reimbursement allocation" described in the Reimbursement Regulations for each Reimbursement Expenditure shall and will be made forthwith following (but not prior to) the issuance of the Bonds, and not later than three years after the later of (i) the date of the payment of the Reimbursement Expenditure, or (ii) the date on which the Project to which the Reimbursement Expenditure relates is first placed in service. (d) Each such reimbursement allocation will be made in a writing that evidences the City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30 days after the Bonds are issued, shall be treated as made on the day the Bonds are issued. Provided, however, that the City may take action contrary to any of the foregoing covenants in this paragraph upon receipt of an opinion of its Bond Counsel for the Bonds stating in effect that such action will not impair the tax-exempt status of the Bonds. 22. Certificate of Registration. A certified copy of this resolution is hereby directed to be filed in the office of the County Auditor of Stearns County, together with such other information as the County Auditor shall require, and to obtain the County Auditor's Certificate that the Bonds have been entered in the Bond Register and the tax levies required by law have been made. 23. Continuing Disclosure. The City is the sole obligated person with respect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described to: (a) Provide or cause to be provided to the Municipal Securities Rulemaking Board (the "MSRB") by filing at www.emma.msrb.org in accordance with the Rule, certain annual financial information and operating data in accordance with the Undertaking. The City reserves the right to modify from time to time the terms of the Undertaking as provided therein. (b) Provide or cause to be provided to the MSRB notice of the occurrence of certain events with respect to the Bonds in not more than ten (10) business days after the occurrence of the event, in accordance with the Undertaking. (c) Provide or cause to be provided to the MSRB notice of a failure by the City to provide the annual financial information with respect to the City described in the Undertaking, in not more than ten (10) business days following such occurrence. 127647057v1 22 (d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be enforceable on behalf of such Holders; provided that the right to enforce the provisions of these covenants shall be limited to a right to obtain specific enforcement of the City's obligations under the covenants. The Mayor and City Administrator of the City, or any other officer of the City authorized to act in their place (the "Officers") are hereby authorized and directed to execute on behalf of the City the Undertaking in substantially the form presented to the City Council subject to such modifications thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers. 24. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 25. Negative Covenant as to Use of Bond Proceeds and Project. The City hereby covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Project, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 26. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation (i) requirements relating to temporary periods for investments, (ii) limitations on amounts invested at a yield greater than the yield on the Bonds, and (iii) the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued and outstanding at one time in this calendar year) exceed the small-issuer exception amount of $5,000,000. For purposes of qualifying for the small issuer exception to the federal arbitrage rebate requirements for governmental units issuing $5,000,000 or less of bonds, the City hereby finds, determines and declares that (i) the Bonds are issued by a governmental unit with general taxing powers; (ii) no Bonds are a private activity bond; (iii) 95% or more of the net proceeds of the Bonds are to be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City); and (iv) the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all entities subordinate to, or treated as one issuer with the City) during the calendar year in which the Bonds are issued and outstanding at one time is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(D) of the Code. 127647057v1 23 27. Designation of Qualified Tax-Exempt Obligations. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations: (a) the Bonds are issued after August 7, 1986; (b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (c) the City hereby designates the Bonds as "qualified tax exempt obligations" for purposes of Section 265(b)(3) of the Code; (d) the reasonably anticipated amount of tax exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City (and all entities treated as one issuer with the City, and all subordinate entities whose obligations are treated as issued by the City) during this calendar year 2023 will not exceed $10,000,000; (e) not more than $10,000,000 of obligations issued by the City during this calendar year 2023 have been designated for purposes of Section 265(b)(3) of the Code; and (f) the aggregate face amount of the Bonds does not exceed $10,000,000. The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 28. Official Statement. The Official Statement relating to the Bonds prepared and distributed by the Purchaser is hereby approved and the officers of the City are authorized in connection with the delivery of the Bonds to sign such certificates as may be necessary with respect to the completeness and accuracy of the Official Statement. 29. Severability. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 30. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. The motion for the adoption of the foregoing resolution was duly seconded by member Beaton and, after a full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: _____________________; and the following voted against the same: ______________. Whereupon the resolution was declared duly passed and adopted by the St. Joseph City Council this 18th day of September 2023. CITY OF ST. JOSEPH By ATTEST Rick Schultz, Mayor By David Murphy, City Administrator 127647057v1 24 STATE OF MINNESOTA COUNTY OF STEARNS CITY OF ST. JOSEPH I, the undersigned, being the duly qualified and acting Clerk of the City of St. Joseph, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council, duly called and held on the date therein indicated, insofar as such minutes relate to authorizing the issuance and awarding the sale of $2,500,000 General Obligation Bonds, Series 2023A. WITNESS my hand on September 18, 2023. ________________________________ Clerk 127647057v1 25 EXHIBIT A SCHEDULES [To be supplied by Northland Securities, Inc.] Summary: St. Joseph, Minnesota; General Obligation Primary Credit Analyst: Rebecca Y Roman, Chicago (1) 708-219-0455; rebecca.roman@spglobal.com Secondary Contact: Melody W Vinje, Englewood + 1 (303) 721 4163; melody.vinje@spglobal.com Table Of Contents Credit Highlights Outlook Related Research WWW.STANDARDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 13, 2023 1 Summary: St. Joseph, Minnesota; General Obligation Credit Profile US$2.5 mil GO bnds ser 2023A dtd 10/17/2023 due 12/15/2033 Long Term Rating AA-/Stable New St. Joseph GO bnds Long Term Rating AA-/Stable Affirmed Credit Highlights • S&P Global Ratings assigned its 'AA-' rating to St. Joseph, Minn.'s roughly $2.5 million series 2023A general obligation (GO) bonds. • At the same time, S&P Global Ratings affirmed its 'AA-' rating on the city's existing GO debt. • The outlook is stable. Security The city's full-faith-and-credit GO pledge secures the bonds, including its ability to levy ad valorem taxes on all real property in the city. The bonds are payable from special assessments, net revenue from the city's water-and-sewer utilities, and ad valorem taxes; however, we rate to the unlimited-ad valorem-tax pledge. Officials intend to use series 2023A bond proceeds to finance various street-and-capital improvements. Credit overview St. Joseph is in the St. Cloud metropolitan statistical area (MSA) in central Minnesota. Lower-than-average income is due partially to the presence of the student population, but continued market value growth due to commercial and residential development partially offset economic weakness. Due to continued developments and significant property valuation increases, the city has experienced consistent property tax base growth during the past decade. Since new commercial and residential plans persist, we expect to see continued valuation growth during the next few years. The city's strong record of well-managed finances and robust reserves further support our view. Stable finances are due largely to management's ability to control expenditures as shown with fiscal 2022 breakeven results. As an effort to spend one-time American Rescue Plan Act of 2021 (ARPA) funds, officials are budgeting for a $155,000 draw on the general fund in fiscal 2023. Currently $400,000 of one-time grant money remains to be spent by fiscal 2024. Despite plans to spend down ARPA funds, we expect reserves will likely remain in-line with the fund-balance policy of maintaining four months' to six months' expenditures; we think that this provides financial flexibility in times of stress and that it is a credit strength. As part of capital planning, the city plans to issue an estimated $18 million of additional debt during the next two years. With planned debt issuances, we expect debt will likely remain weak during the next few years. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 13, 2023 2 The rating reflects our view of the city's: • Growing local economy, demonstrated by year-over-year tax base growth, with access to an MSA and a local stabilizing institutional influence partially offsetting below-average income; • Strong management with good financial-management policies, practices under our Financial Management Assessment (FMA) methodology--highlighted by its budget-to-actual and investment reporting to the city council, robust capital planning, and formal reserve policy to maintain a minimum four months' to six months' general fund expenditures--and strong Institutional Framework score; • Healthy finances, including a strategically planned ARPA spend down through fiscal 2024; ample budgetary flexibility in-line with the fund-balance policy; and very strong liquidity with total governmental available cash of $13 million, or 178% of total governmental expenditures, after adjusting for unspent bond proceeds at fiscal year-end 2022; and • Weak debt-and-contingent-liability profile with high debt-service fixed costs, slightly offset by rapid amortization with a majority of debt scheduled to be retired within 10 years and no near-term pressure from pension and other postemployment benefit plans--However, we expect debt will likely remain elevated as the city continues its capital plans. Environmental, social, and governance We have analyzed environmental, social, and governance (ESG) risks relative to the city's economy, management, budgetary outcomes, and debt-and-liability profile; we view them all as credit neutral. Outlook The stable outlook reflects S&P Global Ratings' expectation that the city will likely spend down remaining ARPA funds while maintaining very strong reserves in-line with its formal policy. Downside scenario We could lower the rating if finances and reserves were to experience sustained deterioration, resulting in weakening reserves to levels we no longer consider comparable with similar-rated peers. Upside scenario We could raise the rating if income and market value per capita were to improve significantly, in conjunction with a more-moderate debt profile while the city maintains current finances. St. Joseph, Minnesota key credit metrics Most recent --Historical information-- 2022 2021 2020 Strong economy Projected per capita effective buying income (EBI) (%) of U.S.66.2 67.0 66.0 72.0 Market value per capita ($)93,046 80,524 75,753 72,437 Population 7,197 7,108 6,970 County unemployment rate(%)2.8 2.7 3.6 5.9 Market value ($000)669,650 579,534 538,452 504,889 WWW.STANDARDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 13, 2023 3 Summary: St. Joseph, Minnesota; General Obligation St. Joseph, Minnesota key credit metrics (cont.) Most recent --Historical information-- 2022 2021 2020 10 largest taxpayers as a % of taxable value 10.5 11.3 11.6 13.1 Strong budgetary performance Operating fund result as a % of expenditures (0.2)36.9 4.9 Total governmental fund result as a % of expenditures 20.9 15.8 9.2 Very strong budgetary flexibility Available reserves as a % of operating expenditures 86.4 113.7 74.3 Total available reserves ($000)3,988 4,181 3,543 Very strong liquidity Total government cash % of governmental fund expenditures 178.4 167.9 137.2 Total government cash % of governmental fund debt service 609.6 630.2 1,093.5 Strong management Financial Management Assessment Good Weak debt and long-term liabilities Debt service as a % of governmental fund expenditures 29.3 26.6 12.6 Net direct debt as a % of governmental fund revenue 271.0 Overall net debt as a % of market value 4.8 Direct debt 10-year amortization (%)79.1 Required pension contribution as a % of governmental fund expenditures 3.2 Other postemployment benefits actual contribution as a % of governmental fund expenditures - Strong Institutional Framework Data points and ratios may reflect analytical adjustments. Related Research • S&P Public Finance Local GO Criteria: How We Adjust Data For Analytic Consistency, Sept. 12, 2013 • Incorporating GASB 67 And 68: Evaluating Pension/OPEB Obligations Under Standard & Poor's U.S. Local Government GO Criteria, Sept. 2, 2015 • Criteria Guidance: Assessing U.S. Public Finance Pension And Other Postemployment Obligations For GO Debt, Local Government GO Ratings, And State Ratings, Oct. 7, 2019 • 2022 Update Of Institutional Framework For U.S. Local Governments • Through The ESG Lens 3.0: The Intersection Of ESG Credit Factors And U.S. Public Finance Credit Factors, March 2, 2022 Ratings Detail (As Of September 13, 2023) St. Joseph GO bnds ser 2021A due 12/15/2036 Long Term Rating AA-/Stable Affirmed WWW.STANDARDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 13, 2023 4 Summary: St. Joseph, Minnesota; General Obligation Ratings Detail (As Of September 13, 2023) (cont.) St. Joseph GO cap imp plan rfdg bnds Long Term Rating AA-/Stable Affirmed St. Joseph GO imp bnds ser 2010B dtd 09/01/2010 due 12/01/2011-2020 2023 2025 Long Term Rating AA-/Stable Affirmed Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 13, 2023 5 Summary: St. Joseph, Minnesota; General Obligation WWW.STANDARDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 13, 2023 6 STANDARD & POOR’S, S&P and RATINGSDIRECT are registered trademarks of Standard & Poor’s Financial Services LLC. S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.spglobal.com/ratings (free of charge), and www.ratingsdirect.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.spglobal.com/usratingsfees. S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof. Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating- related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses. No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages. Copyright © 2023 by Standard & Poor’s Financial Services LLC. All rights reserved. STAFF MEMO Prepared by: Lori Bartlett, Finance Director Meeting Date: 9-18-23 ☐ Consent Agenda Item ☒ Regular Agenda Item Agenda Item # 6b Reviewed by: Item: Northland Securities Debt Management Study ACTION REQUESTED The debt management study is information only for city council to assist with budgeting. BOARD/COMMISSION/COMMITTEE RECOMMENDATION None PREVIOUS COUNCIL ACTION None REFERENCE AND BACKGROUND Annually, Tammy Omdal, financial advisor from Northland Securities, prepares an analysis of the outstanding bonds held by the City of St. Joseph. The 2023 debt study (with balances as of 12/31/22 plus the 2023A bond issue) will presented and handed out at the meeting. Tammy prepared with the assistance of Finance. The debt study provides information of what the required tax levies and other revenue sources should be, what debts might be a candidate to refund or payoff early, how many years remain on each debt, and the summary of the debt costs versus the requirements to pay the total debt. BUDGET IMPACT Information only STAFF RECOMMENDED ACTION Review the debt management study. SUPPORTING DATA/ATTACHMENTS Debt Management Study Summary City of St. Joseph, MN – Debt Study September 13, 2023 Northland Public Finance 1 RC 18- DEBT STUDY City of St. Joseph September 8, 2023 City Council Meeting Tammy Omdal, Northland RC 18- Items to Cover Purpose Study approach Overview of outstanding obligations and source of revenue for repayment Overview of Credit Rating 2 City of St. Joseph, MN – Debt Study September 13, 2023 Northland Public Finance 2 RC 18- Purpose City uses the issuance of debt as an important and essential tool for financing capital Ongoing debt management is important to monitor the repayment of debt obligations and to be well prepared for the future issuance of debt Study is intended to serve as a guide for the City’s financial management of its debt obligations All debt obligations identified by the City are included in the Study Study is built around identified key assumptions, including assumptions for future revenue sources 3 RC 18- Study Approach Steps taken as part of the study process included the City providing information on past financial information Cash balances and verification of current source of funds for debt payment Information was organized, analyzed, and used to support the development of financial plans for each series of debt outstanding by purpose 4 City of St. Joseph, MN – Debt Study September 13, 2023 Northland Public Finance 3 RC 18-Overview City demonstrates strong financial management of its debt obligations Bond rating “AA-” rating from S&P Strong record of well-managed finances and robust reserves Rapid amortization of debt Healthy finances…ample budgetary flexibility 5 RC 18- $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2023 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Chart 1 Tax Levy for Debt Service Projected Debt Outstanding Including Existing and 2023 New Debt City of St. Joseph, MN – Debt Study September 13, 2023 Northland Public Finance 4 RC 18- $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Chart 2 Total Debt Outstanding at Year-End Projected Debt Outstanding Including Existing and 2023 New Debt RC 18- Special Assessments 11% Sanitary Sewer Revenue 15% Water Revenue 7% Sales Tax Revenue 27% All Other Revenue 6% Tax Levy 34% Chart 3 Source of Revenue for Payment on Total Debt Outstanding Projected Debt Outstanding Including Existing and 2023 New Debt City of St. Joseph, MN – Debt Study September 13, 2023 Northland Public Finance 5 RC 18- 20%31%39%48%56%64%70%75%79%83% 86% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Percent of Outstanding Debt Amortized Number of Years Chart 4 Amortization of Outstanding Debt Projected Debt Outstanding Including Existing and 2023 New Debt RC 18-Credit Rating S&P Global Ratings affirmed (9/13/2023) its ‘AA-' long-term rating to the City’s outstanding general obligation bonds Credit rating is a forward-looking opinion about the creditworthiness of the City Rating opinion reflects S&Ps' view of the City's capacity and willingness to meet its financial commitments as they come due 10 City of St. Joseph, MN – Debt Study September 13, 2023 Northland Public Finance 6 RC 18- A 8%A- 3% A+ 23% AA 20% AA- 21% AA+ 14% AAA 10% BB+ 0.33% BBB+ 1% S&P Rated Minnesota Cities Note: 307 MN Cities reported as rated by S&P as of June 6, 2023. Source S&P Global Ratings. RC 18- The information contained in this presentation has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the material discussed. The opinions expressed herein do not necessarily reflect those of Northland Securities, Inc., and are subject to change without notice. Northland Public Finance The public finance group of Northland Securities, Inc. 150 South Fifth Street, Suite 3300 Minneapolis, Minnesota 55402 800-851-2920 www.northlandsecurities.com/public_finance Member of FINRA and SIPC | Registered with SEC and MSRB Thank You 12 Tammy Omdal Managing Director 612-851-4964 tomdal@northlandsecurities.com STAFF MEMO Prepared by: Lori Bartlett, Finance Director Meeting Date: 9-18-23 ☐ Consent Agenda Item ☒ Regular Agenda Item Agenda Item # 6c Reviewed by: Item: Early Redemption 2017B GO Improvement Bonds ACTION REQUESTED Consider adoption of Resolution 2023-049 calling for the redemption of the outstanding General Obligation Bonds, Series 2017B. Approve transferring $136,000 from fund 110 debt relief reserves for the early redemption of the 2017B bonds. BOARD/COMMISSION/COMMITTEE RECOMMENDATION None PREVIOUS COUNCIL ACTION Council reviewed the Debt Management Study presented by Northland Securities. REFERENCE AND BACKGROUND Northland Securities reviewed the City of St. Joseph’s outstanding debt for opportunities to early redeem any issue. There are two debts that could be redeemed early in October. If council is interested, staff would follow up with a redemption resolution for council to pass. Consideration of the redemptions follow below. 2017B GO Improvement Bonds, Fund 305: This bond paid for the water treatment plant 1 upgrades and phase I of the CBD alley sewer and street improvements. The bonds are paid for with special assessments and debt levy. The payoff amount is $170,000 and would come from current fund balance and $136,000 from Fund 110 debt relief reserves. The early call would result in interest savings of $10,200 (3% rate) and reduce the 2024 debt levy $25,000. Any remaining assessment balance we be deposited into Fund 110 as they come in over the next couple years. The 2016B GO improvement bonds, Fund 304, are also a candidate for an early call. Staff is not suggesting to call this bond in 2023 due to the high amount of Fund 110 debt relief reserves needed to complete the call ($440,000). Also note, this does look favorably to bond ratings to early defease and reduce the City’s debt liability. BUDGET IMPACT $10,200 interest savings, reduction of 2024 debt levy by $25,000 STAFF RECOMMENDED ACTION Adopt Resolution 2023-049 calling the GO Improvement Bonds, series 2017B early and moving funds from fund 110 debt service relief to the early call. SUPPORTING DATA/ATTACHMENTS Resolution 2023-049 Calling 2017B GO Improvement Bonds EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA Held: September 18, 2023 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 18, 2023, 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 2023-049 RESOLUTION CALLING FOR THE REDEMPTION OF THE OUTSTANDING GENERAL OBLIGATION BONDS, SERIES 2017B WHEREAS: A. The City Council of the City of St. Joseph, Minnesota issued $697,000 General Obligation Bonds, Series 2017B, dated August 30, 2017; and B. All of said bonds maturing or subject to mandatory redemption on December 15, 2023 through 2027, inclusive, are subject to redemption, in whole or in part, and prepayment at the option of the City on December 15, 2022, 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 $170,000 of the outstanding bonds maturing or subject to mandatory redemption in the years 2023 through 2027, inclusive, for redemption on December 15, 2023, 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 Hanover, Minnesota as follows: 1. $170,000 of the General Obligation Bonds, Series 2017B, dated August 30, 2017, of the City of St. Joseph, Minnesota, maturing or subject to mandatory redemption in the years 2023 through 2027, inclusive, shall be redeemed and prepaid on December 15, 2022, at 100% of their principal amount plus accrued interest for each such bond called. 2. The City Administrator 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 Administrator is 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 by the St. Joseph City Council on this 18th day of September 2023. CITY OF ST JOSEPH ______________________ Rick Schultz, Mayor Attest _____________________ David Murphy, City Administrator STATE OF MINNESOTA COUNTY OF STEARNS CITY OF ST. JOSEPH I, the undersigned, being the duly qualified and acting City Administrator 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 Council of said City held 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 City on September 18, 2023. ____________________________________ City Administrator (SEAL) NOTICE OF CALL FOR REDEMPTION GENERAL OBLIGATION BONDS, SERIES 2017B DATED: AUGUST 30, 2023 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 24, 2023 those outstanding bonds of the City designated as General Obligation Bonds, Series 2017B, dated August 30, 2017, maturing or subject to mandatory redemption in the years 2023 through 2027, inclusive, totaling $170,000 in principal amount and with the following CUSIP number: Maturity Principal Amount CUSIP 2027* $170,000 790739 XZ4 *This is a Term Bond with mandatory sinking fund payments in 2023 through 2026. The bonds are being called for redemption at a price of 100% of their principal amount plus accrued interest on October 24, 2023, 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 Services, Inc., 150 South 5th Street, Suite 3300, Minneapolis, Minnesota 55402, on or before October 24, 2023. Dated: September 18, 2023 BY ORDER OF THE CITY COUNCIL /s/ David Murphy City Administrator 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. 150 South 5th Street, Suite 3300 Minneapolis, Minnesota 55402 Attn: Public Finance Phone: 612-851-5900 or 800-851-2920 STAFF MEMO Prepared by: Lori Bartlett, Finance Director Meeting Date: 9-18-23 ☐ Consent Agenda Item ☒ Regular Agenda Item Agenda Item # 7 Reviewed by: Item: 2024 Preliminary Governmental Budget and Levy ACTION REQUESTED Consider adoption Resolution 2023-052 adopting the preliminary 2024 Governmental Budget and proposed 2023 tax levy, collectible in 2024. State verbally the public hearing for the final budget will be held on December 4, 2023 at 6:00 PM in the St. Joseph council chambers. City taxpayers may call city offices at 320-363-7201 with questions regarding their property notice they will receive in November. Comments can also be sent to city offices at 75 Callaway St E, St. Joseph, MN 56374. BOARD/COMMISSION/COMMITTEE RECOMMENDATION The EDA, CVB and Park Board reviewed their budgets at their August meetings. PREVIOUS COUNCIL ACTION Councilmembers were given the opportunity to discuss their budget priorities at council meetings and workshops since May. Updates were added to the agenda as recommendations were received. REFERENCE AND BACKGROUND The enclosed preliminary governmental budget reflects staff recommendations and council feedback. The budgeted reflected an estimated tax rate increase of 5.3%. The taxable market value is estimated to increase 7% (per Stearns County Assessor) 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 $250,000 home is a tax increase of $125.47 (before any adjustments in the home owners taxable market value and implementation of the State’s new homestead laws). The following items impacted the proposed 2024 budget. Staffing Changes (1Full-Time, 1 Part-Time addition): • Add additional part-time Recreational Coordinator (Feb 15th hire date) • Add Utility Worker (budgeted as promotion, full-time Maintenance Worker new hire) • Add Deputy Police Chief (budgeted as promotion, no back-fill hire) • Add Police Clerk Lead (budgeted as promotion, no back-fill hire) • Planning Intern remained budgeted Benefits and Wages: • Pay Equity/Compensation Study Update implementation 1/1/24: Council commissioned David Drown & Associates (DDA) – separate agenda item for approval consideration • Minimum 3% general wage increase as approved with AFSCME and LELS • 2nd year of three – AFSCME and LELS Contract • State Employee Sick and Safety Leave (ESSL) implemented on 1/1/24 • Increase in H SA contribution and city portion of Health Insurance per contract • Added time for Election Judges due to Presidential Primary in March • Increase meeting stipends to $40/meeting for Boards/Commissions • Increased travel and per diem days for councilmembers • City apparel added to replace worn items for council and staff • Some budgeted line items for wages and benefits may show decreases. 2023 budget had some higher estimates as we were still negotiating one union contract • COPS grant reimbursement is done in 2023, position must be held through 2024 Operations: • Professional services: based on historical costs, anticipated projects and notification of fee increases, the professional services budget increased. Inflation pressures were also taken into consideration. • Membership Dues/Community Support reviewed by city council. All proposals were left in the preliminary budget. The St. Cloud APO dues show some increase for the bridge design by assuming the costs will be recovered over five years • Sealcoating/Crack Filling budget decreased significantly. There was not a project in 2023 due to conditions of the streets and there is a nice reserved balance to cover upcoming years. • Property Tax Sharing with St. Joseph Township was reduced $23,890 (2025 last year) • General liability and workers comp insurance increase based on LMC recommendations • LGA increased $250,457; budgeting $200,000 of this increase in Fund 110 debt relief • Public Safety Aid will be received 12/26/23 in amount of $312,921, not allocated yet • ARPA grant remaining dollars est. $188,000, must be spent by 12/31/24 • Trobec’s abatement reimbursements will begin in 2024 Boards/Commissions: EDA: EDA recommends continuing their initiatives to revitalize the downtown and CR75 highway business district as well as pursuing a boutique hotel in the downtown area. CVB: The CVB plans to continue with the events they have participated in as well as improving the website with information for visitors. The cities of Waite Park and St. Joseph will host the summer CGMC conference in 2024. The CVB is planning on business promotion events during the conference. Merchandise sells continue at the Minnesota Street Market. Park Board: The Park Board is proposing to construct Pickleball courts in Millstream Park. The Park Board has spent significant funds on younger age groups the past couple years and would like to do a recommended project for adults. Pickleball has been a request from the community. Fire Dept: The area cities hired a firm to conduct a fire study with area cities. The draft fire study was sent in Aug. The area cities asked for additional analysis and will be a few months before the next draft is available. The 2024 budget does not reflect any changes that might be recommended because the outcome is unknown. The City of St. Joseph and St. Joseph Township are negotiating a new fire service contract. The current contract expired 12/31/22, but has been extended until 12/31/23 to continue negotiations. St. Wendell Township negotiated a new service contract in fall 2022 and is current for several years. The Estimated Market Value (EMV) and proposed budget allocations follows. The final EMV will not be known until Dec. The City of St. Joseph will realize 100% of the EMV for the 2019 annexed properties. Est. 2023 MV % 2024 Operations Allocation 2024 Debt Allocation City of St. Joseph 59.29% $244,550* $53,000 St. Joseph Township 18.65% $72,865 $16,670 St. Wendell Township 22.06% $86,200 $19,720 *City covering 100% community room and rescue van Debt Liabilities: Tammy Omdal from Northland Securities will be present at the Sept. 18th council meeting to go through the city debts and funding sources. Tammy goes through each debt with Lori to understand all the activity that might be relevant to the debts such as unspent project contingency funds that transfer into the debt fund. Also, opportunities to call debts early if funds are available. The debt levies proposed for 2024 are included in the resolution adopting the preliminary levy and governmental budgets. Capital Improvements: To begin, the Engineer Capital Improvement Plan (CIP) has been discussed at the May council workshop and follow up at the Sept. 5th council meeting. The improvement projects identified as 2024 priorities include the following projects. If council is supportive of the projects, the feasibility reports should be ordered in soon so S.E.H. can complete their survey work before winter. This also allows the City to be on the front of the bidding season that may bring in more favorable bids. 2024 Street Overlay Improvements: 2nd Ave SW, Foxmore Way, 1st Ave SW, Hill St W, 3rd Ave SW, Iverson St W, Morningside Loop, Kiwi Court, Kale Court, Polar Circle, Pearl Drive Community Center Capital Campaign/Design Elm St/CR133 Roundabout [Stearns County] Elm St Extension Northland Drive to 8th Ave NE SCAWAC: Main Lift Station Improvements [St. Cloud] SCAWAC: Metro Forcemain Replacement [St. Cloud] Proposed developments that may spur street and utility work include the following projects: Gateway Development – CSAH 2 sewer extension/sewer lift station River Bats Storage Development – Stormwater & water extension, future sewer extension/lift station Knife River Rail Extension - connect to Fir St NE, wetland delineation Knife River Transload Station (future) –24th Ave NE/Westwood Pkwy extension Merkling Property Development – 1st Ave NE street and utility improvements/extensions Rivers Bend Development – sewer lift station, Jade Road South construction – extend utilities Wedding Event Center – extend utilities north along Jade Road The Park Board project priority was discussed at their August 28, 2023 meeting. The following priorities were recommended for 2024. East Park Phase I Millstream Park – Pickle Ball Courts The capital equipment plans (CEP) will be printed for Council’s review/comment. Below is a summary of the equipment requests for each department for the next two years. Department 2024 2025 [Equip Certificate] Administration Election Equipment Vehicle Administration CivicRec Software Welcome to St. Joseph Sign CR75, CR2 Administration Computers Computers/Server EDA Business Development Business Development EDA Computer Replacement Fire Air Packs Air Packs Fire Paint Fire Hall Roof Maintenance Fire Mule ATV/Pump/Tank #7 Fire Turnout Gear Turnout Gear Police Mobile Video Mobile Video Police Squad Equipment Squad Equipment Police Radar Printer Police Squad 708 (new) Squad Replacements (2) Police Mobile Laptops Public Works Seal coat/Crack fill Seal coat/Crack fill Public Works Tire Station w/Balancer Maintenance Truck Public Works Bobcat UTV PD/PW Garage Public Works Scissor Lift Public Works Sno Go Blower Public Works Pavement Mgmt Plan Update Public Works Shop #2 Roof Replacement Public Works Plow Truck Public Works Wing Deck Mower Enterprise Locator UB Computer Enterprise Stormwater MS4 Update Sewer Root Foam/Lining Enterprise VFD Drives VFD Drives Enterprise Well Maintenance Well Maintenance Enterprise Cellular Meter Conversion Cellular Meter Conversion Equipment Certificates: The next equipment certificate issues are scheduled for 2025. The two certificates are issued on a rotating 5-year basis to minimize spikes in the general levy budget. BUDGET IMPACT Budget input for 2024 preliminary budget with various funding sources. STAFF RECOMMENDED ACTION Consider acceptance of the preliminary governmental funds budgets and levies. The final levies cannot be higher than the preliminary levy (unless granted in law for unusual and infrequent situations). SUPPORTING DATA/ATTACHMENTS Resolution 2023-052 Adopting the Preliminary 2024 Governmental Budget and Proposed 2023 Tax Levy, Collectible in 2024 Estimated Net Tax Capacity – Urban and Rural Properties Debt Levy Summary RESOLUTION 2023-052 RESOLUTION ADOPTING THE PRELIMINARY 2024 GOVERNMENTAL BUDGET AND PROPOSED 2023 TAX LEVY, COLLECTIBLE IN 2024 NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH, MINNESOTA, AS FOLLOWS: That a preliminary 2024 Governmental Expenditure Budget of $10,181,470 is hereby adopted and that the following is the preliminary tax levy collectible in 2024, to be levied upon taxable property in the City of St. Joseph, for the following purposes: General Fund (TAGS 8402/8403) $ 2,358,623 General Fund (TAGS 8404/8406) 117,663 General Fund (TAGS 8405/8407) 377,388 Bonded Indebtedness (TAGS 8402/8403): 2016 Bonds 185,000 2019 Bonds 70,000 2020 Bonds 320,500 2021 Bonds 125,000 2022 Bonds 538,000 2023 Bonds 255,000 Total Preliminary Levy $ 4,347,174 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: WHEREUPON, the Resolution was declared passed and adopted this 18th day of September, 2023. Rick Schultz, Mayor ATTEST David Murphy, Administrator City of St. Joseph, Minnesota 2024 Net Tax Capacity - Urban Properties Draft as of September 14, 2023 Net Tax Capacity 5,532,803 5,920,099 (Stearns County Estimate) 2023 2024 2024 Levy Limit n/a 16.58% 7.00% TAGS 8402,8403 TAGS 8402,8403 T Mill Rate Levy Levy Change General Fund Levy 1,966,731 35.547% 2,139,293 36.136%0.589% Retirement Reserve - 0.000% 14,590 0.246%0.246% Fire Fund 241,685 4.368% 244,550 4.131%-0.237% Country Manor's Abate - EDA 27,150 0.491% 31,000 0.524%0.033% Trobec's Abate- EDA - 0.000% 93,730 1.583%1.583% EDA Levy 93,650 1.693% 101,340 1.712%0.019% Park Dedication Fund 35,000 0.633% 50,000 0.845%0.212% General Equip Fund 111,825 2.021% 129,120 2.181%0.160% sales tax abatement (480,000) -8.676%(445,000) -7.517% 1.159% Bond 2016 150,000 2.711% 185,000 3.125%0.414% Bond 2017 22,000 0.398% - 0.000%-0.398% Bond 2018 55,000 0.994% - 0.000%-0.994% Bond 2019 115,000 2.079% 70,000 1.182%-0.896% Bond 2020 258,500 4.672% 320,500 5.414%0.742% Bond 2021 185,000 3.344% 125,000 2.111%-1.232% Bond 2022 523,540 9.462% 538,000 9.088%-0.375% Bond 2023 - 0.000% 255,000 4.307%4.307% 3,305,081 3,852,123 -1.581% 3,728,431 59.736%4,347,174 65.0686%debt levy w/OAA Properties w/OAA Properties Operational Levy % change 23 to 24 9.44%Urban Mill Rate Chg 5.332% Operational Levy $ change 23 to 24 233,852$ urban levy change 547,042$ Debt Levy % change 23 to 24 26.47%levy % change 16.55% Debt Levy $ change 23 to 24 219,460$ Overall Levy Change 618,743 16.595% 2024 Net Tax 2024 Tax Impact Analysis 2023 NTC 2023 Tax Capacity,22 law Impact 150,000 Homestead 1263 754.47 1,263 821.82 Increase in taxes 8.93%67.35 200,000 Homestead 1808 1,080.03 1,808 1,176.44 Increase in taxes 8.93%96.41 250,000 Homestead 2353 1,405.59 2,353 1,531.06 Increase in taxes 8.93%125.47 500,000 Business 9,250 5,525.59 9,250 6,018.84 Increase in taxes 8.93%493.25 1,000,000 Business 19,250 11,499.20 19,250 12,525.70 Increase in taxes 8.93%1,026.50 $1 M 20 Unit Apt.12,500 7,467.01 12,500 8,133.57 Increase in taxes 8.93%666.56 60,000$ Estimated Property Tax Impact of the 2024 Budget Proposed 2024 Tax Capacity rate change by 1% Adopted 2023 City of St. Joseph, Minnesota 2024 Net Tax Capacity - Rural Properties Draft as of September 14, 2023 Net Tax Capacity 473,796 506,962 667,718 687,750 (Stearns County Est.) 2023 7.00%2024 2023 3.00%2024 2024 Levy Limit n/a rural rural comm/ind comm/ind TAG 8404,8406 TAG 8404,8406 TAG 8405,8407 TAG 8405,8407 Rural Residential Levy Rural Residential Levy OAA Comm/Ind Levy OAA Comm/Ind Levy General Fund Levy 100,956 21.308% 117,663 23.2094% 322,394 48.283% 377,388 54.8729% 100,956 117,663 322,394 377,388 423,350 21.3079% 495,051 23.2094% 48.283% 54.873% increase 22 to 23 71,701 54,994 16,707 17.06%6.59% 16.55% 1.90% 2023 Net Tax 2023 Tax 2024 Net Tax 2024 Tax 2023 Net Tax 2023 Tax 2024 Net Tax 2024 Tax Impact Analysis Capacity Impact Capacity Impact Capacity Impact Capacity Impact 150,000 Homestead 1,263 269.12 1,263 293.13 1,263 609.81 1,263 693.04 Increase in taxes 1.90% 24.02 6.59% 83.23 200,000 Homestead 1,808 385.25 1,808 419.63 1,808 872.96 1,808 992.10 Increase in taxes 1.90% 34.38 6.59% 119.15 250,000 Homestead 2,353 501.37 2,353 546.12 2,353 1,136.10 2,353 1,291.16 Increase in taxes 1.90% 44.74 6.59% 155.06 Estimated Property Tax Impact of the 2024 Budget Adopted 2023Adopted 2023 Proposed 2024 Proposed 2024 City of St. Joseph, Minnesota Debt Levy Summary For the Year Payable 2024 TAGS 8402,8403 2024 Levy Sum Fund Project Name Debt Levy Year by Year 301 2016A GO Capital Improvement Bonds $4.335M 180,000.00 304 2016B GO Improvement Bonds $740K 5,000.00 16 185,000.00 307 2019A GO Improvement Bonds $1.535M 70,000.00 19 70,000.00 309 2020A GO Equipment Certificates $220K 45,500.00 313 2020B GO Refunding Bonds $190K 45,000.00 314 2020C GO CO Refunding Bonds $1.365M 150,000.00 310 2020B GO Improvement Bonds $625K 10,000.00 312 2020B GO CIP Bonds $690K 70,000.00 20 320,500.00 311 2021A GO Improvement Bonds $3.190M 125,000.00 21 125,000.00 315 2022A GO Improvement Bonds $510K 40,000.00 316 2022A GO Equipment Certificates $715K 53,000.00 302 2022A GO Tax Abatement Bonds $6.125M 445,000.00 22 538,000.00 317 2023A GO Improvement Bonds $2.040M 150,000.00 318 2023A GO Equipment Certificates $460K 105,000.00 23 255,000.00 1,493,500.00 1,493,500.00 w/o 22A abatement bonds (sales tax proceeds) 1,048,500.00 2023 Debt Levy 1,309,040.00 increase 184,460.00 w/o 22A abatement bonds (sales tax proceeds) 219,460.00 Misc:25 STAFF MEMO Prepared by: David Murphy Meeting Date: 9/18/2023 ☐ Consent Agenda Item ☒ Regular Agenda Item Agenda Item # 8 Reviewed by: Item: Classification and Compensation Study ACTION REQUESTED Adoption of the Classification and Compensation Study REFERENCE AND BACKGROUND David Drown Associates was hired to complete a classification and compensation study for the City to accomplish the following tasks: • Ensure the positions are classified to meet FLSA guidelines. • Ensure pay is competitive and equitably structured. • Establish Policies and procedures to keep system up to date. • Ensure the compensation system is easy to understand and administer. DDA gathered data from 28 comparable cities and cities St. Joseph competes with for talent. Positions were included for comparison that matched at least 80% of the duties of the St. Joseph positions. The analysis shows there are 2 employees currently paid above the salary range maximum and 7 employees paid below the salary range minimum. The proposed position classification system and proposed pay scale results with one position still under market and the remaining 6 at or slightly above market. The 2 positions that are currently over market will only receive the union contract required 3% salary increase. BUDGET IMPACT The proposed classification and compensation scale will result in an overall increase of roughly $120,000 in 2024 over the 2023 compensation costs. The recommendations contained in the study have been included in the draft 2024 budget. STAFF RECOMMENDED ACTION A MOTION to Accept the Classification and Compensation Study completed by David Drown Associates. SUPPORTING DATA/ATTACHMENTS DDA Prepared Power Point presentation. Classification and Compensation Study Agenda Who We Are Project Plan/Goals Findings and Analysis Answer Questions David Drown Associates Nearly 20 years of experience working with cities and counties in Minnesota With staff having practical experience in the public sector, we understand local government We have worked with over 450 government clients We base our business on our clients’ needs. We expanded to include HR to assist our clients Mark Goldberg Over 25 years of compensation and classification experience Over 10+ years in public sector. Former Compensation Manager BA in Human Resources Management, Masters in Industrial and Labor Relations from Cornell Wh a t t h i s S t u d y IS Wh a t t h i s S t u d y i s NO T •One that ensures jobs are classified appropriately and meet FLSA guidelines. •One that ensures pay is competitive and equitably structured. •One that provides policies and procedures to keep the compensation system up-to-date. •One that develops a compensation system that is easy to understand and administer. •NOT a staffing needs study. •NOT an organizational structure study. •NOT a strategy designed to cut costs. •NOT a strategy to eliminate positions. •NOT a strategy to reduce or increase pay. Project Goals Peer Organizations Geographic Proximity Population Size Services Provided To whom are you losing employees? From where do you recruit employees from? DDA has partnered with the City to select a group of 28 cities with whom the City competes for talent. Here are some factors that were considered when selecting this group: Market Analysis DDA attempted to gather data from the following Organizations: Market Data City Albany Albertville Avon Baxter Big Lake Cambridge Cold Spring Corcoran Delano City East Grand Forks Foley International Falls Isanti Jordan Kasson Litchfield Little Falls Medina City Monticello Saint Anthony Saint Cloud Sartell Sauk Centre Sauk Rapids Spring Lake Park Waite Park Wyoming Zimmerman When DDA reviews the positions in other organizations, we only use the match if at least 80% of the duties are close to the position at the City In reviewing the salary information, if one of the organizations pays significantly more or less than the others, we will remove that data point from the analysis (but will still show the data) so the City can decide if they want to include the information The data and related analyses were reviewed by a Consultant who has been involved in the project and other staff members to ensure applicability, validity, accuracy, and consistency of the data Market Analysis Market Analysis Market Comparison For each position the percentage difference has been calculated between the City’s figure and the market. If the figure is: ‒Positive (+) : Figure indicates that the City pays above the market ‒Negative (-) : Figure indicates that the City pays below the market The following guidelines are used when determining the competitive nature of current actual compensation: +/-5% (Highly Aligned with the market) +/-10% (Aligned with the market) +/-11-15% (Possible misalignment with the market) > 15% (Significant misalignment with the market) Why is +/-10% Considered the Market? While there is nothing definitive around the 10% value, using that as a baseline will allow the organization to encompass employees who are all fully skilled at their job but may be paid at different rates for various reasons. Differences could be due to some of the following factors: Past Performance Time in the job Differences in skills Amount of responsibility Previous experience Higher certification level Market Data –Base Salary Findings and Analysis Market Comparison When DDA compares the market data collected, we find that the City using the NEW structure, on the aggregate is: Based on these comparisons the City would be considered “aligned with the market” Details for the market rates for all benchmark positions are on the next slide; cells in red are over 10% below market, cells in green are over 10% above market New Min of Structure compared w Benchmark Min New Max of Structure compared w Benchmark Max All Positions 0.4% higher 13.09% higher Findings and Analysis Job Title Client MIN Client MAX Client ACTUAL Bench MIN Bench MAX Bench ACTUAL New Grade New Min New Max Client Min % of Bench Min Client Max % of Bench Max Client Actual % of Bench Actual NEW Min % of Bench Min NEW Max % of Bench Max Administrative Assistant $22.49 $30.36 $23.69 $24.86 $32.26 $28.34 4 $24.15 $34.53 90%94%84%97%107% Police Clerk $25.84 $34.89 $33.37 $24.25 $30.31 $27.11 4 $24.15 $34.53 107%115%123%100%114% Maintenance Worker $25.84 $34.89 $34.89 $25.13 $32.35 $30.39 5 $26.80 $38.33 103%108%115%107%118% Finance Technician $27.70 $37.40 $29.19 $26.07 $32.62 $30.86 5 $26.80 $38.33 106%115%95%103%117% Utilities Operator $27.70 $37.40 $37.40 $27.73 $34.70 $31.88 6 $29.48 $42.16 100%108%117%106%122% Recreation Director $29.39 $39.31 $29.70 $37.91 $49.29 $44.54 6 $29.48 $42.16 78%80%67%78%86% Patrol Officer $29.70 $40.09 $33.64 $30.96 $39.65 $36.84 7 $31.55 $45.11 96%101%91%102%114% Clerk $31.83 $42.98 $39.22 $32.99 $41.04 $38.60 8 $33.76 $48.27 96%105%102%102%118% Maintenance Lead Worker $31.83 $42.98 $42.98 $30.83 $40.39 $38.54 6 $29.48 $42.16 103%106%112%96%104% Mechanic $31.83 $42.98 $39.22 $26.89 $34.87 $34.33 7 $31.55 $45.11 118%123%114%117%129% Utilities Lead Worker $31.83 $42.98 $42.98 $35.28 $43.87 $42.49 7 $31.55 $45.11 90%98%101%89%103% Police Sergeant $34.13 $46.07 $45.19 $36.30 $46.08 $44.27 9 $36.12 $51.64 94%100%102%100%112% Community Develop Dir $39.22 $52.94 $52.94 $41.61 $53.42 $50.67 12 $42.61 $60.92 94%99%104%102%114% Finance Director $42.04 $56.76 $56.76 $46.61 $58.16 $56.14 15 $49.32 $70.53 90%98%101%106%121% Public Works Director $43.13 $54.80 $53.31 $43.13 $54.80 $53.31 12 $42.61 $60.92 100%100%100%99%111% Chief of Police $45.07 $60.84 $60.84 $46.45 $58.57 $54.72 15 $49.32 $70.53 97%104%111%106%120% Administrator $51.79 $69.92 $67.23 $55.82 $69.56 $65.89 17 $54.38 $77.76 93%101%102%97.4%111.8% 97%103%102%100.4%113.1% Job Evaluation Tool(JET) What is job evaluation? A defined methodology to determine the relative value of jobs within an organization. Provides an objective and documented method for job analysis and evaluation. Provides the basis for determining pay. St. Joseph selected the JET system This system has 7 different factors, with several subfactors, that measures the impact of a job from multiple perspectives. JET includes points for supervision, hazards and adverse working conditions. As with any job evaluation system, JET focuses on the job, not the person JET System 1. Qualifications 2. Decision Making 3. Problem Solving 4. Relationships 5. Effort Mental and Physical 6. Hazards 7. Environment Only work content is considered. 1 Factors, such as performance or how long the employee has been in the job, are not included in evaluation of job. 2 JET Description Salary Ranges A salary range is the range of pay established by employers to pay employees performing a particular job or function Salary ranges have a minimum pay rate, a maximum pay rate, and a midpoint The salary range is determined by conducting a market analysis Salary Structure Design Salary Range Width This is the distance between salary range minimum and maximum. Range width varies widely by organization due to different compensation philosophies Some organizations have a philosophy of not allowing any employees to fall outside the salary range and will increase the structure to accommodate them, others want a very narrow range to minimize pay differences Salary Structure Design Once the data is collected, we use it to create a salary structure for the entire organization. The structure has a series of salary ranges, and those ranges are based on how the City evaluates the job internally and the market information that was collected. There are usually several jobs in a salary range and that means that those jobs, while performing vastly different duties, are viewed by the City as being roughly at the same level. Salary Structure Design There are 18 grades Grades vary from between 5%-11% apart from each other There are 10 steps within each grade, steps vary from 3%-5% apart from each other The range width is 43%, which is competitive in the market The details on what the new salary range looks like is on the next slide Salary Structure Design Salary Structure Design Saint Joseph, MN Proposed Structure 5.00%5.00%4.50%4.50%4.00%4.00%3.50%3.00%3.00% Grade 1 2 3 4 5 6 7 8 9 10 1 $17.50 $18.38 $19.29 $20.16 $21.07 $21.91 $22.79 $23.59 $24.29 $25.02 2 $19.25 $20.21 $21.22 $22.18 $23.18 $24.10 $25.07 $25.94 $26.72 $27.52 3 $21.56 $22.64 $23.77 $24.84 $25.96 $27.00 $28.08 $29.06 $29.93 $30.83 4 $24.15 $25.35 $26.62 $27.82 $29.07 $30.24 $31.44 $32.55 $33.52 $34.53 5 $26.80 $28.14 $29.55 $30.88 $32.27 $33.56 $34.90 $36.13 $37.21 $38.33 6 $29.48 $30.96 $32.51 $33.97 $35.50 $36.92 $38.39 $39.74 $40.93 $42.16 7 $31.55 $33.12 $34.78 $36.35 $37.98 $39.50 $41.08 $42.52 $43.79 $45.11 8 $33.76 $35.44 $37.22 $38.89 $40.64 $42.27 $43.96 $45.50 $46.86 $48.27 9 $36.12 $37.92 $39.82 $41.61 $43.49 $45.22 $47.03 $48.68 $50.14 $51.64 10 $38.65 $40.58 $42.61 $44.53 $46.53 $48.39 $50.33 $52.09 $53.65 $55.26 11 $40.58 $42.61 $44.74 $46.75 $48.86 $50.81 $52.84 $54.69 $56.33 $58.02 12 $42.61 $44.74 $46.98 $49.09 $51.30 $53.35 $55.48 $57.43 $59.15 $60.92 13 $44.74 $46.98 $49.32 $51.54 $53.86 $56.02 $58.26 $60.30 $62.11 $63.97 14 $46.98 $49.32 $51.79 $54.12 $56.56 $58.82 $61.17 $63.31 $65.21 $67.17 15 $49.32 $51.79 $54.38 $56.83 $59.38 $61.76 $64.23 $66.48 $68.47 $70.53 16 $51.79 $54.38 $57.10 $59.67 $62.35 $64.85 $67.44 $69.80 $71.90 $74.05 17 $54.38 $57.10 $59.95 $62.65 $65.47 $68.09 $70.81 $73.29 $75.49 $77.76 18 $57.10 $59.95 $62.95 $65.78 $68.75 $71.50 $74.35 $76.96 $79.27 $81.64 Steps Findings and Analysis There are 2 employees paid above the salary range maximum, the recommendation is that the wages of these employees be frozen until the salary range maximum exceeds their hourly rate 6 employees are paid below the salary range minimum, with a cost to bring them into the salary range of $11,450 We provided several implementation options for the City, the one that was selected brought all employees into the closest next step to their current salary on January 1 and then ensured that every employee would receive at least a 2.5% increase, even if that meant bringing them up an additional step Budget impact will be a 4.79% increase or $118,035, in order to bring employees into the proposed structure (this includes the cost to bring employees to the salary range minimum) Action Items Confirm salary structure Finalize placement of employees within proposed salary structure Decide on how quickly these salary changes could be phased in (immediately or 1-2 years) Any Questions? Thank You