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HomeMy WebLinkAbout20210802 - CC PacketSign up to receive automatic notification of Council agendas At ccagenda-subscribe@hastingsmn.gov or by calling 651-480-2350 City Council packets can be viewed in searchable format on the City’s website at http://www.hastingsmn.gov/city-government/city-council/city-council-agendas-and-minutes CITY OF HASTINGS CITY COUNCIL AGENDA Monday, August 2, 2021 7:00 p.m. I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. DETERMINATION OF QUORUM V. APPROVAL OF MINUTES Approve Minutes of the City Council workshop and regular meetings on July 19, 2021 and workshop on July 21, 2021. VI. COMMENTS FROM THE AUDIENCE Comments from the audience may include remarks about items listed on the Consent Agenda. VII. COUNCIL ITEMS TO BE CONSIDERED VIII. CONSENT AGENDA The items on the Consent Agenda are items of routine nature or no perceived controversy to be acted upon by the City Council in a single motion. There will be no discussion on these items unless a Councilmember so requests, in which event the items will be removed from the Consent Agenda to the appropriate Department for discussion. 1. Pay Bills as Audited 2. Designate Dragging on the River as a Special Event 3. Approve Water Service Repair Assessment Agreement – 472 Tiffany Drive (Fischer) 4. Resolution: Approve a One-Day Temporary Gambling Permit for Regina Auxiliary 5. Resolution: Authorize Submittal of Grant - Dakota CDA RIG Planning - Architectural Assessment 6. Public Safety Advisory Commission (PSAC) Annual Report IX. AWARDING OF CONTRACTS AND PUBLIC HEARING These are formal proceedings that give the public the opportunity to express their concern, ask questions, provide additional information, or support on a particular matter. Once the public hearing is closed, no further testimony is typically allowed and the Council will deliberate amongst itself and with staff and/or applicant on potential action by the Council. 1. Resolution: Bond Sale: General Obligation Bonds, series 2021A X. REPORTS FROM CITY STAFF These items are intended primarily for Council discussion and action. It is up to the discretion of the Mayor as to what, if any, public comment will be heard on these agenda items. A. Public Works 1. Resolution: Limitation on Water Usage B. Parks and Recreation Sign up to receive automatic notification of Council agendas At ccagenda-subscribe@hastingsmn.gov or by calling 651-480-2350 City Council packets can be viewed in searchable format on the City’s website at http://www.hastingsmn.gov/city-government/city-council/city-council-agendas-and-minutes C. Community Development D. Public Safety 1. Resolution: Emergency Operations Plan E. Administration 1. IT Manager Wage Scale 2. Compensation & Classification Study 3. Closed meeting pursuant to Minn. Stat. 13D.05 subd. 3 to discuss the performance evaluation of the City Administrator XI. UNFINISHED BUSINESS XII. NEW BUSINESS XIII. REPORTS FROM CITY COMMITTEES, OFFICERS, COUNCILMEMBERS XIV. ADJOURNMENT Next Regular City Council Meeting: Monday, August 16, 2021 7:00 p.m. Proclamation Commending Nick Egger on His Service to the City of Hastings WHEREAS, Nick Egger was first hired on as Assistant City Engineer in 2002, promoted to City Engineer in 2005, and then promoted to Public Works Director in 2015; WHEREAS, Nick’s leadership has been instrumental in “making normal happen” by systematically maintaining and upgrading the City’s physical infrastructure: over 100 miles of streets, 13 bridges, 90 miles of water main, 6 wells, 3 water towers, 1 water treatment plant, 1300 fire hydrants, 8 lift stations, and 1 hydro-electric generating plant; WHEREAS, Nick assisted with the nitrate removal system for the new water treatment plant, served as the City’s liaison to the Highway 61 Bridge Project in 2013, and guided multiple projects for the Riverfront Renaissance; WHEREAS, Nick is appreciated as a great partner with other City departments: assisting with social media posts, getting drone photos for aerial views, providing traffic and speed counts, and coordinating detours; WHEREAS, Nick has collaborated with partner agencies such as the Minnesota Department of Transportation, Minnesota Pollution Control Agency, Dakota County, Metropolitan Council, and the Army Corps of Engineers, WHEREAS, Nick has represented the profession serving on board of the American Public Works Association – Minnesota Chapter; and WHEREAS, Nick consistently demonstrated the City’s CORE values: Communication, Optimal Service, Respect for Resources, and Enthusiasm. NOW, THEREFORE, on behalf of the City of Hastings, the Mayor and City Council commend and thank Nick Egger for his years of dedication and service and extend best wishes to him in his new role at Rosemount. Adopted by the City Council of the City of Hastings this 2nd day of August, 2021 ____________________________________ Mary Fasbender, Mayor ____________________________________ Kelly Murtaugh, City Clerk Sign up to receive automatic notification of Council agendas At ccagenda-subscribe@hastingsmn.gov or by calling 651-480-2350 City Council packets can be viewed in searchable format on the City’s website at http://www.hastingsmn.gov/city-government/city-council/city-council-agendas-and-minutes Hastings, Minnesota City Council Meeting Minutes July 19, 2021 The City Council of the City of Hastings, Minnesota met in a regular meeting on Monday, July 19, 2021 at 7:02 p.m. in the Council Chambers at the Hastings City Hall, 101 East 4th Street, Hastings, Minnesota. Members Present: Mayor Fasbender, Councilmembers Braucks, Folch, Fox, Leifeld, Lund and Vaughan Staff Present: City Administrator Dan Wietecha Assistant City Administrator Kelly Murtaugh City Attorney Korine Land Community Development Director John Hinzman Public Works Director Nick Egger Approval of Minutes Mayor Fasbender asked if there were any additions or corrections to the City Council workshop and regular meetings on July 6, 2021. Minutes were approved as presented. Comments from the Audience Mayor Fasbender stated comments received via email have been distributed to all councilmembers and are acknowledged. Council Items To Be Considered Mayor Fasbender requested that a resolution declaring a limitation on water sprinkling and other exterior water usages be added to the agenda. This item was placed as Public Works Item #1. Councilmember Vaughan requested Consent Agenda Item #5 be pulled for discussion. The item was placed as Community Development #3. Consent Agenda 1. Pay Bills as Audited 2. Approve Pay Estimate No. 2 for 2021 Neighborhood Infrastructure Improvements – McNamara Contracting, Inc. ($720,886.60) 3. Approve Pay Estimate No. 2 for 2021 Mill & Overlay Program – Bituminous Roadways, Inc. ($313,994.02) 4. Resolution No. 07-09-21: Approve Taproot, LLC d/b/a The Onion Grille Off-Sale Intoxicating Liquor License 5. Resolution No. 07-10-21: Authorize Submittal of Grant - Dakota CDA RIG - Siewert Apartment 6. Resolution No. 07-11-21: Acceptance and Appreciation for a Donation to the Police Department from Gary Hoffman 7. Charter Commission Appointments 8. Rural Fire Association Contract 2021-2022 9. Authorize Signature: Permanent Drainage and Utility Easement – Quality One Woodwork Councilmember Braucks motioned to approve as amended, seconded by Councilmember Lund. Ayes 7; Nays 0. Sign up to receive automatic notification of Council agendas At ccagenda-subscribe@hastingsmn.gov or by calling 651-480-2350 City Council packets can be viewed in searchable format on the City’s website at http://www.hastingsmn.gov/city-government/city-council/city-council-agendas-and-minutes Public Hearing and 2nd Reading\Adopt Ordinance No. 2021-08: City Code Amendment - Chickens Hinzman summarized the history of amending the City Code to allow chickens in residential areas and discussed the proposed ordinance amendment. Mayor Fasbender opened the public hearing at 7:11 p.m. Kori Colvin, 3161 Riverwood Drive, indicated she was in favor of allowing chickens in residential areas and specified various reasons why the Council should approve the proposed ordinance amendment. Glenda Schnirring, 1136 15th Street West, discussed why she opposed allowing chickens in residential areas. Brian Winkler, 3151 Riverwood Drive, explained why he supported the proposed ordinance amendment. John Schutt, resident, spoke against allowing chickens in residential areas and expressed concerns of building requirements and heating in the winter time. Hinzman responded to his concerns. Heidi Langenfeld, 500 2nd Street West, shared her positive experience as a volunteer at the LeDuc House when it had chickens and explained why she was in favor of the proposed ordinance amendment. Laine Johnson Crump, 802 10th Street West, spoke to the educational benefits of allowing chickens in residential areas. Holly Johnson, 1177 Teal Way, indicated her experience with previously owning chickens in Iowa and that she was in favor of allowing chickens in residential areas. A resident, 414 2nd Street West, shared his experience with owning chickens in Maryland, specified various benefits of owning chickens and questioned why this was not a referendum. Elijah, 414 2nd Street West, stated that he owned many chickens in Texas and that he supported the proposed ordinance amendment. Winkler said a friend in West Saint Paul owns chickens and the neighbors have yet to complain. Sasha Sobaszkiewick-Grin, 517 Ramsey Street, spoke in favor of allowing chickens in residential areas and specified other cities that allow chickens. Schnirring and Hinzman discussed whether there would be a set limit on the number of permits issued. Marty Weber, 1355 Eagle Bluff Circle, indicated his supported for the proposed ordinance amendment. Council discussed that only hens would be allowed and no roosters. Crump stated that rather than purchasing grown hens, fertilized eggs may be incubated and hatched. Amanda Strausborger, 3395 Malcolm Avenue, via Zoom, stated that the ordinance was well written and that she supported approval. Sign up to receive automatic notification of Council agendas At ccagenda-subscribe@hastingsmn.gov or by calling 651-480-2350 City Council packets can be viewed in searchable format on the City’s website at http://www.hastingsmn.gov/city-government/city-council/city-council-agendas-and-minutes Ben Houtkooper, 375 Tiffany Drive, via Zoom, discussed his experience with chickens and why he supported the proposed ordinance amendment. Heather Mines, lives on Ramsey Street, via Zoom, indicated that she also owns a farm with chickens and was in favor of allowing chickens in residential areas. Troy Weathers, 1820 Tierney Drive, via Zoom, thanked the Planning Commission and City Council for their due diligence and spoke in favor of the ordinance amendment. Ashley O’Brien, 720 10th Street West, via Zoom, agreed with all comments in favor of allowing chickens in residential areas. Leona Schutt, resident, asked for clarification of the incubated eggs. Council discussed that the limit was four hens and if more chicks were hatched then allowed, they would have to be removed from the property. Winkler discussed the amount of exposure this topic has had in local media. Hearing no further comments, Mayor Fasbender closed the public hearing at 8:03 p.m. Council discussed that the licensee must be a renter or the owner of the property, that renters do not need to notify the City that they are renting a property, zoning districts which currently allow chickens, notification to neighbors, staff’s time for licensure and code enforcement, when the sex of a chicken may be determined, permit length, reinspection during the renewal period, proposed ordinance language, if the topic should be a referendum, previous Council discussions, level of community support, thanked staff for their work, that staff provide an update in six months and dog complaints and outside kennel requirements. Councilmember Leifeld motioned to approve as presented, seconded by Councilmember Braucks. Council discussed effective date of the ordinance. Councilmember Lund motioned to change the ordinance effective date to August 31, 2021. The motion failed due to a lack of a second. Ayes 5; Nays 2 – Lund, Vaughan. Councilmember Leifeld left the meeting. Public Hearing and 2nd Reading\Adopt Ordinance No. 2021-09: Rescind Emergency Ordinance No. 2020-07 Wietecha explained the reason to rescind Emergency Ordinance No. 2020-07. Mayor Fasbender opened the public hearing at 8:44 p.m. and hearing no comments closed the public hearing at 8:45 p.m. Councilmember Vaughan motioned to approve as presented, seconded by Councilmember Folch. Ayes 6; Nays 0. Sign up to receive automatic notification of Council agendas At ccagenda-subscribe@hastingsmn.gov or by calling 651-480-2350 City Council packets can be viewed in searchable format on the City’s website at http://www.hastingsmn.gov/city-government/city-council/city-council-agendas-and-minutes Resolution 07-12-21: Declaring a Limitation on Water Sprinkling and Other Exterior Water Usage Egger discussed the drought status of Minnesota, that the Department of Natural Resources recommended to implement watering restrictions and resident notification. Land spoke about the associated fees and penalties and how they would be applied. Council discussed education efforts versus approving a resolution with enforcement penalties and associated court fees. Councilmember Folch motioned to approve as presented including the $50 fee, seconded by Councilmember Fox. Ayes 6; Nays 0. 2020 Community Development Annual Report Hinzman thanked staff for their help in assembling the report, thanked the Council for their support and presented the 2020 Community Development Annual Report. Council thank staff for their hard work and dedication. Resolution No. 07-10-21: Authorize Submittal of Grant - Dakota CDA RIG - Siewert Apartment Council discussed the City’s role in the application process and monetary obligations, that this developer was approved to purchase the site for $1 regardless that requested information was not submitted, whether the development will continue if the CDA grant was not approved and the rental price of the units. Councilmember Folch motioned to approve as presented, seconded by Councilmember Fox. Council requested that information provided for the CDA grant not previously shared with the Council be forwarded and discussed whether the project needed the grant funds to continue, the benefits of the project and that public funds typically go towards a public benefit. Ayes 5; Nays 1 – Vaughan. Mayor Fasbender and Councilmembers made the following announcements: Announcements • Summer Programs at Levee Park o Wednesday, July 21, Storytime in the Park. The theme is bears, in partnership with Pleasant Hill Library. o Thursday, July 22, Music in the Park with Ledfoot Larry. Supported by the Ruth and George Doffing Charitable Foundation. o Friday, July 23, Movie in the Park is The Croods. Sponsored by Ardent Mills. Please bring a non- perishable food donation for Hastings Family Service. o Tuesday, July 27, Performance in the Park with Sumunar. Sponsored by Smead Manufacturing Company and the Metropolitan Regional Arts Council. o Wednesday, July 28, Storytime in the Park. The theme is animals, in partnership with Pleasant Hill Library. Sign up to receive automatic notification of Council agendas At ccagenda-subscribe@hastingsmn.gov or by calling 651-480-2350 City Council packets can be viewed in searchable format on the City’s website at http://www.hastingsmn.gov/city-government/city-council/city-council-agendas-and-minutes o Thursday, July 22, Music in the Park with Axis Mundi. Supported by the Ruth and George Doffing Charitable Foundation. • Thank you to Hastings Area Chamber of Commerce for putting on Rivertown Days this weekend. It was a great event and wonderful to see so many people attending and enjoying. Meetings • Heritage Preservation Commission meeting on Tuesday, July 20, 2021 was cancelled • City Council Workshop – Strategic Planning meeting on Wednesday, July 21, 2021 at 6:00 pm • Planning Commission meeting on Monday, July 26, 2021 at 7:00 pm • Heritage Preservation Commission meeting on Tuesday, July 27, 2021 at 7:00 pm • HEDRA meeting on Thursday, July 29, 2021 at 6:00 pm • City Council meeting on Monday, August 2, 2021 at 7:00 pm Councilmember Folch motioned to adjourn the meeting at 9:16 p.m., seconded by Councilmember Fox. Ayes 6; Nays 0. ____________________________ ______________________________ Mary Fasbender, Mayor Kelly Murtaugh, City Clerk Hastings, Minnesota City Council Workshop July 19, 2021 The City Council of the City of Hastings, Minnesota met in a workshop on Monday, July 19, 2021 at 5:30 p.m. in the Community Room at the Hastings City Hall, 101 East 4th Street, Hastings, Minnesota. Members Present: Mayor Fasbender, Councilmembers Braucks, Folch, Fox, Lund, Vaughan Members Absent: Councilmember Leifeld Staff Present: City Administrator Dan Wietecha Assistant City Administrator Kelly Murtaugh Public Works Director Nick Egger Community Development Director John Hinzman City Attorney Kori Land Others Present: Commissioner Mike Slavik, Dakota County Jenna Fabish, Dakota County Steve Weser, Alliant Engineering, Inc. Mayor Fasbender called the workshop to order at 5:34 p.m. Weser and Fabish gave a presentation updating the status of the CSAH 46 Corridor Study. The presentation provided an overview of the study goals, findings, and possible next steps. Council discussion on design options, impact on nearby and intersecting streets, intersection restrictions, roundabouts, non-motorized traffic, bridge, trails, cost coverage, and intersection with Hwy 61. Council supported taking the ideas to a public forum. The next step will be to seek public engagement through Open House in late summer to complete the study in November. ADJOURNMENT The meeting was adjourned at 6:44 p.m. ______________________________ ______________________________ Mary D. Fasbender, Mayor Kelly Murtaugh, City Clerk Hastings, Minnesota City Council Workshop July 21, 2021 The City Council of the City of Hastings, Minnesota, met in a workshop on Wednesday, July 21, 2021 at 6:00 pm at City Hall. Members Present: Mayor Fasbender, Councilmembers Braucks, Folch, Fox, Leifeld, Lund, and Vaughan. Staff Present: City Administrator Dan Wietecha, Assistant City Administrator Kelly Murtaugh, Parks & Recreation Director Chris Jenkins, Public Works Director Nick Egger, Finance Manager Chris Eitemiller, Community Development Director John Hinzman, Fire Chief John Townsend, and Communications Coordinator Dawn Skelly. Others Present: Chad Weinstein and Jamie Fischer of Ethical Leaders in Action. Mayor Fasbender called the workshop to order at 6:00 pm. Mr. Weinstein noted that the title had been changed to “Statement of Strategic Direction 2021- 2022” to reflect its emphasis on short-term goals rather than mission statements or long-term visioning. There was discussion about each of the initiatives; adding a diversity, equity, and inclusion initiative; emphasizing partnerships in the tourism support initiative; being intentional in the initiatives rather than lip service; and clarifying that several of the “future topics” already have progress and that “future” is more a matter of continuing or increasing. There was support for a summary version of the initiatives to help communicate them with the public. There was recognition that there needs to be commitment to support the initiatives and that there also needs to be a degree of flexibility to advance other initiatives as circumstances might arise. Staff will report regularly on status of initiatives. There was discussion about promoting effective communication and partnership among staff and the City Council. Effective Council/staff interaction must be characterized by mutual trust that is maintained through effective communication, collaboration, and timely problem-solving. Both elected and appointed leaders play distinct roles in serving the public. All parties are able to be effective when leaders function within their roles and trust their fellow leaders to do the same. The City Council would like more proactively information and expects to engage with various groups and to advocate for constituents. Staff supports the existing Rules of Procedure/Decorum Guidelines adopted by the City Council in 2018 and considers the document a useful basis for maintaining constructive, effective Council/staff interaction. Meeting adjourned at 8:30 pm. ____________________________ ______________________________ Mary Fasbender, Mayor Kelly Murtaugh, City Clerk City Council Memorandum To: Mayor Fasbender & City Council Members From: Connie Lang – Accountant Date: 07/29/2021 Item: Disbursements Council Action Requested: Staff requests: Council review of weekly routine disbursements issued 07/27/2021. Council approval of routine disbursements, capital purchases and employee reimbursements to be issued 08/03/2021. Background Information: Disbursements for routine items are made weekly. Disbursements for capital purchases and employee reimbursements are made twice a month, subsequent to Council approval. Financial Impact: Disbursement checks, EFT issued on 07/27/2021 $ 108,420.79 Disbursement checks, EFT to be issued on 08/03/2021 $ 37,522.79 Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: ● Council Reports VIII-01 07-23-2021 12:31 AM Council Report JULY 27TH PYMTS, 2021 PAGE: 1 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ NON-DEPARTMENTAL GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 916.58 AUG 2021 LIFE INS PREMIUM 303.81 AVESIS AUG 2021 VISION PREMIUM 174.79 AUG 2021 VISION PREMIUM 6.07 DELTA DENTAL OF MINNESOTA AUG 2021 DENTAL PREMIUM 3,283.67 AUG 2021 DENTAL PREMIUM 86.22_ TOTAL: 4,771.14 COUNCIL & MAYOR GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 45.85_ TOTAL: 45.85 ADMINISTRATION GENERAL INNOVATIVE OFFICE SOLUTIONS, LLC OFFICE SUPPLIES 175.79 SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 6.55 GREATAMERICA FINANCIAL SERVICES CORP. LEASE JULY 21 310.21 LEASE JULY 21 261.34_ TOTAL: 753.89 CITY CLERK GENERAL I/O SOLUTIONS, INC. INTEGRITY INVENTORY 216.00 SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 19.65 AUG 2021 LIFE INS PREMIUM 5.57 MCFOA OF MN CLERK CERT 40.00 MISCELLANEOUS V BRICK OVEN BUSS BRICK OVEN BUSS : MFU REFU 30.00 DAKOTA COUNTY PROPERTY RECORDS KNOWINK 2,226.67_ TOTAL: 2,537.89 FINANCE GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 26.20_ TOTAL: 26.20 FACILITY MANAGEMENT GENERAL FINE SHINE EXTERIORS INC WINDOW WASHING 2,600.00 GILBERT MECHANICAL CONTRACTORS, INC. EMS UPGRADES 309.00 SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 5.57 GRAYBAR ELECTRIC COUNCIL BULBS 131.20 TERRYS HARDWARE, INC. V BELT EXHAUST 5.49 TWIN CITY GARAGE DOOR CO FD - GARAGE DOOR REPAIR 175.00_ TOTAL: 3,226.26 COMMUNITY DEVELOPMENT GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 6.55_ TOTAL: 6.55 I.T. GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 19.65 PARAGON DEVELOPMENT SYSTEMS INC VEEAM MAINTENANCE 3,172.95 DAKOTA COUNTY FINANCIAL SERVICES JULY 2021 IT LEASE SERVER 250.00_ TOTAL: 3,442.60 POLICE GENERAL DAKOTA COUNTY TREASURER-AUDITOR JUNE RADIO LICENSES 1,703.09 DAKOTA COUNTY FINANCIAL SERVICES FLEET MAINTENANCE 4,118.46 DKMAGS INC. RIFLE PURCHASES 8,412.00 SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 235.75 ENTERPRISE FM TRUST LEASE JULY 2021 322.24 LEASE JULY 2021 305.11 LEASE JULY 2021 295.83 LEASE JULY 2021 421.30 LEASE JULY 2021 371.51 LEASE JULY 2021 442.97 GREATAMERICA FINANCIAL SERVICES CORP. LEASE JULY 21 444.02 GUARDIAN SUPPLY LLC CHIEF UNIFORMS 64.99 VIII-01 07-23-2021 12:31 AM Council Report JULY 27TH PYMTS, 2021 PAGE: 2 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ DAKOTA COUNTY TREAS-AUDITOR JUNE 2021 FUEL 3,478.51_ TOTAL: 20,615.78 BUILDING & INSPECTIONS GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 26.20 AUG 2021 LIFE INS PREMIUM 6.55 DAKOTA COUNTY TREAS-AUDITOR JUNE 2021 FUEL 264.17_ TOTAL: 296.92 PUBLIC WORKS GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 20.31 GREATAMERICA FINANCIAL SERVICES CORP. LEASE JULY 21 70.14 DAKOTA COUNTY TREAS-AUDITOR JUNE 2021 FUEL 60.69_ TOTAL: 151.14 PUBLIC WORKS STREETS GENERAL SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 29.15 GREATAMERICA FINANCIAL SERVICES CORP. LEASE JULY 21 70.14 DAKOTA COUNTY TREAS-AUDITOR JUNE 2021 FUEL 3,663.39 CITY OF ST PAUL HOT MIX 6 TON 390.84 UNLIMITED SUPPLIES INC. CABLE TIES, WASHER, CONNEC 119.23_ TOTAL: 4,272.75 PUBLIC WORKS STR. LIGH GENERAL DAKOTA ELECTRIC ASSN ELECTRIC 2,642.91 MN DEPT OF TRANSPORTATION TRAFFIC SYSTEM MAINTENANCE 997.51_ TOTAL: 3,640.42 NON-DEPARTMENTAL PARKS SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 178.82 AVESIS AUG 2021 VISION PREMIUM 6.07 DELTA DENTAL OF MINNESOTA AUG 2021 DENTAL PREMIUM 578.43_ TOTAL: 763.32 PARKS & RECREATION PARKS REINDERS INC. CHALK 358.00 INNOVATIVE OFFICE SOLUTIONS, LLC PRINTER PAPER 56.70 RUMPCA SERVICES, INC. JMF DRAIN SERVICE 369.00 SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 65.50 HOMETOWN ACE HARDWARE AC ROOF TOP FILTERS 42.36 SCREWS 18.13 VETS SUPPLIES 20.62 MISC SUPPLIES 133.01 ENTERPRISE FM TRUST LEASE JULY 2021 456.05 SPIN CITY LAUNDROMAT, LLC. WASHER RAGS 20.00 GREATAMERICA FINANCIAL SERVICES CORP. LEASE JULY 21 191.43 NAPA AUTO PARTS AC RECHARGE 12.58 CUSHMAN REPAIR 39.07 DIE SET & DEF 90.53 DIE SET & DEF 49.96 MIDSTATE PLUMBING & HEATING INC IRRIGATION REPAIR 812.06 THE UNDERGROOVE LLC MUSIC IN THE PARK JULY 8 2 1,000.00 NINE EAGLES PROMOTIONS SEASONAL SHIRTS 94.80 TERRYS HARDWARE, INC. HOT WATER REPAIR, VETS 17.78 SHOP SUPPLIES 47.97 SHOP SUPPLIES 38.32 NUTS 0.18 VERMILLION ELEVATOR INC ROUND UP 226.62_ TOTAL: 4,160.67 PARKS & RECREATION AQUATIC CENTER INNOVATIVE OFFICE SOLUTIONS, LLC STAMPERS 8.70 HORIZON COMMERCIAL POOL SUPPLY CHEMICALS 769.20 VIII-01 07-23-2021 12:31 AM Council Report JULY 27TH PYMTS, 2021 PAGE: 3 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ RIVER CITY STITCH PONCHOS 395.00 HOMETOWN ACE HARDWARE SUPPLIES 33.04 MISCELLANEOUS V MACIEJEWSKI, LAURA LAURA MACIEJEWSKI : REFUND 60.00 THURMES, TANYA TANYA THURMES : REFUND-SWI 45.00 1ST LINE BEVERAGES INC. SLUSHY 57.25 SYSCO, MINNESOTA CONCESSIONS FOOD 1,179.00 CONCESSION FOOD 1,119.01 CONCESSIONS REFUND 43.81- TOTAL: 3,622.39 NON-DEPARTMENTAL CABLE TV SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 1.70 AVESIS AUG 2021 VISION PREMIUM 2.36 DELTA DENTAL OF MINNESOTA AUG 2021 DENTAL PREMIUM 17.68_ TOTAL: 21.74 CABLE CABLE TV SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 0.98_ TOTAL: 0.98 NON-DEPARTMENTAL HERITAGE PRESERVAT SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 9.52_ TOTAL: 9.52 HERITAGE PRESERVATION HERITAGE PRESERVAT SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 1.64 DAKOTA COUNTY HISTORICAL SOCIETY MEMBERSHIP 100.00_ TOTAL: 101.64 NON-DEPARTMENTAL FIRE & AMBULANCE SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 325.28 AVESIS AUG 2021 VISION PREMIUM 86.71 DELTA DENTAL OF MINNESOTA AUG 2021 DENTAL PREMIUM 719.18_ TOTAL: 1,131.17 FIRE FIRE & AMBULANCE DAKOTA COUNTY TREASURER-AUDITOR JUNE RADIO LICENSES 1,213.16 SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 23.25 GREATAMERICA FINANCIAL SERVICES CORP. LEASE JULY 21 266.41 DAKOTA COUNTY TREAS-AUDITOR JUNE 2021 FUEL 1,129.66_ TOTAL: 2,632.48 AMBULANCE FIRE & AMBULANCE SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 94.65 MISCELLANEOUS V KLIMEK, ANDREW KLIMEK, ANDREW: AMBULANCE 78.09 DAKOTA COUNTY TREAS-AUDITOR JUNE 2021 FUEL 2,023.88_ TOTAL: 2,196.62 NON-DEPARTMENTAL LEDUC HISTORIC EST DELTA DENTAL OF MINNESOTA AUG 2021 DENTAL PREMIUM 6.54_ TOTAL: 6.54 LEDUC LEDUC HISTORIC EST FINE SHINE EXTERIORS INC WINDOW WASHING 2,800.00 SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 0.98 DAKOTA COUNTY HISTORICAL SOCIETY LEDUC TRUST 50% OF Q2 5,102.20_ TOTAL: 7,903.18 NON-DEPARTMENTAL HEDRA SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 9.48 DELTA DENTAL OF MINNESOTA AUG 2021 DENTAL PREMIUM 133.37_ TOTAL: 142.85 ECONOMIC DEVELOPMENT HEDRA STANTEC CONSULTING SERVICES INC. WOOD SEALING 1,300.00 SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 11.46 DAKOTA COUNTY ABSTRACT CLOSING/SETTLEMENT SALE LA 1,094.30 VIII-01 07-23-2021 12:31 AM Council Report JULY 27TH PYMTS, 2021 PAGE: 4 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ _______________ TOTAL: 2,405.76 INVALID DEPARTMENT 2021 IMPROVEMENTS MSA PROFESSIONAL SERVICES, INC. 2021-1 STAKING, FIELD, ADM 10,529.96_ TOTAL: 10,529.96 NON-DEPARTMENTAL WATER SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 84.02 AVESIS AUG 2021 VISION PREMIUM 6.94 MISCELLANEOUS V FRIEDERICHS, CHRIS/T 01-462000-02 105.00 BENEFICIAL INVESTMEN 01-760000-00 29.14 SULLIVAN, ELISCIA 04-333000-01 20.53 PITOSCIA, BARBARA 09-047160-02 9.41 WOLFE, JOSEPH 10-304000-00 16.78 LEVOS, ONDREA 12-811550-00 26.72 ANDERSON, KEITH 12-830700-01 90.00 LOCKNER, TINA 12-833070-02 59.19 HEALY, SAM 13-498020-01 157.77 BEST, RONALD 14-168000-01 100.00 MALBAN, MARY 16-533050-00 117.36 DELTA DENTAL OF MINNESOTA AUG 2021 DENTAL PREMIUM 142.05_ TOTAL: 964.91 PUBLIC WORKS WATER SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 33.34 GREATAMERICA FINANCIAL SERVICES CORP. LEASE JULY 21 70.14 ADVANCED ENGINEERING & ENVIRONMENTAL S AWIA RRA & ERP 1,798.25 CITY OF BLOOMINGTON BACT SAMPLING JULY 2021 273.00 DAKOTA COUNTY TREAS-AUDITOR JUNE 2021 FUEL 1,659.78 GRAPHIC DESIGN WATER METER CARDS 49.66 TERRYS HARDWARE, INC. SOFTNER SALT 71.64 TRANE PARTS CENTER PW - A/C PARTS & SERVICE 775.00 PW - A/C COMPRESSOR 2,925.00_ TOTAL: 7,655.81 NON-DEPARTMENTAL WASTEWATER SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 60.64 AVESIS AUG 2021 VISION PREMIUM 5.61 DELTA DENTAL OF MINNESOTA AUG 2021 DENTAL PREMIUM 107.55_ TOTAL: 173.80 PUBLIC WORKS WASTEWATER RUMPCA SERVICES, INC. RV DUMP STATION REPAIRS 509.00 SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 23.78 GREATAMERICA FINANCIAL SERVICES CORP. LEASE JULY 21 70.14 GRAPHIC DESIGN WATER METER CARDS 49.67_ TOTAL: 652.59 NON-DEPARTMENTAL STORM WATER UTILIT SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 81.94 AVESIS AUG 2021 VISION PREMIUM 5.00 DELTA DENTAL OF MINNESOTA AUG 2021 DENTAL PREMIUM 158.71_ TOTAL: 245.65 PUBLIC WORKS STORM WATER UTILIT SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 21.48 GRAPHIC DESIGN WATER METER CARDS 49.67_ TOTAL: 71.15 NON-DEPARTMENTAL ARENA AVESIS AUG 2021 VISION PREMIUM 16.68 DELTA DENTAL OF MINNESOTA AUG 2021 DENTAL PREMIUM 204.13_ TOTAL: 220.81 VIII-01 07-23-2021 12:31 AM Council Report JULY 27TH PYMTS, 2021 PAGE: 5 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ PARKS & RECREATION ARENA O'REILLY AUTOMOTIVE TRANSMISSION OIL 55.92 SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 13.10 USS MN V MT LLC SOLAR GARDEN SUNSCRIPTION 14,366.75 GARTNER REFRIGERATION REPLACED SENSOR 812.19_ TOTAL: 15,247.96 NON-DEPARTMENTAL HYDRO ELECTRIC SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 6.38 AVESIS AUG 2021 VISION PREMIUM 0.30 DELTA DENTAL OF MINNESOTA AUG 2021 DENTAL PREMIUM 13.10_ TOTAL: 19.78 PUBLIC WORKS HYDRO ELECTRIC SUN LIFE ASSUANCE COMPANY OF CANADA AUG 2021 LIFE INS PREMIUM 2.95_ TOTAL: 2.95 MISCELLANEOUS INSURANCE FUND LEAGUE OF MN CITIES INS TRST 00098977 - D. LATCH 572.40 00461157 - HOLM 1,916.77_ TOTAL: 2,489.17 NON-DEPARTMENTAL ESCROW - DEV/ENG/T CAMPBELL KNUTSON, P.A. LEGAL SERVICES 1,260.00_ TOTAL: 1,260.00 =============== FUND TOTALS ================ 101 GENERAL 43,787.39 200 PARKS 4,923.99 201 AQUATIC CENTER 3,622.39 205 CABLE TV 22.72 210 HERITAGE PRESERVATION 111.16 213 FIRE & AMBULANCE 5,960.27 220 LEDUC HISTORIC ESTATE 7,909.72 407 HEDRA 2,548.61 481 2021 IMPROVEMENTS 10,529.96 600 WATER 8,620.72 601 WASTEWATER 826.39 603 STORM WATER UTILITY 316.80 615 ARENA 15,468.77 620 HYDRO ELECTRIC 22.73 705 INSURANCE FUND 2,489.17 807 ESCROW - DEV/ENG/TIF-HRA 1,260.00 -------------------------------------------- GRAND TOTAL: 108,420.79 -------------------------------------------- TOTAL PAGES: 5 VIII-01 07-29-2021 10:28 AM Council Report AUG 3RD PYMTS, 2021 PAGE: 1 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ NON-DEPARTMENTAL GENERAL MISCELLANEOUS V S & R WASICK INVESTM 1 -02153 50.00 HASTINGS AREA CHAMBER/COM JUNE LODGING TAX 6,350.64_ TOTAL: 6,400.64 COUNCIL & MAYOR GENERAL CENTURY LINK PHONES 8.08_ TOTAL: 8.08 ADMINISTRATION GENERAL CENTURY LINK PHONES 163.76_ TOTAL: 163.76 CITY CLERK GENERAL I/O SOLUTIONS, INC. FAX SHEETS FOR SCORING 90.00 CENTURY LINK PHONES 24.25_ TOTAL: 114.25 FINANCE GENERAL CENTURY LINK PHONES 64.66_ TOTAL: 64.66 FACILITY MANAGEMENT GENERAL GILBERT MECHANICAL CONTRACTORS, INC. GENERATOR DAMPER CONTROL 333.50 VAV UPGRADE 1,436.80 CENTURY LINK PHONES 107.18 TERRYS HARDWARE, INC. ADHESIVE 5.99 GARDEN HOSE 35.99_ TOTAL: 1,919.46 COMMUNITY DEVELOPMENT GENERAL CENTURY LINK PHONES 24.25_ TOTAL: 24.25 I.T. GENERAL COMCAST CABLE 84.90 CENTURY LINK PHONES 24.25 SOLARWINDS, INC. KIWI SYSLOG 116.00 CDW GOVERNMENT INC PRINTER REPLACE CIVIC CENT 363.47_ TOTAL: 588.62 POLICE GENERAL M.S.A.N.I. MN STATE ASSOC NARCOTICS BCA TRAINING 175.00 CENTURY LINK PHONES 182.91 MACQUEEN EQUIPMENT, INC. VEHICLE REPAIR 876.07 MN DEPT OF PUBLIC SAFETY 2004 HYUNDAI & MAZDA 50.00_ TOTAL: 1,283.98 BUILDING & INSPECTIONS GENERAL CENTURY LINK PHONES 40.41 PHONES 8.08 KLETSCHKA INSPECTIONS, LLC ELECTRICAL INSPECTIONS 1,793.60 MISCELLANEOUS V BRENNE BUILDERS BRENNE BUILDERS-PERMIT REF 75.00_ TOTAL: 1,917.09 SAFETY GENERAL RIPE RADISH LLC CSA SHARES 4,000.00_ TOTAL: 4,000.00 PUBLIC WORKS GENERAL CENTURY LINK PHONES 40.41 MICHAEL SCOTT ANDERSON 2021 BRIDGE INSPECTIONS 500.00_ TOTAL: 540.41 PUBLIC WORKS STREETS GENERAL ROAD EQUIPMENT PARTS CENTER FILTERS 65.89 HYDRAULIC COMPONENT REPAIR SERVICE CYLINDER REPAIR 289.98 RCM SPECIALTIES, INC. EMULSION 675.74 CENTURY LINK PHONES 133.93 VIII-01 07-29-2021 10:28 AM Council Report AUG 3RD PYMTS, 2021 PAGE: 2 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ NAPA AUTO PARTS BULBS 5.03 BENJAMIN BANITT PESTICIDE TESTING AND PARK 10.22 PESTICIDE TESTING AND PARK 2.65 ENVIRONMENTAL EQUIPMENT PRESSURE SWITCH 232.54_ TOTAL: 1,415.98 PUBLIC WORKS STR. LIGH GENERAL CENTURY LINK LEVEE PARK BROADBAND 143.09 VIKING ELECTRIC SUPPLY LIGHTING PARTS 327.08 ADAPTERS, CONNECTORS 241.30_ TOTAL: 711.47 PARKS & RECREATION PARKS O'REILLY AUTOMOTIVE BRAKE CLEANER 23.88 CENTURY LINK PHONES 217.35 HOMETOWN ACE HARDWARE PIONEER SUPPLIES 66.28 POLY AND BITS 73.44 SPRAY PAINT 8.54 CABLE TIES 26.03 PAINTING SUPPLIES 83.05 NICHOLE WAGNER VOLLEYBALL REF 75.00 NAPA AUTO PARTS MOWER LIGHT 13.05 ANNA RUDER VOLLEYBALL REF 475.00 LAURA LAUBER VOLLEYBALL REF 50.00 MADISEN ZEIEN VOLLEYBALL REF 200.00 MICHAEL A. PATRICK SOFTBALL UMP 182.00 SCOTT SORENSON SOFTBALL UMP 182.00 MARK UZPEN SOFTBALL UMP 156.00 MICHAEL E OBRIEN SOFTBALL UMP 104.00 MOEN PAINTING, INC. PAINTING AT LEVEE 350.00 JAMESON HEASTON SOFTBALL UMP 286.00 MATTSON, DONALD SOFTBALL UMP 52.00 CHASE RUPPRECHT SOFTBALL UMP 30.00 ARROW BUILDING CENTER LUMBER 71.00 CHEMSEARCH YIELD AND PATCH FOR JMF 810.35 GERLACH OUTDOOR POWER EQUIP ZERO BURN TIRES AND TUBES 536.80 AIR FILTER, WEED WHIP 25.60 MTI DISTRIBUTING COMPANY TIRES FOR WORKHORSE 248.60 TERRYS HARDWARE, INC. MISC SUPPLIES 27.97_ TOTAL: 4,373.94 PARKS & RECREATION AQUATIC CENTER INNOVATIVE OFFICE SOLUTIONS, LLC RANDOM SUPPLIES 131.38 CENTURY LINK PHONES 155.67 MISCELLANEOUS V BERG, BRENDA BERG-SWIM LESSON REFUND 40.00 HUNZIKER, DAWN HUNZIKER, DAWN: REFUND-SWI 45.00 1ST LINE BEVERAGES INC. CONCESSION SUPPLIES 57.25 SYSCO, MINNESOTA FOOR FOR CONCESSIONS 983.54 FOOD FOR CONCESSIONS 1,488.35_ TOTAL: 2,901.19 HERITAGE PRESERVATION HERITAGE PRESERVAT CENTURY LINK PHONES 8.08_ TOTAL: 8.08 FIRE FIRE & AMBULANCE CENTURY LINK PHONES 389.19 HOMETOWN ACE HARDWARE FASTENERS, STATION USE 29.01 GRACE HOLM WORK COMP PAY 144.77 WORK COMP PAY 584.58 WORK COMP PAY 739.44 VIII-01 07-29-2021 10:28 AM Council Report AUG 3RD PYMTS, 2021 PAGE: 3 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ MN FIRE SERVICE CERT.BRD FF1 EXAM - HOLM & TESCH 240.00 TERRYS HARDWARE, INC. SCBA WASHER 11.36_ TOTAL: 2,138.35 AMBULANCE FIRE & AMBULANCE McKESSON MEDICAL-SURGICAL GOV. SOLUTIO MEDICAL SUPPLIES 34.78 MEDICAL SUPPLIES 36.83 MEDICAL SUIPPLIES 615.06 HENRY SCHEIN, INC. AMBULANCE MED SUPPLIES 53.21 BOUND TREE MEDICAL LLC MEDICAL SUPPLIES 89.50 MEDICAL SUPPLIES 375.75 MEDICAL SUPPLIES 377.22 MEDICAL SUPPLIES 11.39 BOYER FORD TRUCKS AIR CLEANER MEDIC 3 15.69 MISCELLANEOUS V GROUP HEALTH GROUP HEALTH: AMB REFUND 278.61 NINETY-FOUR SERVICES INC. STEP BRACKETS FOR AMBULANC 121.99 PRAXAIR DISTRIBUTION-409 OXYGEN 246.71 OXYGEN 239.61 ZOLL MEDICAL CORP CUFFS FOR EKG 2,075.24_ TOTAL: 4,571.59 PUBLIC WORKS WATER CENTURY LINK PHONES 125.84 CODY MATHISEN HOMETOWN ACE 59.04 NINE EAGLES PROMOTIONS SCREEN PRINT, SIRINEK 50.00 VALLEY SALES OF HASTINGS BELT KIT 137.57_ TOTAL: 372.45 PUBLIC WORKS WASTEWATER JOE SPAGNOLETTI SEWER LICENSE 45.00_ TOTAL: 45.00 PARKS & RECREATION ARENA CINTAS CORPORATION NO 2 FIRST AID CABINETS 58.01 CENTURY LINK PHONES 69.75 DIAMOND VOGEL PAINT CTR. PAINT 147.64 PAINT 110.73 W.W. GRAINGER, INC. LIGHT BULBS 123.12 R & R SPECIALTIES, INC. ICE PAINT AND LABOR 1,893.75 TERRYS HARDWARE, INC. HARDWARE FOR BATTING CAGE 53.75 CUTTING WHEEL 2.79_ TOTAL: 2,459.54 NON-DEPARTMENTAL ESCROW - DEV/ENG/T KLM ENGINEERING, INC. ANTENNA REVIEW -AT&T 1,500.00_ TOTAL: 1,500.00 VIII-01 07-29-2021 10:28 AM Council Report AUG 3RD PYMTS, 2021 PAGE: 4 DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT_ =============== FUND TOTALS ================ 101 GENERAL 19,152.65 200 PARKS 4,373.94 201 AQUATIC CENTER 2,901.19 210 HERITAGE PRESERVATION 8.08 213 FIRE & AMBULANCE 6,709.94 600 WATER 372.45 601 WASTEWATER 45.00 615 ARENA 2,459.54 807 ESCROW - DEV/ENG/TIF-HRA 1,500.00 -------------------------------------------- GRAND TOTAL: 37,522.79 -------------------------------------------- TOTAL PAGES: 4 VIII-01 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Paige Marschall Bigler, Recreation Program Specialist Date: August 2, 2021 Item: Special Event Request – Dragging on the River Council Action Requested: Designate ‘Dragging on the River’ as a Special Event on Saturday, August 21, 2021 from 6:00 p.m. – 10:00 p.m. at Levee Park. Background Information: The event planners are requesting use of the Rotary Pavilion and Amphitheater at Levee Park to host the ‘Dragging on the River’ event. The event will include live music, a drag performance, merchandise tables and food trucks. The application and event map are included for City Council review. This event is a fundraiser to benefit The Trevor Project. In 2019, event organizers hosted the first Dragging on the River and the event was a success. City Staff are supportive based on the following conditions: • All vendors must obtain a vendor license prior to the event, the cost of the licensure is the responsibility of the event organizer or vendor. Licenses can be obtained through the Deputy City Clerk at Hastings City Hall. • City restroom facilities will remain open but will not be staffed by City personnel. Staff will clean restroom facilities prior to the event and provide a key to event representative for stocking bathroom supplies as needed. • Portable toilets are recommended to be placed on-site to alleviate over-use of the indoor bathrooms. • Event organizers are required to work with a hauler for trash and recycling containers on-site. Containers must be paired side-by-side and visually labeled as Trash and Recycling. All waste generated from the event will be hauled off site by event organizers in coordination with their hauler. • Any tent or additional “structures” used within the park will need to be anchored with weights. No stakes due to underground irrigation. • Decorations must be adhered with rope, zip ties or other materials that do not leave marks on the facilities. • No unauthorized vehicles on City trails or parked in Levee Park. VIII-02 • All event supplies and equipment will be removed by event organizers directly following the end of the event. • Event organizers agree the site will be left in at least the condition it was pre- event. • Any other reasonable conditions as determined by staff to ensure a successful event. Financial Impact: This event, although requesting designation as a Special Event, will also be subject to a Park Rental Fee in accordance with the City’s fee schedule for exclusive use of areas. • Rotary Pavilion & Amphitheater • Total Charges: $180.00 + tax Advisory Commission Discussion: None Council Committee Discussion: None Attachments: ▪ Dragging on the River - Special Event Permit Application ▪ Dragging on the River – Event Map VIII-02 SPECIAL EVENT PERMIT APPLICATION ADHERE TO COVID-19 GUIDELINES. The User represents & confirms that all requirements of the City and State of Minnesota related to COVID-19, including, but not limited to, Governor’s Executive Order & State Agency Guidance, have been included in the User’s COVID-19 Preparedness Plan which will be implemented and enforced while using any Facility in accordance this Agreement. User is responsible for monitoring & updating their COVID-19 Preparedness Plan should the requirements of the City or State of Minnesota be altered, updated, or otherwise changed. General Event Information Event Name: Name of Event Coordinator: Home Phone: ( ) Work Phone: ( ) Cell Phone: ( ) E-mail: Mailing Address: Website: On Site Contact Name: On Site Contact Cell Phone: ( ) Date(s) Requested: Date Day of Week Time Total Hours am/pm to am/pm am/pm to am/pm am/pm to am/pm Is this event: Open to the public Private Will this be an annual event? Yes No Has this event been held in another City? Yes No If yes, when was it held and where? ___________________________________________________________________________ Will an admission fee be charged? Yes No Will donations be accepted? Yes No What will proceeds from the event be used for? Anticipated Attendance: Total Per Day Will there be a tent(s) at the event? Yes No If yes, how many and how big? Event Location Information Location of the event (including the starting line, finish line and staging/disbanding areas): List of any City parks/facilities to be used for the event: Number of vehicles expected at the event: Describe where participants will park: /Business Hosting Event: Name of Organization Fundraiser Other: Type of Event (mark all that apply): Downtown Event Race/Run/Walk Concert/Performance VIII-02 If the event will take place on private property, has approval been obtained from the property owner(s)? Yes No Please include a site plan for the event location that show the location of the starting line, finishing line, staging areas, tents, vendors, parking areas, sound amplification equipment and any other areas that will be setup as part of the event. Recycling and Trash are required for collection at all events with waste. Recycling and Trash must follow the Best Management Practices including: paired and labeled containers. Questions? Please contact our City Recycling Coordinator 651-480-6182 Will your event generate waste? If yes, we recommend contacting a Hauler for bins and waste pick-up. Yes No Event Route Information Does the event propose to require the use of any public right of way (crossing or traveling within)? List all public right of way that will be used during the event: City Streets ______________________________________________________________________________________________ ________________________________________________________________________________________________________ Trails/Sidewalks __________________________________________________________________________________________ ________________________________________________________________________________________________________ County Roads ___________________________________________________________________________________________ State Road ___________________________________________________________________________________________ Other Right of Way _______________________________________________________________________________________ Have you received approval for the use of any County or State right-of-way? Yes No Not applicable Please include a detailed map showing the proposed route. The route map must show what roadways, trails and sidewalks will be used and the direction the participants will travel. All street names must be clearly labeled. Event Safety Information Number of volunteers assisting with the event: Will alcohol be served or sold at the event? No Yes (a temporary beer or liquor license is required) Will there be a raffle or other regulated gambling activity at the event? No Will the event include the sale of any food or beverages? No Yes (health department permits are required, please provide a list of your approved food vendors):_____________________________________________________________________________ Yes No (The City of Hastings reserves the right to require street closings) __________________________________________________________________________________________________________ If yes, please describe: _______________________________________________________________________________________ Does the route require the closing or partial closing of any streets, intersections or crossings? Yes No __________________________________________________________________________________________________________ If yes, please summarize: _____________________________________________________________________________________ Is the promoter aware of any problems that may arise during the event? Yes No __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ If yes, please summarize: _____________________________________________________________________________________ Have arrangements been made for emergency medical services? Yes No __________________________________________________________________________________________________________ If yes, please summarize: _____________________________________________________________________________________ Do you have a contingency plan if volunteers don’t show up? Yes No Yes (a temporary gambling permit is required) __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ Will the event include the sale of any products or services? No Yes (please provide a list of your approved event vendors): VIII-02 I have read and agree to all ordinances and rules associated with this special event permit. I certify that the answers are true and correct to the best of my knowledge. _______________________________________________________ ______________________________ Signature Date Please return completed form to Paige Marschall-Bigler at pmarschall@hastingsmn.gov or mail in to Parks Department 920 10th St W, Hastings MN 55033. Call 651-480-6182 with any questions. Date application submitted: _____________________________________________ Date application approved by CC:_________________________________________ Required resources: - Police Reservists:_________________________________________________ - Equipment:______________________________________________________ - City staff:________________________________________________________ Insurance information received:___________________________________________ Licenses/permits obtained:_______________________________________________ __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ Event Signage and Sound Information Please include a route map detailing where all DIRECTIONAL signage will be placed for the event. Please include a map detailing where all signs ADVERTISING the event will be placed. Will any sound amplification equipment be used at the event? Yes No If yes, please describe where in the event area the equipment will be used and what time the equipment will be used: Insurance Information Insurance coverage shall be maintained for the duration of the event with a minimum $1,000,000 combined single limit and a minimum $2,000,000 aggregate limit. If food or non-alcoholic beverages are sold or provided at the event the insurance policy shall also include an endorsement for product liability in an amount not less than $1,000,000. Proof of insurance coverage must be provided at least 5 days prior to the event. OFFICE USE ONLY VIII-02 TENT FOOD TRUCK FOOD TRUCK FOOD TRUCK MERCH TABLEMERCH TABLE VIII-02 City Council Memorandum To: Mayor Fasbender & City Council Members From: Nick Egger – Public Works Director Date: July 26, 2021 Item: Water Service Repair Assessment Request – 472 Tiffany Drive COUNCIL ACTION REQUESTED Enclosed for Council approval is a request from Paul Fischer for the City to pay the cost to repair the water service line at his property located at 472 Tiffany Drive and to assess the costs back to the property. The cost of the work in this case was $5,900. With similar requests for utility service repairs, the City Attorney has prepared an agreement and waiver of assessment appeal for property owners to sign, spelling out the conditions and terms of the assessment and protecting the City from an assessment appeal. The Council is requested to approve Mr. Fischer’s request for the City to fund the water service repair and assess the cost back to the property under the condition that he first enter into an assessment agreement with the City. VIII-03 VIII-03 19-16402-01-120Parcel ID NumberProperty Card HASTINGS MN 55033 472 TIFFANY DR Mailing Address PAUL FISCHER Fee Owner Owner Information HASTINGS Municipality 472 TIFFANY DR Address Property Address Tax Description 12 1Lot and Block CARI PARK 3RD ADDITIONPlat Water AcresRESIDENTIALUses R/W Acres$165,000.00Sale Value 0.15Total Acres01/31/2007Sale Date Parcel Information Other Garage1,594Finished Sq FtMultiple Buildings 360Garage Sq Ft886Above Grade Sq FtWOODFrame 2.00Bathrooms886Foundation Sq FtSPLIT LEVLBuilding Style 3Bedrooms1994Year BuiltTWIN HOMEBuilding Type 2021 Building Characteristics (payable 2022)* $2,466.00$408.00$2,058.00 Total Tax & Assessments (2021)Special Assessments (2021)Net Tax (payable 2021) Property Tax Information $182,900.00$162,121.002020 Total Values (payable 2021)* $195,100.00$175,419.002021 Total Values (payable 2022)* $159,500.00$143,410.002021 Building Values (payable 2022)* $35,600.00$32,009.002021 Land Values (payable 2022) EstimatedTaxable Assessor Valuation FULL HOMESTEADVERMILLION RIVER200 Open SpaceAg PreserveGreen AcresHomesteadWatershed DistrictSchool District Miscellaneous Information document and should not be substituted for a title search, appraisal, survey, or for zoning verification. Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legalDisclaimer: * Manufactured Homes Payable the Same Year as Assessment. Parcel data current as of 07/14/2021 Page 1 of 1Dakota County, MN VIII-03 Water Service Repair Assessment Request - 472 Tiffany Drive Parcel Data Is Current As Of: 7/28/2021 Bedrooms 3 Parcel ID 191640201120 Bathrooms 2 Status ACTIVE Garage Sq Ft 360 Owner PAUL FISCHER Other Garage Joint Owner Estimated Land Value $35,600 Owner Address 472 TIFFANY DR Estimated Building Value $159,500 Owner Address2 Total Estimated Value $195,100 City/State/Zip HASTINGS MN 55033 Special Assessments $408 Common Name Total Property Tax $2,466 Site Address 472 TIFFANY DR Date of Sale - Improved 1/31/2007 Municipality HASTINGS Sale Value - Improved $165,000 Primary Use RESIDENTIAL Date of Sale - Vacant Use 2 Sale Value - Vacant Use 3 Total Acres 0.15 Use 4 Total Lot Sq. Ft. 6,731 Homestead FULL HOMESTEAD RW Sq. Ft. Year Built 1994 Water Sq. Ft. Building Type TWIN HOME School District 200 Building Style SPLIT LEVL Watershed District VERMILLION RIVER Foundation Sq Ft 886 Plat Name CARI PARK 3RD ADDITION Above Grade Finished Sq Ft 886 Tax Description Finished Sq Ft 1,594 Lot and Block 12 1 Frame WOOD Last Division 12/8/1992 Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification. Map Scale 1 inch = 94 feet 8/2/2021 VIII-03 VIII-03 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Erica Henderson Date: August 2, 2021 Item: One-Day Temporary Gambling Permit for Regina Auxiliary Council Action Requested: Approve the attached resolution allowing the one-day temporary gambling permit for Regina Auxiliary. Background Information: Regina Auxiliary submitted an application for a one-day temporary gambling permit to hold a gambling event consisting of Bingo, Pull-Tabs and a Raffle on October 31, 2021 at Regina Senior Living, 1175 Nininger Road. Financial Impact: The associated fee has been paid. Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: • Resolution VIII-04 CITY OF HASTINGS RESOLUTION NO. 8 - - 21 RESOLUTION APPROVING THE APPLICATION BY REGINA AUXILIARY FOR A TEMPORARY ONE-DAY GAMBLING PERMIT WHEREAS, Regina Auxiliary submitted an application for a one-day temporary gambling permit to hold event consisting of Bingo, Pull-Tabs and a Raffle on October 31, 2021 at Regina Senior Living, 1175 Nininger Road NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hastings that request for one-day temporary gambling permit from Regina Auxiliary for an event on October 31, 2021 to be held at Regina Senior Living is approved. Approved by the City Council on this 2nd day of August 2021. Mary D. Fasbender, Mayor ATTEST: Kelly Murtaugh, City Clerk VIII-04 City Council Memorandum To: City Council From: Eric Maass, AICP, Economic Development Coordinator Date: August 2, 2021 Item: Consider Resolution – Support of Planning Application for a Redevelopment Incentive Grant through the Dakota County Community Development Agency for their 2022 Fiscal Year. REQUEST: Approve Resolution indicating support of application for a Redevelopment Incentive Grant through the Dakota County Community Development Agency. RECOMMENDATION: Staff recommends approval of the Resolution as presented. BACKGROUND INFORMATION: The City of Hastings is seeking financial assistance from Dakota County for the hiring of structural engineering and historic architectural consultants to tour and assess each of the buildings in the East Second Street Historic District in order to identify any structural deficiencies and/or required maintenance projects necessary to ensure the long-term viability of the structure. Financial Impact: The hiring of consultants to perform the architectural assessment. Advisory Commission Discussion: N\A Council Commission Discussion: N\A Attachments: • Resolution: Support an Application for a Redevelopment Incentive Grant through the Dakota County Community Development Agency for their 2022 fiscal year. VIII-05 HASTINGS CITY COUNICL RESOLUTION NO. __________ A RESOLUTION SUPPORTING AN APPLICATION FOR A REDEVELOPMENT INCENTIVE GRANT THROUGH THE DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY FOR THEIR 2022 FISCAL YEAR Council member ________ introduced the following Resolution and moved its adoption: WHEREAS, the City of Hastings has identified a proposed project within the City that meets the Dakota County Community Development Agency (CDA) Redevelopment Incentive Grant program’s purposes and criteria; and WHEREAS, the City has the capability and capacity to ensure the proposed project be completed and administered within the Redevelopment Incentive Grant program guidelines; and WHEREAS, the City has the legal authority to apply for financial assistance; and WHEREAS, the City is supportive of affordable housing and of the CDA’s mission, to improve the lives of Dakota County residents through affordable housing and community development. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS: That the City of Hastings approves the application for funding from the Dakota County CDA Redevelopment Incentive Grant program. BE IT FURTHER RESOLVED that upon approval of its application by the Dakota County CDA, John Hinzman, the Director of Community Development, is hereby authorized to execute such agreements as are necessary to receive and use the funding for the proposed project. VIII-05 Council member ____________________ moved a second to this resolution and upon being put to a vote it was adopted by the Council Members present. Adopted by the Hastings City Council on August 2, 2021, by the following vote: Ayes: Nays: Absent: ATTEST: ______________________________ Mary Fasbender, Mayor _____________________________ Kelly Murtaugh, City Clerk (City Seal) I HEREBY CERTIFY that the above is a true and correct copy of resolution presented to and adopted by the City of Hastings, County of Dakota, Minnesota, on the 2nd day of August, 2021, as disclosed by the records of the City of Hastings on file and of record in the office. _____________________________ Erica Henderson, Deputy City Clerk (SEAL) VIII-05 City Council Memorandum To: Mayor Fasbender & City Council Members From: Bryan D. Schafer, Chief of Police Date: August 2, 2021 Item: Public Safety Advisory Commission 2020 Annual Report Council Action Requested: No action required. Information only. Background Information: Due to the on-going pandemic, the Public Safety Advisory Commission’s (“PSAC”) activities during 2020 were significantly curtailed. We traditionally assisted with the Police Week Open House in May, Fire Department Open House in October, and coordinated a community National Night Out party at Lions Park in August, all of which were cancelled for 2020. During 2020, PSAC was asked to review and consider possible changes to the City’s ATV ordinance and whether they should be allowed to operate on City streets. PSAC did not recommend any an expansion of the ATV ordinance at that time. PSAC did recommend that the Council consider an ordinance to address permitting and/or licensing ATVs for special use such as snow removal. PSAC also participated in the City’s consideration of the Tobacco 21 proposal. Looking into 2021, PSAC’s goals include: 1. Coordinating with and supporting the efforts of the new community engagement officer Whitney Rinowski; 2. Identify ways in which the Commission can foster community engagement initiatives considering the pandemic and related restrictions; and 3. Commission mission statement and developing a Commission Handbook. Financial Impact: None Advisory Commission Discussion: No applicable Council Committee Discussion: Not applicable Attachments: None VIII-06 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Chris Eitemiller, Finance Manager Date: August 2, 2021 Item: General Obligation Bonds, Series 2021A Council Action Requested: Adopt the resolution approving the issuance and sale of general obligation bonds to finance the 2021 Neighborhood Project. Background Information: The City has initiated proceedings to sell general obligation bonds to finance the 2021 Neighborhood Project. A portion of the bonds would be repaid through special assessments on benefitting properties. The City has retained financial advisor Northland Securities to assist in the bond sale. The bond sale is scheduled for the afternoon of August 2. Results of the bond sale as well as an updated resolution will be provided to the City Council prior to the City Council meeting that evening. Tammy Omdal of Northland Securities will attend the City Council meeting to review the results of the bond sale. Financial Impact: Debt service payments will be due 2023 through 2032, amounts will depend on debt structure and interest amount pending bond sale on August 2. Committee Discussion: Not Applicable Attachments: • DRAFT Extract of Minutes and Resolution Providing for Issuance and Sale of $2,235,000 General Obligation Bonds, series 2021A • 2021A Financing Plan IX-01 Draft EXTRACT OF MINUTES OF A MEETING CITY COUNCIL OF THE CITY OF HASTINGS, MINNESOTA HELD: AUGUST 2, 2021 Hastings, Dakota and Washington Counties, Minnesota, was duly held at the City Hall on August 2, 2021, at 7:00 P.M., for the purpose, in part of authorizing the issuance and awarding the sale of $2,235,000 General Obligation Bonds, Series 2021A. The following members were present: and the following were absent: Member __________ introduced the following resolution and moved its adoption: RESOLUTION NO. ___________ RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $2,235,000 GENERAL OBLIGATION BONDS, SERIES 2021A, PLEDGING FOR THE SECURITY THEREOF SPECIAL ASSESSMENTS AND NET REVENUES AND LEVYING A TAX FOR THE PAYMENT THEREOF A. WHEREAS, the City Council of the City of Hastings (the City) has heretofore determined and declared that it is necessary and expedient to issue $2,235,000 General Obligation Bonds, Series 2021A (the "Bonds" or individually a "Bond"), pursuant to Minnesota Statutes, Chapter 475; and 1. Chapter 429 to finance the construction of various public improvements within the City (the "Improvements"); 2. Section 444.075 to finance improvements to the municipal water system (the "Water System Improvements"); 3. Section 444.075 to finance improvements to the municipal sewer system (the "Sewer System Improvements"); B. WHEREAS, the Improvements and all their components have been ordered prior to the date hereof, after a hearing thereon for which notice was given describing the Improvements or all their components by general nature, estimated cost, and area to be assessed; and C. WHEREAS, the City owns and operates a municipal water utility system (the "Water System") and a municipal sanitary sewer utility system (the "Sewer System" and, together with the Water System, the "System"), as separate revenue producing public utilities; D. WHEREAS, the net revenues of the Water System are pledged to the payment of the City's outstanding (i) "Water Revenue Refunding Portion" of General Obligation Refunding IX-01 Draft Bonds, Series 2013A in the original principal amount of $5,805,000, dated February 21, 2013; (ii) "Water Portion" of General Obligation Bonds, Series 2019A in the original principal amount of $3,270,000, dated August 8, 2019; and (iii) "Water Portion" of General Obligation Bonds, Series 2020A in the original principal amount of $3,180,000, dated October 1, 2020 (collectively, the "Outstanding Water Bonds"); and E. WHEREAS, the net revenues of the Sewer System are pledged to the payment of the City's outstanding "Sewer Portion" of General Obligation Bonds, Series 2020A in the original principal amount of $3,180,000, dated October 1, 2020 (the "Outstanding Sewer Bonds"); and F. WHEREAS, the net revenues of the System are pledged to the payment of the City's outstanding "Utility Portion" of General Obligation Bonds, Series 2018A in the original principal amount of $3,820,000, dated July 18, 2018 (the "Outstanding Utility Bonds"); and G. WHEREAS, the City has retained Northland Securities, Inc., in Minneapolis, Minnesota ("Northland"), 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 proposals to purchase the Bonds have been solicited by Northland; and H. WHEREAS, the proposals set forth on Exhibit A attached hereto were received by the Finance Manager, or designee, at the offices of Northland at 10:00 A.M. on the date hereof, pursuant to the Notice of Sale established for the Bonds; 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 Council of the City of Hastings, Minnesota, as follows: 1. Acceptance of Proposal. The proposal of ________________________ (the "Purchaser"), to purchase the Bonds, in accordance with the Notice of Sale, at the rates of interest hereinafter set forth, and to pay therefor the sum of $__________, plus interest accrued to settlement, is hereby found, determined and declared to be the most favorable proposal received, is hereby accepted and the Bonds are hereby awarded to the Purchaser. 2. Bond Terms. (a) Original Issue Date; Denominations; Maturities; Term Bond Option. The Bonds shall be dated August 26, 2021, 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 February 1 in the years and amounts as follows: IX-01 Draft Year Amount Year Amount 2023 2028 2024 2029 2025 2030 2026 2031 2027 2032 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 Water System Improvements (the "Water Portion"); and the aggregate principal amount of $___________ maturing in each of the years and amounts hereinafter set forth are issued to finance the Sewer System Improvements (the "Sewer Portion"): Year Improvement Portion Water Portion Sewer Portion Total 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 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, 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 excess net revenues of the Water System pledged to the Water System Improvements, the prepayment shall be allocated to the Water Portion of debt service. . If the source of a prepayment is excess net revenues of the Sewer System pledged to the Sewer System Improvements, the prepayment shall be allocated to the Sewer Portion of debt service. IX-01 Draft (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 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 IX-01 Draft 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 hereof, 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 that the Depository is no longer able to carry out its functions as securities depository or the continuation of the IX-01 Draft 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. Purposes. The Improvement Portion of the Bonds shall provide funds to finance the Improvements. The Water Portion of the Bonds shall provide funds to finance the Water System Improvements. The Sewer Portion of the Bonds shall provide funds to finance the Sewer System Improvements. The Improvements, the Water System Improvements and the Sewer System 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 February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing August 1, 2022, 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: IX-01 Draft Maturity Year Interest Rate Maturity Year Interest Rate 2023 2028 2024 2029 2025 2030 2026 2031 2027 2032 5. Redemption. All Bonds maturing on February 1, 2030 and thereafter, shall be subject to redemption and prepayment at the option of the City on February 1, 2029, 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. U.S. Bank National Association, in St. Paul, 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. 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. IX-01 Draft 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: UNITED STATES OF AMERICA STATE OF MINNESOTA DAKOTA AND WASHINGTON COUNTIES CITY OF HASTINGS R-_______ $_________ GENERAL OBLIGATION BOND, SERIES 2021A Interest Rate Maturity Date Date of Original Issue CUSIP ______% February 1, 20__ August 26, 2021 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: The City of Hastings, Dakota and Washington Counties, 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 February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing August 1, 2022, 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 U.S. Bank National Association, in St. Paul, 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 fifteenth day of the calendar month next preceding 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 IX-01 Draft 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. Optional Redemption. All Bonds of this issue (the "Bonds") maturing on February 1, 2030, and thereafter, are subject to redemption and prepayment at the option of the Issuer on February 1, 2029, 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 at least 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 $2,235,000, 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, Charter of the Issuer and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council on August 2, 2021 (the "Resolution"), for the purpose of IX-01 Draft providing money to finance various municipal improvement projects within the jurisdiction of the Issuer. This Bond is payable out of the General Obligation Bonds, Series 2021A 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. 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 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, Charter of the Issuer 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 IX-01 Draft impose and collect charges for the service, use and availability of its municipal water utility system (the "Water System") at the times and in amounts necessary to produce net revenues, together with other sums pledged to the payment of the Water Portion of the Bonds, as defined in the Resolution, adequate to pay all principal and interest when due on the Water 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 Water Portion of the Bonds as they respectively become due, if the net revenues from the Water System, and any other sums irrevocably appropriated to the Debt Service Account are insufficient therefor; 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 municipal sanitary sewer utility system (the "Sewer System") at the times and in amounts necessary to produce net revenues, together with other sums pledged to the payment of the Sewer Portion of the Bonds, as defined in the Resolution, adequate to pay all principal and interest when due on the Sewer 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 Sewer Portion of the Bonds as they respectively become due, if the net revenues from the Sewer System, and any other sums irrevocably appropriated to the Debt Service Account are insufficient thereforand that this 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, charter or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Hastings, Dakota and Washington Counties, Minnesota, by its City Council has caused this Bond to be executed on its behalf by the facsimile signatures of its Mayor and its Clerk, the corporate seal of the Issuer having been intentionally omitted as permitted by law. IX-01 Draft Date of Registration: BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION St. Paul, Minnesota, Bond Registrar By: Authorized Signature Registrable by: U.S. BANK NATIONAL ASSOCIATION Payable at: U.S. BANK NATIONAL ASSOCIATION CITY OF HASTINGS, DAKOTA AND WASHINGTON COUNTIES, MINNESOTA /s/ Facsimile Mayor /s/ Facsimile Clerk IX-01 Draft 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.) IX-01 Draft 8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of the City by the signatures of its Mayor and Clerk 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 such 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 of August 26, 2021. 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. IX-01 Draft 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. 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 his, her or its 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 Manager 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 fifteenth day of the calendar month next preceding 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 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 Manager 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 2021A Fund" (the "Fund") to be administered and maintained by the Finance Manager 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 IX-01 Draft manner herein specified until all of the Bonds and the interest thereon have been fully paid. The Operation and Maintenance Account for the Water System and the Operation and Maintenance Account for the Sewer System (together, the "Operation and Maintenance Accounts") heretofore established by the City 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 and are referred to as "net revenues" until the Water Portion of the Bonds and the Sewer 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) Construction Account. To the Construction 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 Construction Account there shall be paid all costs and expenses of making the Project, including the cost of any construction or other contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65. Moneys in the Construction 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 collection of taxes, special assessments or net revenues 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 Construction Account, the balance (other than any special assessments) shall be transferred to the Debt Service Account provided that 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 Construction 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", "Water System Improvements Debt Service Subaccount" and the "Sewer System 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 and either initially credited to the Construction Account and not already spent as permitted above and required to pay any principal and interest due on the Improvement Portion of the Bonds or collected subsequent to the completion of the Improvements and payment of the costs thereof; (B) any collections of all 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 Construction Account after completion of the Project 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 IX-01 Draft 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 and any other General Obligation Bonds of the City hereafter issued by the City and made payable from said subaccount as provided by law. (ii) Water System Improvements Debt Service Subaccount . To the Water System Improvements Debt Service Subaccount there shall be credited: (A) the net revenues of the 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 Water System 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 Water Portion of the Bonds; (B) any collections of all taxes which may hereafter be levied in the event that the net revenues of the Water System and other funds herein pledged to the payment of the principal and interest on the Water Portion of the Bonds are insufficient therefore; (C) a pro rata share of all funds remaining in the Construction Account after completion of the Project and payment of the costs thereof; (D) all investment earnings on funds held in the Water System 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 Water System Improvements Debt Service Subaccount . The Water System Improvements Debt Service Subaccount shall be used solely to pay the principal and interest and any premium for redemption of the Water 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. (iii) Sewer System Improvements Debt Service Subaccount . To the Sewer System Improvements Debt Service Subaccount there shall be credited: (A) the net revenues of the Sewer 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 Sewer System 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 Sewer Portion of the Bonds; (B) any collections of all taxes which may hereafter be levied in the event that the net revenues of the Sewer System and other funds herein pledged to the payment of the principal and interest on the Sewer Portion of the Bonds are insufficient therefore; (C) a pro rata share of all funds remaining in the Construction Account after completion of the Project and payment of the costs thereof; (D) all investment earnings on funds held in the Sewer System 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 Sewer System Improvements Debt Service Subaccount . The Sewer System Improvements Debt Service Subaccount shall be used solely to pay the principal and interest and any premium for redemption of the Sewer 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. IX-01 Draft 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 Construction Account, Operation and Maintenance Account 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 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 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 special 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 special 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 special 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: IX-01 Draft Improvement Designation Levy Years Collection Years Amount See Attached Schedule in Exhibit B 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: Levy Years Collection Years 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 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 Water Portion of the Bonds. (a) Sufficiency of Net Revenues; Coverage Test. It is hereby found, determined and declared that the net revenues of the Water System are sufficient in an amount to pay when due the principal and interest on the Water Portion of the Bonds and the Outstanding Water Bonds and a sum at least five percent in excess thereof. It is hereby found, determined and declared that the net revenues of the System are sufficient in an amount to pay when due the principal and interest on the Outstanding Utility Bonds and a sum at least five percent in excess thereof. The net revenues of the Water System are hereby pledged on a parity lien with the Outstanding Water Bonds and the Outstanding Utility 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 Water Portion of the Bonds. As used herein the term net revenues means the gross revenues derived by the City from the operation of the Water System, including all charges for service, use, availability, and connection to the Water System, and all monies received from the sale of any facilities or equipment of the Water System or any by-products thereof, less all normal, reasonable, or current costs of owning, operating, and maintaining the Water System. Nothing contained herein shall be deemed to preclude the City from making further pledges and appropriations of the net revenues of the Water System for the payment of other or IX-01 Draft additional obligations of the City, provided that it has first been determined by the City Council that the estimated net revenues of the Water System will be sufficient in addition to all other sources, for the payment of the Water Portion of the Bonds and such additional obligations and any such pledge and appropriation of the net revenues may be made superior or subordinate to, or on a parity with the pledge and appropriation herein. (b) Excess Net Revenues. Net revenues of the Water System 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 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 Water 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." 18. Covenants Relating to the Sewer Portion of the Bonds. (a) Sufficiency of Net Revenues; Coverage Test. It is hereby found, determined and declared that the net revenues of the Sewer System are sufficient in an amount to pay when due the principal and interest on the Sewer Portion of the Bonds and the Outstanding Sewer Bonds and a sum at least five percent in excess thereof. It is hereby found, determined and declared that the net revenues of the System are sufficient in an amount to pay when due the principal and interest on the Outstanding Utility Bonds and a sum at least five percent in excess thereof. The net revenues of the Sewer System are hereby pledged on a parity lien with the Outstanding Sewer Bonds and the Outstanding Utility 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 Sewer Portion of the Bonds. As used herein the term net revenues means the gross revenues derived by the City from the operation of the Sewer System, including all charges for service, use, availability, and connection to the Sewer System, and all monies received from the sale of any facilities or equipment of the Sewer System or any by-products thereof, less all normal, reasonable, or current costs of owning, operating, and maintaining the Sewer System. Nothing contained herein shall be deemed to preclude the City from making further pledges and appropriations of the net revenues of the Sewer 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 will be sufficient in addition to all other sources, for the payment of the Sewer Portion of the Bonds and such additional obligations and any such pledge and appropriation of the net revenues may be made superior or subordinate to, or on a parity with the pledge and appropriation herein. (b) Excess Net Revenues. Net revenues of the Sewer System in excess of those required for the foregoing may be used for any proper purpose. IX-01 Draft (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 at the times and in the amounts required to produce net revenues adequate to pay all principal and interest when due on the Sewer Portion of the Bonds. Nothing herein shall preclude the City for levying taxes for the payment of the Sewer Portion of the Bonds as permitted by Minnesota Statutes, Section 115.46. 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 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. 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. (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 Clerk 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. IX-01 Draft 21. 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. 22. 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 sixty 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 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 twenty percent 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 five percent of the proceeds of the Bonds. IX-01 Draft (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. 23. Certificate of Registration. The Clerk is hereby directed to file a certified copy of this resolution with the County Auditors of Dakota and Washington Counties, Minnesota, together with such other information as each of the County Auditors shall require, and to obtain from each County Auditor their certificate that the Bonds have been entered in their Bond Register, and that the tax levy required by law has been made. 24. 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. 25. 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 (a) requirements relating to temporary periods for investments, (b) limitations on amounts invested at a yield greater than the yield on the Bonds, and (c) 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 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: (a) the Bonds are issued by a governmental unit with general taxing powers; (b) no Bond is a private activity bond; IX-01 Draft (c) ninety-five percent 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 (d) the aggregate face amount of all tax exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities thereof, and all entities 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. 26. 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 2021 will not exceed $10,000,000; (e) not more than $10,000,000 of obligations issued by the City during this calendar year 2021 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. 27. Official Statement. The Official Statement relating to the Bonds prepared and distributed by Northland 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. 28. 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 29. 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. IX-01 Draft The motion for the adoption of the foregoing resolution was duly seconded by member _____________ 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. IX-01 Draft STATE OF MINNESOTA COUNTIES OF DAKOTA AND WASHINGTON CITY OF HASTINGS I, the undersigned, being the duly qualified and acting Clerk of the City of Hastings, 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 $2,235,000 General Obligation Bonds, Series 2021A. WITNESS my hand on August 2, 2021. _______________________________________ Clerk IX-01 Draft EXHIBIT A PROPOSALS [To be supplied by Northland Securities, Inc.] IX-01 Draft EXHIBIT B SCHEDULES [To be supplied by Northland Securities, Inc.] IX-01 Draft Finance Plan City of Hastings, Minnesota $2,235,000 General Obligation Bonds, Series 2021A July 6, 2021 150 South 5th Street, Suite 3300 Minneapolis, MN 55402 612-851-5900 800-851-2920 www.northlandsecurities.com Member FINRA and SIPC | Registered MSRB and SEC IX-01 Draft Contents Executive Summary Issue Overview Purpose Authority Structure Security and Source of Repayment Plan Rationale Issuing Process Attachment 1 – Preliminary Debt Service Schedules Attachment 2 – Estimated Levy Schedules Attachment 3 – Related Considerations Bank Qualified Arbitrage Compliance Continuing Disclosure Premiums Rating Attachment 4 – Calendar of Events Attachment 5 - Risk Factors IX-01 Draft Executive Summary The following is a summary of the recommended terms for the issuance of $2,235,000 General Obligation Bonds, Series 2021A (the “Bonds”). Additional information on the proposed finance plan and issuing process can be found after the Executive Summary, in the Issue Overview and Attachment 3 – Related Considerations. Purpose Proceeds from the Bonds will be used to finance the 2021 street improvement and utility projects, and to pay the costs associated with the issuance of the Bonds. Security The Bonds will be a general obligation of the City. The City will pledge special assessments collected from benefitted properties for payment of the Improvement Portion of the Bonds, net water revenues of the City’s Municipal Water Utility for payment of the Water Portion of the Bonds, and net sewer revenues of the City’s Municipal Sewer Utility for the Sewer Portion of the Bonds. In addition, the Bonds will be secured by ad valorem taxes. Repayment Term The Bonds will mature annually each February 1 in the years 2023 through 2032. Interest on the Bonds will be payable on August 1, 2022 and semiannually thereafter on each February 1 and August 1. Estimated Interest Rate Average coupon: 1.28% True interest cost (TIC): 1.46% Prepayment Option Bonds maturing on and after February 1, 2030 will be subject to redemption on February 1, 2029 and any day thereafter at a price of par plus accrued interest. Rating A rating will be requested from Standard & Poor’s. The City’s general obligation debt is currently rated "AA” by S&P. Tax Status The Bonds will be tax-exempt, bank qualified obligations. Risk Factors There are certain risks associated with all debt. Risk factors related to the Bonds are discussed in Attachment 5. Type of Bond Sale Public Sale – Competitive Bids Proposals Received Monday, August 2, 2021 @ 10:00 A.M. Council Consideration Monday, August 2, 2021 @ 7:00 P.M. IX-01 Draft Issue Overview Purpose Proceeds from the Bonds will be used to finance the City’s 2021 street and utility projects, which include (together, the “Projects”): • the City’s 2021 street improvement projects (the “Improvement Portion”), • a sewer project (the “Sewer Portion”), and • a water project (the “Water Portion”). Proceeds will also be used to pay costs associated with issuing the Bonds. The Bonds have been sized based on estimates provided by City staff. The table below contains the sources and uses of funds for the bond issue. Authority The Bonds will be issued pursuant to the authority of Minnesota Statutes, Chapters 429, 444, and 475. Improvement Portion Under Chapter 429, an Improvement means any type of improvement made under authority granted by section 429.021, which includes, but is not limited to, improvements to streets and sidewalks, storm and sanitary sewer systems, and street lighting systems. Before issuing bonds under Chapter 429, the City must hold a public hearing on the Improvements and the proposed bonds, and must pass a resolution ordering the improvements by at least a 4/5 majority. The public hearing has been held for the Improvement Portion and all corresponding resolutions have passed with a 4/5 majority. Water and Sewer Portions Under Chapter 444, general obligation utility revenue bonds may be issued to build, construct, reconstruct, repair, enlarge, improve, or in any other manner obtain sanitary sewer, water and storm sewer facilities, and maintain and operate the facilities inside or outside a city’s corporate limits. Structure The Bonds have been structured over 10 years, with relatively level annual debt service payments. Improvement Sewer Water Issue Summary Sources Of Funds Par Amount of Bonds $995,000.00 $540,000.00 $700,000.00 $2,235,000.00 MSA Funds 750,000.00 --750,000.00 Planned Issuer Equity Contribution 250,000.00 --250,000.00 Total Sources $1,995,000.00 $540,000.00 $700,000.00 $3,235,000.00 Uses Of Funds Deposit to Project Construction Fund 1,963,900.00 523,300.00 675,500.00 3,162,700.00 Costs of Issuance 19,953.42 10,828.99 14,037.59 44,820.00 Total Underwriter's Discount (1.100%)10,945.00 5,940.00 7,700.00 24,585.00 Rounding Amount 201.58 (68.99)2,762.41 2,895.00 Total Uses $1,995,000.00 $540,000.00 $700,000.00 $3,235,000.00 IX-01 Draft The proposed structure for the bond issue and preliminary debt service projections for each portion of the issue are illustrated in Attachment 1 and the estimated levies are illustrated in Attachment 2. Security and Source of Repayment The Bonds will be general obligations of the City. The finance plan relies on the following assumptions for the revenues used to pay debt service, as provided by City staff: • Special Assessments. The City is expected to levy special assessments against benefited properties in the amount of $581,850 for the Improvement Portion of the Bonds. The assessments are structured for level annual payments, with interest charged at a rate that is 1.50% over the True Interest Cost of the Improvement Portion of the Bonds (currently estimated to be 2.95%). The assessments will be levied in 2021 for first payment in 2022. • Utility Revenues. Net revenues of the City’s sewer and water utilities (operating funds) will be pledged for payment of the Sewer Portion and Water Portion of the Bonds. The City will covenant to adopt sewer and water rates and charges that are sufficient to produce net revenues equal to at least 105% of the debt service requirements on the Sewer Portion and Water Portion of the Bonds. In the event there is a deficiency in the amount of net revenues available for payment of debt service, the City may levy taxes to cover the insufficiency, but only on a temporary basis until rates are adjusted. • Property Taxes. The remaining revenues needed to pay debt service on the Bonds are expected to come from property tax levies. The initial projections show an annual tax levy averaging approximately $44,295 is needed to produce the statutory requirement of 105% of debt service, after accounting for assessments, and sewer and water utility revenues. The levy may be adjusted annually based on actual special assessment collections and additional monies in the debt service fund. The initial tax levy will be made in 2021 for taxes payable in 2022. Plan Rationale The Finance Plan recommended in this report is based on a variety of factors and information provided by the City related to the financed project and City objectives, Northland’s knowledge of the City and our experience in working with similar cities and projects. The issuance of General Obligation Bonds provides the best means of achieving the City’s objectives and cost-effective financing. The City has successfully issued and managed this type of debt for previous projects. Issuing Process Northland will receive bids to purchase the Bonds on Monday, August 2, 2021 at 10:00 AM. Market conditions and the marketability of the Bonds support issuance through a competitive sale. This process has been chosen as it is intended to produce the lowest combination of interest expense and underwriting expense on the date and time set to receive bids. The calendar of events for the issuing process can be found in Attachment 4. Municipal Advisor: Northland Securities, Inc., Minneapolis, Minnesota Bond Counsel: Taft Stettinius and Hollister LLP, Minneapolis, Minnesota Paying Agent: US Bank, National Association, St. Paul, Minnesota IX-01 Draft Attachment 1 – Preliminary Debt Service Schedules Total Combined 2021A Bonds *Based on Bank Qualified “AA” rates as of June 25, 2021, plus 0.25%. Date Principal Coupon Interest Total P+I Fiscal Total 08/26/2021 ----- 08/01/2022 --22,870.73 22,870.73 - 02/01/2023 205,000.00 0.500%12,288.75 217,288.75 240,159.48 08/01/2023 --11,776.25 11,776.25 - 02/01/2024 210,000.00 0.600%11,776.25 221,776.25 233,552.50 08/01/2024 --11,146.25 11,146.25 - 02/01/2025 220,000.00 0.750%11,146.25 231,146.25 242,292.50 08/01/2025 --10,321.25 10,321.25 - 02/01/2026 225,000.00 0.900%10,321.25 235,321.25 245,642.50 08/01/2026 --9,308.75 9,308.75 - 02/01/2027 225,000.00 1.000%9,308.75 234,308.75 243,617.50 08/01/2027 --8,183.75 8,183.75 - 02/01/2028 225,000.00 1.150%8,183.75 233,183.75 241,367.50 08/01/2028 --6,890.00 6,890.00 - 02/01/2029 225,000.00 1.300%6,890.00 231,890.00 238,780.00 08/01/2029 --5,427.50 5,427.50 - 02/01/2030 230,000.00 1.450%5,427.50 235,427.50 240,855.00 08/01/2030 --3,760.00 3,760.00 - 02/01/2031 235,000.00 1.550%3,760.00 238,760.00 242,520.00 08/01/2031 --1,938.75 1,938.75 - 02/01/2032 235,000.00 1.650%1,938.75 236,938.75 238,877.50 Total $2,235,000.00 -$172,664.48 $2,407,664.48 - Date And Term Structure Dated 8/26/2021 Delivery Date 8/26/2021 First available call date 2/01/2029 Call Price 100.000% Yield Statistics Bond Year Dollars $13,502.29 Average Life 6.041 Years Average Coupon 1.2787791% Net Interest Cost (NIC)1.4608593% True Interest Cost (TIC)1.4651045% All Inclusive Cost (AIC)1.8224010% IX-01 Draft Improvement Portion Date Principal Coupon Interest Total P+I Fiscal Total 08/26/2021 ----- 08/01/2022 --10,203.54 10,203.54 - 02/01/2023 90,000.00 0.500%5,482.50 95,482.50 105,686.04 08/01/2023 --5,257.50 5,257.50 - 02/01/2024 95,000.00 0.600%5,257.50 100,257.50 105,515.00 08/01/2024 --4,972.50 4,972.50 - 02/01/2025 95,000.00 0.750%4,972.50 99,972.50 104,945.00 08/01/2025 --4,616.25 4,616.25 - 02/01/2026 100,000.00 0.900%4,616.25 104,616.25 109,232.50 08/01/2026 --4,166.25 4,166.25 - 02/01/2027 100,000.00 1.000%4,166.25 104,166.25 108,332.50 08/01/2027 --3,666.25 3,666.25 - 02/01/2028 100,000.00 1.150%3,666.25 103,666.25 107,332.50 08/01/2028 --3,091.25 3,091.25 - 02/01/2029 100,000.00 1.300%3,091.25 103,091.25 106,182.50 08/01/2029 --2,441.25 2,441.25 - 02/01/2030 105,000.00 1.450%2,441.25 107,441.25 109,882.50 08/01/2030 --1,680.00 1,680.00 - 02/01/2031 105,000.00 1.550%1,680.00 106,680.00 108,360.00 08/01/2031 --866.25 866.25 - 02/01/2032 105,000.00 1.650%866.25 105,866.25 106,732.50 Total $995,000.00 -$77,201.04 $1,072,201.04 - Date And Term Structure Dated 8/26/2021 Delivery Date 8/26/2021 First available call date 2/01/2029 Call Price 100.000% Yield Statistics Bond Year Dollars $6,028.40 Average Life 6.059 Years Average Coupon 1.2806218% Net Interest Cost (NIC)1.4621790% True Interest Cost (TIC)1.4664429% All Inclusive Cost (AIC)1.8227638% IX-01 Draft Sewer Portion Date Principal Coupon Interest Total P+I Fiscal Total 08/26/2021 ----- 08/01/2022 --5,501.91 5,501.91 - 02/01/2023 50,000.00 0.500%2,956.25 52,956.25 58,458.16 08/01/2023 --2,831.25 2,831.25 - 02/01/2024 50,000.00 0.600%2,831.25 52,831.25 55,662.50 08/01/2024 --2,681.25 2,681.25 - 02/01/2025 55,000.00 0.750%2,681.25 57,681.25 60,362.50 08/01/2025 --2,475.00 2,475.00 - 02/01/2026 55,000.00 0.900%2,475.00 57,475.00 59,950.00 08/01/2026 --2,227.50 2,227.50 - 02/01/2027 55,000.00 1.000%2,227.50 57,227.50 59,455.00 08/01/2027 --1,952.50 1,952.50 - 02/01/2028 55,000.00 1.150%1,952.50 56,952.50 58,905.00 08/01/2028 --1,636.25 1,636.25 - 02/01/2029 55,000.00 1.300%1,636.25 56,636.25 58,272.50 08/01/2029 --1,278.75 1,278.75 - 02/01/2030 55,000.00 1.450%1,278.75 56,278.75 57,557.50 08/01/2030 --880.00 880.00 - 02/01/2031 55,000.00 1.550%880.00 55,880.00 56,760.00 08/01/2031 --453.75 453.75 - 02/01/2032 55,000.00 1.650%453.75 55,453.75 55,907.50 Total $540,000.00 -$41,290.66 $581,290.66 - Date And Term Structure Dated 8/26/2021 Delivery Date 8/26/2021 First available call date 2/01/2029 Call Price 100.000% Yield Statistics Bond Year Dollars $3,242.50 Average Life 6.005 Years Average Coupon 1.2734205% Net Interest Cost (NIC)1.4566125% True Interest Cost (TIC)1.4608520% All Inclusive Cost (AIC)1.8201691% IX-01 Draft Water Portion Date Principal Coupon Interest Total P+I Fiscal Total 08/26/2021 ----- 08/01/2022 --7,165.28 7,165.28 - 02/01/2023 65,000.00 0.500%3,850.00 68,850.00 76,015.28 08/01/2023 --3,687.50 3,687.50 - 02/01/2024 65,000.00 0.600%3,687.50 68,687.50 72,375.00 08/01/2024 --3,492.50 3,492.50 - 02/01/2025 70,000.00 0.750%3,492.50 73,492.50 76,985.00 08/01/2025 --3,230.00 3,230.00 - 02/01/2026 70,000.00 0.900%3,230.00 73,230.00 76,460.00 08/01/2026 --2,915.00 2,915.00 - 02/01/2027 70,000.00 1.000%2,915.00 72,915.00 75,830.00 08/01/2027 --2,565.00 2,565.00 - 02/01/2028 70,000.00 1.150%2,565.00 72,565.00 75,130.00 08/01/2028 --2,162.50 2,162.50 - 02/01/2029 70,000.00 1.300%2,162.50 72,162.50 74,325.00 08/01/2029 --1,707.50 1,707.50 - 02/01/2030 70,000.00 1.450%1,707.50 71,707.50 73,415.00 08/01/2030 --1,200.00 1,200.00 - 02/01/2031 75,000.00 1.550%1,200.00 76,200.00 77,400.00 08/01/2031 --618.75 618.75 - 02/01/2032 75,000.00 1.650%618.75 75,618.75 76,237.50 Total $700,000.00 -$54,172.78 $754,172.78 - Date And Term Structure Dated 8/26/2021 Delivery Date 8/26/2021 First available call date 2/01/2029 Call Price 100.000% Yield Statistics Bond Year Dollars $4,231.39 Average Life 6.045 Years Average Coupon 1.2802600% Net Interest Cost (NIC)1.4622334% True Interest Cost (TIC)1.4664575% All Inclusive Cost (AIC)1.8235951% IX-01 Draft Attachment 2 – Estimated Levy Schedules Improvement Portion Date Total P+I 105% Levy Less: Special Assessment Revenue*Net Levy Levy Year Collection Year 02/01/2022 ---- 02/01/2023 105,686.04 110,970.34 68,285.75 42,684.59 2021 2022 02/01/2024 105,515.00 110,790.75 68,285.74 42,505.01 2022 2023 02/01/2025 104,945.00 110,192.25 68,285.73 41,906.52 2023 2024 02/01/2026 109,232.50 114,694.13 68,285.73 46,408.40 2024 2025 02/01/2027 108,332.50 113,749.13 68,285.75 45,463.38 2025 2026 02/01/2028 107,332.50 112,699.13 68,285.74 44,413.39 2026 2027 02/01/2029 106,182.50 111,491.63 68,285.75 43,205.88 2027 2028 02/01/2030 109,882.50 115,376.63 68,285.74 47,090.89 2028 2029 02/01/2031 108,360.00 113,778.00 68,285.74 45,492.26 2029 2030 02/01/2032 106,732.50 112,069.13 68,285.74 43,783.39 2030 2031 Total $1,072,201.04 $1,125,811.09 $682,857.41 $442,953.68 * Special assessment revenue is based on assessments totaling $581,850 assessed at a rate of 2.95% (1.50% over the true interest cost), with equal annual payments over 10 years, beginning with collection in 2022. IX-01 Draft Attachment 3 – Related Considerations Bank Qualified We understand the City (in combination with any subordinate taxing jurisdictions or debt issued in the City’s name by 501(c)3 corporations) anticipates issuing $10,000,000 or less in tax-exempt debt during this calendar year. Therefore, the Bonds will be designated as “bank qualified” obligations pursuant to Federal Tax Law. Arbitrage Compliance Project/Construction Fund. All tax-exempt bond issues are subject to federal rebate requirements which require all arbitrage earned to be rebated to the U.S. Treasury. A rebate exemption the City expects to qualify for is the “small issuer exception.” Debt Service Fund. The City must maintain a bona fide debt service fund for the Bonds or be subject to yield restriction in the debt service fund. A bona fide debt service fund involves an equal matching of revenues to debt service expense with a balance forward permitted equal to the greater of the investment earnings in the fund during that year or 1/12 of the debt service of that year. The City should become familiar with the various Arbitrage Compliance requirements for this bond issue. The Resolution for the Bonds prepared by Bond Counsel explains the requirements in greater detail. Continuing Disclosure Type: Full Dissemination Agent: Northland Securities The requirements for continuing disclosure are governed by SEC Rule 15c2-12. The primary requirements of Rule 15c2-12 actually fall on underwriters. The Rule sets forth due diligence needed prior to the underwriter’s purchase of municipal securities. Part of this requirement is obtaining commitment from the issuer to provide continuing disclosure. The document describing the continuing disclosure commitments (the “Undertaking”) is contained in the Official Statement that will be prepared to offer the Bonds to investors. The City has more than $10,000,000 of outstanding debt and is required to undertake “full” continuing disclosure. Full disclosure requires annual posting of the audit and a separate continuing disclosure report, as well as the reporting of certain “material events.” Material events set forth in the Rule, including, but not limited to, bond rating changes, call notices, and issuance of “financial obligations” (such as USDA loans, Public Finance Authority loans and lease agreements) must be reported within ten days of occurrence. Northland currently serves as dissemination agent for the City. We will assist with getting your annual report filed in compliance with full continuing disclosure regulations. Premiums In the current market environment, it is likely that bids received from underwriters will include premiums. A premium bid occurs when the purchaser pays the City an amount in excess of the par amount of a maturity in exchange for a higher coupon (interest rate). The use of premiums reflects the bidder’s view on future market conditions, tax considerations for investors and other factors. Ultimately, the true interest cost (“TIC”) calculation will determine the lowest bid, regardless of premium. IX-01 Draft A premium bid produces additional funds that can be used in several ways: • The premium means that the City needs less bond proceeds and can reduce the size of the issue by the amount of the premium. • The premium can be deposited in the Construction Fund and used to pay additional project costs, rather than used to reduce the size of the issue. • The premium can be deposited in the Debt Service Fund and used to pay principal and interest. Northland will work with City staff prior to the sale day to determine use of premium (if any). A consideration for use of premium is the bank qualification of the Bonds. Rating A rating will be requested from Standard and Poor’s (“S&P”). The City’s general obligation debt is currently rated "AA" by S&P. The rating process will include a conference call with the rating analyst from S&P. Northland will assist City staff in preparing for and conducting the rating calls. IX-01 Draft Attachment 4 – Calendar of Events The following checklist of items denotes each milestone activity as well as the members of the finance team who will have the responsibility to complete it. Please note this proposed timetable assumes regularly scheduled City Council meetings. Date Action Responsible Party June 1 General Information Certificate relating to the Bonds sent to City for completion Northland June 14 City returns General Information Certificate to Northland City Staff June 18 Final project costs and sources of repayment provided to Northland City Staff June 23 Rating Request sent to S&P Northland, City Staff June 25 Preliminary Official Statement Sent to City for Sign Off Northland, City Staff June 29 Set Sale Resolution and Finance Plan Sent to City Northland, Bond Counsel July 6 Set Sale Resolution Adopted and Review of Finance Plan – 7:00 p.m. Northland, Bond Counsel, City Council Action Week of July 5 or July 12 Rating Call with S&P Northland, City Staff, Rating Agency June 2021 July 2021 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 1 2 3 6 7 8 9 10 11 12 4 5 6 7 8 9 10 13 14 15 16 17 18 19 11 12 13 14 15 16 17 20 21 22 23 24 25 26 18 19 20 21 22 23 24 27 28 29 30 25 26 27 28 29 30 31 August 2021 September 2021 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 1 2 3 4 8 9 10 11 12 13 14 5 6 7 8 9 10 11 15 16 17 18 19 20 21 12 13 14 15 16 17 18 22 23 24 25 26 27 28 19 20 21 22 23 24 25 29 30 31 26 27 28 29 30 Holiday Action Required IX-01 Draft July 22 Rating Received Distribution of Preliminary Official Statement to potential bidders Northland, City Staff, Rating Agency July 27 Awarding Resolution sent to City Northland, Bond Counsel August 2 Bond Sale at 10:00 a.m. Bond Proposal Signed and Awarding Resolution adopted – 7:00 p.m. Northland, City Council Action August 26 Closing on the Bonds (Proceeds Available) Northland, City Staff, Bond Counsel IX-01 Draft Attachment 5 - Risk Factors Property Taxes: Property tax levies shown in this Finance Plan are based on projected debt service and other revenues. Final levies will be set based on the results of sale. Levies should be reviewed annually and adjusted as needed. The debt service levy must be included in the preliminary levy for annual Truth in Taxation hearings. Future Legislative changes in the property tax system, including the imposition of levy limits and changes in calculation of property values, would affect plans for payment of debt service. Delinquent payment of property taxes would reduce revenues available to pay debt service. Special Assessments: Special assessments for the financed projects have not been levied at this time. This Finance Plan is based on the assumptions listed earlier in this report. Changes in the terms and timing for the actual assessments will alter the projected flow of funds for payment of debt service on the Improvement Portion of the Bonds. Also, special assessments may be prepaid. It is likely that the income earned on the investment of prepaid assessments will be less than the interest paid if the assessments remained outstanding. Delinquencies in assessment collections would reduce revenues needed to pay debt service. The collection of deferred assessments, if any, has not been included in the revenue projections. Projected assessment income should be reviewed annually and adjusted as needed. Utility Revenues: The City pledges the net revenues of the sewer and water utilities to the payment of principal and interest on the Sewer Portion and Water Portion of the Bonds, respectively. The failure to adjust rates and charges as needed and the loss of significant customers will affect available net revenues. If the net revenues are insufficient, the City is required to levy property taxes or use other revenues to cover the deficiency. Property taxes can only be used on a temporary basis and may not be an ongoing source of revenue to pay debt service. General: In addition to the risks described above, there are certain general risks associated with the issuance of bonds. These risks include, but are not limited to: • Failure to comply with covenants in bond resolution. • Failure to comply with Undertaking for continuing disclosure. • Failure to comply with IRS regulations, including regulations related to use of the proceeds and arbitrage/rebate. The IRS regulations govern the ability of the City to issue its bonds as tax-exempt securities and failure to comply with the IRS regulations may lead to loss of tax- exemption. IX-01 Draft Summary: Hastings, Minnesota; General Obligation Primary Credit Analyst: Natalie L Fakelmann, Chicago + 1 (312) 233 7074; natalie.fakelmann@spglobal.com Secondary Contact: Scott Nees, CHICAGO + 1 (312) 233 7064; scott.nees@spglobal.com Table Of Contents Rating Action Stable Outlook Credit Opinion Related Research WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JULY 21, 2021 1 IX-01 Draft Summary: Hastings, Minnesota; General Obligation Credit Profile US$2.235 mil GO bnds ser 2021A dtd 08/26/2021 due 02/01/2032 Long Term Rating AA/Stable New Hastings GO Long Term Rating AA/Stable Affirmed Hastings GO rfdg bnds Long Term Rating AA/Stable Affirmed Rating Action S&P Global Ratings assigned its 'AA' long-term rating to Hastings, Minn.'s approximately $2.2 million series 2021A general obligation (GO) bonds. At the same time, we affirmed our 'AA' underlying rating on the city's GO bonds outstanding. The outlook is stable. Securing the bonds is the city's full faith and credit pledge and ability to levy unlimited ad valorem property taxes. The bonds are payable from special assessments, net revenues from the city's sewer and water systems, and a dedicated tax levy, but the rating is based on the unlimited ad valorem tax pledge. The bond proceeds will finance various street and utility improvements throughout the city. Credit overview Hastings is a predominantly residential community south of the Twin Cities that is well positioned for continuous residential growth due to its proximity to the metropolitan statistical area (MSA). In our view, the city's steadily growing valuations, supported by strong new housing development over past decades, offset its comparatively weaker income and wealth metrics compared with those of higher-rated peers. Hastings has consistently reported positive financial operations, enabling the city to build substantial operating reserves. Based on management's conservative budgeting practices, we expect the city will likely achieve its breakeven budget by fiscal 2021 year-end. The 'AA' rating reflects our assessment of the city's: • Access to the broad and diverse Minneapolis-St. Paul MSA, which supports continuous new residential development and steadily growing valuations; • Strong management, with conservative budgeting and good financial policies and practices that support positive operations and very strong reserves and liquidity; and • Weak debt and contingent liability profile, which we do not expect to worsen, based on the city's lack of significant future debt plans. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JULY 21, 2021 2 IX-01 Draft Environmental, social, and governance (ESG) factors We view Hastings' environmental risk as elevated compared with the sector due to its location on the Mississippi River, which exposes it to elevated flood risk. Despite the elevated environmental risk, we view Hastings' social and governance risks as being in line with our view of the sector standard. Stable Outlook Upside scenario We could consider a positive rating action if the city's income indicators and market value per capita increase significantly. The adoption of a long-term financial plan could increase the likelihood of a positive rating action. Downside scenario We could consider a negative rating action if financial performance and reserves experience sustained deterioration, resulting in much lower reserve levels or weakened liquidity. Credit Opinion Strong economy, with access to the broad and diverse Minneapolis-St. Paul MSA supporting continuous new housing development Hastings' tax base is primarily residential (73% net tax capacity), with a sizable commercial/industrial component (18% net tax capacity). The city, with a population of 23,810, is in Dakota County and encompasses 11.4 square miles in the Minneapolis-St. Paul-Bloomington MSA, which we consider to be broad and diverse. The tax base has grown steadily, with continued growth expected. Like most communities across the U.S., Hastings experienced elevated unemployment (6.3% in 2020) tied to the pandemic. S&P Global Ratings believes the recovery from the pandemic and associated recession will begin to accelerate, but with unemployment likely remaining above prepandemic levels until 2023. (See S&P Global Economics' report, "Economic Outlook U.S. Q3 2021: Sun, Sun, Sun, Here It Comes," published June 24, 2021, on RatingsDirect). We expect Hastings' position in the Twin Cities area, coupled with strong demand for new housing, will support the local economy as the recovery progresses. Strong management, with strong reserves and conservative budget assumptions Highlights to the city's financial management policies and practices include: • The city prepares its budget on a line-by-line item basis and uses at least three years of historical information to assist in the process; • The council members are updated on a quarterly basis with a budget-to-actual report; • Management has a five-year capital plan, updated annually, that identifies cost estimates and sources of funding; • The city has its own investment policy and council is updated quarterly on the holdings and investment performance; • It also has a debt management policy that details limitations and restrictions; WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JULY 21, 2021 3 Summary: Hastings, Minnesota; General Obligation IX-01 Draft • Management has a reserve policy that aims to maintain between 35%-45% of the subsequent year's budgeted operating expenditures in the general fund; this was developed for cash-flow purposes due to collection times of property tax revenues; and • The city does not currently maintain any formalized long-term plan for the budget. Conservative budgeting supports routine surpluses and a very strong cash position The fiscal 2021 (year-end Dec. 31) budget calls for a breakeven general fund result, which management says it is on track to achieve. The city's primary revenue sources have been stable; property taxes make up about 64% of general fund revenue. Hastings will receive a total of $2.4 million under the American Rescue Plan (half in fiscal 2021 and half in fiscal 2022), which the city plans to use on nonrecurring costs over the next several years. Given the city's history of balanced operations, we expect performance will remain at least strong. Hastings has reported positive operations in recent years as a result of its conservative approach to budgeting. To assess the city's budgetary flexibility, we combined the available general fund balance ($8.3 million) and fire and ambulance fund balance ($1.5 million), as of fiscal 2020. The city states that the growth in the general fund balance in fiscal 2020 was due to halted spending for capital projects as a result of the pandemic, but that some of those funds received will be spent in fiscal 2021 (general fund might be closer to $7.2 million at year end), which would be similar to pre-pandemic levels. Management indicates the city might use general fund reserves for a park renovation project, but it is not finalized if those funds will be used in fiscal 2021 or will be included in the fiscal 2022 budget. Given the high level of current reserves, we do not expect this planned drawdown will materially weaken the city's budgetary flexibility, and we expect the city's available fund balance as a percent of expenditures will remain above its fund balance policy ceiling of 45%. At fiscal year-end 2020, Hastings had approximately $25.6 million in available cash, after adjusting for restricted funds. The city does not have any direct-purchase or private-placement debt. Overall, the city's liquidity position is not expected to weaken in the next two years. Adequate debt and contingent liability profile, with no significant further debt plans In assessing the city's debt profile, we reduced its overall debt burden by the amount of revenue-source bonds that we deem partially self-supported with water and sewer enterprise revenue. The city currently has no plans for future debt issuance and intends to finance capital projects primarily with cash (local government aid and federal stimulus funds). Therefore, we do not expect its debt and contingent liability position will weaken. Manageable pension and other postemployment benefits (OPEB) profile We do not believe that pension and OPEB liabilities represent a medium-term credit pressure, as contributions are only a modest share of the budget, and we believe the city has the capacity to absorb higher costs without pressuring operations. The city participates in the following plans: • Minnesota General Employees Retirement Fund (GERF): 79.1% funded (as of June 30, 2020), with a city WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JULY 21, 2021 4 Summary: Hastings, Minnesota; General Obligation IX-01 Draft proportionate share of the plan's net pension liability of $4.26 million; • Minnesota Police and Fire Fund (PEPFF): 87.2% funded (as of June 30, 2020), with a proportionate share of $4.95 million; and • A single-employer, defined-benefit OPEB plan: funded on a pay-as-you-go basis with a net OPEB liability of $4.3 million, measured as of January 1, 2020. The city's two largest pension plans have seen improvements in funded status in recent years, although plan statutory formula contributions have regularly fallen short of actuarial recommendations. Along with certain plan-specific actuarial assumptions and methods, this introduces some long-term risk of funding volatility and cost acceleration over time, if future funding shortfalls are not met with offsetting adjustments by the state legislature. Regardless, costs remain only a modest share of total spending, and we believe they are unlikely to pressure the city's medium-term operational health. Strong institutional framework The institutional framework score for Minnesota cities with a population greater than 2,500 is strong. Hastings, Minn.--Key Credit Metrics Most recent Historical information 2020 2019 2018 Strong economy Projected per capita EBI % of U.S.103.8 Market value per capita ($)88,504 Population 23,971 23,810 23,618 County unemployment rate (%)6.2 Market value ($000)2,121,541 1,988,572 1,886,586 Top 10 taxpayers % of taxable value 6.9 Very strong budgetary performance Operating fund result % of expenditures 11.4 2.9 0.9 Total governmental fund result % of expenditures 1.9 9.5 0.9 Very strong budgetary flexibility Available reserves % of operating expenditures 67.9 50.9 44.8 Total available reserves ($000)10,374 7,783 7,025 Very strong liquidity Total government cash % of governmental fund expenditures 102.2 103.2 87.7 Total government cash % of governmental fund debt service 701.3 585.5 526.5 Strong management Financial Management Assessment Good Strong debt & long-term liabilities Debt service % of governmental fund expenditures 14.6 17.6 16.6 Net direct debt % of governmental fund revenue 68.9 Overall net debt % of market value 2.6 WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JULY 21, 2021 5 Summary: Hastings, Minnesota; General Obligation IX-01 Draft Hastings, Minn.--Key Credit Metrics (cont.) Most recent Historical information 2020 2019 2018 Direct debt 10-year amortization (%)98.9 Required pension contribution % of governmental fund expenditures 4.5 OPEB actual contribution % of governmental fund expenditures 1.5 Strong institutional framework EBI--Effective buying income. OPEB--Other postemployment benefits. Related Research • Credit Conditions: U.S. Regions' Economies Perk Up As The Pandemic's Impact Ebbs, April 16, 2021 • S&P Public Finance Local GO Criteria: How We Adjust Data For Analytic Consistency, Sept. 12, 2013 • 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 • Through The ESG Lens 2.0: A Deeper Dive Into U.S. Public Finance Credit Factors, April 28, 2020 • 2020 Update Of Institutional Framework For U.S. Local Governments Ratings Detail (As Of July 21, 2021) Hastings GO bnds Long Term Rating AA/Stable Affirmed Hastings GO bnds ser 2018A due 02/01/2029 Long Term Rating AA/Stable Affirmed Hastings GO imp bnds ser 2010B dtd 11/01/2010 due 02/01/2013-2022 Long Term Rating AA/Stable Affirmed Hastings GO pub fac rfdg bnds ser 2010A dtd 06/01/2010 due 02/01/2022 Long Term Rating AA/Stable Affirmed Hastings GO tax increment rev bnds ser 2016A due 02/01/2029 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. 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IX-01 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: City Administrator Dan Wietecha Date: August 2, 2021 Item: Water Ban Amendment Council Action Requested: Consider the attached resolution amending the water ban to allow car-wash fundraisers by non- profit organizations. Background Information: In response to a request from the Minnesota Department of Natural Resources that all municipalities in the state implement their Water Supply Plans to reduce water usage in response to the current and worsening drought conditions, as well as to protect City infrastructure and the aquifer, the City Council enacted a restriction on water usage at its July 19 meeting. Subsequently, Councilmember Folch noted some of the local high school teams have scheduled car-wash fundraisers in August, that their other fundraising activities have been limited the past year due to the COVID-19 pandemic, and requested that an exception be placed on the City Council’s August 2 agenda. Financial Impact: Not applicable Committee Discussion: Not applicable Attachments: Resolution Declaring a Limitation on Water Sprinkling and Other Exterior Water Usage X-A-01 CITY OF HASTINGS DAKOTA COUNTY STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION DECLARING A LIMITATION ON WATER SPRINKLING AND OTHER EXTERIOR WATER USAGE WHEREAS, as of July 15, 2021, the metro area is in a “Moderate Drought” according to a map published by the National Oceanic and Atmospheric Administration and the metro area is expected to reach the “Severe Drought” category within the next week; and WHEREAS, the City’s wells have been pumping heavily for the first half of summer, with average daily water pumped thus far in June and July has been approximately 2 ½ times the average daily use in the non-irrigation months; and WHEREAS, to ensure that the needs of households and businesses are met, the City must reduce the exterior watering of properties; and WHEREAS, pursuant to City Code Section 51.05 G.2., in times of emergencies, the City Council, after 24-hours’ notice following broadcast by a local radio station, may declare that it is unlawful for the owner or occupant of any property to use water for sprinkling a lawn during certain periods of time, or any use of water for washing a motor vehicle, or any other non-essential use not involving private or public sanitation or health; and WHEREAS, the City will broadcast the content of this Resolution and the limitation on water usage on local radio station KDWA, as well as provide public service announcements on various media outlets, including social media and the City’s website, to inform the public about the water usage limitations contained herein. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Hastings declares a limitation on exterior water usage beginning at 11:00 a.m. on Wednesday, July 21, as follows: 1. Prohibiting the use of the City’s water system by residents and businesses for the exterior irrigation of lawns, landscaping, and gardens, during the hours of 11 a.m. – 6 p.m. and in compliance with City Code Section 51.05 G.3, which requires that properties with even numbered addresses may sprinkle lawns only on days with even numbered dates and properties with odd numbered addresses may sprinkle only on days with odd numbered dates. 2. Prohibiting the use of the City’s water system by residents and businesses for uses such as filling pools, washing vehicles where the waste water is unable to be recaptured and recycled, recreational water usage, or any other non-essential X-A-01 exterior water usage (the use of pools that have recycling pumps would not be prohibited). 3. Allowing for a 1-week exemption from the limitations of this Resolution for newly planted sod, grass or landscaping if the property owner registers for the exemption with the City’s water utility. 3.4. This resolution does not prohibit car-wash fundraisers conducted by a non-profit organization. 4.5. The City will closely monitor the water usages and drought conditions during the term of this water usage limitation to ensure that the City can continue to meet the daily needs of households and businesses for normal operations and may amend this Resolution as necessary. 5.6. This Resolution and limitation on water usage shall be in effect until terminated by the City Council. NOW THEREFORE BE IT FURTHER RESOLVED THAT violations of the restrictions and requirements of this Resolution are a petty misdemeanor, subject to a fine of $50. Passed the 2nd day of August, 2021. Mary Fasbender, Mayor Attest: Kelly Murtaugh, City Clerk X-A-01 City Council Memorandum To: Mayor Fasbender & City Council Members From: Bryan D. Schafer, Chief of Police Date: August 2, 2021 Item: City of Hastings Emergency Operations Plan (EOP) Council Action Requested: Accept the updated EOP. Background Information: The City of Hastings’ EOP has been in existence since 2006 and is reviewed regularly. However, the plan must be formally approved and adopted every 2 years, with the last version being approved in February, 2018. With the new addition of the Pandemic Influenza Response protocol, the revised version of the EOP is ready for acceptance. Financial Impact: None Advisory Commission Discussion: None Council Committee Discussion: None Attachments: • Resolution X-D-01 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION 08 - - 21 A RESOLUTION FOR THE ACCEPTANCE OF THE CITY OF HASTINGS EMERGENCY OPERATIONS PLAN WHEREAS, the City of Hastings has an Emergency Operations Plan that was first developed in 2006; and WHEREAS, the Emergency Operations Plan is used to assist with providing guidance for large scale emergency operations; and WHEREAS, the Emergency Operations Plan was last reviewed and updated in 2018; and WHEREAS, the City of Hastings continuously strives to be prepared in the event of a large-scale emergency. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Hastings, Minnesota; 1. That the City of Hastings Emergency Operations Plan has been reviewed; and 2. That the Emergency Operations Plan has been updated; and 3. That the City Council approves and accepts the updated Emergency Operations Plan. Adopted this 2nd day of August, 2021, _______________________________ Mary Fasbender, Mayor Attest: ___________________ __ Kelly Murtaugh, City Clerk X-D-01 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: City Administrator Dan Wietecha Date: August 2, 2021 Item: IT Manager Wage Scale Council Action Requested: Approve adjustment in wage scale for IT Manager position. Background Information: The City last conducted a comprehensive compensation and classification study of all positions in 1999- 2000. There have been periodic updates since then with the last significant review in 2006-2007. The study established the wage scale to ensure both competitive wages within the market and internal consistency across positions within the City. Annually, City staff reviews the League of Minnesota Cities salary survey as an informal comparison. The City’s adopted policy is to base the wage scale on the average paid by cities population 15K to 35K in the 7 county metro area. Cost of living adjustments (COLA) are typically applied to the scale as part of the annual budget process. Individual employee advancement up steps of the scale typically occurs on anniversary dates and/or January 1st until the employee maxes out at Step A. As you know, we will soon be filling the IT Manager position. Unfortunately, the wage scale lags below comparable cities. In this case, our current range for the IT Manager is $76,589 to $95,376. Based on comparable cities, the range should be about $18K higher at $86,754 to $113,468. I recommend adjusting the wage scale before advertising the position for hire. 80.00% 83.36% 86.69% 90.03% 93.57% 96.70% 100.00% Step G Step F Step E Step D Step C Step B Step A Current: Hourly $35.75 $37.25 $38.74 $40.23 $41.81 $43.21 $44.69 Monthly $6,195.32 $6,455.52 $6,713.40 $6,972.06 $7,246.20 $7,488.59 $7,744.15 Annually $74,358.12 $77,481.16 $80,576.32 $83,680.77 $86,971.12 $89,880.38 $92,947.65 Proposed: Hourly $43.64 $45.47 $47.29 $49.11 $51.04 $52.75 $54.55 Monthly $7,563.08 $7,880.73 $8,195.54 $8,511.30 $8,845.97 $9,141.87 $9,453.85 Annually $90,774.40 $94,586.92 $98,365.41 $102,155.24 $106,172.01 $109,723.56 $113,468.00 X-E-01 Because this change effects an individual position and does so mid-year, it is appropriate to bring to the City Council as a policy change. With savings during the position vacancy, this is expected to be within the 2021 adopted budget, depending on the length of the vacancy and the wage step that the new employee is hired. Financial Impact: Within 2021 adopted budget, depending on length of vacancy and step new employee is hired. Committee Discussion: Not applicable Attachments: Not applicable X-E-01 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: City Administrator Dan Wietecha Date: August 2, 2021 Item: Compensation & Classification Study Council Action Requested: Refer compensation and classification study to Administration Committee. Background Information: The City last conducted a comprehensive compensation and classification study of all positions in 1999-2000. There have been periodic updates since then with the last significant review in 2006-2007. The study established the wage scale to ensure both competitive wages within the market and internal consistency across positions within the City. Annually, City staff reviews the League of Minnesota Cities salary survey as an informal comparison. The City’s adopted policy is to base the wage scale on the average paid by cities population 15K to 35K in the 7 county metro area. Cost of living adjustments (COLA) are typically applied to the scale as part of the annual budget process. Individual employee advancement up steps of the scale typically occurs on anniversary dates and/or January 1st until the employee maxes out at Step A. In a couple of recent hiring efforts and in several departing employee exit interviews, wages have been cited as a below market. We have made individual adjustments to the wage scale for one position earlier this year, with a second recommended tonight. In a preliminary review, it appears that several positions, across multiple departments, may be below market. Updating the study now would help with recruiting and retaining employees as well as maintaining internal consistency and ensuring pay equity compliance. I recommend referring the topic to the Administration Committee (Lund*, Fox, and Leifeld) to discuss scope, process, and issues with a study. If recommended by the Committee, the study could start as early as this fall. In speaking with two consultants, the study would cost about $20K. Financial Impact: Not applicable Committee Discussion: Not applicable Attachments: Not applicable X-E-02