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AGENDA
REGULAR CITY COUNCIL MEETING
New Ulm, Minnesota
City Hall Council Chambers
July 18, 2017 - 4: 30 P. M.
1. CONSENT:
a. Consider motion to receive and order filed the report from the FinanceDepartment regarding sales tax, lodging tax and building permits for theCity of New Ulm.
b. Consider motion to receive and order filed the report from FinanceDepartment regarding financial summary operating results through May2017.
2. LICENSES AND PERMITS:
a. Consider motion approving the issuance of a Temporary On -Sale LiquorLicense for The Hermann Monument Society.
b. Consider motion approving the issuance of a Temporary On -Sale LiquorPermit for Morgan Zollner and Daniel Parsley.
C. Consider motion approving the issuance of a Lawful Gambling Permit forNWTF Der Deutsche Longbeards Chapter to conduct raffles gambling atthe New Ulm Country Club.
3. OLD BUSINESS:
a. Consider authorizing the City Manager to sign a purchase agreement andearnest money contract to purchase 43. 94 acres of land ( Schultz
property) for additional Airport Industrial Park development land.
b. Consider acceptance bid from Thomas R. Zahn & Associates LLC for theupdate of the Downtown Preservation Design Guidelines.
C. Consider the bid from Minnesota Elevator for the update of the interior ofthe elevator car.
4. NEW BUSINESS:
a. First reading of Ordinance No. 17- 014, Fifth Series, amending Chapter 7of the City Code of the City of New Ulm relative to Regulating SpecialVehicles.
b. Consider motion receiving and approving the draft of the PreliminaryOffering Statement regarding the $ 5, 560,000 General Obligation UtilityRevenue Bonds, Series 2017A and $ 2,995,000 General Obligation
Permanent Improvement Revolving Fund Bonds, Series 2017B.
C. Consider motion confirming the appointment of Tom Romaine to the TreeAdvisory Commission.
d. Consider motion confirming the appointment of Jeannie Leighty to theHeritage Preservation Commission.
e. Consider motion confirming the appointment of Deanna Fenske to theHuman Rights Commission.
f. Consider resolution approving MnDOT Detour Agreement No. 1028705.
g. Consider resolution to accept the Occupational Safety & Health
Administration (OSHA) safety grant in the amount of $7, 000.
h. Consider resolution accepting donations and memorials to the New UlmPublic Library.
i. Consider resolution approving the request of Brad Retzlaff to waive theloan repayment requirements of the Small Cities Development Program.
j. Consider resolution to accept donations offered to the City for the Parkand Recreation Department.
k. Consider motion authorizing conversion of tennis courts to pickleballcourts in Lincoln Park.
I. Consider motion awarding the bid for the playground replacement projectin German Park to Webber Recreational Design, Inc.
MEETING REMINDER:
Budget Work Session — Tuesday, July 18 at 3: 00 p. m. in the City Hall CouncilChambers
FA
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 1 a
Agenda Section: Consent Originating Department: Finance
Resolution: No
Prepared By: Nicole JorgensenOrdinance: No
Number of Attachments: One ( 1) Presented By: Nicole Jorgensen
Item• Consider motion to receive and order filed the report from the Finance Department
regarding sales tax, lodging tax and building permits for the City of New Ulm.
City Manager' s Proposed Action: Motion by Second by _ permits for the City of New Ulm.
Board/ Commission Recommendation: N/A
Overview:
Indicators are positive.
Primary Issues/Alternatives to Consider: N/A
Budgetary/Fiscal Issues: N/A
Attachments:
1. Graphs of identified indicators
to receive and order filed the report on sales tax, lodging tax and building
Sales Tax Collections
140,000.00
120,000.00
100,000.00
80,000.00
60,000.00
40,000.00
20,000.00
JaiJaiat0pQtperaa JCe ,J 1
AJy 'petp'
petmat 'petSayspJ
QLaFO *
J,
aF
OF
Lodging Tax Collections
16,000.00
14,000.00
12,000.00
10,000.00
8,000.00
6,000.00
4,000. 00
2,000. 00
cJaC1tJatiat`
A 4A
Ja'J
Feetet
FitFiata Qe p Qe Ob
JaeeyeResidential Building Permits
5,000,000.00
4,500,000.00
4,000,000.00
3,500,000.00
3,000,000.00
2,500,000.00
2,000,000.00
1, 500,000. 00
1,000,000. 00
500,000.00
o°
tJac` atc• pQK aA ,
Joe ,J\i ZJ - ° 6
oet °el
patla Sae
er PJ '
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acaFy " p,ao
2014
2015
2016
2017
2014
2015
2016
2017
2014
2015
2016
2017
Excise Tax
6,000.00
5,000.00
4,000.00
20143,000.00
2015
2, 000.00 2016
1, 000.00 2017
a,A at, A Jy`• t .
petmatmeta°J ap
J a P er PJB eF
p
aaFceFF
SaQ 1J Oe
Vehicle Sales
300 -
250
200
2014150
2015
100t+ 2016
50 2017
0
oJ,at, tJ,at,
atcpQi` a',
Joe J\,1 Jy`
mat t
matmatao
eF
Oe
eF
New Homes
7
6
5
4 2014
3 2015
2 2016
1 2017
0
0
JaiatePQc\ jai ,
Joe ,Jr1
Jya. matppe, ,pe, ,
petSeptSy QJ
eQ4aFOff. p,
aF
P; S " O
Commercial Building Permits30,000,000.00
25,000,000.00
20,000,000.00
15,000,000.00
10,000,000.00
5,000,000.00
aoJa,A'
o
Ja at
PQM. aA
lJoeno J
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aFld} ola 5 Se P Qa, OL`' Ja ac.
Se O
02014
2015
z-. 2016
2017
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 1 b
Agenda Section: Consent Originating Department: Finance
Resolution: n/ a
Prepared By: Nicole JorgensenOrdinance: n/ a
Number of Attachments: 1 Presented By: Nicole Jorgensen
Item• Consider motion to receive and order filed the report rom Finance Department regarding thefinancial summary operating results through June 2017.
City Manager' s Proposed Action: Motion by , second by , to receive report from Finance Department regarding financial summaryoperating results ( unaudited) through June 2017.
Board/Commission Recommendation:
n/ a
Overview:
Below is a description of the columns:
Current Budget — this is the most up to date budget including any changes made to dateCurrent Month Ended — this is the actual amount for the current month being reportedYTD Actual — this is the current activity for the whole year being reportedBudget Balance — this is the amount remaining of the current budget compared to the year to date actual
A couple of items to note are that property taxes and LGA are not received by the city until end of June and November orDecember which throws revenue collections way off (although it may not be allocated to the funds right away). Also, most debt payments occur June 1 and December 1 which skews the debt service funds.
Primary Issues/Alternatives to Consider: n/ a
Budgetary/Fiscal Issues: n/ a
Attachments:
Operating statements
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A O A
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 2 a
Agenda Section: Licenses and Permits Originating Department: Finance
Resolution: N/A
Prepared By: Janine SchapekahmOrdinance: N/A
Number of Attachments: None Presented By: Nicole Jorgensen
Item• Consider motion approving the issuance of a Temporary On -Sale Liquor License for TheHermann Monument Society.
City Manager' s Proposed Action: Motion by Second by approving the issuance of a Temporary On -Sale Liquor License for The HermannMonument Society to sell alcohol at Hermann Fest located at Harmon Park, 101 North Garden Street and Hermann Park, 14 Monument Street on Saturday, September 9, 2017
Board/Commission Recommendation: N/A
Overview:
Alcohol will be dispensed from both locations:
Hermann Park — dispensed and consumed between the two shelters ( 11: OOAM-4:OOPM) Harmon Park — dispensed and consumed beyond the fence of field # 1, near the football field (4: OOPM- Midnight)
Security arranged with New Ulm Police Department,
Primary Issues/Alternatives to Consider: N/A
Budgetary/Fiscal Issues: Fee of $200.00 and Certificate of Insurance received.
Attachments:
None
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 2 b
Agenda Section: Licenses and Permits Originating Department: Finance
Resolution: N/A
Prepared By: Janine SchapekahmOrdinance: N/A
Number ofAttachments: None Presented By: Nicole Jorgensen
Item• Consider motion approving the issuance of a Temporary On -Sale Liquor Permit for MorganZollner and Daniel Parsley.
City Manager' s Proposed Action: Motion by Second by approving the issuance of a Temporary On -Sale Liquor Permit for Morgan Zollnerand Daniel Parsley to serve alcohol at a wedding reception at New Ulm Community Center, 600 North German Street onSaturday, September 9, 2017
Board/Commission Recommendation: N/A
Overview:
Alcohol will be dispensed by B & L Bar from 4: 00 PM — 10: 45 PM.
Security will be arranged with the New Ulm Police Department.
Primary Issues/ Alternatives to Consider: N/A
Budgetary/Fiscal Issues: Fee of $535. 38 received for liquor permit and security. Certificate of Insurance pending.
Attachments:
None
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 2 c
Agenda Section: Licenses & Permits Originating Department: Finance Department
Resolution: No
Prepared By: Kim Seifert SamuelsonOrdinance: N/A
Number of Attachments: N/A Presented By: Nicole Jorgensen
Item• Consider motion approving the issuance of a Lawful Gambling Permit for NWTF DerDeutsche Longbeards Chapter to conduct raffles gambling at the New Ulm Country Club.
City Manager' s Proposed Action: Motion by Seconded by approving the issuance of a Lawful Gambling Permit forNWTF Der Deutsche Longbeards Chapter, 14586 County Road 102, New Ulm, Minnesota to conduct raffles gambling atthe New Ulm Country Club, 1 Golf Drive, New Ulm, on Saturday, February 3, 2018.
Board/ Commission Recommendation: N/A
Overview:
N/A
Primary Issues/Alternatives to Consider: N/A
Budgetary/Fiscal Issues: Fee of $50. 00 for each permit paid to the State of Minnesota
Attachments:
N/A
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 3 a
Agenda Section: Old Business Originating Department: City Administration
Resolution: N/A
Prepared By: Brian GramentzOrdinance: N/A
Number of Attachments: Two (2) Presented By: Brian Gramentz
Item: Consider authorizing the City Manager to sign a purchase agreement and earnest moneycontract to purchase 43. 94 acres of land ( Schultz property) for additional Airport IndustrialPark development land.
City Manager' s Proposed Action: Motion by Second by to authorize the City Manager to sign a purchase agreement and earnest moneycontract for 43. 94 acres of additional Airport Industrial Park development land from Roger E. Schultz and Margaret A. Schultz, and Luverna H. Schultz, Denise H. Schapekahm, and Jeffery D. Schultz ( sellers) and to make a $ 10,000 earnestmoney payment upon obtaining the seller' s signatures on the Purchase agreement.
Board/Commission Recommendation: N/A
Overview:
The City Council authorized the City Manager to investigate potential properties to be purchased and developed forindustrial purposes on November 1, 2016. At the December 6, 2016 City Council meeting received a report on the landpurchase efforts and potential funding sources. The estimated purchase price was $ 1, 540, 000 and the final purchase priceis $ 1, 450,020 ($ 33,000 per acre X 43. 94 acres). Closing set for on or before December 15, 2017.
Note: The payments will be made in two fiscal years: $ 805, 010 ($ IOK+$70K+725, OIOK) in 2017, and $ 645, 010 in 2018.
Primary Issues/ Alternatives to Consider: N/A
Budgetary/Fiscal Issues: Land Acquisition fund Balance: 466,368 Use $ 280,000
EDA repayment to City: 268,475 Use $ 250,000
City Revolving Loan: 1, 554, 101 Use $ 740, 000
General Fund Reserves: adequate Use $ 180,020
Total: 1, 450,020
Attachments:
1. Map of parcel2. Proposed Purchase Agreement
PURCHASE AGREEMENT and EARNEST MONEY CONTRACT
1. PARTIES. This purchase agreement is made by and between Luverna H. Schultzand Delmar V. Schultz, Trustees of the Luverna H. Schultz Living Trust datedDecember 26, 2007, Roger E. Schultz and Margaret A. Schultz, as Trustees of the
Roger E. Schultz and Margaret A. Schultz Trust, and Luverna H. Schultz, Denise H.
Schapekahm, and Jeffrey D. Schultz, Trustees under the Delmar V. Schultz FamilyTrust dated December 17, 2004, SELLERS (hereinafter referred to as Seller); and the
City of New Ulm, Minnesota, a municipal corporation, BUYER (hereinafter referredto as Buyer).
2. OFFERIACCEPTANCE. Buyer offers to purchase and Seller agrees to sell 43.94
acres of real estate as described on Exhibit A attached hereto.
3. PRICE AND TERMS. The Purchase Price for the Property is One Million FourHundred Fifty Thousand Twenty and no/ 100 Dollars ($1,450,020.00), and shall be
paid as follows:
A. Earnest Money. Upon the execution hereof, Buyer shall pay to Seller thesum of Ten Thousand Dollars ($10,000.00) which shall be paid directly toRoger E. Schultz as Trustee of the Roger E. Schultz and Margaret A.
Schultz Trust.
B. Amount Due at Closing. Subject to the satisfaction of all conditions
precedent, Buyer shall pay to Seller the following amounts at thefollowing times:
i. To the Trustees of the Roger E. Schultz and Margaret A. Schultz
Trust, an additional $70,000.00, and an additional $645,010.00 due
on January 2, 2018.
ii. To the Trustees of the Luverna H. Schultz Living Trust datedDecember 26, 2007, $362,505.00.
iii. To the Trustees under the Delmar V. Schultz Family Trust datedDecember 17, 2014, $362,505.00.
4. CLOSING. Closing shall be scheduled on or before 1:30 P.M. (CST) on December
15, 2017. Closing will take place at the office of Roger H. Hippert, Attorney at Law, 11 N Minnesota, New Ulm, MN 56073, Telephone # 507-359-2991, Fax # 507-354-
7240, e-mail: [email protected]
5. CLOSING COSTS
1Purchase Agmt 7/ 12/ 17 hh
A. Sellers' Costs. At Closing, Sellers shall pay the following:
Abstract preparation and continuation prior to closing; One-half closing fee; Seller' s attorney' s fees and expenses; State Deed Tax;
Any expenses associated with establishing a marketable title in Seller.
B. Buyer's Costs. At Closing, Buyer shall pay the following:
Cost of recording the Warranty Deed; One-half closing fee; Buyer' s attorney' s fees and expenses.
6. DEED/MARKETABLE TITLE. Seller shall execute and deliver a Warranty Deedconveying good and marketable title, subject to:
1) building and zoning laws, ordinances, state and federal regulations; 2) restrictions relating to use or improvement of the property without effective
forfeiture provisions;
3) reservation of any minerals or mineral rights to the State of Minnesota or others; 4) utility and drainage easements which do not interfere with existing
improvements;
5) existing highways, easements, and rights of way of record; 6) exceptions to title which constitute encumbrances, restrictions, or easements
which have been disclosed to Buyer and accepted by Buyer in this purchaseagreement;
7) Liens, encumbrances or other adverse claims created by the acts or omissions ofBuyer.
7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and
payable in the year of closing and installments of special assessments certified forpayment with the real estate taxes due and payable in the year of closing shall bepaid by Seller. Real estate taxes due and payable and installments of specialassessments certified for payment with the real estate taxes for all prior years shall
be paid by Seller.
Buyer shall assume special assessments pending as of the date of this agreement forimprovements that have been ordered by any governmental assessing authorities. As of the date of this agreement, Seller represents that Seller has not received a
notice of hearing of a new public improvement project from any governmentalassessing authority, the costs of which project may be assessed against the property.
2Purchase Agmt 7/ 12/ 17 hh
Seller shall pay at closing any deferred real estate taxes or special assessments, thepayment of which is required as a result of the closing of this sale. Buyer shall payreal estate taxes due and payable in the year following closing and thereafter andany unpaid special assessments payable therewith and thereafter, the payment ofwhich is not otherwise provided for herein. Seller makes no representations
concerning the amount of future real estate taxes or of future special assessments.
8. DISCLOSURE NOTICES. Seller has not received any notice from anygovernmental authority as to violation of any law, ordinance or regulation affectingthe property. If the property is subject to restrictive covenants, Seller has notreceived any notice from any person as to a breach of the covenants.
9. WELL AND INDIVIDUAL SEWAGE TREATMENT SYSTEM DISCLOSURES.
Seller certifies that Seller does not know of any wells on the described property; andthere is no individual sewage treatment system on the described property.
10. RISK OF LOSS. If there is any loss or damage to the property between the datehereof and the date of closing for any reason, including fire, vandalism, flood, earthquake; or act of God, the risk of loss shall be on Seller.
11. POSSESSION. Seller shall deliver possession of the property at closing.
12. EXAMINATION OF TITLE. Seller shall furnish Buyer with an Abstract of Title
certified prior to date of closing, including proper searches covering bankruptcies, liens, and levied and pending special assessments. Buyer shall have ten (10) business days after receipt of the Abstract of Title to have Buyer's attorney examinethe title and provide Seller with written notice of objections. Buyer shall be deemed
to have waived any title objections not made within the 10 -day period.
13. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt
of Buyer's written notice of title objections to remedy proper objections. Liens orencumbrances for liquidated amounts which can be released by payment or escrowfrom proceeds of closing shall not delay the closing. Cure of the valid objections bySeller shall be reasonable, diligent and prompt.
If written notice of title objections is given and Seller remedies proper objections,
then upon presentation to Buyer and proposed lender of documentation, and if not
objected to in the same time and manner as original title objections, the closing shalltake place within ten (10) business days, or on the scheduled closing date, whicheveris later.
3Purchase Agmt 7/ 12/ 17 hh
If written notice of title objections is given and Seller proceeds in good faith, but the
120 -day period expires without remedy of the proper objection, Buyer may declarethis agreement void by written notice to Seller, and neither party shall be liable fordamages hereunder to the other, and earnest money shall be refunded to Buyer.
If proper title objections are remedied, and buyer defaults in any of the agreementsherein, Seller may elect either of the following options as permitted by law:
a. Cancel this contract upon 10 days written notice to Buyer or as provided bystatute and retain all payments made hereunder as liquidated damages and
bring suit for damages.
b. Seek specific performance of this agreement within six (6) months after such
right of action arises, including costs and reasonable attorney's fees, aspermitted by law.
14. ENTIRE AGREEMENT. This contract contains the entire agreement between the
parties, and neither party has relied upon any verbal or written representations, agreements, or understandings not set forth herein, whether made by any agent orparty hereto.
15. DEFAULT. If Buyer defaults in any of the agreements herein, Seller may terminatethis purchase agreement, and payments made hereunder shall be retained by Selleras liquidated damages. If this purchase agreement is not terminated, Buyer or Seller
may seek actual damages for breach of this agreement or specific performance, andas to specific performance, such action must be commenced within six (6) months
after such cause of action arises. In the event the Buyer fails to close and pay thebalance when due, Seller reserves all rights allowed by law and the PurchaseAgreement, including a suit for damages, specific performance, or cancellation ofthe transaction. In addition to the retention of such liquidated damages, any actiontaken after default shall be solely at the Seller's option with all costs and damagesincurred by Seller being paid by the Buyer including interest on the purchase price, attorney's fees and all other consequential and incidental damages.
16. MINNESOTA LAW. This contract shall be governed by the laws of the State ofMinnesota.
17. A photocopy of this Agreement shall be as legally binding and enforceable as theoriginal.
4
Purchase Agmt 7/ 12/ 17 hh
We agree to sell the property for the price and terms and conditions set forth above.
Dated: July , 2017. SELLER:
EPurchase Agmt 7/ 12/ 17 hh
LUVERNA H. SCHULTZ
LIVING TRUST
Luverna H. Schultz, Trustee
Delmar V. Schultz, Trustee
ROGER E. SCHULTZ AND
MARGARET A. SCHULTZ TRUST
Roger E. Schultz, Trustee
Margaret A. Schultz, Trustee
DELMAR V. SCHULTZ
FAMILY TRUST
By:
LIM
Luverna H. Schultz, Trustee
Denise H. Schapekahm, Trustee
Jeffrey D. Schultz, Trustee
We agree to purchase the property for the price and terms and conditions set forthabove.
BUYER:
Dated: July , 2017. CITY OF NEW ULM, MINNESOTA
Brian D. Gramentz, City Manager
6Purchase Agmt 7/ 12/ 17 hh
EXHIBIT A
East Half of the Southwest Quarter ( E 1/ 2 of SW 1/4), Section 13, Township 110 North, Range 31 West, Brown County, Minnesota, EXCEPTING THEREFROM the followingtwo (2) exceptions:
Exception 1: That portion thereof platted as part of the New Ulm Airport
Subdivision; and
Exception 2: Westridge First Addition
7Purchase Agmt 7/ 12/ 17 hh
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 3 b
Agenda Section: Old Business Originating Department: Building Safety
Resolution: N/A
Prepared By: Ellwood ZabelOrdinance: N/A
Number of Attachments: 1 Presented By: Ellwood Zabel
Item: Consider acceptance bid from Thomas R. Zahn & Associates LLC for the update of the
Downtown Preservation Design Guidelines.
City Manager' s Proposed Action: Motion Made Seconded to accept or deny the bid from Thomas R. Zahn & Associates LLC for the update of the Downtown Preservation Design Guidelines.
Board/Commission Recommendation:
N/A
Overview:
The Heritage Preservation Commission, at its January 30, 2017 meeting, decided that they should look at updating thedesign guidelines as they are 11 years old. The city applied for a grant and an RFP was sent out for bids on June 21, 2017.
Primary Issues/Alternatives to Consider: The city received one bid for the project from Thomas R. Zahn & Associates LLC for a total of $9, 345. 00. The services
provided would be site visit and photography, address concerns with the guidelines, create a draft and final guideline, andthe presentation of the final draft.
Budgetary/Fiscal Issues: The city received a grant from The National Park Service for $5, 850.00, and the city has budgeted $3, 900.00 for thisproject.
Attachments:
Bid packet
July 7, 2017
City of New Ulm
ATTN: Ellwood Zabel, Building Official
100 North BroadwayNew Ulm, Minnesota 56073
Mr. Zebel and HPC Members:
Please find enclosed my firm's proposal for the preparation of updated Downtown Preservation Design Guidelines
for the City of New Ulm. Also enclosed for your review you will find a copy of the City of Excelsior Preservation
Design Manual that my firm completed in 2016. The manual contains a number of historic resource managementcomponents and tools that have been developed since our completion of the New Ulm downtown guidelines in
2006.
As the proposal points out, my office has had the opportunity to complete the overwhelming majority ofpreservation guidelines throughout Minnesota within the past 24 years. Past guideline projects have varied in scale
and scope from tightly defined commercial historic districts in New Ulm and Mankato, to the historic residential
districts of St. Cloud and Carver, to entire communities such as Afton Village and the City of Excelsior.
Working throughout the region with municipalities, heritage preservation commissions and state agencies on
significant preservation planning projects has deeply enriched my firm's experience with citizen participation
and economically viable preservation planning initiatives. The resulting broad spectrum of historic resourcemanagement reports, manuals and presentations are listed on our website at: www.trzahn.associates.
If selected, I look forward to working with the City of New Ulm again in your continuing preservation planningefforts.
Sincerely,
Thomas R. Zahn
PROPOSAL
FOR
CONSULTANT SERVICES TO UPDATE THE CITY OF NEW ULMDOWNTOWN PRESERVATION DESIGN GUIDELINES
FOR
THE CITY OF NEW ULM, MINNESOTA
Thom s R. Zahn
Submitted To:
City of New Ulm, Ellwood Zabel, Building Official100 North Broadway
New Ulm, Minnesota 56073
July 7, 2017
PROJECT PROPOSAL
The City of New Ulm is requesting the services of a qualified consultant to assist in updating and expanding thedesign guidelines for the properties located within New Ulm' s Historic Central Business District.
THOMAS R. ZAHN & AssociArEs LLC, through its Principal Thomas Zahn, proposes to provide the requested services
under contract with the City of New Ulm. The services and products will be completed in conformance with: the Secretary of the Interior's Standards for Preservation Planning as outlined in the Federal Register of 9- 29-83, pages 44716-44740, and
the requirements and hiring practices outlined by the City of New Ulm in the request for proposals mailedJune 21, 2017.
The AssociATEs are available between August 2017 and June 2018 to complete the New Ulm requested modifications
for the design guidelines project.
The fee for the manual development and support services is $ 9, 345.
GUIDELINES UPDATE PROCEDURAL OUTLINE
The AssoclATEs have reviewed the original documentation for the September 2006 New Ulm Downtown Preservation
Design Guidelines ( compiled in Adobe InDesign). All documents, links, and photographs (historic and contemporary) are in good working order.
INITIAL RESOURCE ANALYSIS AND MEETING
Mr. Zahn will schedule a site visit to review any architectural changes that have taken place within the historicdowntown between 2006 and 2017. This tour will provide him with an update regarding the firm's past work inthe community and a better understanding of the architectural resources to be evaluated in the updated designmanual. After the initial visual analysis he will meet with representatives from the City of New Ulm, the HeritagePreservation Commission (HPC), and any other city -designated stakeholders to review the nature and scope ofthe proposed updates to the 2006 document. It is anticipated that this meeting will further define the areas ofrevision outlined in the June 2017 Request for Proposals. It is understood that these include guideline additions or
modifications on:
demolition and relocation of structures within the historic district;
procedures to follow for a proposed renovation;
new construction, in -fill and additions within the district;
streetscape elements including but not limited to lighting, signage, landscaping, street furniture, walls andfences within the district; and
private signage.
It is also understood that there may be reasons to redefine the downtown district boundaries.
This meeting will also give Mr. Zahn the opportunity to present ideas on the evolution of design guidelines over thepast decade. Since completing the New Ulm design manual the AssoclATEs have prepared and published the:
Cities of Wahpeton ND and Breckenridge MN Downtown Design Guidelines, 2008; Carver Downtown Preservation Commercial Design Guidelines, 2009;
Litchfield Commercial Historic District Design Guidelines, 2010;
Lanesboro Downtown Preservation Commercial Design Guidelines, 2012;
Afton' s Old Village Preservation Design Guidelines, commercial and residential, 2013;
Carver Design Guidelines for Residential Properties, 2014;
Excelsior Preservation Design Manual, commercial and residential, 2016; and
Mankato's North Front Street Commercial District Design Guidelines, 2016.
This meeting and subsequent meetings should give the City and the consultant a clear framework and focus tocomplete the changes, additions, and any boundary modifications for the updated guidelines.
ADDITIONAL PHOTOGRAPHIC DOCUMENTATION
As required, Mr. Zahn will retour New Ulm' s downtown and surrounding neighborhoods. Mr. Zahn will takecurrent photographs of the properties within the Historic Central Business District that have changed since their
earlier documentation (2006). As determined, updated photographs and " after" illustrations modification may beadded to the manual in the Applying the Guidelines to New Ulm's Buildings section. While all original photographywill be in color and converted into a .pdf file format for electronic distribution of the manual, the final photographs
can be formatted in black and white or color for hard copy printing.
The site visits can be coordinated with the Heritage Preservation Commission' s meeting schedule so the Mr. Zahncan present the HPC with consultant' s recommendations during the updating and revised guidelines production.
DESIGN MANUAL DEVELOPMENT
After photographing any modified buildings and/ or structures introduced through altered district boundaries, theAssociATEs will refine the guidelines styled for the historic resources in downtown New Ulm. To assure broad local
participation and timely production in the design manual development, Mr. Zahn will be available for project review
meetings with the New Ulm Heritage Preservation Commission (HPC) and city staff as outlined in the ProposedProject Timeline in this submission.
While it is anticipated that the design guidelines will follow the general outline of the 2006 document, in addition to
the City requested updating, there may be new features and sections incorporated to the manual. These may include amore specific notation system that helps city staff and the HPC more easily develop and justify design review findings. Additional appendices may include: an Illustrated Glossary of Commercial Building Architectural Terms; a Glossaryof Preservation Definitions and Planning Terms; a Glossary of Preservation Organizations and Programs; and HistoricPreservation Tax Credits at the Federal and State Levels.
MANUAL DRAFT REVIEW
With the development and layout of the draft manual, the ASSOCIATES will present the document to the City and HPCfor review and comment. Periodic reviews will give the ASSOCIATES an opportunity to further fine-tune the manual tothe needs of city government, the HPC, and the business community.
FINAL MANUAL PRODUCTION
After review and input from the city staff, the HPC and downtown shareholders, the ASSOCIATES will complete thedesign and production of the City of New Ulm Downtown Preservation Design Guidelines, 2018. The final report will be
completed in Adobe InDesign and delivered to the client in the form of a high-resolution (300 dpi) colored hard copyand on a CD in a Portable Document Format (pdf) file ready for electronic distribution on the City' s website and forprinting hard copy.
GUIDE PRESENTATION
Upon completion of the guidelines, Thomas Zahn will present the manual to the City, HPC, building/ businessowners, and the general public in a public meeting. This meeting may include participation by the MinnesotaState Historic Preservation Office to answer building owner' s questions concerning federal and state historic taxcredits, the historic facade easement program, and any other rehabilitation funding sources.
PROJECT BUDGET
PROJECT MANAGEMENT/ MEETINGS
Project Administration: 8 hrs. @ $ 75/ hr.=
City/ HPC meetings: 10 hrs. @ $ 75 / hr.=
Guideline presentation: 2 hrs. @ $ 75/ hr.=
PROJECT RESEARCH/ DESIGN
Research/ Review: 12 hrs. @ $ 75/ hr.=
16 hrs. @ $ 35/ hr.=
Project design: 8 hrs. @ $ 75/ hr.=
GUIDELINES PRODUCTION
Resource tours:
Additional photography: New text development:
Illustration/ photo work:
Layout redevelopment:
Professional proofing: Reviewed layout revisions:
4 hrs. @ $ 75/ hr.=
2 hrs. @ $ 75/ hr.= 8 hrs. @ $ 75 / hr.=
8 hrs. @ $ 35 / hr.= 10 hrs. @ $ 75/ hr.=
24 hrs. @ $ 75/ hr.=
8 hrs. @ $ 35/ hr.= 8 hrs. @ $ 75/ hr.=
600
750
150
1,500
900
560
600
2,060
300
150
600
280
750
1,800
280
600
ADDITIONAL COSTS
Telephone / photography / printing / supply costs: 200
Lodging 2 nights @ $ 75/ night: 150
Mileage: for tour, 8 meetings and presentation @ $ . 53 / mile: 675
TOTAL PRoJEcT COST -
All $75/ hr. components will be completed by Principal, Thomas ZahnAll $35 / hr. components by Associate, Peg Reilly
PROPOSED PAYMENT SCHEDULE
SERVICE OR PRODUCT
Completion of initial site visit and photographyCompletion of the manual outline and target building selectionCompletion of the draft updated guidelines
Completion of the final updated guidelines
Completion of the final presentation
4,760
1, 025
9, 345
AMOUNT
2,000
1, 500
2,000
2,000
1, 845
TOTAL: $ 9, 345
PROPOSED PROJECT TIMELINE
Consultant Selected
Initial Site Visit
Start-up MeetingUpdate Meetings
Additional Research
Field Documentation/PhotographyDraft Updated Manual Preparation
Draft Updated Manual Review
Final Manual Preparation
Final Manual Submission to CityProgress Reports
Public Meeting
REFERENCES
a
caoCo z do
ti
I *
a
m
C
Project: City of Excelsior Preservation Design Manual, 2016Patrick Smith, City Planner, [email protected]
In May 2017 the City of Excelsior presented Mr. Zahn a preservation awardfor his work in the community.)
Project: Mankato's North Front Street Commercial District Design Guidelines, 2016
Paul Vogel, City of Mankato, Director of Community Development, [email protected]
Project: City of Carver Residential Design Guidelines, 2014Cindy Nash, AICP, Planner, City of Carver, 763- 473- 0569
BID PRINCIPAL
Name: Thomas R. Zahn
Firm Name: Thomas R. Zahn & Associates LLC
Address: 807 Holly AvenueSaint Paul, Minnesota 55104
Number of years in business: Thirty-one
Signature of Bidder:
Title:
Telephone Number:
E-mail:
website:
Thomas R. Zahn,
651- 221- 9765
trzahn.associates
THOMAS R. ZAHN
President, THOMAS R. ZAHN & AssociATEs LLC
Master of Architecture/ Urban Planning—University of MinnesotaArchitecture Graduate Studies—Washington University, St. LouisBachelor of Arts, Political Science— University of Notre Dame
PRINCIPAL & PROTECT MANAGER
As the Preservation Planner for the City of Saint Paul from 1982- 1986, Mr. Zahn provided staffing services forthe preservation program of over 50 locally designated historic sites and 3 historic districts comprised of morethan 800 structures. In July of 1986 Mr. Zahn formed THOMAS R. ZAHN & AssociATEs, INC., a design and planningfirm dedicated to addressing the planning needs of the preservation community. From 1990 to 1991 THOMAS R. ZAHN & AssociATEs, INC. was under contract with the City of Minneapolis to develop the City' s Preservation Plan. This preservation planning process included the development of historic contexts for Minneapolis, facilitating anumber of Heritage Preservation Commission workshops, and coordinating the City' s preservation efforts with theMinneapolis Neighborhood Revitalization Program.
In 1993, under contract with the City of Faribault, Mr. Zahn completed the City' s Downtown Design Guidelines andfacilitated a workshop on their application for Faribault business owners. In 1998 Mr. Zahn completed the City ofLittle Falls Downtown Design Guidelines. That manual was the first CLG grant in Minnesota to introduce "photo -
realism" as " after renovation" imaging. Following that the AssociATEs developed downtown design guidelinesfor the Minnesota cities of Shakopee, Lake City, Chatfield, St. Cloud, Northfield, and New Ulm. In 2005 Zahncompleted the City of St. Cloud Residential Historic District Preservation Design Manual, providing graphic guidelinesfor St. Cloud' s 3 historic residential districts. Since that time the AssociATEs completed downtown design guidelines
for the sister cities of Breckenridge Minnesota and Wahpeton North Dakota (2008), Carver (2009), Litchfield (2010),
and Lanesboro (2012). In 2013 review design guidelines were developed for Aftons entire Old Village. The City ofCulver contracted with Mr. Zahn to complete residential design guidelines for the community in 2014. Subsequently, from 2014 to 2016, design guidelines were developed for Waseca' s historic downtown, the entire City of Excelsior, and for Mankato' North Front Street Commercial District.
Mr. Zahn served for 9 years on the Board of Directors of the National Alliance of Preservation Commissions and
served as an editor of the Alliance Review, the Preservation Commission national newsletter. He is a Past -President
of the Preservation Alliance of Minnesota and has participated in presentations on historic resource management
at the National Trust Preservation Conference in Baltimore, Seattle, Cincinnati, Charleston, and Miami. In 2005, Mr.
Zahn made a presentation at the American Planning Association Conference in Alexandria on the importance ofdowntown design guidelines.
PEG REILLY
Social Studies—College of St. Catherine, Saint Paul
History Studies—University of Minnesota, Twin Cites campus
RESEARCH AND EDITING ASSOCIATE
Ms. Reilly has served as a RESEARCH AssociATE with the AssochkTEs in the development and writing of the NationalRegister Nomination for the Minnesota Milk Company plant in Saint Paul. She also worked as Project Associate inthe research, writing and editing of the Bloomington Cemetery Historic Evaluation for eligibility to National Register ofHistoric Places. 2013.
Ms. Reilly also has extensive experience in community relations; event management; leadership in both non-profitand corporate settings; and community service work as a volunteer serving on numerous boards and task forces inthe Twin Cities area.
6193 a
t0Ly00
DESIGN REVIEw GUIDELINES
Mankato's North Front Street Commercial District Design Guidlines, 2016.
City of Excelsior Preservation Design Manual, commercial and residential, 2016City of Carver Design Guidelines for Residential Properties, 2014City of Waseca Downtown Preservation Design Guidelines, 2014City of Afton's Old Village Preservation Design Guidelines, commercial and residential, 2013City of Lanesboro Downtown Preservation Commercial Design Guidelines, 2012City of Litchfield Commercial Historic District Design Guidelines, 2010City of Carver Downtown Preservation Commercial Design Guidelines, 2009Cities of Wahpeton ND and Breckenridge MN Downtown Design Guidelines, 2008City of New Ulm Downtown Design Guidelines, 2006City of St. Cloud Residential Historic District Preservation Design Manual, 2005City of Northfield Downtown Preservation Design Guidelines, 2004
City of St. Cloud Downtown Preservation Design Manual, 2003City of Chatfield Downtown Design Guidelines, 2002City of Lake City Downtown Design Manual, 1999City of Shakopee Downtown Design Guidelines, 1999City of Little Falls Downtown Design Guidelines, 1998City of Faribault Downtown Historic Design Review Guidelines, 1993
HISTORIC CONTEXT STUDIES
City of Mankato (contextual development for entire incorporated city), 2010
City of Waseca ( contextual development for entire incorporated city), 2010City of Chaska (contextual development for entire incorporated city), 2006City of Lake City (contextual development for entire incorporated city), 2003
City of Faribault (contextual evaluation and refinement for entire incorporated city), 1992City of Minneapolis (contextual development for entire incorporated city), 1990
HISTORIC RESOURCE SURVEYS
Macalester Park, Saint Paul, 2016
City of Waseca survey of two residential districts and the downtown, 2012City of Mankato survey of selected sites for local designation, 2011City of Litchfield survey of the downtown National Register district. 2009City of Lanesboro (coordinated survey of the entire incorporated city) Historic State Owned Buildings Survey & American Youth Hostel Reuse ( survey of the State of Minnesota forunderutilized National Register, or Register eligible, buildings of reuse for American youth hostels)
Minnesota Black History (survey of Minneapolis, Saint Paul, and Duluth for sites related to Black history) Project Manager, Twin Cities SOS! ( Save Outdoor Sculpture!) Survey sponsored by the National Museum ofAmerican Art, Smithsonian Institution, and the National Institute for the Conservation of Cultural Property. Local coordinating agencies: The Minneapolis Arts Commission and Public Art Saint Paul. Project Manager, Minnesota SOS! Survey.
NATIONAL REGISTER NOMINATIONS
Duluth, Minnesota
Saint Mark's African Methodist Episcopal Church, 530 N 5th Avenue E, Duluth
Faribault, Minnesota
Adam Weyer Wagon Shop, 32 2nd Street NE, FaribaultBatchelder' s Block, 120 Central Avenue North, Faribault
Cormack McCall House, 817 Ravine Street, Faribault
Dobbin House/ Saint James School, 14th Street NE, Faribault
Dow Hall and Blind Department Building, State School for the Blind, 6th Avenue SW, Faribault
Episcopal Rectory, 112 6th Street NW, FaribaultFrank Berry House, 319 3rd Street NW, FaribaultGordon E. Cole House, 111 2nd Street NW, Faribault
John Cottrell House, 127 1st Street NW, Faribault
John G. Pfeiffer House, 931 3rd Avenue NW, Faribault
Jonathan L. Noyes House, 105 1st Avenue NW, Faribault
Louis Carufel House, 425 3rd Street SW, Faribault
M.P. Holman House, 107 3rd Avenue NW, Faribault
Roby W. Allen Oral Home School, 525 5th Street NE, FaribaultThomas McCall House, 102 4th Avenue SW, Faribault
Thomas McMahon House, 603 Division Street East, Faribault
Timothy McCarthy Building, 24 3rd Street NW, FaribaultVincent Lieb House, 201 4th Avenue SW, Faribault
Janesville, Minnesota
Hofmann Apiaries, 4661 420th Avenue, Janesville
Minneapolis, Minnesota
Charles C. & Kate Koon Bovey House, 400 Clifton Avenue South, MinneapolisCrane Island Historic District, Lake Minnetonka, Hennepin CountyLena O. Smith, 3905 5th Avenue S, Minneapolis
Minneapolis Fire Barns, 24-28 University Avenue, MinneapolisNicollet Island Historic District, Mississippi River, Minneapolis
Ogden/ Continental Hotel,, 66-68 South 12th Street, Minneapolis
Saint Paul, Minnesota
Edward Sr. & Markell Brooks House (Eastcliff), 176 N. Mississippi River Boulevard, Saint Paul
Fitzpatrick Building, 465-467 North Wabasha Street, Saint PaulHarriet Island Pavilion, 75 Water Street, Saint Paul
Holman Field Administration Building, 644 Bayfield Street, Saint PaulMinnesota Building, 46 East Fourth Street, Saint Paul (2012) Minnesota Milk Company Building, 370 West University Avenue, Saint PaulPilgrim Baptist Church, 732 West Central Avenue, Saint Paul
S. Edward Hall House, 996 Iglehart Avenue, Saint Paul
Saint Agatha's Conservatory of Music and Arts, 26 East Exchange Street, Saint Paul
Tower, Minnesota
Duluth and Iron Range Railroad Company Passenger Station, Tower
EVALUATION OF ELIGIBILITY TO THE NATIONAL REGISTER
Bloomington Cemetery, 104th Street West, Bloomington MinnesotaEastcliff, the residence of the President of the University of Minnesota, 176 North Mississippi RiverBoulevard, Saint Paul
Foley Theater, University of Saint Thomas, Saint PaulFoster House, 430 7th Street NW, Faribault
Hofmann Farm and Apiary, 420th Avenue, JanesvilleLanesboro National Register downtown district expansion
Minneapolis Fire Department Repair Shops, 24-28 University Avenue Northeast, MinneapolisMinnesota Building, 46 East Fourth Street, Saint PaulMinnesota Milk Company Building, 370 West University Avenue, Saint PaulOntario Street residences, 631- 633- 635 Ontario Street SE, Minneapolis
Our Lady of Perpetual Help Church, 419-429 21st Avenue South, MinneapolisParadise Resort, South Chisago Lake, Chisago
Scott Hall, University of Minnesota, MinneapolisSix Barns, University of Minnesota, Saint Paul
LOCAL HERITAGE PRESERVATION NOMINATIONSLanesboro, Minnesota
Cady Hayes House, 500 Calhoun Avenue SouthVictorian House, 709 Parkway Avenue SouthScandinavian Inn, 701 Kenilworth Avenue South
Galligan House, 706 Parkway Avenue SouthwestIsaac Vickerman House, 600 Calhoun Avenue South
Habberstad House, 706 Fillmore Avenue South
A.J. Lund House, 203 Sheridan Street EastAnna Vickerman House, 507 Fillmore Avenue South
Scanlan House, 708 Parkway Avenue South
Mankato, Minnesota
Adolph O. Eberhart House, 228 East Pleasant Street
Blue Earth County Courthouse, 204 South 5th StreetFirst Presbyterian Church, 220 East Hickory StreetHeilscher Physicians Building, 325 North Riverfront DriveHuttl Tailor Shop, 329 North Riverfront DriveKenny House, 332 Center StreetLorin Cray House, 603 South 2nd StreetLovelace House, 333 Center Street
Mankato Union Depot, 112 Riverfront Drive
Old Main (Mankato State) 301 South 5th Street
R.D. Hubbard House, 606 Broad Street
Stahl House, 301 North Riverfront Drive
Saint Paul, Minnesota
German People' s Church, 125 East Congress Street
Engine House #21, 643 South Ohio Street
Klotz House, 543 Sherburne Avenue
Saint Paul Casket Company, 1222 University AvenueCharles Thompson Memorial Hall, 1824 Marshall Avenue
Messerli House, 1216 East Seventh Street
Salvation Army Women' s Home and Hospital, 1471 Como AvenueOmaha Iron and Brass Foundry, 626 Armstrong AvenueSmith Building, 225-229 1/ 2 West Seventh StreetCharles Joy House, 882 Point Douglas Road
HISTORIC PRESERVATION TAX CERTIFICATION APPLICATIONS
235 Dayton Avenue, Saint Paul
310 Sherman Avenue, Saint Paul
321 First Avenue North, Minneapolis
Charles C. & Kate Koon Bovey House, 400 Clifton Avenue South, MinneapolisC.W. Griggs and Foster Building, 300 Broadway Street, Saint PaulGurley Candy Factory, 129 Second Street North, Historic Warehouse District, Minneapolis
Hamm Building, 408 St. Peter Street, Saint PaulLoneoak Apartment Building, 1926 3rd. Avenue, Stevens Square Historic District, MinneapolisOgden / Continental Hotel, 66-68 South 12th Street, Minneapolis
Roach Tisdale Building, 530 Third Street North, MinneapolisSaint Agatha' s Conservatory of Music and Arts, 26 East Exchange Street, Saint PaulSaint John' s Church Club House, 614 Portland Avenue, Saint Paul
PRESENTATIONS AND WORKSHOPSHistoric Resource Management presentations:
National Trust Preservation Conference: Baltimore, 1984; Seattle, 1985; Cincinnati, 1988; Charleston,
1990; and Miami, 1992
National Trust Regional Conference: Saint Paul, 1989
Reuse Study Process, Minnesota Preservation Conference, Saint Peter 1999Reuse Study Process, American Planning Association Conference, Duluth 2000Summit Avenue Walking Tours, Open U. Inc., 1991- 97Wisconsin Trust for Historic Preservation:
Day -long Preservation Workshop—designer and presenter: River Falls, Marshfield, Janesville, Milwaukee, Green Bay, Dodgeville
REUSE STUDIESAlexander Baker/ Backus Schools, International Falls
Armstrong, George Washington, House, Saint PaulDuluth Armory, City of DuluthCavalry Barracks, Buildings 17 & 18, Historic Fort Snelling, Saint Paul for MHSCentral High School, Red WingDania Hall, Minneapolis
Duluth Armory, DuluthFergus Falls Regional Treatment Center, Fergus Falls
Fort Snelling Upper Bluff, Fort Snelling State ParkGeorge Washington Armstrong House, Saint PaulGillette Children' s Hospital West Wing, Saint PaulHamm Brewery, Saint PaulHamm Building, Saint PaulHearding & Johnson School Buildings, Aurora
Johnston Hall, Faribault
Kasota Village Hall, Kasota
Mannheimer-Goodkind House, Saint Paul
Minneapolis Scottish Rite Temple, Minneapolis
Monsoris Hoist Bay Resort, Voyageurs National ParkMorris High School, Morris
Old Chaska High School, Chaska
Old Main, University of Minnesota -DuluthPond, Gideon H. & Agnes Hopkins, House and Site, Bloomington
Red Wing Central High School, Red WingSt. James Opera House, St. James
St. Louis County Jail, DuluthSpina Hotel, Ironton
Sherburne County Courthouse, Elk RiverShoreham Roundhouse, Minneapolis (2008) State Theater, Virginia
Stillwater Territorial Prison, Stillwater
Washburn Grain Elevators for the Mill City Museum, MinneapolisWestern Grocery Building, Albert LeaWinsted City Hall, Winsted
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 3 c
Agenda Section: Old Business Originating Department: Building Safety
Resolution: N/A
Prepared By: Ellwood ZabelOrdinance: N/A
Number of Attachments: None Presented By: Ellwood Zabel
Item: Consider the bid from Minnesota Elevator for the update of the interior of the elevator car.
City Manager' s Proposed Action: Motion Made Seconded to accept or deny the bid from Minnesota Elevator for theupdate of the interior of the elevator car in the amount of $7, 684. 00
Board/Commission Recommendation:
N/A
Overview:
Staff has received the authorization to do the elevator upgrade to the mechanical components of the elevator, City Councildecided to receive another bid for the interior update to determine if they want to proceed with and interior update.
Primary Issues/Alternatives to Consider: Staffed had received a bid from ThyssenKrupp for the elevator update. Their update included the mechanical and relatedwork, plus the interior cab update. The cost of their update was $ 10, 688. 00.
Budgetary/Fiscal Issues: The city budgeted $60,000.00 for the upgrades.
Attachments:
None
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 4 a
Agenda Section: New Business Originating Department: City Attorney
Resolution: n/a
Prepared By: Kim SamuelsonOrdinance: Yes
Number of Attachments: 1 Presented By: Roger Hippert
Item• First reading of Ordinance No. 17- 014, Fifth Series, amending Chapter 7 of the City Code ofthe City of New Ulm relative to Regulating Special Vehicles.
City Manager' s Proposed Action: First reading of Ordinance No. 17- 014, Fifth Series, amending Chapter 7 of the City Code of the City of New Ulm relativeto Regulating Special Vehicles.
Board/Commission Recommendation:
N/A
Overview:
N/A
Primary Issues/Alternatives to Consider: N/A
Budgetary/Fiscal Issues: N/A
Attachments:
Draft Ordinance No. 17- 014
ORDINANCE NO. 17- 014, FIFTH SERIESCITY OF NEW ULM, BROWN COUNTY, MINNESOTA
AN ORDINANCE REGULATING SPECIAL VEHICLES
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEW ULM:
SECTION I: That Section of the City Code of the City of New Ulm is herebyamended to add the following:
SECTION SPECIAL VEHICLES: MOTORIZED GOLF CARTS, UTILITY TASKVEHICLES, ALL -TERRAIN VEHICLES, AND MINI -TRUCKS.
Subd. 1. No person shall operate a motorized golf cart, utility task vehicle, all -terrainvehicle, or mini -truck on City streets or alleys, except pursuant to a permit as providedfor herein, or as otherwise authorized by other provisions of this City Code or statestatute. The permit does not authorize the applicant to operate such special vehicles onCounty, State, or Federal highways, except as provided for herein.
Subd. 2. Every application for a permit shall be made on a form supplied by the city andshall contain all of the following information:
A. The name, address and date of birth of the applicant. B. Model name, make, and year and number of the motorized golf cart, all -terrainvehicle, or mini -truck.
C. Current driver' s license.
D. The type of special use vehicle to be operated, including make, model, year ofmanufacturer and VIN or serial number. E. Evidence of insurance complying with the provisions of Minn. St. § 6513.48F. Other information as the city may require.
Subd. 3. The permit fee shall be as set forth in the Ordinance Establishing Fees andCharges adopted pursuant to Section 2. 99 of this code, as that ordinance may beamended from time to time [ recommended fee to be $ 50.00].
Subd. 4. Permits shall be granted for a period of three years and may be renewed.
Subd. 5. No permit shall be granted or renewed unless the following conditions are met:
A. The applicant must demonstrate that he or she currently holds a valid Minnesotadriver's license.
B. The applicant must provide evidence of insurance in compliance with theprovisions of Minnesota Statutes concerning insurance coverage for the golf cart, utility task vehicle, all -terrain vehicle, or mini -truck. C. The applicant must be at least 16 years of age.
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Subd. 6. The holder of a permit under this section may operate a motorized golf cart, utility task vehicle, all -terrain vehicle, and a mini -truck only on city streets and alleys, notcounty, state or federal highways, except to cross at designated intersections.
Subd. 7. Motorized golf carts, utility task vehicles and all -terrain vehicles may only beoperated on designated roadways from sunrise to sunset, unless equipped with originalequipment headlights, tail lights, and rear -facing brake lights. They shall not beoperated in inclement weather conditions or at any time when there is insufficient light toclearly see persons and vehicles on the roadway at a distance of 500 feet.
Subd. 8. Motorized golf carts shall display the slow-moving vehicle emblem provided forin Minn. Stat. § 169. 045, as it may be amended from time to time, when operated ondesignated roadways. Persons under 18 years of age who are operating or riding in amotorized golf cart on a city street or alley must wear a DOT approved helmet at alltimes.
Subd. 9. Motorized golf carts, utility task vehicles, all -terrain vehicles, and mini -trucksshall be equipped with a rear-view mirror to provide the driver with adequate vision frombehind as required by Minn. Stat. § 169.70.
Subd. 10. The City may suspend or revoke a permit granted hereunder upon a findingthat the holder thereof:
A. has violated any of the provisions of this section or Minn. Stat. Ch. 169, as it maybe amended from time to time; or
B. if there is evidence that the permit holder cannot safely operate the motorized golfcart, utility task vehicle, all -terrain vehicle, or mini -truck on the designated roadways; or
C. has failed to maintain a valid Minnesota driver's license.
Subd. 11. The number of occupants on the golf cart, utility task vehicle, all -terrain
vehicle, or mini -truck may not exceed the design occupant load.
Subd. 12. The maximum speed at which a motorized golf cart, utility task vehicle, all - terrain vehicle, or mini -truck may be operated is 25 MPH.
Subd. 13. For the purpose of this section, the following definitions shall apply unlessthe context clearly indicates or requires a different meaning.
A. DRIVER. The person driving and having physical control over the motorized golfcart, utility task vehicle, all -terrain vehicle, or mini -truck and being the licensee. B. MOTORIZED GOLF CART. Any vehicles designed by its manufacturer to carrygolfers on a golf course.
C. UTILITY TASK VEHICLE. As defined by Minn. Stat. § 169.045, subd. 1 ( 3), a
side-by-side, four-wheel drive, off-road vehicle that has four wheels, is propelled by
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an internal combustion engine with a piston displacement capacity of 1, 200 cubiccentimeters or less, and has a total dry weight of 1, 800 but less than 2, 600 pounds. D. MINI -TRUCK. As defined in Minn. Stat. § 169. 011, subd. 40(a), a motor vehicle
that has four wheels; is propelled by an electric motor with a rated power of 7, 500watts or less or an internal combustion engine with a piston displacement capacity of660 cubic centimeters or less; has a total dry weight of 900 to 2,200 pounds; contains an enclosed cabin and a seat for the vehicle operator; commonly
resembles a pickup truck or van, including a cargo area or bed located at the rear ofthe vehicle; and was not originally manufactured to meet federal motor vehicle safetystandards required of motor vehicles in the Code of Federal Regulations, title 49,
sections 571. 101 to 571. 404, and successor requirements. A mini -truck does notinclude: a neighborhood electric vehicle or a medium -speed electric vehicle as
defined by § 73. 11; or a motor vehicle that meets or exceeds the regulations in the
Code of Federal Regulations, title 49, section 571. 500, as it may be amended fromtime to time.
E. ALL -TERRAIN VEHICLE. As defined by Minn. Stat. § 84. 92.
Subd. 14. Authorized city staff may operate city owned motorized ATVs, golf carts, utility vehicles and mini -trucks without obtaining a permit within the city on city streets, sidewalks, trails, rights-of-way, and public property when conducting city business.
Subd. 15. Mini -truck equipment requirements: A mini -truck may be operated underpermit on designated roadways if it is equipped with all of the following:
A. At least two headlamps.
B. At least two tail lamps. C. Front and rear turn -signal lamps. D. An exterior mirror mounted on the driver's side of the vehicle and either an
exterior mirror mounted on the passenger's side of the vehicle or an interior mirror. E. A windshield.
F. A seat belt for the driver and front passenger. G. A parking brake.
SECTION II. That this ordinance shall take effect and shall be in force 30 days from andafter its adoption, approval, and publication.
Adopted by the City Council of the City of New Ulm this day of2017.
Attest:
Finance Director
3-
President of the City Council
Approved by the Mayor of the City of New Ulm this day of , 2017.
Mayor
zE
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 4 b
Agenda Section: New business Originating Department: Finance
Resolution: n/ a
Prepared By: Nicole JorgensenOrdinance: n/ a
Number of Attachments: I Presented By: Nicole Jorgensen
Consider motion receiving and approving the draft of the Preliminary Offering StatementItem• regarding the $ 5, 560, 000 General Obligation Utility Revenue Bonds, Series 2017A and
2, 995, 000 General Obligation Permanent Improvement Revolving Fund Bonds, Series2017B.
City Manager' s Proposed Action: Motion by , second by , to receive and approve the draft of the Preliminary Offering Statementregarding the $ 5, 560, 000 General Obligation Utility Revenue Bonds, Series 2017A and $2,995, 000 General ObligationPermanent Improvement Revolving Fund Bonds, Series 2017B.
Board/Commission Recommendation:
n/a
Overview:
Staff has been working with our Municipal Advisor and with Bond Counsel over the past month in regards to the bondissue previously approved by council for the construction projects in 2017. The result is the attached preliminary offeringstatement that is attached. This document is attached for your review and approval. This document will be supplied to thefinancial institutions that may bid on these bonds.
Primary Issues/Alternatives to Consider: n/a
Budgetary/Fiscal Issues: None
Attachments:
Preliminary Offering Statement
NEW ISSUES: GLOBAL BOOK -ENTRY
CITY OF NEW ULM, MINNESOTA
e1 * e
4 4a
4r '
5,560,000 ")
General Obligation Public Utility Revenue Bonds, Series 2017A
2,995,000 (i)
General Obligation Permanent Improvement Revolving Fund Bonds, Series 2017B
Detailed information regarding these obligations (collectively, the " Bonds") is set forth herein.
BIDS RECEIVED: Tuesday, August 1, 2017 at 10: 00 A.M., C.T. Offices of PFM Financial Advisors LLC
50 South Sixth Street, Suite 2250
Minneapolis, MN 55402
Electronic and sealedproposals may be submitted)
BIDS CONSIDERED: Series 2017A Bonds
Tuesday, August 1, 2017 at 4: 00 P.M., C.T.
Series 2017B Bonds
Tuesday, August 1, 2017 at 4:30 P.M., C.T.
The date of this Official Statement is July 17, 2017.
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PRELIMINARY OFFICIAL STATEMENT DATED JULY 17, 2017
NEW ISSUE: BOOK -ENTRY ONLY RATING*: APPLIED FOR (MOODY' S INVESTORS SERVICE)
In the opinion of Dorsey & Whitney LLP, Bond Counsel, Minneapolis, Minnesota, based on present federal and Minnesota laws, regulations, rulings and decisions ( whichexclude any pending legislation which may have a retroactive effect), and assuming compliance with certain covenants, interest to be paid on the Series 2017A Bonds ( a) is notincludable in gross income for federal income tax purposes or in taxable net income of individuals, estates or trusts for Minnesota income tax purposes; ( b) is includable intaxable income of corporations and financial institutions for purposes of the Minnesota franchise tax; ( c) is not an item of tax preference includable in alternative minimumtaxable income forpurposes ofthe federal alternative minimum tax applicable to all taxpayers or the Minnesota alternative minimum tax applicable to individuals, estates andtrusts; and (d) is includable in adjusted current earnings ofcorporations in determining alternative minimum taxable income for purposes offederal and Minnesota alternativeminimum taxes. The City will designate the Series 2017A Bonds as " qualified tax- exempt obligations" pursuant to Section 265(6) of the Internal Revenue Code of 1986, asamended, and certain financial institutions may treat the bonds for certain limited purpose as if they were acquired on August 7, 1986 See " Tax Exemption and Related TaxConsiderations" herein.
CITY OF NEW ULM, MINNESOTA
5, 560,0001') GENERAL OBLIGATION
PUBLIC UTILITY REVENUE BONDS, SERIES 2017A
PROPOSALS RECEIVED: Tuesday, August 1, 2017 until 10: 00 o' clock A.M., Central TimeAWARD: Tuesday, August 1, 2017 at 4: 00 o' clock P.M. Central Time
Dated Date: September 5, 2017
Principal Due: December 1, 2018 through 2036
Minimum Bid: $ 5, 476,600 ( 98. 5% of Par)
Good Faith Deposit: $ 55, 600 ( See Terms of Proposals)
The $ 5, 560,000 (') General Obligation Public Utility Revenue Bonds, Series 2017A ( the " Series 2017A Bonds") will be issued bythe City of New Ulm, Minnesota (the " City") pursuant to the City Charter and in accordance with Minnesota Statutes, Chapter 475, Section 444.075. Proceeds of the Series 2017A Bonds are being issued to fund various wastewater treatment plant improvementsand wastewater sewer extensions. In addition to a lien against the net revenues of the Electric, Water, Steam, Natural Gas and
Wastewater Enterprise Funds ( collectively the " Public Utility System"), the City pledges its full faith, credit and taxing powers tothe repayment of the Series 2017A Bonds.
The Series 2017A Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the nameof Cede & Co., as nominee of The Depository Trust Company (" DTC"). DTC will act as securities depository for the Series 2017ABonds. Individual purchases may be made in book -entry form only, in the principal amount of $5, 000 and integral multiplesthereof. Purchasers will not receive certificates representing their interest in the Series 2017A Bonds purchased. The Finance
Director as Registrar and Paying Agent ( the " Paying Agent"), will pay principal of the Series 2017A Bonds, payable annually oneach December 1, beginning December 1, 2018, and interest on the Series 2017A Bonds, payable semiannually on June 1 andDecember 1, commencing June 1, 2018, to DTC, which will in turn remit such principal and interest to its participants forsubsequent disbursements to the beneficial owners of the Series 2017A Bonds as described herein. Interest and principal shall be
paid to the registered holder of a bond as shown on the records of ownership maintained by the Paying Agent as of the fifteenth dayof the calendar month next preceding such interest payment date, whether or not such day is a business day ( the " Record Date").
The Series 2017A Bonds will mature on December 1 as follows:
The Series 2017A Bonds maturing on December 1, 2026 and thereafter, are subject to redemption, at the option of the City, onDecember 1, 2025 and any date thereafter at a price of par plus accrued interest to date the redemption date.
The Series 2017A Bonds are offered, subject to prior sale, withdrawal or modification, when, as and if issued and subject to the unqualified approving legal opinionof Dorsey & Whitney LLP, Bond Counsel, of Minneapolis, Minnesota, to be furnished upon delivery of the Series 2017A Bonds. It is expected that the Series2017A Bonds will be available for delivery on or about September 5, 2017. This Preliminary Official Statement will be further supplemented by offering prices, interest rates, aggregate principal amount, principal amount per maturity, CUSIPS, selling compensation, anticipated delivery date, and underwriter, together withany other information required by law, and shall then constitute a " Final Official Statement" of the City with respect to the Series 2017A Bonds, as defined in Rule15c2- 12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.
Interest rates, reoffering yields or prices, CUSIP numbers and rating will be set forth in the Final Official Statement described herein. t) Preliminary; subject to change.
THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY. ITIS NOTA SUMMARY OF THIS ISSUE. INVESTORS MUST READ THE ENTIREOFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OFAN INFORMED INVESTMENT DECISION)
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Interest Interest InterestYear Amount(') Rate* Yield* Year Amount(') Rate* Yield* Year Amount(') Rate* Yield*
2018 185, 000 2025 270,000 2032 340,000
2019 230,000 2026 275, 000 2033 350,000
2020 235, 000 2027 285, 000 2034 365, 000
2021 240, 000 2028 295, 000 2035 380,0002022 245, 000 2029 305, 000 2036 395, 000
2023 255, 000 2030 320, 0002024 260,000 2031 330,000
The Series 2017A Bonds maturing on December 1, 2026 and thereafter, are subject to redemption, at the option of the City, onDecember 1, 2025 and any date thereafter at a price of par plus accrued interest to date the redemption date.
The Series 2017A Bonds are offered, subject to prior sale, withdrawal or modification, when, as and if issued and subject to the unqualified approving legal opinionof Dorsey & Whitney LLP, Bond Counsel, of Minneapolis, Minnesota, to be furnished upon delivery of the Series 2017A Bonds. It is expected that the Series
2017A Bonds will be available for delivery on or about September 5, 2017. This Preliminary Official Statement will be further supplemented by offering prices, interest rates, aggregate principal amount, principal amount per maturity, CUSIPS, selling compensation, anticipated delivery date, and underwriter, together with
any other information required by law, and shall then constitute a " Final Official Statement" of the City with respect to the Series 2017A Bonds, as defined in Rule15c2- 12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.
Interest rates, reoffering yields or prices, CUSIP numbers and rating will be set forth in the Final Official Statement described herein. t) Preliminary; subject to change.
THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY. ITIS NOTA SUMMARY OF THIS ISSUE. INVESTORS MUST READ THE ENTIREOFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OFAN INFORMED INVESTMENT DECISION)
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PRELIMINARY OFFICIAL STATEMENT DATED JULY 17, 2017
0 XNEW ISSUE: BOOK -ENTRY ONLY RATING*: APPLIED FOR (MOODY' S INVESTORS SERVICE)
V
In the opinion of Dorsey & Whitney LLP, Bond Counsel, Minneapolis, Minnesota, based on present federal and Minnesota laws, regulations, rulings and decisions ( whichS exclude any pending legislation which may have a retroactive effect), and assuming compliance with certain covenants, interest to be paid on the Series 2017B Bonds ( a) isRnot includable in gross income forfederal income tax purposes or in taxable net income of individuals, estates or trusts for Minnesota income tax purposes; ( b) is includable
in taxable income ofcorporations andfinancial institutions for purposes of the Minnesota franchise tax; ( c) is not an item oftax preference includable in alternative minimum0 ` o taxable income for purposes of the federal alternative minimum tax applicable to all taxpayers or the Minnesota alternative minimum tax applicable to individuals, estatesg = o and trusts; and (d) is includable in adjusted current earnings of corporations in determining alternative minimum taxable income for purposes offederal and Minnesota
alternative minimum taxes. The City will designate the Series 2017E Bonds as " qualified tax-exempt obligations" pursuant to Section 265( b) ofthe Internal Revenue Code of1986, as amended, and certain financial institutions may treat the bonds for certain limited purpose as if they were acquired on August 7, 1986. See " Tax Exemption andRelated Tax Considerations" herein.
p UCITY OF NEW ULM, MINNESOTA
fir0 0 0 $ 2, 995,000 (') GENERAL OBLIGATION
g 5 3 PERMANENT IMPROVEMENT REVOLVING FUND BONDS, SERIES 2017B
y PROPOSALS RECEIVED: Tuesday, August 1, 2017 until 10: 00 o' clock A.M., Central TimeE AWARD: Tuesday, August 1, 2017 at 4: 30 o' clock P.M. Central Timeb O y
y z Dated Date: September 5, 2017 Minimum Bid: $ 2, 975, 533 ( 99.4% of Par)
oa 0 2 Principal Due: December 1, 2018 through 2027 Good Faith Deposit: $ 29,950 ( See Terms of Proposals)
o The $ 2, 995,000 (') General Obligation Permanent Improvement Revolving Fund Bonds, Series 2017B ( the " Series 2017B Bonds") y will be issued by the City of New Ulm, Minnesota ( the " City") pursuant to the City Charter and in accordance with Minnesota
Statutes, Chapters 429 and 475. The Series 2017B Bonds are being issued to finance various municipal improvements, includingH 2 various street and alley improvements and various utility improvements, including sewer, water and storm sewer. The Seriescj u' s 2017B Bonds are general obligations of the City payable primarily from special assessments levied against benefited properties
and ad valorem taxes levied on all taxable property in the City, which have been pledged and appropriated for this purpose. TheQ City will levy unlimited ad valorem taxes in the event of any deficiency in the debt service account established for the Series8 2017B Bonds.
3 om E t The Series 2017B Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the namerof Cede & Co., as nominee of The Depository Trust Company (" DTC"). DTC will act as securities depository for the Series
0 2017B Bonds. Individual purchases may be made in book -entry form only, in the principal amount of $5,000 and integralo o multiples thereof. Purchasers will not receive certificates representing their interest in the Series 2017B Bonds purchased. The
o 8 Finance Director as Registrar and Paying Agent ( the " Paying Agent"), will pay principal of the Series 2017B Bonds, payable
3annually on each December 1, beginning December 1, 2018, and interest on the Series 2017B Bonds, payable semiannually on
s June 1 and December 1, commencing June 1, 2018, to DTC, which will in turn remit such principal and interest to its participantsE N ' for subsequent disbursements to the beneficial owners of the Series 2017B Bonds as described herein. Interest and principal shall
5 b be paid to the registered holder of a bond as shown on the records of ownership maintained by the Paying Agent as of the fifteentho day of the calendar month next preceding such interest payment date, whether or not such day is a business day ( the " Record
E Date"). O ;
o o The Series 2017B Bonds will mature on December 1 as follows:
Interest Interest
Year Amount(') Rate* Yield* Year Amount(') Rate* Yield*
2018 $ 455, 000 % % 2023 $ 255, 000 % %
0 2019 475, 000 % % 2024 260,000 % %
c 2020 235,000 % % 2025 270,000 % %
2021 240,000 % % 2026 275, 000 % %
3 2022 245, 000 % % 2027 285, 000 % % rU°
The Series 2017B Bonds maturing on December 1 2026 and thereafter, are subject to redemption, at the option of the Ci ong J P P h', @ December 1, 2025 and any date thereafter at a price of par plus accrued interest to date the redemption date. w Eb
The Series 2017B Bonds are offered, subject to prior sale, withdrawal or modification, when, as and if issued and subject to the unqualified approving legal opinion
of Dorsey & Whitney LLP, Bond Counsel, of Minneapolis, Minnesota, to be furnished upon delivery of the Series 2017B Bonds. It is expected that the Series7 c 2017B Bonds will be available for delivery on or about September 5, 2017. This Preliminary Official Statement will be further supplemented by offering prices,
interest rates, aggregate principal amount, principal amount per maturity, CUSIPS, selling compensation, anticipated delivery date, and underwriter, together witho O b any other information required by law, and shall then constitute a " Final Official Statement" of the City with respect to the Series 2017B Bonds, as defined in Rule
Ec 15c2- 12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.
Interest rates, reoffering yields or prices, CUSIP numbers and rating will be set forth in the Final Official Statement described herein. 1) Preliminary; subject to change.
Y ( THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY. ITIS NOTA SUMMARY OF THIS ISSUE. INVESTORS MUST READ THE ENTIREOFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION)
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E~ c
COMPLIANCE WITH S. E. C. RULE 15c- 12
Municipal obligations ( issued in an aggregate amount over $ 1, 000,000) are subject to General Rules and Regulations, SecuritiesExchange Act of 1934, Rule 15c2- 12 Municipal Securities Disclosure.
Preliminary Official Statement: This Preliminary Official Statement was prepared for the City for dissemination to prospectiveproposers. Its primary purpose is to disclose information regarding the Bonds to prospective proposers in the interest of receivingcompetitive proposals in accordance with the TERMS OF PROPOSAL contained herein. Unless an addendum is received priorto the sale, this document shall be deemed the " Near Final Official Statement".
Review Period: This Preliminary Official Statement has been distributed to City staff as well as to prospective proposers for anobjective review of its disclosure. Comments, omissions or inaccuracies must be submitted to PFM Financial Advisors LLC (theMunicipal Advisor") at least two business days prior to the sale. Requests for additional information or corrections in the
Preliminary Official Statement received on or before this date will not be considered a qualification of a proposal received from aprospective proposer. If there are changes, corrections or additions to the Preliminary Official Statement, perspective proposerswill be informed by an addendum at least one business day prior to the sale.
Final Official Statement: Upon award of sale of the Bonds, the legislative body will authorize the preparation of Final OfficialStatement that includes the offering prices, interest rates, aggregate principal amount, principal amount per maturity, sellingcompensation, anticipated delivery date and other information required by law and the identity of the underwriter (" SyndicateManager") and syndicate members. Copies of the Final Official Statement will be delivered to the Syndicate Manager within
seven business days following the proposal acceptance.
REPRESENTATIONS
No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make anyrepresentations, other than those contained in the Preliminary Official Statement. This Preliminary Official Statement does notconstitute any offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person, in anyjurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information, estimates and
expressions of opinion herein are subject to change without notice and neither the delivery of this Preliminary Official Statementnor any sale made hereunder, shall, under any circumstances, create any implication that there has been no change in the affairs ofthe City since the date hereof. This Preliminary Official Statement is submitted in connection with the sale of the securitiesreferred to herein and may not be reproduced or used, in whole or in part, for any other purpose.
This Preliminary Official Statement and any addenda thereto were prepared relying on information of the City and other sources, which are believed to be reliable.
Bond Counsel has not participated in the preparation of this Preliminary Official Statement and is not expressing any opinion asto the completeness or accuracy of the information contained therein.
Compensation of the Municipal Advisor, payable entirely by the City, is contingent upon the sale of the issue
TABLE OF CONTENTS
Page
Terms ofProposal for the Series 2017A Bonds ............. i
Terms ofProposal for the Series 2017B Bonds......... viii
Introduction to the Preliminary Official Statement....... 1
Preliminary Official Statement ..................................... 3
Introduction.............................................................. 3
Authority and Purpose .............................................. 3
Interest Computation ................................................ 3
Redemption Provisions ............................................ 3
Estimated Source and Uses of Funds ....................... 4
Payment of and Security of the Bonds ..................... 4
Book -Entry -Only System ......................................... 5
Future Financing...................................................... 7
Litigation.................................................................. 7
Debt Payment History .............................................. 7
Legality.................................................................... 7Tax Exemption and Related Tax Considerations ..... 7
Bondholders' Risks .................................................. 8
Rating..................................................................... 10
Municipal Advisor .................................................. 10
Certification............................................................ 11
Continuing Disclosure ............................................ 11
Financial Summary ..................................................... 12
Property Valuations and Taxes ................................... 13
City Property Values .............................................. 13
Net Tax Capacity by Class of Property .................. 14
Trend ofValuations ................................................ 15
Larger Taxpayers .................................................... 15
Tax Capacity Rates ................................................. 16
Tax Levies and Collections .................................... 16
Special Assessment Levies and Collections........... 17
DirectDebt................................................................. 18
General Obligation Debt — Levy and Special
Labor Contracts......................................................
Assessment Supported ........................................ 18
General Obligation Debt - Revenue Supported...... 19
Special Assessments ............................................... 20
Page
DebtLimit...............................................................21
Other Long -Term Debt............................................... 21
Indirect General Obligation Debt ............................ 21
Funds on Hand........................................................ 22
Description of Public Utility System .......................... 23
Management and Administration ............................23
Gas Department...................................................... 23
Water and Steam Departments............................... 23
Sanitary Sewer Department.................................... 23
Electric Department................................................ 24
Customer and Sales Data........................................ 25
Historical Cash Flow and Anticipated
Debt Service Coverage....................................... 27
TheCity ......................................................................28
City Government.................................................... 28
Population............................................................... 29
Location and Transportation................................... 29
CityServices...........................................................29
Education................................................................ 30
Financial Services................................................... 30
Building Permits ..................................................... 31
Largest Employers.................................................. 32
Labor and Unemployment Statistics ....................... 32
Defined Benefit Pension Plans - Statewide............. 33
Defined Contribution Plan ...................................... 35
Defined Benefit Pension Plans —
Fire Relief Benefit Association ........................... 35
Postemployment Benefits other than Pensions ....... 36
Labor Contracts...................................................... 37
Insurance................................................................. 38
Financial Information .................................................. 39
Budget for the General Fund for 2017 .................... 39
Financial Statements............................................... 39
Appendix A — The City' s Annual Financial Report for the Fiscal Year Ended December 31, 2016
Appendix B — Forms ofLegal Opinions
Appendix C — Form of Continuing Disclosure
Appendix D — Forms of Establishment of Issue Price Certificates
Official Proposal Forms
TERMS OF PROPOSAL FOR THE SERIES 2017A
CITY OF NEW ULM, MINNESOTA
5,560,000 (')
General Obligation Public Utility Revenue Bonds, Series 2017A
Proposals for the purchase of the $ 5, 560,000(') General Obligation Public Utility Revenue Bonds, Series 2017A ( the " Series2017A Bonds") issued by the City of New Ulm, Minnesota (the " City") will be received on Tuesday, August 1, 2017 via sealedproposals, electronic facsimile or electronic internet bid submitted through the Parity® electronic bidding system until 10: 00o'clock A.M. Central Time after which time they will be tabulated. Questions regarding the sale of the Series 2017A Bondsshould be directed to the City' s Municipal Advisor, PFM Financial Advisors LLC at ( 515) 243- 2600 or (612) 338- 3535. The CityCouncil will consider award of the Series 2017A Bonds at 4: 00 o' clock P. M. Central Time, on the same day.
DETAILS OF THE SERIES 2017A BONDS
The Series 2017A Bonds will be dated September 5, 2017 as the date of original issue, with interest payable semiannually on June1 and December 1 of each year, commencing June 1, 2018. Interest and principal shall be paid to the registered holder of a bondas shown on the records of ownership maintained by the Paying Agent as of the fifteenth day of the calendar month nextpreceding such interest payment date, whether or not such day is a business day ( the " Record Date"). Interest will be computed
on the basis of a 360 -day year of twelve 30 -day months and will be rounded pursuant to rules of the Municipal SecuritiesRulemaking Board (the " MSRB").
The Series 2017A Bonds will mature on December 1, in the following years and amounts:
Year Amount(') Year Amount')
2018 185, 000 2028 295,000
2019 230,000 2029 305, 000
2020 235, 000 2030 320,000
2021 240,000 2031 330,000
2022 245, 000 2032 340,000
2023 255, 000 2033 350,000
2024 260,000 2034 365, 000
2025 270,000 2035 380,000
2026 275, 000 2036 395, 000
2027 285, 000
Preliminary, subject to change.
ADJUSTMENT TO PRINCIPAL AFTER DETERMINATION OF BEST PROPOSAL
The aggregate principal amount of the Series 2017A Bonds, and each scheduled maturity thereof, are subject to increase orreduction by the City or its designee after the determination of the successful proposer ( the " Series 2017A Purchaser"). The Cityor its designee may increase or decrease each maturity in increments of $5, 000. Interest rates specified by the successful proposerfor each maturity will not change. Such adjustments shall be in the sole discretion of the City or its designee, provided that theCity or its designee shall only make such adjustments in order to establish a debt service structure that is acceptable to the City.
In the event the par amount or the maturity amounts of the Series 2017A Bonds are adjusted, the purchase price will be adjustedto ensure that the percentage net compensation ( i. e., the percentage resulting from dividing ( i) the aggregate difference betweenthe offering price of the Series 2017A Bonds to the public and the price to be paid to the City ( excluding accrued interest) by ( ii) the principal amount of the Series 2017A Bonds) remains constant. The Series 2017A Purchaser may not withdraw or modify itsproposal as a result of any adjustment. Any adjustment shall be conclusive and shall be binding upon the Series 2017APurchaser.
100131 v"
Interest on the Series 2017A Bonds is payable semi- annually, on June 1 and December 1, commencing June 1, 2018. Interest willbe computed on a 360 -day year of twelve 30 -day month basis, will be rounded pursuant to rules of the MSRB, and paid to theowners of record on the Record Date.
OPTIONAL REDEMPTION
The Series 2017A Bonds maturing on December 1, 2026 and thereafter shall be subject to redemption and prepayment, at theoption of the City in whole or in part, and if in part, in such order as the City shall determine and within a maturity by lot asselected by the Paying Agent on December 1, 2025 and on any date thereafter, at a price equal to the principal amount thereof tobe redeemed plus interest accrued to the date of redemption. Notice of such call shall be given by mailing a notice thereof byregistered or certified mail at least thirty (30) days prior to the date fixed for redemption to the registered owner of each bond.
PURPOSE OF THE SERIES 2017A BONDS
Proceeds of the Series 2017A Bonds are being issued to fund various wastewater treatment plant improvements and wastewatersewer extensions.
SECURITY AND SOURCE OF PAYMENT
The obligation of the Series 2017A Bonds will constitute a lien on the net revenues of the Electric, Water, Steam, Natural Gas and
Wastewater Enterprise Funds ( collectively the " Public Utility System") of the City. In addition to the lien on the Series 2017ABonds, the full faith and credit of the City are irrevocable pledged for the prompt and full payment of the principal of and theinterest on the Series 2017A Bonds.
PARITY OBLIGATIONS
The City reserves the right to issue one or more additional series of revenue bonds for the purpose of financing capitalimprovements and additions to the Public Utility System, or of refunding any outstanding obligations secured by the provisions ofthe resolution for the Series 2017A Bonds in advance of the maturity thereof, which revenue bonds shall be payable from thesinking and interest account on a parity with those issued hereunder and shall be secured by each and all of the covenants andother provisions of the resolution for the Series 2017A Bonds as fully as though such additional revenue bonds were expresslydescribed and authorized herein, provided that:
a) The amount of the net revenues of the Public Utility System during the fiscal year ( January 1 to December 31) nextpreceding the issuance of such additional revenue bonds shall have been not less than one and one- quarter times themaximum amount of principal and interest to become due and payable on any bonds and obligations payable from orconstituting a lien or charge on the net revenues of the Public Utility System and the bonds to be issued;
b) In the computation of the principal and interest to become due and subsequent to the issuance of any additional revenuebonds, the principal and interest payable on the additional revenue bonds shall be included and that which would have
been payable on any obligations refunded thereby shall be excluded; and, c) If the rates, charges and rentals for utility service in effect at the time of issuance of any additional bonds have been
changed in any manner since the beginning of the preceding fiscal year, the net revenues for that year, for the purpose ofthis section, shall be deemed to be those which would have been received from such rates, charges and rentals if applied
to the quantities of utility services furnished and made available during the year, after deduction of the actual operationand maintenance expenses incurred during the year.
BOOK -ENTRY -ONLY SYSTEM
The Series 2017A Bonds will be issued by means of a book -entry -only system with no physical distribution of bond certificatesmade to the public. The Series 2017A Bonds will be issued in fully registered form and one bond certificate, representing theaggregate principal amount of the Series 2017A Bonds maturing in each year will be registered in the name of Cede & Co. as
nominee of The Depository Trust Company (" DTC"), New York, New York, which will act as securities depository of the Series2017A Bonds. Individual purchases of the Series 2017A Bonds may be made in the principal amount of $5, 000 or any multiplethereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal andinterest on the Series 2017A Bonds will be paid to DTC or its nominee as registered owner of the Series 2017A Bonds by thePaying Agent. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of
principal and interest payments to beneficial owners by participants will be the responsibility of such participants and othernominees of beneficial owners. The Series 2017A Purchaser, as a condition of delivery of the Series 2017A Bonds, will berequired to deposit the bond certificates with DTC.
FORM OF PROPOSALS
Proposals shall be for not less than $ 5, 476,600 ( 98. 5% of Par) plus accrued interest from the date of the Series 2017A Bonds to
the date of delivery must be submitted through PARITY®, mail or facsimile and received prior to the time specified above. Allproposals shall be deemed to incorporate the provisions of this Terms of Proposal. Rates shall be in integral multiples of 1/ 20 or1/ 8 of 1%. Each rate of interest specified for the Series 2017A Bonds of any annual maturity shall not be less than one percentagepoint lower than the rate of interest specified for any earlier maturity. The Series 2017A Bonds of the same maturity shall bear asingle rate from the date of the Series 2017A Bonds to the date of maturity. No conditional proposals will be accepted.
RECEIPT OF PROPOSALS
Forms of Proposals: Proposals must be submitted on or in substantial compliance with the Terms for Proposal. The City shall notbe responsible for malfunction or mistake made by any person, or as a result of the use of the electronic facilities or any othermeans used to deliver or complete a proposal. The use of such facilities or means is at the sole risk of the prospective proposer
who shall be bound by the Terms of Proposal as received.
No proposal will be accepted after the time specified on the Terms for Proposal. A proposal may be withdrawn before theproposal deadline using the same method used to submit the proposal. If more than one proposal is received from a proposer, thelast proposal received shall be considered.
Sealed Biddine: Sealed proposals may be submitted and will be received at the office of the City' s Municipal Advisor, 50 SouthSixth Street, Suite 2250, Minneapolis, Minnesota 55402 (612- 338- 3535 and 612- 338- 7264 FAX).
Internet Bidding: Internet proposals must be submitted through PARITY® (the " Internet Bid System"). Information about the
Internet Bid System may be obtained by calling (212) 404- 8102.
Each proposer shall be solely responsible for making the necessary arrangements to access the Internet Bid System for purposesof submitting its Internet proposal in a timely manner and in compliance with the requirements of the Terms of Proposal. TheCity is permitting prospective proposers to use the services of Internet Bid System solely as a communication mechanism toconduct the Internet bidding and the Internet Bid System is not an agent of the City. Provisions of the Terms of Proposal andOfficial Proposal Form shall control in the event of conflict with information provided by the Internet Bid System.
Electronic Facsimile Biddine: Electronic facsimile proposals will be received at the office of the City' s Municipal Advisor, PFMFinancial Advisors LLC (facsimile number: ( 612) 338- 7264). Facsimile proposals will be sealed and treated as sealed proposals.
Transmission received after the deadline will be rejected. Proposers electing to submit proposals via facsimile transmission bearfull responsibility for the transmission of such proposal. Neither the City nor its agents shall be responsible for malfunction ormistake made by any person, or as a result of the use of the facsimile facilities or any other means used to deliver or complete aproposal. The use of such facilities or means is at the sole risk of the prospective proposer who shall be bound by the terms of thebid as received. Neither the City nor its agents will assume liability for the inability of the proposer to reach the above named faxnumber prior to the time of sale specified above. Time of receipt shall be the time recorded by the facsimile operator receivingthe proposals.
ESTABLISHMENT OF ISSUE PRICE AT TIME OF AWARD
In order to establish the issue price of the Series 2017A Bonds for federal income tax purposes, the City requires bidders to agreeto the following, and by submitting a bid, each bidder agrees to the following.
If a bid is submitted by a potential underwriter, the bidder confirms that ( i) the underwriters have offered or reasonably expect tooffer the Series 2017A Bonds to the public on or before the date of the award at the offering price ( the " initial offering price") foreach maturity as set forth in the bid and ( ii) the bidder, if it is the winning bidder (" Series 2017A Purchaser"), shall require any
agreement among underwriters, selling group agreement, retail distribution agreement or other agreement relating to the initialsale of the Series 2017A Bonds to the public to which it is a party to include provisions requiring compliance by all parties tosuch agreements with the provisions contained herein. For purposes hereof, Series 2017A Bonds with a separate CUSIP number
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constitute a separate " maturity," and the public does not include underwriters ( including members of a selling group or retaildistribution group) or persons related to underwriters.
If, however, a bid is submitted for the bidder' s own account in a capacity other than as an underwriter of the Series 2017A Bonds, and the bidder has no current intention to sell, reoffer, or otherwise dispose of the Series 2017A Bonds, the bidder shall notify theCity to that effect at the time it submits its bid and shall provide a certificate to that effect in place of the certificate otherwiserequired below.
If the Series 2017A Purchaser intends to act as an underwriter, the City shall advise the winning bidder at or prior to the time ofaward whether ( i) the competitive sale rule or ( ii) the " hold -the -offering price" rule applies.
If the City advises the Series 2017A Purchaser that the requirements for a competitive sale have been satisfied and that thecompetitive sale rule applies, the Series 2017A Purchaser will be required to deliver to the City at or prior to closing acertification, substantially in the form attached hereto within Appendix D, as to the reasonably expected initial offering price as ofthe award date.
If the City advises the Series 2017A Purchaser that the requirements for a competitive sale have not been satisfied and that thehold -the -offering price rule applies, the Series 2017A Purchaser shall ( 1) upon the request of the City confirm that theunderwriters did not offer or sell any maturity of the Series 2017A Bonds to any person at a price higher than the initial offeringprice of that maturity during the period starting on the award date and ending on the earlier of (a) the close of the fifth businessday after the sale date or ( b) the date on which the underwriters have sold at least 10% of that maturity to the public at or belowthe initial offering price; and ( 2) at or prior to closing, deliver to the City a certification substantially in the form attached heretowith Appendix D, together with a copy of the pricing wire.
Any action to be taken or documentation to be received by the City pursuant hereto may be taken or received on behalf of the Cityby its Municipal Advisor.
Bidders should prepare their bids on the assumption that the Series 2017A Bonds will be subject to the " hold -the -offering - price" rule. Any bid submitted pursuant to the Terms of Proposal shall be considered a firm offer for the purchase of theSeries 2017A Bonds, and bids submitted will not be subject to cancellation or withdrawal.
AWARD
The Series 2017A Bonds will be awarded to the proposer offering the lowest interest rate to be determined on a True Interest CostTIC") basis. The TIC is computed as a discount rate which, when used with semiannual compounding to determine the present
worth of the principal and interest payments as of the date of the Series 2017A Bonds, produces an amount equal to the purchase
price. The TIC shall be as determined by the Municipal Advisor based on the Terms of Proposal and all amendments, and on theproposal as submitted. The Municipal Advisor's computation of the TIC of each proposal shall be controlling. If two or moreproposals provide the same lowest TIC, the City shall determine by lot which proposal shall be accepted, and such determinationshall be final.
The City will reserve the right to: ( i) waive non -substantive informalities of any proposal or of matters relating to the receipt ofproposals and award of the Series 2017A Bonds, ( ii) reject all proposals without cause, and, ( iii) reject any proposal which theCity determines to have failed to comply with the terms herein.
GOOD FAITH DEPOSIT
A Good Faith Deposit ( the " Deposit") in the amount of $55, 600 ( 1% of Par) for the Series 2017A Bonds is required from the
Series 2017A Purchaser only. The Series 2017A Purchaser will be required to submit such Deposit payable to the order of theCity in the form of either (i) a certified or cashier' s check provided to the City after the opening of proposals or ( ii) a wire transferas instructed by the City' s Municipal Advisor not later than 3: 00 P.M. Central Time on the day of sale of the Series 2017A Bonds. If not so received, the proposal of the Series 2017A Purchaser may be rejected and the City may direct the second lowest proposerto submit a Deposit and thereafter may award the sale of the Series 2017A Bonds to the same. No interest on a Deposit willaccrue to the Series 2017A Purchaser. The Deposit will be applied to the purchase price of the Series 2017A Bonds. In the event
the Series 2017A Purchaser fails to honor its accepted bid proposal, the Deposit will be retained by the City.
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BOND INSURANCE AT SERIES 2017A PURCHASER' S OPTION
If the Series 2017A Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option ofthe Series 2017A Purchaser, the purchase of any such insurance policy or the issuance of any such commitment shall be at thesole option and expense of the Series 2017A Purchaser. Any increased costs of issuance of the Series 2017A Bonds resultingfrom such a purchase of insurance shall be paid by the Series 2017A Purchaser, except that, if the City has requested and receiveda rating on the Series 2017A Bonds from a rating agency, the City will pay that initial rating fee. Any other rating agency feesshall be the responsibility of the Series 2017A Purchaser. Failure of the municipal bond insurer to issue the policy after the Series2017A Bonds have been awarded to the Series 2017A Purchaser shall not constitute cause for failure or refusal by the Series2017A Purchaser to accept delivery on the Series 2017A Bonds.
CUSIP NUMBERS
The City will assume no obligation for the assignment or printing of Committee on Uniform Securities Identification ProceduresCUSIP") numbers on the Series 2017A Bonds or for the correctness of any numbers printed thereon, but will permit such
numbers to be assigned and printed at the expense of the Series 2017A Purchaser, if the Series 2017A Purchaser waives any delayin delivery occasioned thereby.
CONTINUING DISCLOSURE
In order to permit bidders for the Series 2017A Bonds and other participating underwriters in the primary offering of the Series2017A Bonds to comply with paragraph ( b)( 5) of Rule 15c2- 12 promulgated by the Securities and Exchange Commission underthe Securities Exchange Act of 1934, as amended ( the " Rule"), the City will covenant and agree, for the benefit of the registeredholders or beneficial owners from time to time of the outstanding Series 2017A Bonds, in the resolution for the Series 2017ABonds, to provide annual reports of specified information and notice of the occurrence of certain events, ifmaterial, as hereinafterdescribed (the " Disclosure Covenants"). The information to be provided on an annual basis, the events as to which notice is to be
given, if material, and a summary of other provisions of the Disclosure Covenants, including termination, amendment andremedies, are set forth in APPENDIX C to this Preliminary Official Statement. ( See " PRELIMINARY OFFICIAL
STATEMENT - Continuing Disclosure").
DELIVERY AND LEGAL OPINION
Within 45 days following the date of their award, the Series 2017A Bonds will be delivered without cost to the Series 2017APurchaser at a place mutually satisfactory to the City and the Series 2017A Purchaser. Delivery will be subject to receipt by theSeries 2017A Purchaser of an approving legal opinion of Dorsey & Whitney LLP, Bond Counsel, of Minneapolis, Minnesota, andof customary closing papers, including a no -litigation certificate. On the date of settlement, payment for the Series 2017A Bondsshall be made in Federal or equivalent funds, which shall be received at the offices of the City or its designee not later than 10: 00o'clock A.M., Central Time. Except as compliance with the terms of payment for the Series 2017A Bonds shall have been made
impossible by action of the City, or its agents, the Series 2017A Purchaser shall be liable to the City for any loss suffered by theCity by reason of the Series 2017A Purchaser' s non- compliance with said terms for payment. Delivery is anticipated on or aboutSeptember 5, 2017.
QUALIFIED TAX-EXEMPT OBLIGATION
The Series 2017A Bonds will be designated by the City as " qualified tax-exempt obligations" within the meaning of Section265(b)( 3) of the Internal Revenue Code of 1986, as amended.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to the Series2017A Bonds, and said Preliminary Official Statement will serve as a Near Final Official Statement within the meaning of Rule15c2- 12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Forcopies of the Preliminary Official Statement or for any additional information prior to sale, any prospective proposer is referred tothe City' s Municipal Advisor, PFM Financial Advisors LLC, 801 Grand Avenue, Suite 3300, Des Moines, Iowa 50309 ( 515- 724- 5724) or 50 South Sixth Street, Suite 2250, Minneapolis, Minnesota 55402 ( 612-338- 3535).
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The Preliminary Official Statement, when further supplemented with maturity dates, principal amounts and interest rates of theSeries 2017A Bonds, together with any other information required by law, shall constitute a Final Official Statement of the Citywith respect to the Series 2017A Bonds, as that term is defined in Rule 15c2- 12 promulgated by the Securities and ExchangeCommission under the Securities Exchange Act of 1934, as amended. By awarding the Series 2017A Bonds to any underwriteror underwriting syndicate submitting a proposal therefor, the City agrees that no more than seven business days after the date ofsuch award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Series 2017A Bondsare awarded up to 20 copies of the Final Official Statement for the Series 2017A Bonds. The City designates the senior managingunderwriter of the syndicate to which the Series 2017A Bonds are awarded as its agent for purposes of distributing copies of theFinal Official Statement to each participating underwriter. Any underwriter delivering a proposal with respect to the Series2017A Bonds agrees thereby that if the City accepts its proposal, it shall enter into a contractual relationship with all participatingunderwriters of the Series 2017A Bonds for purposes of assuring the receipt by each such participating underwriter of the FinalOfficial Statement.
BY ORDER OF THE CITY COUNCIL
By: / s/ Nicole Jorgensen
Finance Director
City ofNew Ulm, Minnesota
The remainder ofthis page has been left blank intentionally.)
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TERMS OF PROPOSAL FOR THE SERIES 2017B
CITY OF NEW ULM, MINNESOTA
2, 995,000 (t)
General Obligation Permanent Improvement Revolving Fund Bonds, Series 2017B
Proposals for the purchase of the $ 2,995,000(1) General Obligation Permanent Improvement Revolving Fund Bonds, Series 2017Bthe " Series 2017B Bonds") issued by the City of New Ulm, Minnesota (the " City") will be received on Tuesday, August 1, 2017
via sealed proposals, electronic facsimile or electronic internet bid submitted through the Parity® electronic bidding system until10: 00 o'clock A.M. Central Time after which time they will be tabulated. Questions regarding the sale of the Series 2017B Bondsshould be directed to the City' s Municipal Advisor, PFM Financial Advisors LLC at ( 515) 243- 2600 or (612) 338- 3535. The CityCouncil will consider award of the Series 2017B Bonds at 4:30 o'clock P.M. Central Time, on the same day.
PURPOSE FOR THE SERIES 2017B BONDS
The Series 2017B Bonds are being issued to finance various municipal improvements, including various street and alleyimprovements and various utility improvements, including sewer, water and storm sewer, and ( ii) to pay the financing costsassociated with the issuance of the Series 2017B Bonds.
SECURITY AND SOURCE OF PAYMENT
The Series 2017B Bonds are general obligations of the City payable primarily from special assessments levied against benefitedproperties and ad valorem taxes levied on all taxable property in the City, which have been pledged and appropriated for thispurpose. The City will levy unlimited ad valorem taxes in the event of any deficiency in the debt service account established forthe Series 2017B Bonds.
DETAILS OF THE SERIES 2017B BONDS
The Series 2017B Bonds will be dated September 5, 2017 as the date of original issue, with interest payable semiannually on June1 and December 1 of each year, commencing June 1, 2018. Interest and principal shall be paid to the registered holder of a bondas shown on the records of ownership maintained by the registrar as of the fifteenth day of the calendar month next precedingsuch interest payment date, whether or not such day is a business day ( the " Record Date"). Interest will be computed on the basis
of a 360 -day year of twelve 30 -day months and will be rounded pursuant to rules of the Municipal Securities Rulemaking Boardthe " MSRB").
The Series 2017B Bonds will mature on December 1, in the following years and amounts:
Preliminary, subject to change.
Year AmounP
2018 455,000
2019 475,000
2020 235, 000
2021 240,000
2022 245,000
2023 255,000
2024 260,000
2025 270,000
2026 275,000
2027 285,000
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ADJUSTMENT TO PRINCIPAL AFTER DETERMINATION OF BEST PROPOSAL
The aggregate principal amount of the Series 2017B Bonds, and each scheduled maturity thereof, are subject to increase orreduction by the City or its designee after the determination of the successful proposer (the " Series 2017B Purchaser"). The City
or its designee may increase or decrease each maturity in increments of $5, 000. Interest rates specified by the successful proposerfor each maturity will not change. Such adjustments shall be in the sole discretion of the City or its designee, provided that theCity or its designee shall only make such adjustments in order to establish a debt service structure that is acceptable to the City.
In the event the par amount or the maturity amounts of the Series 2017B Bonds are adjusted, the purchase price will be adjustedto ensure that the percentage net compensation ( i. e., the percentage resulting from dividing ( i) the aggregate difference betweenthe offering price of the Series 2017B Bonds to the public and the price to be paid to the City ( excluding accrued interest) by ( ii) the principal amount of the Series 2017B Bonds) remains constant. The Series 2017B Purchaser may not withdraw or modify itsproposal as a result of any adjustment. Any adjustment shall be conclusive and shall be binding upon the Series 2017B Purchaser.
INTEREST
Interest on the Series 2017B Bonds is payable semi-annually, on June 1 and December 1, commencing June 1, 2018. Interest willbe computed on a 360 -day year of twelve 30 -day month basis, will be rounded pursuant to rules of the MSRB, and paid to theowners of record as of the close of business on the fifteenth day ( whether or not a business day) of the immediately precedingmonth.
OPTIONAL REDEMPTION
The Series 2017B Bonds maturing on December 1, 2026 and thereafter shall be subject to redemption and prepayment, at theoption of the City in whole or in part, and if in part, in such order as the City shall determine and within a maturity by lot asselected by the Paying Agent on December 1, 2025 and on any date thereafter, at a price equal to the principal amount thereof tobe redeemed plus interest accrued to the date of redemption. Notice of such call shall be given by mailing a notice thereof byregistered or certified mail at least thirty (30) days prior to the date fixed for redemption to the registered owner of each bond.
BOOK -ENTRY -ONLY SYSTEM
The Series 2017B Bonds will be issued by means of a book -entry -only system with no physical distribution of bond certificatesmade to the public. The Series 2017B Bonds will be issued in fully registered form and one bond certificate, representing theaggregate principal amount of the Series 2017B Bonds maturing in each year will be registered in the name of Cede & Co. as
nominee of The Depository Trust Company (" DTC"), New York, New York, which will act as securities depository of the Series2017B Bonds. Individual purchases of the Series 2017B Bonds may be made in the principal amount of $5, 000 or any multiplethereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal andinterest on the Series 2017B Bonds will be paid to DTC or its nominee as registered owner of the Series 2017B Bonds by thePaying Agent. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer ofprincipal and interest payments to beneficial owners by participants will be the responsibility of such participants and othernominees of beneficial owners. The Series 2017B Purchaser, as a condition of delivery of the Series 2017B Bonds, will berequired to deposit the bond certificates with DTC.
FORM OF PROPOSALS
Proposals shall be for not less than $2,975, 533 ( 99.35% of Par) plus accrued interest from the date of the Series 2017B Bonds to
the date of delivery must be submitted through PARITY®, mail or facsimile and received prior to the time specified above. All
proposals shall be deemed to incorporate the provisions of this Terms of Proposal. Rates shall be in integral multiples of 1/ 20 or1/ 8 of 1%. Each rate of interest specified for the Series 2017B Bonds of any annual maturity shall not be less than one percentagepoint lower than the rate of interest specified for any earlier maturity. Series 2017B Bonds of the same maturity shall bear asingle rate from the date of the Series 2017B Bonds to the date of maturity. No conditional proposals will be accepted.
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RECEIPT OF PROPOSALS
Forms of Proposals: Proposals must be submitted on or in substantial compliance with the Terms for Proposal. The City shall notbe responsible for malfunction or mistake made by any person, or as a result of the use of the electronic facilities or any othermeans used to deliver or complete a proposal. The use of such facilities or means is at the sole risk of the prospective proposerwho shall be bound by the Terms of Proposal as received.
No proposal will be accepted after the time specified on the Terms for Proposal. A proposal may be withdrawn before theproposal deadline using the same method used to submit the proposal. If more than one proposal is received from a proposer, thelast proposal received shall be considered.
Sealed Bidding: Sealed proposals may be submitted and will be received at the office of the City' s Municipal Advisor, 50 SouthSixth Street, Suite 2250, Minneapolis, Minnesota 55402 (612- 338-3535 and 612- 338- 7264 FAX).
Internet Bidding: Internet proposals must be submitted through PARITY® (the " Internet Bid System"). Information about the
Internet Bid System may be obtained by calling (212) 404- 8102.
Each proposer shall be solely responsible for making the necessary arrangements to access the Internet Bid System for purposesof submitting its Internet proposal in a timely manner and in compliance with the requirements of the Terms of Proposal. TheCity is permitting prospective proposers to use the services of Internet Bid System solely as a communication mechanism toconduct the Internet bidding and the Internet Bid System is not an agent of the City. Provisions of the Terms of Proposal andOfficial Proposal Form shall control in the event of conflict with information provided by the Internet Bid System.
Electronic Facsimile Bidding: Electronic facsimile proposals will be received at the office of the City' s Municipal Advisor, PFMFinancial Advisors LLC (facsimile number: ( 612) 338- 7264). Facsimile proposals will be sealed and treated as sealed proposals.
Transmission received after the deadline will be rejected. Proposers electing to submit proposals via facsimile transmission bearfull responsibility for the transmission of such proposal. Neither the City nor its agents shall be responsible for malfunction ormistake made by any person, or as a result of the use of the facsimile facilities or any other means used to deliver or complete aproposal. The use of such facilities or means is at the sole risk of the prospective proposer who shall be bound by the terms of thebid as received. Neither the City nor its agents will assume liability for the inability of the proposer to reach the above named faxnumber prior to the time of sale specified above. Time of receipt shall be the time recorded by the facsimile operator receivingthe proposals.
ESTABLISHMENT OF ISSUE PRICE AT TIME OF AWARD
In order to establish the issue price of the Series 2017B Bonds for federal income tax purposes, the City requires bidders to agreeto the following, and by submitting a bid, each bidder agrees to the following.
If a bid is submitted by a potential underwriter, the bidder confirms that ( i) the underwriters have offered or reasonably expect tooffer the Series 2017B Bonds to the public on or before the date of the award at the offering price (the " initial offering price") for
each maturity as set forth in the bid and ( ii) the bidder, if it is the winning bidder (" Series 2017B Purchaser"), shall require any
agreement among underwriters, selling group agreement, retail distribution agreement or other agreement relating to the initialsale of the Series 2017B Bonds to the public to which it is a party to include provisions requiring compliance by all parties to suchagreements with the provisions contained herein. For purposes hereof, Series 2017B Bonds with a separate CUSIP number
constitute a separate " maturity," and the public does not include underwriters ( including members of a selling group or retaildistribution group) or persons related to underwriters.
If, however, a bid is submitted for the bidder' s own account in a capacity other than as an underwriter of the Series 2017B Bonds, and the bidder has no current intention to sell, reoffer, or otherwise dispose of the Series 2017B Bonds, the bidder shall notify theCity to that effect at the time it submits its bid and shall provide a certificate to that effect in place of the certificate otherwiserequired below.
If the Series 2017B Purchaser intends to act as an underwriter, the City shall advise the winning bidder at or prior to the time ofaward whether (i) the competitive sale rule or (ii) the " hold -the -offering price" rule applies.
If the City advises the Series 2017B Purchaser that the requirements for a competitive sale have been satisfied and that thecompetitive sale rule applies, the Series 2017B Purchaser will be required to deliver to the City at or prior to closing a
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certification, substantially in the form attached hereto within Appendix D, as to the reasonably expected initial offering price as ofthe award date.
If the City advises the Series 2017B Purchaser that the requirements for a competitive sale have not been satisfied and that thehold-the- offering_price rule applies, the Series 2017B Purchaser shall ( 1) upon the request of the City confirm that theunderwriters did not offer or sell any maturity of the Series 2017B Bonds to any person at a price higher than the initial offeringprice of that maturity during the period starting on the award date and ending on the earlier of (a) the close of the fifth businessday after the sale date or (b) the date on which the underwriters have sold at least 10% of that maturity to the public at or belowthe initial offering price; and ( 2) at or prior to closing, deliver to the City a certification substantially in the form attached heretowith Appendix D, together with a copy of the pricing wire.
Any action to be taken or documentation to be received by the City pursuant hereto may be taken or received on behalf of the Cityby its Municipal Advisor.
Bidders should prepare their bids on the assumption that the Series 2017B Bonds will be subject to the " hold -the -offering - price" rule. Any bid submitted pursuant to the Terms of Proposal shall be considered a firm offer for the purchase of theSeries 2017B Bonds, and bids submitted will not be subject to cancellation or withdrawal.
AWARD
The Series 2017B Bonds will be awarded to the proposer offering the lowest interest rate to be determined on a True Interest CostTIC") basis. The TIC is computed as a discount rate which, when used with semiannual compounding to determine the present
worth of the principal and interest payments as of the date of the Series 2017B Bonds, produces an amount equal to the purchase
price. The TIC shall be as determined by the Municipal Advisor based on the Terms of Proposal and all amendments, and on theproposal as submitted. The Municipal Advisor's computation of the TIC of each proposal shall be controlling. If two or moreproposals provide the same lowest TIC, the City shall determine by lot which proposal shall be accepted, and such determinationshall be final.
The City will reserve the right to: ( i) waive non -substantive informalities of any proposal or of matters relating to the receipt ofproposals and award of the Series 2017B Bonds, ( ii) reject all proposals without cause, and, ( iii) reject any proposal which theCity determines to have failed to comply with the terms herein.
GOOD FAITH DEPOSIT
A Good Faith Deposit ( the " Deposit") in the amount of $29,950 ( 1% of Par) for the Series 2017B Bonds is required from the
Series 2017B Purchaser only. The Series 2017B Purchaser will be required to submit such Deposit payable to the order of theCity in the form of either ( i) a certified or cashier's check provided to the City after the opening of proposals or ( ii) a wire transferas instructed by the City' s Municipal Advisor not later than 12: 00 P.M. Central Time on the day of sale of the Series 2017BBonds. If not so received, the proposal of the Series 2017B Purchaser may be rejected and the City may direct the second lowestproposer to submit a Deposit and thereafter may award the sale of the Series 2017B Bonds to the same. No interest on a Depositwill accrue to the Series 2017B Purchaser. The Deposit will be applied to the purchase price of the Series 2017B Bonds. In the
event the Series 2017B Purchaser fails to honor its accepted bid proposal, the Deposit will be retained by the City.
BOND INSURANCE AT SERIES 2017B PURCHASER' S OPTION
If the Series 2017B Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option ofthe Series 2017B Purchaser, the purchase of any such insurance policy or the issuance of any such commitment shall be at thesole option and expense of the Series 2017B Purchaser. Any increased costs of issuance of the Series 2017B Bonds resultingfrom such a purchase of insurance shall be paid by the Series 2017B Purchaser, except that, if the City has requested and receiveda rating on the Series 2017B Bonds from a rating agency, the City will pay that initial rating fee. Any other rating agency feesshall be the responsibility of the Series 2017B Purchaser. Failure of the municipal bond insurer to issue the policy after the Series2017B Bonds have been awarded to the Series 2017B Purchaser shall not constitute cause for failure or refusal by the Series2017B Purchaser to accept delivery on the Series 2017B Bonds.
CUSIP NUMBERS
The City will assume no obligation for the assignment or printing of Committee on Uniform Securities Identification ProceduresCUSIP") numbers on the Series 2017B Bonds or for the correctness of any numbers printed thereon, but will permit such
numbers to be assigned and printed at the expense of the Series 2017B Purchaser, if the Series 2017B Purchaser waives any delayin delivery occasioned thereby.
CONTINUING DISCLOSURE
In order to permit bidders for the Series 2017B Bonds and other participating underwriters in the primary offering of the Series2017B Bonds to comply with paragraph ( b)( 5) of Rule 15c2- 12 promulgated by the Securities and Exchange Commission underthe Securities Exchange Act of 1934, as amended ( the " Rule"), the City will covenant and agree, for the benefit of the registeredholders or beneficial owners from time to time of the outstanding Series 2017B Bonds, in the resolution for the Series 2017BBonds, to provide annual reports of specified information and notice of the occurrence of certain events, if material, as hereinafterdescribed ( the " Disclosure Covenants"). The information to be provided on an annual basis, the events as to which notice is to be
given, if material, and a summary of other provisions of the Disclosure Covenants, including termination, amendment andremedies, are set forth in APPENDIX C to this Preliminary Official Statement. ( See " PRELIMINARY OFFICIAL
STATEMENT - Continuing Disclosure").
DELIVERY AND LEGAL OPINION
Within 45 days following the date of their award, the Series 2017B Bonds will be delivered without cost to the Series 2017BPurchaser at a place mutually satisfactory to the City and the Series 2017B Purchaser. Delivery will be subject to receipt by theSeries 2017B Purchaser of an approving legal opinion of Dorsey & Whitney LLP, Bond Counsel, of Minneapolis, Minnesota, andof customary closing papers, including a no -litigation certificate. On the date of settlement, payment for the Series 2017B Bondsshall be made in Federal or equivalent funds, which shall be received at the offices of the City or its designee not later than 10: 00o' clock A.M., Central Time. Except as compliance with the terms of payment for the Series 2017B Bonds shall have been made
impossible by action of the City, or its agents, the Series 2017B Purchaser shall be liable to the City for any loss suffered by theCity by reason of the Series 2017B Purchaser' s non-compliance with said terms for payment. Delivery is anticipated on or aboutSeptember 5, 2017.
QUALIFIED TAX-EXEMPT OBLIGATION
The Series 2017B Bonds will be designated by the City as " qualified tax-exempt obligations" within the meaning of Section265( b)( 3) of the Internal Revenue Code of 1986, as amended.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to the Series2017B Bonds, and said Preliminary Official Statement will serve as a Near Final Official Statement within the meaning of Rule15c2- 12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Forcopies of the Preliminary Official Statement or for any additional information prior to sale, any prospective proposer is referred tothe City' s Municipal Advisor, PFM Financial Advisors LLC, 801 Grand Avenue, Suite 3300, Des Moines, Iowa 50309 ( 515- 724- 5724) or 50 South Sixth Street, Suite 2250, Minneapolis, Minnesota 55402 (612-338-3535).
xi
The Preliminary Official Statement, when further supplemented with maturity dates, principal amounts and interest rates of theSeries 2017B Bonds, together with any other information required by law, shall constitute a Final Official Statement of the Citywith respect to the Series 2017B Bonds, as that term is defined in Rule 15c2- 12 promulgated by the Securities and ExchangeCommission under the Securities Exchange Act of 1934, as amended. By awarding the Series 2017B Bonds to any underwriter orunderwriting syndicate submitting a proposal therefor, the City agrees that no more than seven business days after the date of suchaward, it shall provide without cost to the senior managing underwriter of the syndicate to which the Series 2017B Bonds areawarded up to 20 copies of the Final Official Statement for the Series 2017B Bonds. The City designates the senior managingunderwriter of the syndicate to which the Series 2017B Bonds are awarded as its agent for purposes of distributing copies of theFinal Official Statement to each participating underwriter. Any underwriter delivering a proposal with respect to the Series2017B Bonds agrees thereby that if the City accepts its proposal, it shall enter into a contractual relationship with all participatingunderwriters of the Series 2017B Bonds for purposes of assuring the receipt by each such participating underwriter of the FinalOfficial Statement.
BY ORDER OF THE CITY COUNCIL
By: / s/ Nicole Jorgensen
Finance Director
City ofNew Ulm, Minnesota
The remainder ofthis page has been left blank intentionally.)
xii
INTRODUCTION TO THE PRELIMINARY OFFICIAL STATEMENT
The following information is furnished solely to provide limited introductory information regarding issuance of the $ 5, 560, 000(l) General Obligation Public Utility Revenue Bonds, Series 2017A ( the " Series 2017A Bonds') and the $ 2, 995,000(1) General
Obligation Permanent Improvement Revolving Fund Bonds, Series 2017B ( the " Series 2017B Bonds') ( collectively referred asthe " Bonds') issued by the City of New Ulm, Minnesota ( the " City'), and does not purport to be comprehensive. All such
information is qualified in its entirety by reference to the more detailed descriptions appearing in this Preliminary OfficialStatement, including the appendices hereto.
Issuer: City of New Ulm, Minnesota
Authority for Issuance: Series 2017A Bonds: The Series 2017A Bonds are being issued pursuantto the City Charter and in accordance with Minnesota Statutes, Chapter475.
Series 2017B Bonds: The Series 2017B Bonds are being issued pursuantto the City Charter and in accordance with Minnesota Statutes, Chapters429 and 475.
Security: Series 2017A Bonds: The Series 2017A Bonds are general obligations of
the City and the full faith and credit of the City are irrevocably pledged forthe prompt and full payment of the principal of and the interest on the
Series 2017A Bonds but will be paid primarily from the pledge of a lien onthe net revenues of the Electric, Water, Steam, Natural Gas and
Wastewater Enterprises ( the " Public Utility System"), for the repayment of
the Series 2017A Bonds.
Series 2017B Bonds: The Series 2017B Bonds are general obligations of
the City payable primarily from special assessments levied againstbenefited properties and ad valorem taxes levied on all taxable property inthe City, which have been pledged and appropriated for this purpose. TheCity will levy unlimited ad valorem taxes in the event of any deficiency inthe debt service account established for the Series 2017B Bonds.
Purpose: Series 2017A Bonds: Proceeds of the Series 2017A Bonds are beingissued to fund various wastewater treatment plant improvements andwastewater sewer extensions.
Series 2017B Bonds: The Series 2017B Bonds are being issued to financevarious municipal improvements, including various street and alleyimprovements and various utility improvements, including sewer, waterand storm sewer.
Principal Payments: Series 2017A Bonds: Principal of the Series 2017A Bonds is payable
annually on December 1 of the years 2018 through 2036.
Series 2017B Bonds: Principal of the Series 2017B Bonds is payable
annually on December 1 of the years 2018 through 2027.
Interest Payments: Interest on the Bonds is payable semiannually on each June 1 andDecember 1, commencing June 1, 2018.
Redemption Provisions: The Bonds maturing on December 1, 2026 and thereafter, are subject toredemption, at the option of the City, on December 1, 2025 and any datethereafter at a price of par plus accrued interest to date the redemption
date.
Denominations: $ 5, 000 or multiples thereof.
Book -Entry Only: The Bonds will be issued as book -entry only securities through theDepository Trust Company.
Tax Status: Exempt from federal and Minnesota income taxes, as further provided and
described in this Preliminary Official Statement. See " Tax Exemption andRelated Considerations" herein. The Bonds will be designated as
Qualified Tax -Exempt Obligations.
Professional Consultants: Municipal Advisor: PFM Financial Advisors LLC
Des Moines, Iowa
Minneapolis, Minnesota
Bond Counsel: Dorsey & Whitney, LLPMinneapolis, Minnesota
Registrar and
Paying Agent: City of New Ulm, Minnesota
Legal Matters: Validity, tax exemption, and legal matters incident to the authorization andissuance of the Bonds are subject to the opinions of Dorsey & WhitneyLLP, Bond Counsel. The opinions will be substantially in the forms setforth in APPENDIX B attached hereto.
Dated Date/Delivery Date: The Bonds will be delivered on or about September 5, 2017.
Continuing Disclosure: Through the resolutions for the Bonds, the City will covenant and agree toprovide to the Municipal Securities Rulemaking Board, certain annualfinancial information of the type included in this Preliminary OfficialStatement, including audited financial statements, and notice of theoccurrence of certain material events. The City is the only " obligatedperson" in respect of the Bonds within the meaning of Securities andExchange Commission Regulations, 17 C. F. R. Section 240. 15c2- 12.
Form of the proposed Disclosure Covenants are included in APPENDIX
C.
The information set forth herein has been obtained from the City and other sources which are believed to be reliable, but it is notto be construed as a representation by the Municipal Advisor or Underwriters. The information and expressions of opinion hereinare subject to change without notice, and neither the delivery of this Preliminary Official Statement nor any sale made thereaftershall, under any circumstances, create any implication that there has been no change in the affairs of the City or in any otherinformation contained herein, since the date hereof.
The Preliminary Official Statement is in a form deemedfinal as of its date for purposes ofSecurities and Exchange CommissionRule 15c2 -12( b)( 1) promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, asamended ( the " Rule'), but is subject to minor revision or amendment in accordance with the Rule. Not later than seven business
days following the award of the Bonds, the City shall provide copies of the Final Official Statement, as that term is used in theRule, to the purchaser(s) ofthe Bonds.
The purchaser(s) of the Bonds will be supplied with Final Official Statements in a quantity sufficient to meet its request. Up to 20copies ofthe Final Official Statementfor each respective series ofBonds will be furnished without cost.
Questions regarding the Bonds or the Preliminary Official Statement can be directed to, and additional copies of the PreliminaryOfficial Statement, the City's audited financial reports and the documents described herein may be obtained from PFM FinancialAdvisors LLC, 801 Grand Avenue, Suite 3300, Des Moines, Iowa 50309 ( 515- 724- 5724 and 515- 243- 6994 FAX) or 50 South
Sixth Street, Suite 2250, Minneapolis, Minnesota 55402 (612-338- 3535 and 612- 338- 7264 FAX), the City's Municipal Advisor.
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PRELIMINARY OFFICIAL STATEMENT
CITY OF NEW ULM, MINNESOTA
5, 560,000' 1 General Obligation Public Utility Revenue Bonds, Series 2017A
2, 995,000(') General Obligation Permanent Improvement Revolving Fund Bonds, Series 2017B
Introduction
This Preliminary Official Statement contains information relating to the City of New Ulm, Minnesota (the " City") and its issuanceof $5, 560,000(') General Obligation Public Utility Revenue Bonds, Series 2017A ( the " Series 2017A Bonds") and $ 2, 995,000(')
General Obligation Permanent Improvement Revolving Fund Bonds, Series 2017B ( the " Series 2017B Bonds") ( collectivelyreferred as the " Bonds"). This Preliminary Official Statement has been executed on behalf of the City and its Finance Directorand may be distributed in connection with the sale of the Bonds authorized therein. Inquiries may be made to the City' sMunicipal Advisor, PFM Financial Advisors LLC, 801 Grand Avenue, Suite 3300, Des Moines, Iowa 50309 ( 515- 724-5724 and
515- 243- 6994 FAX) or 50 South Sixth Street, Suite 2250, Minneapolis, Minnesota 55402 ( 612-338- 3535 and 612-338- 7264FAX). Information can also be obtained from Nicole Jorgensen, Finance Director, City of New Ulm, 100 North Broadway, NewUlm, Minnesota 56073 ( 507-359-8256).
Authority and Purpose
Series 2017A Bonds
The Series 2017A Bonds will be issued pursuant to the City Charter and in accordance with Minnesota Statutes, Chapter 475. Proceeds of the Series 2017A Bonds are being issued to fund various wastewater treatment plant improvements and wastewatersewer extensions.
Series 2017B Bonds
The Series 2017B Bonds will be issued pursuant to the City Charter and in accordance with Minnesota Statutes, Chapters 429 and475. The Series 2017B Bonds are being issued to finance various municipal improvements, including various street and alleyimprovements and various utility improvements, including sewer, water and storm sewer and paying cost of issuance.
Interest Computation
Interest on the Bonds is payable semi-annually on June 1 and December 1, commencing June 1, 2018. Interest will be computedon a 360 -day year of twelve 30 -day month basis and will be rounded pursuant to the rules of the Municipal Rulemaking Board. Interest and principal shall be paid to the registered holders of a bond as shown on the records of ownership maintained by thePaying Agent as to the 15`
h
day of the calendar month next preceding such interest payment date, whether or not such day is abusiness day ( the " Record Date").
Redemption Provisions
Optional Redemntion
The Bonds maturing in the years December 1, 2026, and thereafter are subject to optional redemption and prepayment uponrequest by the City, on December 1, 2025, and on any date thereafter, in whole or in part, in any order of maturity as the City mayselect, in $5, 000 principal amounts, at a price ofpar plus accrued interest to the date of redemption.
Notice of Redemntion
Notice of redemption for the Bonds shall be published and mailed, first-class postage prepaid, not less than thirty ( 30) days priorto the redemption date, to registered holder(s) of Bonds to be redeemed; but no defect in or failure to give such mailed notice shall
affect the validity of the proceedings for redemption as to any Bond not affected by such defect or failure.
Estimated Source and Uses ofFunds
The estimated Sources and Uses of the Bonds are as follows:
Estimated Sources and Uses of Funds(')
Sources of Funds
Par Amount
Uses of Funds
Deposit to Construction Account
Cost of Issuance/ Underwriter' s Discount
Additional Proceeds
Total Uses ofFunds
1) Preliminary, subject to change.
Payment ofand Security of the Bonds
Series 2017A Bonds
Series 2017A Bonds Series 2017B Bonds
5, 440,000.00 $ 2, 933,474.22
119,900. 00 57,667.50
100. 00 3. 858.28
5. 560.000.00 2.995. 000.00
Security of Payment: The Series 2017A Bonds are general obligations of the City and the full faith and credit of the City areirrevocably pledged for the prompt and full payment of the principal of and the interest on the Series 2017A Bonds. In addition, the City will pledge a lien on the net revenues of the Electric, Water, Steam, Natural Gas and Wastewater Enterprises ( the " PublicUtility System"), for the repayment of the Series 2017A Bonds. The Series 2017A Bonds are being issued ranking on parity withthe $ 3, 943, 632 General Obligation Wastewater Revenue Note, Series 2007 of which $ 2,243, 000 is still outstanding, the
3, 000,000 General Obligation Public Utility Revenue Bonds, Series 2011 B of which $ 2,305,000 is still outstanding, and the2,950,000 General Obligation Public Utility Revenue Bonds, Series 2013B of which $ 2, 425, 000 are still outstandingcollectively the " Parity Bonds") which are payable primarily from the net revenues of the Public Utility System and constitute a
first lien and charge on the net revenues derived and to be derived from the operation thereof.
Rate Covenant: The City will establish and maintain charges, fees and rentals for all service and benefits of whatsoever naturefurnished and made available by the Public Utility System to all individuals, firms, corporations and governmental subdivisionsand agencies, including the City itself, in accordance with schedules such that the gross revenues derived there from will at alltimes be sufficient to meet all payments due from and to maintain all reserves required in the Public Utilities System and the
several accounts therein as provided in the resolution for the Series 2017A Bonds, and also to provide adequate funds in the
depreciation and replacement account for repairs, replacements and improvements of utility properties, and will revise such rates, charges and rentals whenever necessary for these purposes; and sufficient to produce each year net revenues as defined in theresolution for the Series 2017A Bonds not less than one and one- quarter times the amount of all principal and interest to become
due and payable on all bonds and other obligations payable from or constituting a lien or charge on the net revenues of the PublicUtility System in such year.
Additional Parity Obligations Test: The City reserves the right to issue one or more additional series of revenue bonds for thepurpose of financing capital improvements and additions to the Public Utility System, or of refunding any outstanding obligationssecured by the provisions of the resolution for the Series 2017A Bonds in advance of the maturity thereof, which revenue bondsshall be payable from the sinking and interest account on a parity with those issued hereunder and shall be secured by each and allof the covenants and other provisions of the resolution for the Series 2017A Bonds as fully as though such additional revenuebonds were expressly described and authorized herein, provided that:
a) The amount of the net revenues of the Public Utility System during the fiscal year ( January 1 to December 31) nextpreceding the issuance of such additional revenue bonds shall have been not less than one and one-quarter times themaximum amount of principal and interest to become due and payable on any bonds and obligations payable from orconstituting a lien or charge on the net revenues of the Public Utility System and the bonds to be issued;
b) In the computation of the principal and interest to become due and subsequent to the issuance of any additional revenuebonds, the principal and interest payable on the additional revenue bonds shall be included and that which would have
been payable on any obligations refunded thereby shall be excluded; and,
c) If the rates, charges and rentals for utility service in effect at the time of issuance of any additional bonds have beenchanged in any manner since the beginning of the preceding fiscal year, the net revenues for that year, for the purpose ofthis section, shall be deemed to be those which would have been received from such rates, charges and rentals if applied
to the quantities of utility services furnished and made available during the year, after deduction of the actual operationand maintenance expenses incurred during the year.
Series 2017B Bonds
The Series 2017B Bonds are general obligations of the City payable primarily from special assessments levied against benefitedproperties and ad valorem taxes levied on all taxable property in the City, which have been pledged and appropriated for thispurpose. The City will assess approximately 44. 7% of the total cost of the improvements or $ 1, 334,951 against speciallybenefited properties. Assessments will be levied over a 10 -year period. Receipt of assessments plus interest collected on the
unpaid balance from year to year, and ad valorem taxes will be sufficient to provide not less than 105% of the principal and
interest on the Series 2017B Bonds as required by Minnesota law.
Book -Entry -Only System
The information contained in the following paragraphs of this subsection " Book -Entry -Only System" has been extracted from aschedule prepared by Depository Trust Company (" DTC') entitled " SAMPLE OFFERING DOCUMENT LANGUAGE
DESCRIBING BOOK -ENTRY -ONLY ISSUANCE. " The information in this section concerning DTC and DTC' s book -entrysystem has been obtainedfrom sources that the City believes to be reliable, but the City takes no responsibility for the accuracythereof.
The Depository Trust Company (" DTC"), New York, New York, will act as securities depository for the Bonds. The Bonds willbe issued as fully -registered securities registered in the name of Cede & Co. ( DTC' s partnership nominee) or such other name asmay be requested by an authorized representative of DTC. One fully -registered certificate will be issued for each maturity foreach series of the Bonds in the aggregate principal amount thereof and will be deposited with DTC.
DTC is a limited -purpose trust company organized under the New York Banking Law, a " banking organization" within themeaning of the New York Banking Law, a member of the Federal Reserve System, a " clearing corporation" within the meaningof the New York Uniform Commercial Code, and a " clearing agency" registered pursuant to the provisions of Section 17A of theSecurities Exchange Act of 1934, as amended. DTC holds and provides asset servicing for U.S. and non -U. S. equity issues, corporate and municipal debt issues, and money market instruments that DTC' s participants (" Direct Participants") deposit with
DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions indeposited securities through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. Thiseliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities
brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations.
DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (" DTCC"). DTCC is the holding companyfor DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearingagencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such asboth U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through ormaintain a custodial relationship with a Direct Participant, either directly or indirectly (" Indirect Participants"). DTC has a
Standard & Poor' s rating of AA+. The DTC Rules applicable to its Direct Participants and Indirect Participants ( collectively, theParticipants") are on file with the Securities and Exchange Commission. More information about DTC can be found at
www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for theBonds on DTC' s records. The ownership interest of each actual purchaser of each Certificate (`Beneficial Owner") is, in turn, to
be recorded on the Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase.
Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodicstatements of their holdings, from the Participant through which the Beneficial Owner entered into the transaction. Transfers of
ownership interests in the Bonds are to be accomplished by entries made on the books of Participants acting on behalf of
Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in theevent that use of the book -entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC' spartnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The depositof Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change inbeneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC' s records reflect only theidentity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalfof their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatoryrequirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment thetransmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and
proposed amendments to the legal documents. In the alternative, Beneficial Owners may wish to provide their names andaddresses to the registrar of the Bonds (" Registrar") and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC' s practice is todetermine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. ( nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by aDirect Participant in accordance with DTC' s Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Stateas soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.' s consenting or voting rights to those DirectParticipants to whose accounts Bonds are credited on the record date ( identified in a listing attached to the Omnibus Proxy).
Payments of principal of and premium, if any, and interest on the Bonds will be made to Cede & Co., or such other nominee as
may be requested by an authorized representative of DTC. DTC' s practice is to credit Direct Participants' accounts upon DTC' sreceipt of funds and corresponding detail information from the City, on payable date in accordance with their respective holdingsshown on DTC' s records. Payments by Participants to Beneficial Owners will be governed by standing instructions andcustomary practices, as is the case with securities held for the accounts of customers in bearer form or registered in " street name," and will be the responsibility of such Participant and not of DTC, or its nominee or the City, subject to any statutory or regulatoryrequirements as may be in effect from time to time. Payment of principal of and premium, if any, and interest on the Bonds toCede & Co. ( or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to theBeneficial Owners will be the responsibility ofParticipants.
A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Registrar,
and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant' s interest in the Bonds, onDTC' s records, to the Registrar. The requirement for physical delivery of Bonds in connection with an optional tender or amandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants onDTC' s records and followed by a book -entry credit of tendered Bonds to the Registrar' s DTC account.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to theCity. Under such circumstances, in the event that a successor depository is not obtained, certificates are required to be printed anddelivered.
The City may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that event, certificates will be printed and delivered.
The above information in this section concerning DTC and DTC' s book -entry system has been obtainedfrom sources that the Citybelieves to be reliable, but the City takes no responsibility for the completeness or the accuracy thereof, or as to the absence ofmaterial adverse changes in such information subsequent to the date hereof
The City cannot and does not give any assurances that DTC, or a successor securities depository, or Participants will distribute tothe Beneficial Owners of the Bonds: ( i) payments of principal of or interest and premium, if any, on the Bonds; ( ii) certificatesrepresenting an ownership interest or other confirmation of beneficial ownership interest in the Bonds; or ( iii) redemption or othernotices sent to DTC or Cede & Co., its nominee, or a successor securities depository, as the registered owner of the Bonds, or that
they will do so on a timely basis, or that DTC or the Participants will serve and act in the manner described in this OfficialStatement.
The City will have no responsibility or obligation to any Participant, or any Beneficial Owner or any other person with respect to: i) the Bonds; ( ii) the accuracy of any records maintained by DTC, or a successor securities depository, or any DTC Participant of
any amount due to any Beneficial Owner in respect of the principal or redemption price of or interest on the Bonds; ( iii) thepayment by DTC, or a successor securities depository, or any Participant of any amount due to any Beneficial Owner in respect ofthe principal or redemption price of or interest on the Bonds; ( iv) the delivery by DTC, or a successor securities depository, or anyParticipant of any notice to any Beneficial Owner which is required or permitted to be given to owners of the Bonds; ( v) theselection of which Beneficial Owners will receive payment in the event of any partial redemption of the Bonds; ( vi) any consentgiven or other action taken by DTC, or a successor securities depository as a Bondholder; or, (vii) the performance by DTC, orany successor securities depository, of any other duties as securities depository.
Future Financing
The City does not anticipate any additional borrowing within 90 days of the date of this Official Statement.
Litigation
The City is not aware of any threatened or pending litigation affecting the validity of the Bonds or the City' s ability to meet itsfinancial obligations.
Debt Payment History
The City knows of no instance in which it has defaulted in the payment ofprincipal and interest on its general obligation debt.
Legality
The Bonds are subject to approval as to certain matters by Dorsey & Whitney LLP, Minneapolis, Minnesota as Bond Counsel. Bond Counsel has not participated in the preparation of this Preliminary Official Statement other than to review or prepareinformation describing the terms of the Bonds, Minnesota and federal law pertinent to the validity of and the tax status of intereston the Bonds, which can be found generally under the sections: " Authority and Purpose", " Redemption Provisions", " Payment
ofand Securityfor the Bonds ", and " Tax Exemption and Related Tax Considerations ". Additionally, Bond Counsel has providedits form of bond opinion and the City' s continuing disclosure certificate, found in APPENDIX B and APPENDIX C, respectively. Bond Counsel is not expressing any opinion as to the completeness or accuracy of the information contained in thePreliminary Official Statement.
Tax Exemption and Related Tax Considerations
Tax Exemption: In the opinion of Dorsey & Whitney LLP, Bond Counsel, based on present federal and Minnesota laws, regulations, rulings and decisions, and on certifications to be furnished at closing, and assuming compliance by the City withcertain covenants ( the " Tax Covenants"), interest on the Bonds is excluded from gross income for federal income tax purposesand from taxable net income of individuals, estates, and trusts for Minnesota income tax purposes and is not an item of taxpreference for federal or Minnesota alternative minimum tax purposes. Such interest is, however, included in taxable income for
purposes of the Minnesota franchise tax on corporations and financial institutions and in adjusted current earnings of corporationsfor purposes of the federal alternative minimum tax.
The Internal Revenue Code of 1986, as amended ( the " Code"), imposes certain requirements that must be met after the issuanceof the Bonds in order for interest on the Bonds to be and remain excluded from federal gross income and Minnesota taxable net
income of individuals, estates, and trusts. These requirements include, but are not limited to, provisions regarding the use ofBond proceeds and the facilities financed or refinanced with such proceeds; restrictions on the investment of Bond proceeds and
other amounts; and provisions requiring that certain investment earnings be rebated periodically to the federal government. Noncompliance with such requirements may cause interest on the Bonds to be includable in federal gross income or in Minnesotataxable net income retroactively to their date of issue. Compliance with the Tax Covenants will satisfy the current requirementsof the Code with respect to exclusion of interest on the Bonds from federal gross income and from Minnesota taxable net incomeof individuals, estates, and trusts. No provision has been made for redemption of or for an increase in the interest rate on theBonds in the event that interest on the Bonds is included in federal gross income or in Minnesota taxable net income.
Related Tax Considerations: Section 86 of the Code and corresponding provisions of Minnesota law require recipients of certainsocial security and railroad retirement benefits to take interest on the Bonds into account in determining the taxability of suchbenefits. Passive investment income, including interest on the Bonds, may be subject to taxation under section 1375 of the Code, and corresponding provisions of Minnesota law, for an S corporation that has accumulated earnings and profits at the close of thetaxable year, if more than 25 percent of its gross receipts is passive investment income. Interest on the Bonds may be included inthe income of a foreign corporation for purposes of the branch profits tax imposed by section 884 of the Code, and is included innet investment income of foreign insurance companies under section 842( b) of the Code. In the case of an insurance companysubject to the tax imposed by section 831 of the Code, the amount which otherwise would be taken into account as losses incurredunder section 832(b)( 5) of the Code must be reduced by an amount equal to 15 percent of the interest on the Bonds that isreceived or accrued during the taxable year.
Section 265 of the Code denies a deduction for interest on indebtedness incurred or continued to purchase or carry the Bonds, and
Minnesota law similarly denies a deduction for such interest in the case of individuals, estates, and trusts. Indebtedness may beallocated to the Bonds for this purpose even though not directly traceable to the purchase of the Bonds. Federal and Minnesotalaws also restrict the deductibility of other expenses allocable to the Bonds. In the case of a financial institution, no deduction isallowed under the Code for that portion of the holder' s interest expense which is allocable to interest on the Bonds within the
meaning of section 265( b) of the Code. The Bonds will not be designated by the City as " qualified tax-exempt obligations" forpurposes of section 265 of the Code relating to the ability of financial institutions to deduct from income for federal income taxpurposes interest expense that is allocable to tax-exempt obligations.
Because of the Code' s basis reduction rules for amortizable bond premium, bondholders how acquire Bonds at a premium mightrecognize taxable gain upon sale of the Bonds, even if the Bonds are sold for an amount equal to or less than their original cost.
From time to time, there are legislative proposals that, if enacted, could adversely affect the federal and state tax matters referredto herein, adversely affect the marketability or market value of the Bonds, or otherwise prevent holders of the Bonds fromrealizing the full benefit of the tax exemption of interest on the Bonds. No prediction is made concerning future events. Theopinions expressed by Bond Counsel in connection with the issuance of the Bonds are based upon existing law. Purchasers of theBonds should consult their own tax advisors regarding any pending or proposed legislation, and regulatory or administrativeactions.
The foregoing is not intended to be an exhaustive discussion of tax consequences arising from ownership or disposition of theBonds or receipt of interest on the Bonds. Prospective purchasers or bondholders should consult their tax advisors with respect toapplicable federal, state and local tax rules.
Bondholders' Risks
With Respect to the Bonds
An investment in the Bonds is subject to certain risks. No person should purchase the Bonds unless such person understands the
risks described below and is willing to bear those risks. There may be other risks not listed below which may adversely affect thevalue of the Bonds.
Secondary Market Not Established: There is no established secondary market for the Bonds, and there is no assurance that asecondary market will develop for the purchase and sale of the Bonds. Prices of municipal bonds traded in the secondary market, if any, are subject to adjustment upward and downward in response to changes in the credit markets and changes in the operatingperformance of the entities operating the facilities subject to bonded indebtedness. From time to time it may be necessary tosuspend indefinitely secondary market trading in selected issues of municipal bonds as a result of the financial condition ormarket position, prevailing market conditions, lack of adequate current financial information about the entity, operating thesubject facilities, or a material adverse change in the operations of that entity, whether or not the subject Bonds are in default as toprincipal and interest payments, and other factors which, may give rise to uncertainty concerning prudent secondary marketpractices.
Municipal bonds are generally viewed as long- term investments, subject to material unforeseen changes in the investor' scircumstances, and may require commitment of the investor' s funds for an indefinite period of time, perhaps until maturity.
Ratings Loss: Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance that the rating will continue for any given period of time, or that suchrating will not be revised, suspended or withdrawn, if, in the judgment of the rating agency, circumstances so warrant. A revision, suspension or withdrawal of a rating may have an adverse effect on the market price of the Bonds.
Rating agencies are currently not regulated by any regulatory body. Future regulation of rating agencies could materially alter themethodology, rating levels, and types of ratings available, for example, and these changes, if ever, could materially affect themarket value of the Bonds.
Matters Relating to Enforceability: Holders of the Bonds shall have and possess all the rights of action and remedies afforded bythe common law, the Constitution and statutes of the State of Minnesota and of the United States of America for the enforcement of
payment of the Bonds, including but not limited to, the right to a proceeding in the law or in equity by suit, action or mandamus toenforce and compel performance of the duties required by Minnesota law and the resolutions for the Bonds.
The practical realization of any rights upon any default will depend upon the exercise of various remedies specified in theresolutions for the Bonds. The remedies available to the owners of the Bonds upon an event of default under the resolutions for the
Bonds, in certain respects, may require judicial action, which is often subject to discretion and delay. Under existing law, includingspecifically the federal bankruptcy code, certain of the remedies specified in the resolutions for the Bonds may not be readilyavailable or may be limited. A court may decide not to order the specific performance of the covenants contained in thesedocuments. The legal opinions to be delivered concurrently with the delivery of the Bonds will be qualified as to the enforceabilityof the various legal instruments by limitations imposed by general principals of equity and public policy and by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally.
No representation is made, and no assurance is given that the enforcement of any remedies with respect to such assets will result insufficient funds to pay all amounts due under the resolutions for the Bonds, including principal of and interest on the Bonds.
Forward -Looking Statements: This Preliminary Official Statement contains statements relating to future results that are " forward- looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When used in this Preliminary OfficialStatement, the words " estimate," " forecast," " intend," " expect' and similar expressions identify forward-looking statements. Anyforward- looking statement is subject to uncertainty. Accordingly, such statements are subject to risks that could cause actual resultsto differ, possibly materially, from those contemplated in such forward-looking statements. Inevitably, some assumptions used todevelop forward-looking statements will not be realized or unanticipated events and circumstances may occur. Therefore, investorsshould be aware there are likely to be differences between forward-looking statements and the actual results. These differencescould be material and could impact the availability of funds of the City to pay debt service when due on the Bonds.
Tax Matters and Loss of Tax Exemption: As discussed under the heading " Tax Exemption and Related Considerations" herein, the interest on the Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of
delivery of the Bonds, as a result of acts or omissions of the City in violation of its covenants in the resolutions for the Bonds. Should such an event of taxability occur, the Bonds would not be subject to a special prepayment and would remain outstandinguntil maturity or until prepaid under the prepayment provisions contained in the Bonds, and there is no provision for an adjustmentof the interest rate on the Bonds.
It is possible that legislation will be proposed or introduced that could result in changes in the way that tax exemption is calculated, or whether interest on certain securities are exempt from taxation at all. Prospective purchasers should consult with their own tax
advisors regarding any pending or proposed federal income tax legislation. The likelihood of legislation being enacted cannot bereliably predicted.
It is also possible actions of the City after the closing of the Bonds will alter the tax status of the Bonds, and, in the extreme, remove the tax exempt status from the Bonds. In that instance, the Bonds are not subject to mandatory prepayment and the interestrate on the Bonds does not increase or otherwise reset. A determination of taxability on the Bonds, after closing of the Bonds, could materially adversely affect the value and marketability of the Bonds.
Pending Federal Tax Legislation: From time to time, there are Presidential proposals, proposals of various federal committees, andlegislative proposals pending in Congress that could, if enacted, alter or amend one or more of the federal ( or state) tax mattersdescribed herein in certain respects or would adversely affect the market value of the Bonds or otherwise prevent holders of theBonds from realizing the full benefit of the tax exemption of interest on the Bonds. Further, such proposals may impact themarketability or market value of the Bonds simply by being proposed. It cannot be predicted whether or in what forms any of suchproposals, either pending or that may be introduced, may be enacted and there can be no assurance that such proposals will notapply to the Bonds. In addition regulatory actions are from time to time announced or proposed and litigation threatened orcommenced, which if implemented or concluded in a particular manner, could adversely affect the market value, marketability ortax status of the Bonds. It cannot be predicted whether any such regulatory action will be implemented, how any particularlitigation or judicial action will be resolved, or whether the Bonds would be impacted thereby.
DTC -Beneficial Owners: Beneficial Owners of the Bonds may experience some delay in the receipt of distributions of principal ofand interest on the Bonds since such distributions will be forwarded by the Registrar to DTC and DTC will credit such distributionsto the accounts of the Participants which will, thereafter, credit them to the accounts of the Beneficial Owner either directly orindirectly through indirect Participants. Neither the City nor the Registrar will have any responsibility or obligation to assure anysuch notice or payment is forwarded by DTC to any Participants or by any Participant to any Beneficial Owner.
In addition, since transactions in the Bonds can be effected only through DTC Participants, indirect participants and certain banks, the ability of a Beneficial Owner to pledge the Bonds to persons or entities that do not participate in the DTC system, or otherwiseto take actions in respect of such Bonds, may be limited due to lack of a physical certificate. Beneficial Owners will be permittedto exercise the rights of registered Owners only indirectly through DTC and the Participants. See " Book -Entry Only Issuance."
Summary: The foregoing is intended only as a summary of certain risk factors attendant to an investment in the Bonds. In orderfor potential investors to identify risk factors and make an informed investment decision, potential investors should becomethoroughly familiar with this entire Official Statement and the Appendices hereto to make a judgment as to whether the Bonds arean appropriate investment.
With Respect to the Series 2017A Bonds
Nature of Obliagtion: The Series 2017A Bonds are general obligations of the City and the full faith and credit of the City areirrevocably pledged for the prompt and full payment of the principal of and the interest on the Series 2017A Bonds. In addition, the City will pledge a lien on the net revenues of the Public Utility System for the repayment of the Series 2017A Bonds.
Future revenues and expenses of the City, with respect to the Public Utility System are subject to conditions which may change inthe future to an extent that cannot be determined at this time. Future events may occur that upset the assumptions upon whichprojections of revenues and expenses are based on those assumptions may fail to materialize. Because no assurance can be madethat actual events will correspond to such assumptions, no assurances can be made that the net revenues will be realized in
amounts sufficient to pay the debt service on the Series 2017A Bonds.
Revenues and Expenses: Several factors not within the control of the City could affect the City' s ability to generate sufficient netrevenues to pay the debt service on the Series 2017A Bonds. These factors include, but are not limited to, inflation and adverseeconomic conditions, increases in operation and maintenance costs, unexpected repairs, replacements or improvements to the
Public Utility System and the ability of the City to supply the services demanded and to maintain necessary rates for thoseservices. Any one of the above factors, among others, individually or combined may cause the City to be unable to generatesufficient net revenues to pay debt service on the Series 2017A Bonds.
Rating
The City has requested a rating for the Bonds from Moody' s Investor Service (" Moody' s"). Currently, Moody' s rates the City'sGeneral Obligation Public Utility System Revenue Bonds and General Obligation Permanent Improvement Revolving FundBonds " Aa2". Prospective proposers will be notified as to the assigned rating prior to the sale. Such a rating, if and whenreceived, will reflect only the view of the rating agency and any explanation of the significance of such rating may only beobtained from Moody' s. There is no assurance that such rating, if and when received, will continue for any period of time or thatit will not be revised or withdrawn. Any revision or withdrawal of the rating may have an effect on the market price of the Bonds.
Municipal Advisor
The City has retained PFM Financial Advisors LLC, Des Moines, Iowa and Minneapolis, Minnesota as its municipal advisor ( theMunicipal Advisor") in connection with the issuance of the Bonds. In preparing the Preliminary Official Statement, the
Municipal Advisor has relied upon governmental officials, and other sources who have access to relevant data to provide accurate
information for the Preliminary Official Statement, and the Municipal Advisor has not been engaged, nor has it undertaken, toindependently verify the accuracy of such information. The Municipal Advisor is not a public accounting firm and has not beenengaged by the City to compile, review, examine or audit any information in the Preliminary Official Statement in accordancewith accounting standards. The Municipal Advisor is an independent advisory firm and is not engaged in the business ofunderwriting, trading or distributing municipal securities or other public securities and therefore will not participate in theunderwriting of the Bonds.
10
Certification
The City has authorized the distribution of this Preliminary Official Statement for use in connection with the initial sale of theBonds. As of the date of the settlement of this issue, the Series 2017A Purchaser and the Series 2017B Purchaser will be
furnished with a certificate signed by the appropriate officers of the City. The certificate will state that as of the date of theOfficial Statement, it did not and does not, as of the date of the certificate contain any untrue statement of material fact or omit tostate a material fact necessary in order to make the statements made therein, in light of the circumstances under which they weremade, not misleading.
Continuing Disclosure
In order to permit proposers for the Bonds and other participating underwriters in the primary offering of the Bonds to complywith paragraph ( b)( 5) of Rule 15c2- 12 promulgated by the Securities and Exchange Commission under the Securities ExchangeAct of 1934, as amended ( the " Rule"), the City will covenant and agree, for the benefit of the registered holders or beneficialowners, in the resolutions for the Bonds under the Continuing Disclosure section, to provide audited financial statements andannual reports of specified information on or before 270 days after the end of each fiscal year of the City, commencing with thefiscal year ending December 31, 2017, and notice of the occurrence of certain material events as hereinafter described ( theDisclosure Covenants"). The information to be provided on an annual basis, the material events as to which notice is to be given
and a summary of other provisions of the Disclosure Covenants, including termination, amendment and remedies, are set forth inAPPENDIX C to this Preliminary Official Statement.
The City has filed timely its audited financial statements however the City failed to file public utility information for the fiscalyear 2011. The City became aware of this omission and filed a Failure to File Notice and the necessary financial and operatingdata on July 29, 2014.
Breach of the Disclosure Covenants will not constitute a default or an " Event of Default" under the resolutions for the Bonds. A
broker or dealer is to consider a known breach of the Disclosure Covenants, however, before recommending the purchase or saleof the Bonds in the secondary market. Thus, a failure on the part of the City to observe the Disclosure Covenants may adverselyaffect the transferability and liquidity of the Bonds and their market price.
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II
FINANCIAL SUMMARY
This summary is subject in all respects to more complete information contained in this Preliminary Official Statement)
Economic Market Value 2016/ 17 888,769,618
Estimated Market Value 2016/ 17 824,690,900
Taxable Market Value 2016/ 17 718, 154,300
Net Tax Capacity 2016/ 17 8,578,989
G.O. Debt — Levy and Special Assessment Supported ( Includes the Series 2017B Bonds) 16, 855, 000
G.O. Debt — Revenue Supported ( Includes the Series 2017A Bonds) 15, 401, 000
Indirect General Obligation Debt 20,496,375
Population (2015 Estimate) 13, 583
Debt Ratios
Per Capita % of Economic
Amount ( 13, 583) Market Value
General Obligation Debt
Total General Obligation Debt $ 32,256,000 $ 2,375 3. 63%
Less Self -Supported Revenue Debt ( 15, 401, 000)
Net General Obligation Debt $ 16, 855, 000 1, 241 1. 90%
Indirect General Obligation Debt 20,496,375 1, 509 2. 31%
Total $ 37 x,375 $ 4.21%
Source: Minnesota State Demographer.
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12
PROPERTY VALUATIONS AND TAXES
City Property Values
The County Assessor, pursuant to State law, is responsible for the assessment of all taxable property located within a county. State law provides, with certain exceptions, that all taxable property is to be valued at its market value. All real property subjectto taxation must be listed and shall be valued each year with reference to its value as of January 2. The assessor views andreappraises all parcels at maximum intervals of five years. Personal property subject to taxation must also be listed and assessedannually as of January 2.
With certain exemptions, all property is valued at its Estimated Market Value (" EMV"), which is the value the assessor
determines to be the price the property to be fairly worth. Taxable Market Value (" TMV") is EMV less certain exclusions and
includes, for taxes payable in 2012 and thereafter, a homestead market value exclusion (" Homestead Exclusion") for homesteads
valued at under $413, 800. The Homestead Exclusion replaces the former residential homestead market value credit (" HomesteadCredit"), which provided an offset of an amount of residential homeowner property taxes with a credit, which was reimbursed tothe City by the State. Assuming a constant levy, the repeal of the Homestead Credit should not cause a decline in the totalproperty taxes collected in the City, but will cause the property tax rates to change for certain taxpayers.
Net Tax Capacity (" NTC") is the value upon which taxes are levied and collected. The NTC is computed by applying the classrate percentages specific to each type of property classification against the TMV. Class rate percentages vary depending on thetype ofproperty. The following table shows the class rates for selected property types for taxes payable in 2017.
Table 1
Property Class Rates
Type ofProperty Pay 2017 Class Rates
Residential Homestead
First $500,000 Taxable Market Value 1. 00%
Over $500,000 Taxable Market Value 1. 25%
Commercial/ Industrial
First $150, 000 Taxable Market Value 1. 50%
Over $ 150,000 Taxable Market Value 2.00%
Non -Homestead Market Rate Apartments 1. 25%
Neither the NTC nor the TMV may accurately represent what a property' s actual market value would be in the marketplace. Bydividing the EMV used for tax purposes by the State Equalization Aid Review Committee' s (" EARC") Sales Ratio for anyparticular year, an Economic Market Value can be calculated which approximates actual market value. The Economic Market
Value replaces the Indicated Market Value which was previously calculated by dividing the TMV by the Sales Ratio. Sales ratiosrepresent the relationship between the market value used for tax purposes and actual selling prices which were obtained in realestate transactions within a governmental unit in any particular year. The 2015 Sales Ratio for the City is 92.77%.
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13
The table below shows the Economic Market Value, Estimated Market Value, Taxable Market Value and Net Tax Capacity oftaxable property within the City for assessment year 2016/collection year 2017.
Table 2
4, 547, 959
Property Values
Agricultural
Assessment Year 2016/ Collection Year 2017
0. 16%
Economic Sales Estimated Taxable Net Tax
Market Value (1) Ratio Market Value Market Value Ca aci
Real Estate $ 886,289,318 92.77% $ 822,210,600 715, 674,000 $ 8, 713, 936
Personal Property 2, 480,300 2,480,300 2,480,300 28, 175
Less: Tax Increment Captured Tax Capacity(2) -- --
163, 122)
Total $ 888.769.618 $ 824.690.900 718. 154300 SLIME
Economic Market Value which is calculated by dividing Estimated Market Value of real estate by a sales ratio weighted by property typeplus the Estimated Market Value of personal property.
Seasonal Recreational - Residential
2)
This value represents the captured tax capacity of a tax increment financing districts in the City. Taxes collected on property in the taxincrement districts accrue to the City to pay debt service on outstanding tax increment debt.
Source: Brown County.
Net Tax Capacity by Class ofProperty
The table below presents the Net Tax Capacity of taxable property for real estate in the City by category for the assessment year2016.
Table 3
Net Tax Capacity by Class of PropertyAssessment Year 2016/Collection Year 2017
Net Tax Capacity Percentaee of Total
Residential Homestead 4, 547, 959 52. 19%
Agricultural 14,255 0. 16%
Commercial & Industrial
Public Utility 976 0. 01%
Railroad Operating Property 37,942 0.44%
All Other Commercial/ Industrial 3, 129,299 35. 91%
Residential Non -Homestead 967,221 11. 10%
Seasonal Recreational - Residential 16.284 0. 19%
Total Net Tax Capacity 8. 713.936 14QoQ°
Does not reflect adjustment for fiscal disparities and captured tax increment tax capacity.
Source: Brown County.
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14
Trend of Valuations
The table below presents the Economic Market Value, Estimated Market Value, Taxable Market Value and Net Tax CapacityValue of the City for the last five years and the most current collection year.
Table 4
Trend of Valuation
Larger Taxpayers
A list of the principal taxpayers in the City with the highest taxable valuations for taxes payable in 2017 is presented in the tablebelow.
Table 5
Larder Taxpayers
Estimated Net % of TotalTaxpayer Type of Property/ Business Market Value Tax Capacity Tax Capacity ( I)
Wal- Mart Stores, Inc.
Economic Estimated Taxable Taxable Tax Increment Total Adjusted
Lev_y/ Pa} able Market Value. (1) Market Value Market Value Net Tax Capacity Reduction Net Tax Capacity
2011/ 12 807,256,338 762,265, 600 653, 848,200 7,936,082 47, 167) 7, 888,915
2012/ 13 804, 128,510 757,755, 700 649,592,400 7,908,793 48,270) 7, 860, 5232013/ 14 846,993, 852 769,854,300 662, 140, 100 8, 109,767 51, 788) 8, 057,9792014/ 15 846,303, 916 790,532,900 684,275, 100 8, 341, 784 61, 648) 8, 280, 136
2015/ 16 873, 033, 111 810,089,800 703, 034,200 8, 613, 596 104, 135) 8, 509,461
2016/ 17 888,769,618 824,690,900 718, 154,300 8, 742, 111 163, 122) 8, 578,989
Beginning in 2011, the Minnesota Department of Revenue now calculates a value it calls Economic Market Value which is calculated bydividing Estimated Market Value by a sales ratio weighted by property type.
Source: Brown County.
Larger Taxpayers
A list of the principal taxpayers in the City with the highest taxable valuations for taxes payable in 2017 is presented in the tablebelow.
Table 5
Larder Taxpayers
Estimated Net % of TotalTaxpayer Type of Property/ Business Market Value Tax Capacity Tax Capacity ( I)
Wal- Mart Stores, Inc. Commercial Retail 9,383, 400 186,918 2. 14%
Menards, Inc. Commercial Retail 6,978,300 134, 802 1. 54%
Minnesota Mining and Mfg, Inc. (3M) Industrial 6,290,600 125, 062 1. 43%
Kraft, Inc. Industrial/Food Processing 5, 307,000 105, 390 1. 21% AMPI Industrial 3, 640, 800 71, 316 0. 82%
Wayzata Bay Center, LLC Commercial/ Grocery Store 3, 259,200 64,434 0. 74%
Highland Regency House, LLC Residential 5, 032,400 62,905 0. 72%
Timber New Ulm Properties, LP Commercial 2, 876, 800 56,786 0. 65%
Parker -Hannifin Corp. Industrial 2, 699,900 53, 248 0. 61%
Hinu LLC. Commercial 2, 687,800 53, 006 0.61%
Total 48. 156. 200 10.47°/o
Based on the 2016/ 17 Net Tax Capacity of $8, 742, 111. Total Net Tax Capacity includes real estate and personal property and is notadjusted for tax increment financing.
Source: Brown County
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15
Tax Capacity Rates
The table below presents the City tax rates over a five-year period.
Table 6
Tax CaDacity Rates
Source: Brown County.
Tax Levies and Collections
Property taxes are collected in two installments in Minnesota -- the first by May 15 and the second by October 15. Mobile hometaxes are collectible in full by August 31. Minnesota Statutes require that levies ( taxes and special assessments) for debt servicebe at least 105% of the actual debt service requirements to allow for delinquencies. The table below sets forth the City' s taxlevies and collections for the last five years and the most recent year of collections.
Table 7
Tax Levies and Collections
2012/ 13 2013/ 14 2014/ 15 2015/ 16 2016/ 17
Brown County 41. 489% 35. 353% 32. 892% 36. 650% 36.740%
City of New Ulm 74. 143% 74.607% 78.683% 80. 131% 80.984%
I. S. D. No. 88 15. 430% 14.676% 19. 332% 21. 131% 20.078%
Region 9 Development Commission 0. 178% 0. 164% 0. 150% 0. 173% 0. 167%
New Ulm EDA 1. 504% 1. 468% 1. 430% 1. 391% 1. 364%
Total Tax Rate for City Resident 132.744% 126.268% 132.487% 139. 476% 139.333%
Source: Brown County.
Tax Levies and Collections
Property taxes are collected in two installments in Minnesota -- the first by May 15 and the second by October 15. Mobile hometaxes are collectible in full by August 31. Minnesota Statutes require that levies ( taxes and special assessments) for debt service
be at least 105% of the actual debt service requirements to allow for delinquencies. The table below sets forth the City' s taxlevies and collections for the last five years and the most recent year of collections.
Table 7
Tax Levies and Collections
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16
Tax Delinquent
Collection Gross Tax Property Net Tax Tax of Year End Collections of Taxes as of
Year L v ( 2) Credits Leyy Collections (3) Net Levy Delinquency as of 01/ 01/ 17 Net Lew 01/ 01/ 17
2012 $ 5, 553, 242 $ ( 419) 5, 552,823 5, 483, 518 98. 75% 87,013 5, 545, 705 99.87% 7, 118
2013 5, 767,788 ( 247) 5, 767,541 5, 700,591 98. 84% 73, 313 5, 767,019 99.99% 6,884
2014 5, 945, 607 ( 276) 5, 945, 331 5, 904,755 99. 32% 65, 457 5, 954,556 100. 15% 15, 654
2015 6,439,346 ( 465) 6,438,881 6,410,816 99.56% 55, 875 6,452,320 100. 20% 14, 371
2016 6,740,269 ( 434) 6, 739,835 6,597,081 97. 88% 61, 952 6,597,081 97.88% 61, 952
2017 6,947,608 ( 442) 6, 947, 167 In process of collection....................................................
Amounts exclude homestead credits, mobile home taxes, special assessments, special taxing districts, captured tax increments, anddisparity and equalization aid.
2) Includes state aid replacements.
3) Includes excess TIF collections, abatements and additions, and lieu of taxes from EDA proprietary fund type component unit.
Source: Brown County.
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16
Special Assessment Levies and Collections
Special assessments are payable annually and assessed over a ten year period. Property owners may prepay assessments inaccordance with limitations set forth in the City ordinance establishing the assessment levies. The table below presents the
special assessments levies and collections, including special assessments in the enterprise funds, for the past six years.
Table 8
Special Assessment Levies and Collections
Current Current Ratio of Prepaid and Total Total
Assessments Assessments Collections to Delinquent Assessment Interest on Total OutstandingYear Due Collected Amount Due Collections Collections Assessments Collections Assessments
2011 $ 838, 653 615, 983 73. 45% $ 262,414 $ 878,397 216,041 1, 094,438 6, 346,6582012 690,403 581, 185 84. 18% 406,802 1, 045, 747 181, 852 1, 227, 599 5, 792,2532013 621, 149 581, 312 93. 58% 553,388 1, 140,327 165, 443 1, 305, 770 5, 575, 1562014 572, 661 559,909 97.77% 583, 215 1, 191, 847 146,421 1, 338,268 5, 229,4412015 493, 633 488,338 98. 93% 597,493 1, 201, 672 158, 526 1, 360, 198 4, 649,9312016 457, 892 452, 862 98. 90% 524,541 992,953 120,634 1, 113, 587 4, 958,963
Source: The City.
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17
DIRECT DEBT
General Obligation Debt - Levy and Special Assessment Supported
The tables below detail the outstanding general obligation debt supported by tax levies and special assessments as of September 5, 2017.
Table 9
General Obligation Debt - Levy and Special Assessment SupportedIndebtedness by Issue
OutstandingFiscal Year
December 31 Principal Interest
Series 2017B Bonds
Principal ') Interest ( 2) Total
2017 2, 710, 000
Principal
Date Original Interest Rates Maturities OutstandingOf Issue Amount Purpose Outstandine Outstandine As of 09/05/ 17
07/02/ 09 2,620,000 Improvements 3. 25%- 3. 65% 12/ 01/ 2017- 19 720,000
08/ 18/ 11 3, 225, 000 Improvements 2. 50%- 3. 25% 12/ 01/ 2017-21 1, 235,000
08/21/ 12 3, 300,000 Improvements 0. 85%- 1. 90% 12/ 01/ 2017-22 1, 655,000
07/ 15/ 13 2,875, 000 Improvements 0. 80%- 2. 15% 12/ 01/ 2017-23 2, 070,000
09/09/ 14 3, 470,000 Improvements 2. 00%- 2. 25% 12/ 01/ 2017-24 2, 015,000
07/ 01/ 15 3, 275, 000 Improvements 2. 00%- 2. 25% 12/ 01/ 2017-25 2, 970,000
08/22/ 16 3, 195, 000 Improvements 1. 50%- 2. 00% 12/ 01/ 2017-26 3, 195, 000
09/ 05/ 17 2,995, 000 (z) Improvements This Issue 12/ 01/ 2018- 27 2, 995, 000 c2
Total
50, 500
16 855. 000
The City intends to redeem the Series 2009A Bonds with cash on hand on December 1, 2017.
1, 010, 000
2) Preliminary, subject to change.
255, 000
Note: As of May 31, 2017, the City had $ 4, 747,997 of special assessments due from benefited parties in its bond sinking andinterest accounts. The special assessments are payable over ten years upon certification to the County Auditor and are used toabate the debt service levy. In addition, the City had $ 1, 617,714 of cash in their Debt Service Fund -Bond Fund, as of April 30, 2017.
260, 000 35, 500 1, 028, 213
Table 10
460, 000 12, 100
General Obligation Debt - Levy and Special Assessment Supported
27, 700 769, 800
Annual Maturity Schedule
100, 000
OutstandingFiscal Year
December 31 Principal Interest
Series 2017B Bonds
Principal ') Interest ( 2) Total
2017 2, 710, 000 135, 000 (3) 2, 845,000
2018 2,385, 000 223, 965 455, 000 98,863 3, 162, 828
2019 2,045, 000 180,960 475, 000 70,700 2, 771, 660
2020 1, 640,000 140, 108 235, 000 61, 200 2, 076,308
2021 1, 520,000 107,495 240,000 56,500 1, 923,995
2022 1, 285, 000 75,015 245, 000 50, 500 1, 655, 515
2023 1, 010, 000 49,560 255, 000 43, 150 1, 357,710
2024 705, 000 27,713 260, 000 35, 500 1, 028, 213
2025 460, 000 12, 100 270,000 27, 700 769, 800
2026 100, 000 2, 000 275, 000 19,600 396,600
2027 285,000 9,975 294,975
Total
Preliminary, subject to change. 2)
Estimated, assumes a true interest rate of 3. 10%. 3)
Excludes the June 1, 2017 interest payment.
18
General Obligation Debt - Revenue Supported
The tables below present the City' s general obligation debt supported by revenues to be outstanding as of September 5, 2017.
Table 11
General Obligation Debt —Revenue Supported
Indebtedness by Issue
Date Original
of Issue Amount Purpose
G.O. Debt Supported by Sales and Use Taxes
09/03/ 09 $ 6, 400,000 Refunding Sales Tax
Subtotal
G.O. Debt Supported by Net Revenues of the Public Utility System
Interest Rates
Outstandine
3. 00%- 3. 60%
Maturities
Outstandine
12/ 01/ 2017- 20
Principal to be
OutstandingAs of 09/05/ 17
2,650,000
2,650,000
06/27/07 $ 3, 943, 632 PFA Sewer Loan ( Wastewater) 2. 65% 08/20/2018- 26 $ 2,243,000
12/29/ 11 3, 000,000 Improvements (Electric) 2.00% 2. 65% 12/ 01/ 2017- 26 2,305, 000
07/ 15/ 13 2, 950,000 Improvements (Water) 2.00%- 3. 00% 12/ 01/ 2017- 28 2,425, 000
09/05/ 17 5, 560,000(2) Improvements (Wastewater) This Issue 12/ 01/ 2018- 36 5, 560,000 (2)
Subtotal 12, 751, 000
Total General Obligation Debt — Revenue Supported 15. 401. 000
The Bonds are payable by one-half of one percent sales and use tax and an excise tax approved on November 7, 2000 under MinnesotaStatutes, Section 297A.48. The extension of the 0. 5% sales tax was approved by voters in the November 2016 election but is awaitingapproval at the State level.
December 31
2)
Preliminary; subject to change.
Interest
Excludes the June 1, 2017 interest payment.
The remainder of this page has been left blank intentionally.)
19
Table 12
General Obligation Debt Revenue Supported
Annual Maturity Schedule
G.O. Debt Supported by Sales and Use TaxesFiscal Year
December 31 Principal Interest Total
2017 620,000 43, 875 663, 875
2018 645, 000 69, 150 714, 150
2019 675, 000 48, 510 723, 510
2020 710,000 25, 560 735, 560
Total 2 650.000 1$7 9 2. 837,095
Excludes the June 1, 2017 interest payment.
The remainder of this page has been left blank intentionally.)
19
Table 13
General Obligation Debt - Revenue Supported
Annual Maturity Schedule
G.O. Debt Supported by Net Revenues of the Public Utility System
Outstanding Series 2017A Bonds
Fiscal Year
December 31 Principal Interest Principal.(') Interest (2) Total
2017 385, 000 (31 54,209 13) 439,209
2018 619,000 160, 158 185, 000 226,717 1, 190, 875
2019 635, 000 146,322 230,000 179,300 1, 190, 622
2020 646,000 132, 127 235, 000 174,700 1, 187, 827
2021 662,000 117,673 240,000 170,000 1, 189, 673
2022 679,000 102, 860 245, 000 164,000 1, 190, 860
2023 700,000 87,374 255, 000 156,650 1, 199,024
2024 717,000 70, 809 260,000 149,000 1, 196, 809
2025 734,000 53, 218 270,000 141, 200 1, 198, 418
2026 751, 000 33, 939 275,000 133, 100 1, 193, 039
2027 220,000 13, 350 285, 000 123, 475 641, 825
2028 225,000 6, 750 295,000 113, 500 640,250
2029 305,000 103, 175 408, 175
2030 320,000 92,500 412, 500
2031 330,000 81, 300 411, 300
2032 340,000 69,750 409,750
2033 350,000 57, 850 407,850
2034 365, 000 45, 600 410,600
2035 380,000 31, 000 411, 000
2036 395. 000 15. 800 410.800
Total
Preliminary; subject to change. 2)
Estimated, assumes a true interest rate of 3. 69%. 3)
Excludes the February 1, June 1, and August 1, 2017 interest payments on the Bonds and the August 1, 2017 principal payment due onthe PFA Sewer Loan, dated June 27, 2007.
Special Assessments
The City EDA has special assessments obligations payable to the City in connection with a TIF District for the construction ofaffordable housing. The original amount authorized to issue was $ 438,944. The assessments are due in annual principal
installments of $43, 895 plus interest through December 31, 2022 at an interest rate of 6.00%. The outstanding balance as of May31, 2017 was $241, 419.
The remainder ofthis page has been left blank intentionally.)
20
Debt Limit
The statutory limit on debt of Minnesota municipalities other than school districts or cities of the first class ( Minnesota Statutes, Section 475. 53, subd. 1) is 3% of the estimated market value of all taxable property within its boundaries. " Net debt" ( Minnesota
Statutes, Section 475. 5 1, subd. 4) is the amount remaining after deducting from its gross debt ( 1) obligations issued forimprovements which are payable wholly or partly from special assessments levied against benefited property; ( 2) warrants ororders having no definite or fixed maturity; ( 3) obligations payable wholly from revenues; ( 4) obligations issued to create ormaintain a permanent improvement revolving fund; ( 5) funds held as sinking funds for payment of principal and interest on debtother than those deductible under 1- 4 above; ( 6) other obligations which are not to be included in computing the net debt of amunicipality under the provisions of the law authorizing their issuance. The City' s legal debt margin is calculated as follows:
Table 14
Debt Limit
Estimated Market Value (2016/ 2017) $ 824, 690,900
Legal Debt Limit 3. 00%
Total Legal Debt Limit (100%) $ 24,740,727
General Obligation Debt Subject to Debt Limit (0.00%) --
Legal Debt Margin ( 100%) 24.740. 727
OTHER LONG-TERM DEBT
Indirect General Obligation Debt
There are two taxing jurisdictions which overlap the City but only one had general obligation debt as of June 1, 2017. The tablebelow sets forth the general obligation debt for such jurisdictions and the amount of debt allocable to the City.
Table 15
Indirect General Obligation Debt
2016/ 17 Total Taxable of NTC Portion of G.O.
NTC of Allocable to Debt Allocable
Taxing District Governmental Unit the Ct Total G.O. Debt to the City
Brown County $ 34,296, 005 25. 02% 4,875, 000 $ 1, 219,725
I. S. D. No. 88 21, 861, 876 39.24% 49, 125, 000 19,276,650
Total 20.496.375
Source: Brown County.
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21
Funds on Hand
The following table presents the City' s cash and investments as of April 30, 2017.
Table 16
Funds on Hand
General Fund 4,947,711
Special Revenue Funds:
Economic Development Loan 1, 599,353
Economic Development Loan — Block Grant 399,616
Small Cities Development Grant 49,058
State MIF Grant 108,202
Library 83, 772
Library Board Fund 89,855
Park and Recreation 708,766
Parking System Fund 453, 349
Sales Tax Revenue Fund 4, 175, 352
Rehabilitation Loan 292,548
Tax Increment Districts 84,864
Reward Fund 2,389
Character Counts 59,563
Firefighter Fund 9,963
Debt Service Funds:
Bond Funds 1, 617,714
Capital Improvement Funds:
Capital Improvements 4, 843, 863
2014 GO PIRF Construction Bonds 465, 728
2015 GO PIRF Construction Bonds 649,758
2016 GO PIRF Construction Bonds 425, 024
2017 GO PIRF Construction Bonds 324,259)( 11
Airport Runway Extension 271, 539)(')
Airport Primary Runway Taxiway 184, 753
Permanent Funds:
Cemetery Trust 536, 558
Enterprise Funds ( component units):
Electric 4,446,375
Water 2, 524,606
District Energy 2, 546, 779
Natural Gas 6, 979,053
Wastewater 6, 378, 119
Economic Development Authority 159, 958
Internal Service Funds:
Administration 1, 982,934
Equipment Revolving 1, 234,705
Insurance Trust 1, 007,450
Health Insurance Trust 114,421
Information Technology 415, 278
Trust & Agency Funds: Employee Lunch Fund 7, 352
Misc. Affiliated Groups 40,597
BLR Drug Taskforce 211, 083
Total All Funds:
Source: The City.
The City will eliminate the deficits using bond proceeds. 2)
The City will eliminate the deficits using primarily federal and state grants to be received in the future and transfers from other city funds.
22
DESCRIPTION OF PUBLIC UTILITY SYSTEM
Management and Administration
The City owns its electric, gas, water, steam and sanitary sewer utilities ( the " Public Utility System"). In accordance with the
City Charter, the management and operation of the Public Utility System is under the direction of the five -member Public UtilitiesCommission ( the " PUC"). The members of the Commission are appointed by the Mayor, subject to the ratification of the CityCouncil, and serve three-year terms. Commissioners may serve three consecutive terms. The PUC has complete authority toestablish rates and charges for all Public Utility System utilities and is not subject to regulation by any State agency.
The City Manager has administrative responsibility for the daily management and operation of the Public Utility System. Aprofessional Utilities Director and several division managers assist the City Manager. The PUC administrative offices are locatedat 310 First North Street, adjacent to the power plant.
Gas Department
Gas Distribution System: Currently, the PUC contracts with British Petroleum (` BP") and purchases futures contracts on the
open market for the delivery of natural gas on a firm basis. All purchased natural gas is transported and delivered to the City onpipeline facilities owned by Hutchinson Utilities Commission (" HUC"). HUC constructed an 89 -mile natural gas pipeline that
taps into a refined natural gas line operated by Northern Border Pipeline. The Northern Border Pipeline currently extends fromCalgary, Canada to Chicago, Illinois. The HUC connection is near Trimont, Minnesota and extends 89 miles north to
Hutchinson, Minnesota. The City connects to the pipeline approximately one and one-half miles west of the City' s corporatelimits and extends into the City near the power plant. The pressure of purchased natural gas is reduced from approximately 1100p. s. i. to 5 p. s. i. for distribution to customers. The City also maintains a backup supply from Northern Natural Gas Pipelinethrough a separate city gate.
Water and Steam Departments
Waterworks System: The waterworks system has two ground storage facilities with a total storage capacity of 7, 500, 000 gallons, two elevated tanks with a total storage capacity of 450,000 gallons and the water treatment plant has an additional 750,000gallons of storage. The City' s water treatment plant, built in 1994, provides treatment capacity of 7.5 million gallons per daymgpd).
Steam Generation: The PUC operates a steam generation and distribution system serving the downtown business district andseveral manufacturing/ processing plants. The following water tube boilers furnish power for electric generation and produceprocessed steam for sale to downtown commercial and industrial customers:
Sanitary Sewer Department
The City' s wastewater treatment plant, constructed in 1975, is located near the City' s southern corporate limits. The plant alsoincludes an ATAD ( autothermal thermophilic aerobic digestion) biosolids handling unit which was constructed in 1996. The
facility is a complete mix activated sludge plant with a hydraulic capacity of 6. 77 mgpd. Current flow averages approximately2. 5 mgpd. In 1997, the Utility signed a long- term contract with the town of Courtland providing for long- term treatment of theirwastewater. Courtland' s wastewater volume is approximately 5% ( five percent) of the wastewater plant capacity. Constructionon the phosphorus reduction project in the wastewater treatment plant was completed in 2009. With successful operation of the
facility, this project complies with Minnesota Pollution Control Agency (" MPCA") requirements regulating phosphorousdischarges to the Minnesota River. The MPCA requires that the City' s wastewater treatment plant reduce phosphorousconcentrations and discharges to the Minnesota River to less that 1 mg/ l.
23
Table 17
Steam Generation
Unit Model Installed CqpacityCapacity Fuel
Boiler No. 1 Union Iron 1941 70,000 lbs. Gas
Boiler No. 2 Springfield 1947 70,000 lbs. Gas
Boiler No. 4 Babcock -Wilcox 1964 150,000 lbs. Gas
Sanitary Sewer Department
The City' s wastewater treatment plant, constructed in 1975, is located near the City' s southern corporate limits. The plant alsoincludes an ATAD ( autothermal thermophilic aerobic digestion) biosolids handling unit which was constructed in 1996. The
facility is a complete mix activated sludge plant with a hydraulic capacity of 6. 77 mgpd. Current flow averages approximately2. 5 mgpd. In 1997, the Utility signed a long- term contract with the town of Courtland providing for long- term treatment of their
wastewater. Courtland' s wastewater volume is approximately 5% ( five percent) of the wastewater plant capacity. Constructionon the phosphorus reduction project in the wastewater treatment plant was completed in 2009. With successful operation of the
facility, this project complies with Minnesota Pollution Control Agency (" MPCA") requirements regulating phosphorousdischarges to the Minnesota River. The MPCA requires that the City' s wastewater treatment plant reduce phosphorous
concentrations and discharges to the Minnesota River to less that 1 mg/ l.
23
Electric Department
Generation: The PUC' s electric generation capacity is provided by generating units operated at the electric plant and throughcontracts with others. Currently, the PUC owns and operates the following generating units:
Table 18
Electric Generation
Unit Model Installed Rated Capacity
1 Elliot BPT 2015 O. 00MW
2 Elliot BPT 2015 O. 00MW
3 Westinghouse ( retired) 1957 O. 00MW
4 General Electric 1965 15. 00MW
5 Turbo Power 1975 25. 00MW
6 Elliott Turbine 1997 6. 00MW
7 Pratt & Whitney 2001 27.00MW
Total
Total current accredited capacity including owned capacity and contracted capacity is 90.00 megawatts (" MW"), which is
expected to be adequate to meet the City' s projected load growth through approximately 2030. The City' s record peak of 48.85MW was in 2001. Allowing for a 15% reserve, the City' s firm capacity requirement is 56. 18 MW.
The City signed an agreement with Heartland Consumers Power District, Madison, SD (" Heartland") to supply the City with17MW of firm power starting on January 1, 2010 with an initial term of up to 20 ( twenty) years. Beginning on July 1, 2011 theoriginal 15MW was increased by 1MW to 16 MW through the enactment of a wind energy step up agreement with Heartland withan additional step up of 1MW on July 1, 2015. Therefore, at this time, the City is presently purchasing a total of 17MW of energyand capacity from Heartland.
The City and Northern States Power Company (" NSP") extended its original agreement whereby NSP has contracted to obtain25MW of capacity for a period of five years beginning on June 1, 2014 and ending May 31, 2019. This sale of excess capacitywill benefit the City in the amount of $33, 750 for each month of the contract. At the end of this contract the City has contracted tosell 30MW of capacity for an additional period of 5 years beginning June 1, 2019 to AEP Energy Partners, Inc. in the amount of
85, 500 for each month of the contract.
The Midwest Independent Transmission System Operator (" MISO") is committed to reliability, the nondiscriminatory operationof the bulk power transmission system, and to working with all stakeholders to create cost-effective and innovative solutions for achanging industry. The City is a registered market participate in MISO and is utilizing internal generating resources, Heartlandcontracted energy and the MISO market purchases to develop the City' s energy portfolio. In addition, the City has registered allrated generating units for energy sales into the MISO market which develop an additional revenue stream into the PUC or as ahedge against high MISO market energy prices. The primary delivery point of MISO market energy is through the City' sInterconnection Contract with Xcel Energy.
Table 19
Electricitv Produced and Purchased
Year KWH Produced KWH Purchased
2011 6, 964,000 191, 436,830
2012 6, 722,000 183, 901, 420
2013 4, 839,000 195, 165, 481
2014 2, 440,000 197,772, 139
2015 3, 607,000 198,388,327
2016 6, 137,000 201, 275, 826
24
Table 20
Electricitv Peak Demand
Year Peak Demand (MW)
2011 48. 533
2012 45.206
2013 45.757
2014 42. 166
2015 42.300
2016 44.800
Customer and Sales Data
The following table presents the number ofmeter connections as of January 1 each year:
Table 21
Public Utility System Customers
Year Water Gas Electric Steam Sewer
2011 5, 314 6, 102 7,028 111 5, 222
2012 5, 264 6, 104 7,003 111 5, 217
2013 5, 260 6, 132 7,035 112 5, 2432014 5,290 6, 163 7,094 112 5, 255
2015 5, 345 6,200 7, 181 108 5, 275
2016 5,373 6,244 7,241 105 5, 299
Table 22
2016 Lareer Public Utility System Customer BillinEs
Customer Water Gas Electric Steam Sewer Tax/Fees Total
Kraft 164,464 532,946 2,410,454 $ -- 779,887 30, 834 3, 918, 5853M 22,406 200,213 2, 540,948 -- 43, 125 130 2, 806, 822AMPI 90, 641 4, 707 769, 160 484,077 236,631 304 1, 585,450
Firmenich Inc. 63, 125 188, 763 395, 313 258, 964 134,632 6, 563 1, 047,360
Martin Luther College 58,203 208, 188 481, 368 -- 59,512 1, 279 808,550New Ulm Medical Center 40, 872 142,452 514,843 -- 39,823 428 738,418
Walmart 5, 623 37,657 527,488 -- 5, 964 31, 065 607,797
August Schell' s 78, 580 113, 448 189,976 -- 204,811 1, 840 588,655
Cashwise Foods 3, 469 28, 341 344,603 -- 3, 951 20,974 401, 338ISD #88 12,996 69,048 276,382 -- 13, 427 298 372, 151
Source: The City.
25
Total 2016 Public Utility System Total Billings: $36,354,875.
Table 23
2016 LarEer Public Utilitv Svstem Customer as Percent of Total Billings
Table 24
Public Utility System Sales
Total Percent of
Customer Billings(') Total Billings
Kraft 3, 887, 751 10.7%
3M 2, 806,692 7. 7%
AMPI 1, 585, 146 4.4%
Firmenich Inc. 1, 040,797 2.9%
Martin Luther College 807,271 2.2%
New Ulm Medical Center 737,990 2.0%
Walmart 576,732 1. 6%
August Schell' s 586,815 1. 6%
Cashwise Foods 380,364 1. 0%
ISD #88 371, 853 1. 0%
Total 12.781. 411 35. 1%
Total billings exclude taxes/ fees as shown in the 2016 Larger Public Utility System Customer Billings table.
Table 24
Public Utility System Sales
26
Water and Sewer Departments Steam Department
Year Gallons Water Charges Sewer Charges Pounds Charges
2011 628,289,000 2, 754,078 $ 3, 032,444 113, 907,000 1, 069,326
2012 665, 871, 000 3, 098,041 3, 127,591 105, 045,000 902,472
2013 605,950,000 3, 018,617 3, 310, 124 116, 555,000 1, 124,048
2014 583, 150, 000 2, 846,621 3, 370,485 125, 262, 000 1, 531, 048
2015 591, 978,000 2, 870,772 3, 487,602 102, 344,000 892,083
2016 594, 125, 000 2, 895, 756 3, 557,500 114, 760,000 956,922
Electric Department Gas Department
Year KWH Charges Cubic Feet Charges
2011 199,730,722 20, 389,382 968,699,700 7,897, 174
2012 189,670,296 20,905, 232 806, 625,600 6,723, 399
2013 188,498,669 21, 723, 176 980, 309,600 8, 000,486
2014 192,410,982 22,961, 115 1, 065, 410,700 10, 872, 102
2015 193, 061, 859 22,310, 123 1, 175, 474,000 6,631, 646
2016 195, 779,451 22, 801, 653 1, 233, 629,500 6, 143, 044
26
Historical Cash Flow and Anticipated Debt Service Coverage
The following table presents the Public Utility System' s operating revenues and expenditures for the fiscal years 2012 through2016 derived from the City' s Public Utility System Annual Financial Reports. Based on the Annual Financial Report as of
December 31, 2016, the revenues available for debt service from the Public Utility System was $ 6, 071, 799 which would haveproduced 5. 06 times the projected $ 1, 199,024 maximum annual debt service on all parity debt.
PUC SYS TEM CASH FLOW 2012 2013 2014 2015 2016
OPERATING REVENUES
Sales to Private Customers
Sales to City & Interfund
Miscellaneous Revenue
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Production
Transmission
Distribution
Depreciation
Administrative & General
Wastewater Treatment
TOTAL OPERATING EXPENSES
NET OPERATING INCOME
DEPRECIATION
NONOPERATING REVENUES
INTEREST EARNINGS
NET REVENUES BEFORE TRANSFERS
Transfers to City Funds
NET REVENUES FOR DEBT SERVICE
33, 524,267 36,252,853 39,859,236 34,746,026 34,833, 666
1, 646,790 1, 562,451 1, 722, 135 1, 446,200 1, 521, 209
1, 198.922 1. 178.468 1, 259.274 1, 343,324 1, 485,060
36,369,979 38, 993, 772 42,840,645 37,535,550 37,839,935
21, 551, 209 21, 943, 324 26,876,436 21, 459,437 21, 400,254
94,570 154,392 145,426 90,468 99,071
2,059,244 2, 162,653 2, 113, 524 2, 188,613 2, 158, 135
3, 348,576 3, 480,287 3, 602, 136 3, 677,812 3, 633,469
4,759,286 4,790,011 5, 005, 171 5, 027,387 5,445,562
1, 028.740 1. 059.036 1, 094,888 1. 013. 541 1. 073. 017
32,841, 625 33, 589,703 38,837,581 33, 457,258 33,809,508
3, 528,354 5, 404,069 4,003,064 4,078,292 4,030,427
3, 348,576 3, 480,287 3, 602, 136 3, 677,812 3, 633, 469
87,562 109,465 104,945 92,985 84,889
297,646 32( 5. 142) 667.525 255.492 196, 158
7,262, 138 8,668,679 8,377,670 8, 104,581 7,944,943
1, 819,617 1, 917,672 2,126,029 1, 859,076 1, 873, 144
5,442,521 6, 751, 007 6,251,641 6, 245,505 6,071, 799
DEBT SERVICE
Series 2007 ( Water) 77,000 140,000 140,400 400,400 0
Series 2007 (Electric) 222,200 225,200 222,800 646,800 0
Series 2007 (Sewer PFA) 282,929 282,867 283,673 283, 320 282,835
Series 2008 (Refunding) 1, 137,750 678,375 684,750 0 0
Series 2010A ( Refunding) 386,488 397,378 381, 043 387,253 379,713
Series 2011B (Electric) 159,674 162,706 160,706 253, 706 254,806
Series 2013B (Water) 0 25, 731 238, 113 239,713 241, 213
Series 2017A ( Sewer) 0 0 0 0 0
TOTAL DEBT SERVICE 2,266,040 1, 912,258 2, 111, 485 2,211, 192 1, 158,566
NEI' REVENUES AFTER DEBT 3, 176,481 4,838,749 4, 140, 156 4,034,313 4,913,233
DEBT COVERAGE 2. 40 3.53 2. 96 2.82 5.24
27
THE CITY
City Government
The City, organized as a municipality in 1855, comprising approximately 8. 84 square miles, operates under a Home Rule Charterform of government consisting of a five -member City Council and a Mayor, who is not a voting member. One Council memberelected at large acts as President of the Council. The City is administered by the Mayor and by an appointed City Manager who isresponsible for the supervision and management of City operations and the implementation of City Council governing decisionsand policies. A full-time Finance Director, appointed by the City Manager, is responsible for administrative,details and financialrecords.
The City has a seven -member Planning Commission, which acts in an advisory capacity to the City Council, assisting indeveloping comprehensive plans for the City. Other advisory bodies include a Board of Health, Cable Communications AdvisoryBoard, Library Board, Safety Commission, Public Utilities Commission, a Parks and Recreation Commission, a Board of ZoningAdjustment, Sister Cities Commission, Human Rights Commission, Energy Awareness Commission, Emergency Management, Heritage Preservation Commission, Economic Development Authority, Airport Commission and a joint Brown County/CityAirport Zoning Commission.
The City' s PUC is operated as an economic entity separate from the City, but certain actions of the PUC are subject to approvalby the City Council. Members of the PUC are appointed by the Mayor with confirmation by the City Council. The PUC ischarged with the planning and management of the City' s electric, steam heat, natural gas, wastewater and water utilities. TheUtilities are under the general supervision of a Utilities Superintendent who reports to the City Manager. The Finance Directoracts as Secretary and Finance Officer of the Commission.
The City Council and Administration is comprised of the following member:
Mayor and Council
Name Position Term Expires
Robert J. Beussman Mayor 12/ 31/ 2018
Charles E. Schmitz President 12/ 31/ 2020
David Christian Councilor 12/ 31/ 2020
Lisa K. Fischer Councilor 12/ 31/ 2018
Les P. Schultz Councilor 12/ 31/ 2020
Larry A. Mack Councilor 12/ 31/ 2018
Administration
Name Position
Brian D. Gramentz City ManagerNicole Jorgensen Finance Director
Roger H. Hippert City Attorney
The remainder ofthis page has been left blank intentionally.)
28
Population
The table below shows the population of the City and Brown County as recorded in the past four decennial censuses and the mostrecent estimate.
Table 25
Population
Year City ofNew Ulm Brown Countv
2015 ( Estimate) 13, 583') 25, 313
2010 13, 522 25, 893
2000 13, 594 26, 911
1990 13, 132 26,984
1980 13, 755 28,645
1)
Estimate provided by the Minnesota State Demographer.
Source: United States Census Bureau.
Location and Transportation
The City, the Brown County Seat, is situated at the confluence of the Minnesota and Cottonwood Rivers and covers an area of8. 84 square miles. Located 90 miles southwest of the Minneapolis -St. Paul metropolitan area, the City is served by U.S. Highway14 and State Highway 15 plus a system of County roads. Interstate I- 90 is located about 40 miles south and U.S. Highway 169 is25 miles to the east of the City.
The New Ulm Municipal Airport features a 5, 400 foot paved runway with GPS and NDB approaches. New Ulm Flight Serviceoffers charter flights and priority freight 24 hours a day, 365 days a year. Minneapolis International Airport is 90 minutes awayby car.
The City is home to a number of large trucking companies. J& R Schugel Trucking, Inc. is the largest trucking company in theCity, which specializes as a truckload carrier of general commodities, with 600 power units and approximately 1, 000 trailers. J& R Schugel Trucking, Inc. services the 48 continental U.S. States. Another large trucker based in the City is D& A Trucking, which specializes in partial loads and has a 48 state authority.
Rail service is provided by the Canadian Pacific Railroad.
City Services
Public Safety
The Police Department is located in the Brown County Law Enforcement Center. The department consists of the police chief, 22sworn officers, three non -sworn personnel, two part- time non -sworn, 9 reserve non -sworn and one K-9.
The Fire Department is currently a dedicated team of 39 firefighters serving the City and its surrounding area. With the exceptionof the Fire Chief, who is a paid full time employee of the City, all of its members are volunteers.
Public Utilities
Section 208 of the City' s Home Rule and Charter created and established a Public Utilities Commission ( the " Commission") which was given the sole and exclusive management and control of any utility owned or operated by the City and determined tobe a Public Utility by the City Council. The Commission provides electric, water, district energy, natural gas, and wastewaterservices to residents and businesses in the area.
29
Education
Independent School District No. 88 ( New Ulm), with 275 full-time licensed and non -licensed employees and a 2016- 2017
enrollment of 2, 087 students, owns and operates 4 buildings: one elementary school (grades pre -K through 3` d), one middle schoolgrades 4"' through 6"'), one senior high school ( grades 7d' through 12th) and a learning center. In addition, there are several
parochial schools in the City providing education for grades kindergarten through 12th grade.
Martin Luther College, a private four-year college, is located within the City. Additional higher educational institutions located inthe area include Minnesota State University- Mankato campus located approximately 30 miles southeast of the city of Mankatoand Gustavus Adolphus College located in the City of St. Peter, 20 miles east of the City.
Financial Services
Financial services for residents of the City are provided by Citizens Bank Minnesota and branch offices of Alliance Bank, BankMidwest, Frandsen Bank & Trust, United Prairie Bank and Wells Fargo Bank, N.A. The banks reported the following deposits asof June 30 for each year:
Table 26
Total Annual Deposits
Formerly Citizens Bank of New Ulm.
Source: Federal Deposit Insurance Corporation ( FDIC), www. fdic. gov.
The remainder of this page has been left blank intentionally.)
30
Citizens Bank Frandsen Bank United Prairie Wells Fargo
Year Minnesota(') Alliance Bank Bank Midwest and Trust Bank Bank, N.A.
2011 185, 204,000 117,910,000 31, 554,000 69,448, 000 31, 459,000 23, 350,000
2012 196, 272,000 115, 951, 000 32,687,000 72,892,000 33, 084,000 25, 500,000
2013 203, 693,000 116,791, 000 30,315, 000 74,612,000 33, 655, 000 26,982,000
2014 192, 546,000 119,863, 000 27,918,000 72,376,000 37,953, 000 27,470,000
2015 192, 139,000 111, 447,000 28,633, 000 71, 700,000 30,621, 000 30,066, 000
2016 204,634,000 110,825, 000 33, 443,000 75, 157,000 29,894,000 32, 132, 000
Formerly Citizens Bank of New Ulm.
Source: Federal Deposit Insurance Corporation ( FDIC), www. fdic. gov.
The remainder of this page has been left blank intentionally.)
30
Building Permits
The table below presents the building permits during the last four calendar years and the most recent data available.
Table 27
Buildine Permits
2013 2014 2015 2016 2017()
Single Family Homes
New Construction
No. of Permits
Value
Additions/ Remodeline
No. of Permits
Value
No. ofHomes Demolished
Multiple Family Dwellings
New Construction
No. of Permits
Value
Commercial/Industrial
New Construction
No. of Permits
Value
Total Building Permits
Total No. of Permits
Total Value
As of June 30, 2017.
Source: The City.
20 29 20 19 93, 570,000 5, 634,000 4,225, 000 3, 805,000 1, 949,000
291 300 267 268 110
2, 695, 792 2,984, 185 2, 808, 335 2, 831, 932 1, 222,550
3 13 11 4 3
2 1 0 0 2
6, 600,000 3, 650,000 0 0 300,000
94 88 72 79 4022,256,755 8, 576,650 31, 228,355 18, 562, 180 5, 646,300
410 431 370 370 164
35, 122, 547 20,844,835 38,291, 690 25, 199, 112 9, 117, 850
The remainder ofthis page has been left blank intentionally.)
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Largest Employers
A representative list of larger employers by number of employees in the City is presented in the table below.
Source: New Ulm Economic Development Corporation.
Labor and Unemployment Statistics
The Minnesota Department of Employment and Economic Development computes annualized average figures for labor force and
unemployment rates for the State and its municipalities. The following table presents the average labor force and unemploymentrate for the City, Brown County, and the State of Minnesota for the last five years and the most recent figures available. Seasonally adjusted rates are only available for state and national figures; therefore all rates presented in the table below are notseasonally adjusted figures.
Table 29
Labor and Unemplovment Statistics
Table 28
Brown County State of Minnesota
Lareest Employers
Average Average Average
Approximate
Employer Type of Business Number of Employees
3M Rubber Products -Manufacturer 775
New Ulm Medical Center Hospital 600
Kraft General Foods Food Products 445
New Ulm Public Schools School 301
Brown County Government 271
Associated Milk Producers Dairy Products 252
City ofNew Ulm Government 244
J& R Schugel Trucking Trucking 220
Hy -Vee Grocer -Retail 216
MRCI New Ulm Employment Contractor 200
Wal-Mart Department Store 180
Golden Home Care Plus Home Health Services 175
MBW Co. Home Health Services 173
Minnesota Valley Testing Labs Agricultural and Food Testing 170
Oak Hills Living Center Nursing Home 168
Cash Wise Grocery Store 161
Martin Luther College College 158
Menards Department Store 150
Source: New Ulm Economic Development Corporation.
Labor and Unemployment Statistics
The Minnesota Department of Employment and Economic Development computes annualized average figures for labor force and
unemployment rates for the State and its municipalities. The following table presents the average labor force and unemploymentrate for the City, Brown County, and the State of Minnesota for the last five years and the most recent figures available.
Seasonally adjusted rates are only available for state and national figures; therefore all rates presented in the table below are notseasonally adjusted figures.
Table 29
Labor and Unemplovment Statistics
As of April, 2017.
Source: Department of Employment and Economic Development.
32
City of New Ulm Brown County State of Minnesota
Average Average Average Average Average Average
Year Labor Force Unemployment Labor Force Unemployment Labor Force Unemployment
2017(1) 7, 836 4. 2% 14, 781 5. 4% 3, 005, 871 4. 5%
2016 7, 883 3. 7% 14, 755 4. 1% 3, 001, 131 3. 9%
2015 7, 754 3. 7% 14, 511 4. 1% 2,975, 533 3. 7%
2014 7, 537 4. 3% 14, 136 4.6% 2,961, 331 4.2%
2013 7, 685 4. 8% 14, 509 5. 2% 2,955,266 5. 0%
2012 7, 846 5. 2% 14, 817 5. 6% 2,946,355 5. 6%
As of April, 2017.
Source: Department of Employment and Economic Development.
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Defined Benefit Pension Plans - Statewide
Plan Description
The City participates in the following cost-sharing multiple -employer defined benefit pension plans administered by the PublicEmployees Retirement Association of Minnesota (" PERA"). PERA' s defined benefit pension plans are established andadministered in accordance with Minnesota statutes, Chapters 353 and 356. PERA' s defined benefit pension plans are tax
qualified plans under Section 401 ( a) of the Internal Revenue Code.
General Employees Retirement Fund
All full-time and certain part-time employees of the City are covered by the General Employees Retirement Fund (" GERF").
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by SocialSecurity and Basic Plan members are not. The Basic Plan was closed to new members in 1967. All new members mustparticipate in the Coordinated Plan.
Public Employees Police and Fire Fund
The Public Employees Police and Fire Fund (" PEPFF"), originally established for police officers and firefighters not covered by alocal relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF alsocovers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets andadministration to PERA.
Benefits Provided
PERA provides retirement, disability and death benefits. Benefit provisions are established by Minnesota Statute and can only bemodified by the state legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan. Membersin plans that are at least 90 percent funded for two consecutive years are given 2. 5 percent increases. Members in plans that havenot exceeded 90 percent funded, or have fallen below 80 percent, are given 1 percent increases.
The benefit provisions stated in the following paragraphs of this section are current provisions and apply to active planparticipants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by theprovisions in effect at the time they last terminated their public service.
GERF Benefits
Benefits are based on a member' s highest average salary for any five successive years of allowable service, age, and years ofcredit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members.
The retiring member receives the higher of a step -rate benefit accrual formula (" Method 1") or a level accrual formula (" Method2"). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first tenyears of service and 2. 7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1. 2 percentof average salary for each of the first ten years and 1. 7 percent for each remaining year. Under Method 2, the annuity accrual rateis 2. 7 percent of average salary for Basic Plan members and 1. 7 percent for Coordinated Plan members for each year of service. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90 and normal retirementage is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefitscapped at 66.
PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50 percentafter five years up to 100 percent after ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50 percent after ten years up to 100 percent after twenty years of credited service. The annuityaccrual rate is 3 percent of average salary for each year of service. For PEPFF who were first hired prior to July 1, 1989, a fullannuity is available when age plus years of service equal at least 90.
Contributions
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modifiedby the state legislature.
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GERF Contributions
Basic Plan members and Coordinated Plan members are required to contribute 9. 10 percent and 6. 50 percent, respectively, oftheir annual covered salary in calendar year 2016. The City is required to contribute 11. 78 percent of pay for Basic Plan membersand 7.50 percent for Coordinated Plan members in calendar year 2016. The City' s contributions to the GERF for the years endingDecember 31, 2016, 2015 and 2014 were $274,808, $ 267,657 and $ 258,643 respectively. The City' s contributions were equal tothe contractually required contributions for each year as set by Minnesota statute.
PEPFF Contributions
Plan members are required to contribute 10. 8 percent of their annual covered salary in calendar year 2016. The City was requiredto contribute 16. 20 percent of pay for PEPFF members in calendar year 2016. The City' s contributions to the PEPFF for theyears ending December 31, 2016, 2015 and 2014 were $274,765, $ 260,583 and $ 231, 505 respectively. The City' s contributionswere equal to the contractually required contributions for each year as set by Minnesota statute.
Pension Costs
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modifiedby the state legislature.
GERF Pension Costs
At December 31, 2016, the City reported a liability of $4, 718, 170 for its proportionate share of the GERF' s net pension liabilityof which the EDA' s portion was calculated at $ 72,538. The EDA' s pension liability was reported as $ 50,843 due to a timingdifference which exists due to the EDA having a June 30 year-end. At December 31, 2016, the PUC reported a liability of
6,422,528 for its proportionate share of the GERF' s net pension liability. The City' s net pension liability reflected a reductiondue to the State of Minnesota' s contribution of $6 million to the fund in 2016. The State of Minnesota is considered a non -
employer contributing entity and the State' s contribution meets the definition of a special funding situation. The State of
Minnesota' s proportionate share of the net pension liability associated with the City totaled $62,492 of which the EDA' s portionwas $ 946. The State of Minnesota' s proportionate share of the net pension liability associated with the PUC totaled $ 83, 846. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pensionliability was determined by an actuarial valuation as of that date. The EDA' s net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of thatdate. The City proportion of the net pension liability was based on the City' s contributions received by PERA during themeasurement period for employer payroll paid dates from July 1, 2015 through June 30, 2016 relative to the total employercontributions received from all of PERA' s participating employers. At June 30, 2016, the City' s proportionate share was 0. 0581percent which was a 0.0015 percent decrease from its proportion measured as of June 30, 2015. The EDA' s proportionate share
was calculated at 0. 0010 percent at June 30, 2016 and at . 0011 percent at June 30, 2015. The PUC' s proportionate share was0. 0791 percent which was a 0. 0035 percent decrease from its proportion measured as of June 30, 2015. For the year ended
December 31, 2016, the City recognized pension expense of $215, 753 for its proportionate share of GERF' s pension expense ofwhich the EDA' s portion was calculated at $ 8, 598 The PUC recognized pension expense of $248,676 for its proportionate share
of GERF' s pension expense. In addition, the City recognized an additional $ 18, 633 as pension expense ( and grant revenue) for itsproportionate share of the State of Minnesota' s contribution of $6 million to the GERF of which the EDA' s portion wascalculated at $ 282. In addition, the PUC recognized an additional $ 25, 001 as pension expense ( and grant revenue) for its
proportionate share of the State ofMinnesota' s contribution of $6 million to the GERF.
PEPFF Contributions
At December 31, 2016, the City reported a liability of $6,942,791 for its proportionate share of the PEPFF' s net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pensionliability was determined by an actuarial valuation as of that date. The City' s proportion of the net pension liability was based onthe City' s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2015through June 30, 2016 relative to the total employer contributions received from all ofPERA' s participating employers. At June30, 2016, the City' s proportionate share was 0. 1730 percent which was a 0. 0030 percent increase from its proportion measured asof June 30, 2015. For the year ended December 31, 2016, the City recognized pension expense of $204,708 for its proportionateshare of PEPFF' s pension expense. The City also recognized $ 15, 570 for the year ended December 31, 2016 as pension expenseand an offsetting reduction of net pension liability) for its proportionate share of the State of Minnesota' s on -behalf contributions
to the plan. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF each year, starting in fiscal year 2014.
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Additional Information
For additional information on pension costs, actuarial assumptions, discount rate, pension liability sensitivity, and pension planfiduciary net position of the City' s Defined Benefit Pension Plans - Statewide, see Note IV, sections A through H of the " Notes tothe Financial Statements" in the Annual Financial Report for Fiscal Year Ended December 31, 2016 attached in APPENDIX A.
Defined Contribution Plan
Elected officials of the City are covered by the Public Employees Defined Contribution Plan (" PEDCP"), a multiple -employer
deferred compensation plan administered by the Public Employees Retirement Association of Minnesota (" PERA"). The PEDCP
is a tax qualified plan under section 401( a) of the Internal Revenue Code and all contributions by or on behalf of employees aretax deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses therefore, there is no future liability to the employer. Minnesota Statutes, chapter 353d.03, specifies plan provisions, including theemployee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who
decides to participate contributes 5 percent of salary which is matched by the elected official' s employer. Employees who arepaid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer andemployee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota
Supplemental Investment Fund. For administering the plan, PERA receives 2 percent of employer contributions and twenty- fivehundredths of 1 percent (0. 0025) of the assets in each member' s account annually.
The City' s contributions to the PEDCP for the years ended December 31, 2016, 2015 and 2014 were $ 1, 325, $ 1, 325 and $ 1, 325,
respectively. The City' s contributions were equal to the contractually required contributions for each year as set by Minnesotastatute.
Contribution Amount
Employee Employee
1, 325 $ 1, 325
Contribution Amount
Employee Employee
5. 00% 5. 00%
Defined Benefit Pension Plans — Fire ReliefBenefit Association
Plan Description
Required Rate
5. 00%
All members of the City' s Fire Department ( the " Department") are covered by a defined benefit plan administered by the NewUlm Fire Department Relief Association ( the " Association"). As of December 31, 2016, the plan covered 39 active firefighters
and 8 vested terminated fire fighters whose pension benefits are deferred.
The Association is a single -employer defined benefit pension plan that operates under the provisions of Minnesota Statutes,
Section 69 and 424, as amended. It is governed by a board of trustees made up of six members elected by the members of theAssociation for three-year terms. The Council President, Finance Director and Fire Chief of the City are ex officio, votingmembers of the Board.
The City' s payroll for officers of the Association covered by the compensation plan for the year ended December 31, 2016 was6, 100.
Benefits Provided
A fire fighter who completes at least 20 years as an active member of the Department is entitled, after age 50, to a full service
pension upon retirement. The service pension prescribed by the Association's bylaws is a monthly benefit of $24.50 for each yearof service completed by the individual, or $4, 250 per year of service lump -sum.
The bylaws of the Association also provide for an early vested service pension for a retiring member who has completed fewerthan 20 years of service. The reduced pension, available to members with 10 years of service, shall be equal to 60 percent of the
35
pension as prescribed by the bylaws. This percentage increases 4 percent per year so that at 20 years of service, the full amountprescribed is paid.
A member of the Association who has completed 20 or more years of active service with the Fire Department but has not reached
age 50 shall have the right to retire from the department without forfeiting the right to a service pension. The member shall beentitled to a deferred service pension and upon attaining the age of 50, the Association shall, upon application thereof, pay themember's pension from the date the application is approved. A member is also entitled to disability benefits of $25. 50 per monthfor the monthly plan, or $ 4,250 lump sum for each year of service as an active member of the Department in the event themember becomes totally disabled.
Contributions
Minnesota Statutes, Chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. The plan is funded
by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota Statutes and voluntaryCity contributions ( if applicable). The State of Minnesota contributed $ 93, 158 in fire state aid to the plan on behalf of the
Department for the year ended December 31, 2016, which was recorded as revenue. Required employer contributions are
calculated annually based on statutory provisions. The City' s statutorily -required contributions to the plan for the year endedDecember 31, 2016 were $32, 128. The City' s contributions were equal to the required contributions as set by State Statute. TheCity made no voluntary contributions to the plan. Furthermore, the firefighter has no obligation to contribute to the plan.
Pension Costs
At December 31, 2016, the City reported a net pension liability (asset) of ($526,398) for the plan. The net pension liability (asset) was measured as of December 31, 2016. The total pension liability used to calculate the net pension liability (asset) in accordancewith GASB 68 was determined by Van Iwaarden Associates applying an actuarial formula to specific census data certified by theDepartment as of December 31, 2016. For the year ended December 31, 2016, the City recognized pension expense of ($86,775).
Additional Information
For additional information on pension costs, actuarial assumptions, funding status, pension liability sensitivity, and pension planfiduciary net position of the City' s Defined Benefit Pension Plans - Fire Relief Benefit Association, see Note VI, sections A
through H of the " Notes to the Financial Statements" in the Annual Financial Report for Fiscal Year Ended December 31, 2016
attached in APPENDIX A.
Postemployment Benefits other than Pensions
Plan Description
The City and the PUC administer single employer defined benefit healthcare plan (" the Retiree Health Plan"). The plan provides
lifetime healthcare insurance for eligible retirees and their spouses through the City' s group health insurance plan, which coversboth active and retired members. Benefit provisions are established through negotiations between the City and the unionrepresenting City employees and are renegotiated each bargaining period. The Retiree Health Plan does not issue a publiclyavailable financial report.
Funding Polic
Contribution requirements also are negotiated between the City and union representatives. The City does not contribute any ofthe current -year premiums for eligible retired plan members and their spouses.
Annual OPEB Cost and Net OPEB Obligation
The City' s annual other postemployment benefit (" OPEB") cost ( expense) is calculated based on the annual required contribution
of the employer (" ARC"). This amount is actuarially determined in accordance with GASB Statement 45 for employers in planswith greater than one hundred total plan members. The ARC represents a level of funding that, if paid on an ongoing basis, isprojected to cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not toexceed thirty years. The following table shows the components of the City' s and PUC' s annual OPEB cost for the year, theamount actually contributed to the plan, and changes in the City' s and PUC' s net OPEB obligation to the Retiree Health Plan:
36
Net OPEB obligation — end of year
The City' s and PUC' s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEBobligation for fiscal year 2016 and the two preceding fiscal years were as follows:
city
PUC
City PUC
Annual Required Contribution 49,422 58, 973
Interest on Net OPEB Obligation 10,288 11, 147
Adjustment to Annual Required Contribution 14, 874) 16, 115)
Annual OPEB cost ( expense) 44,836 54,005
ContributionsMade1( 1, 648) 45, 793)
Increase in Net OPEB obligation 33, 188 8,212
Net OPEB obligation — beginning of year 257,207 278,665
Net OPEB obligation — end of year
The City' s and PUC' s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEBobligation for fiscal year 2016 and the two preceding fiscal years were as follows:
city
PUC
Funded Status and Fundine Proeress
As of December 31, 2014, the actuarial accrued liability for benefits was $ 382, 082 and $ 444, 656 for the City and PUC, respectively, all of which was unfunded. The covered payroll was $ 4, 579, 328 and $ 4, 323, 000 and the ratio of the unfundedactuarial accrued liability to the covered payroll was 8. 3 and 10. 3 percent for the City and PUC, respectively.
An actuarial valuation for an ongoing plan involves estimates of the value of reported amounts and assumptions about theprobability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, andthe healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions ofthe employer are subject to continual revision as actual results are compared with past expectations and new estimates are made
about the future. The schedule of funding progress, presented as required supplementary information following the notes to thefinancial statements, presents multi- year trend information about whether the actuarial value of plan assets is increasing ordecreasing over time relative to the actuarial accrued liabilities for benefits.
For information on the methods and assumptions of the Postemployment benefits other than pensions, see Note VII, section F ofthe " Notes to the Financial Statements" in the Annual Financial Report for Fiscal Year Ended December 31, 2016 attached inAPPENDIX A.
Labor Contracts
The City and the PUC have a total of 261 full- time and part- time employees including 22 police officers. Twenty police officersare represented by the Law Enforcement Labor Services, Local # 150 under a contract expiring December 31, 2017. Fifty- sevenPublic Utilities employees are represented by the International Brotherhood of Electrical Workers, Local # 949 under a contractthat expires December 31, 2019 and 25 street and maintenance employees are members of the American Federation of State,
County and Municipal Employees, AFL- CIO, Local # 1204 under a contract expiring December 31, 2019.
37
Percentage Net OPEB
Year Endine Annual OPEB Cost Annual OPEB Contributed Obliagtion
12/ 31/ 2016 44, 836 26.0% 290,395
12/ 31/ 2015 43, 872 33. 3% 257,207
12/ 31/ 2014 42, 771 23. 7% 227,940
Percentage Net OPEB
Year Endine Annual OPEB Cost Annual OPEB Contributed Obli ation
12/ 31/ 2016 54,005 84. 8% 286,877
12/ 31/ 2015 53, 486 63. 5% 278, 665
12/ 31/ 2014 52, 336 33. 3% 259, 117
Funded Status and Fundine Proeress
As of December 31, 2014, the actuarial accrued liability for benefits was $ 382, 082 and $ 444, 656 for the City and PUC, respectively, all of which was unfunded. The covered payroll was $ 4, 579, 328 and $ 4, 323, 000 and the ratio of the unfunded
actuarial accrued liability to the covered payroll was 8. 3 and 10. 3 percent for the City and PUC, respectively.
An actuarial valuation for an ongoing plan involves estimates of the value of reported amounts and assumptions about theprobability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and
the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions ofthe employer are subject to continual revision as actual results are compared with past expectations and new estimates are made
about the future. The schedule of funding progress, presented as required supplementary information following the notes to thefinancial statements, presents multi- year trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
For information on the methods and assumptions of the Postemployment benefits other than pensions, see Note VII, section F ofthe " Notes to the Financial Statements" in the Annual Financial Report for Fiscal Year Ended December 31, 2016 attached in
APPENDIX A.
Labor Contracts
The City and the PUC have a total of 261 full- time and part- time employees including 22 police officers. Twenty police officersare represented by the Law Enforcement Labor Services, Local # 150 under a contract expiring December 31, 2017. Fifty- seven
Public Utilities employees are represented by the International Brotherhood of Electrical Workers, Local # 949 under a contractthat expires December 31, 2019 and 25 street and maintenance employees are members of the American Federation of State,
County and Municipal Employees, AFL- CIO, Local # 1204 under a contract expiring December 31, 2019.
37
The City has not started negotiations on the labor contracts expiring on December 31, 2017, but it expects negotiations will startwithin the next couple of months and be in place before the expiration date.
Insurance
Type of Insurance
Worker' s Compensation Liability
Comprehensive Municipal Liability
EMF
Failure to supplyMunicipal liability: General liability & errors & omissions)
Land use, development or franchise litigation
Lead or Asbestos
Limited pollution liabilityMedical and related expense limit
Products completed operations
Airport Liability
Property Insurance
Buildings. Machinery & fguipment, Property in the Open
Blanket buildings and contents
includes fine arts and computers)
Loss of revenue, extra expense or
expediting expenseMunicipal Vehicle
Liability comprehensive/ collisionPersonal injury protectionUninsured and underinsured motorist
Valuable Papers
Water & Supplemental Flood Coverage
Boiler & Machinery (property damage)
Crime (Money & Securities)
Inside and outside premises
Faithful Performance Bond
Equipment Breakdown Coverage
Coverage
Statutory coverage
3, 000, 000 annual aggregate limit
3, 000,000 annual aggregate limit
2,000,000 per occurrence
1, 000,000 annual aggregate
250,000 per location
2,000,000 each occurrence/$ 3, 000,000 annual aggregate limit
2, 500/$ 10,000 any one person/ occurrence3, 000,000 annual aggregate limit
3, 000,000 annual aggregate commercial liability
277, 119, 100 total value coverage
5, 000,000 per occurrence
2, 000, 000 per occurrence
Minnesota statutory coverage200,000 per occurrence
500,000 coverage per location .
500,000 per occurrence/annual aggregate limit
100, 000,000 per accident
250,000 per occurrence
600,000 all employees
100,000,000 limit
38
FINANCIAL INFORMATION
Budgetfor the General Fundfor 2017
The table below present the budgeted funding sources and expenditures for the general fund for the years 2017.
Table 30
General Fund Budeet for Fiscal Year 2017
Revenues
Taxes 4, 510, 137
Special Assessments 23, 000
Licenses, Permits and Fees 238,050
Intergovernmental 3, 677,787
Charges for Service 801, 005
Fines and Forfeits 68, 700
Miscellaneous 114, 550
Other 1. 340.000
Total Revenues
Expenditures
Personal Services $ 6,286,546
Supplies and Materials 894, 175
Other Services and Charges 2, 527,008
Capital Outlay 1, 834,700
Transfers 25.000
Total Expenditures 11. 567.429
The City is running a deficit in the General Fund budget mostly due to the plan to $ 1. 2 million purchase of land for the NationalGuard Armory and regional maintenance center, $ 200,000 for the industrial park and $ 400,000 for the wage studyimplementation.
Financial Statements
The City' s Annual Financial Report is audited by an independent accountant. The certified public accountant has not consentedto distribution of the Annual Financial Report and has not undertaken added review of its presentation. Further information
regarding the financial performance and copies of prior financial statements are available upon request from the City or may beobtained on the City' s website ( http:// www.ci.new-ulm.mn.us). The City' s Annual Financial Report for the Fiscal Year EndedDecember 31, 2016 is attached as APPENDIX A of this Preliminary Official Statement.
The City has authorized the distribution of this Preliminary Official Statement for use in connection with the initial sale of theBonds. I have reviewed the information contained within the Preliminary Official Statement prepared on behalf of the City ofNew Ulm, Minnesota, by the City' s Municipal Advisor, PFM Financial Advisors LLC, Des Moines, Iowa and Minneapolis, Minnesota and to the best of our knowledge, information and belief said Preliminary Official Statement does not contain anymaterial misstatements of fact nor omission of any material fact regarding the issuance of the Bonds.
CITY OF NEW ULM, MINNESOTA
By:/ s/ Nicole JorgensenFinance Director
39
U>> DI 111: I:\
The City' s Annual Financial Reportfor the Fiscal Year Ended December 31, 2016
APPENDIX B
Forms of Legal Opinions
00RSEYDORSEY & WHITNEY LLP
City of New Ulm, Minnesota
Original Purchaser]
Re: $ General Obligation Public Utility Revenue Bonds, Series 2017ACity of New Ulm, Brown County, Minnesota
Ladies and Gentlemen:
As Bond Counsel in connection with the authorization, issuance and sale by the City of New Ulm, Brown County, Minnesota (the " City"), of its General Obligation Public Utility Revenue Bonds, Series 2017Adated, as originally issued, as of September 5, 2017 ( the " Bonds"), we have examined certified copies of
certain proceedings taken, and certain affidavits and certificates furnished, by the City in the authorization, saleand issuance of the Bonds, including the form of the Bonds. As to questions of fact material to our opinion wehave assumed the authenticity of and relied upon the proceedings, affidavits and certificates furnished to uswithout undertaking to verify the same by independent investigation. From our examination of such
proceedings, affidavits and certificates, and based upon laws, regulations, rulings and decisions in effect on thedate hereof, it is our opinion that:
1. The Bonds are valid and binding general obligations of the City, enforceable in accordancewith their terms.
2. The principal of and interest on the Bond are payable primarily from net revenues of theCity' s Public Utility System and from ad valorem taxes levied on all taxable property in the City, and to anyextent not so paid, from additional ad valorem taxes required by law to be levied on all taxable property in theCity, without limitation as to rate or amount.
3. Interest on the Bonds ( a) is not includable in gross income for federal income tax purposes orin taxable net income of individuals, estates or trusts for Minnesota income tax purposes; ( b) is includable in
taxable income of corporations and financial institutions for purposes of the Minnesota franchise tax; ( c) is notan item of tax preference includable in alternative minimum taxable income for purposes of the federal
alternative minimum tax applicable to all taxpayers or the Minnesota alternative minimum tax applicable to
individuals, estates and trusts; and ( d) is includable in adjusted current earnings of corporations in determiningalternative minimum taxable income for purposes of the federal alternative minimum tax imposed oncorporations.
4. The City has designated the Bonds as " qualified tax-exempt obligations" within the meaningof Section 265( b)( 3) of the Internal Revenue Code of 1986, as amended ( the " Code"), and, financial
institutions described in Section 265( b)( 5) of the Code may treat the Bonds for purposes of Section 265( b)( 2) and 291( e)( 1)( B) of the Code as if they were acquired on August 7, 1986.
The opinions expressed in paragraphs 1 and 2 are subject as to enforceability to the effect of any stateor federal laws relating to bankruptcy, insolvency, reorganization, moratorium or creditors' rights and theexercise ofjudicial discretion.
The opinions set forth in paragraphs 3 and 4 are subject to the condition that the City comply with allthe requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that
interest thereon be, or continue to be, excluded from gross income for federal income tax purposes, and theBonds be and continue to be qualified tax-exempt obligations. The City has covenanted in the resolutionauthorizing the issuance of the Bonds to comply with these continuing requirements. Failure of the City tocomply with these requirements may result in the inclusion of interest on the Bonds in federal gross income
C > OORSEYDORSEY & WHITNEY LLP
and in Minnesota taxable net income, retroactive to the date of issuance of the Bonds. Except as stated in this
opinion, we express no opinion regarding federal, state or other tax consequences to owners of the Bonds.
We have not been asked, and have not undertaken, to review the accuracy, completeness orsufficiency of any offering materials relating to the Bonds, and accordingly, we express no opinion withrespect thereto.
Dated this day of September, 2017.
Very truly yours,
HORSEYDORSEY & WHITNEY LLP
City of New Ulm, Minnesota
Original Purchaser]
Re: $ General Obligation Permanent Improvement
Revolving Fund Bonds, Series 2017BCity of New Ulm, Brown County, Minnesota
Ladies and Gentlemen:
As Bond Counsel in connection with the authorization, issuance and sale by the City of New Ulm, Brown County, Minnesota ( the City), of its General Obligation Permanent Improvement Revolving FundBonds, Series 2017B, dated, as originally issued, as of September 5, 2017 ( the Bonds), we have examinedcertified copies of certain proceedings taken, and certain affidavits and certificates furnished, by the City in theauthorization, sale and issuance of the Bonds, including the form of the Bonds. As to questions of fact
material to our opinion, we have assumed the authenticity of and relied upon the proceedings, affidavits andcertificates furnished to us without undertaking to verify the same by independent investigation. From our
examination of such proceedings, affidavits and certificates and on the basis of existing law, it is our opinionthat:
1. The Bonds are valid and binding general obligations of the City, enforceable in accordancewith their terms.
2. The principal of and interest on the Bonds are payable primarily from special assessmentslevied on property specially benefited by the improvements financed and refinanced by the Bonds and advalorem taxes levied on all taxable property in the City, which have been pledged and appropriated for thispurpose, but if necessary for payment thereof additional ad valorem taxes are required by law to be levied onall taxable property in the City, which taxes are not subject to any limitation as to rate or amount.
3. Interest on the Bonds ( a) is not includable in gross income for federal income tax purposes orin taxable net income of individuals, estates or trusts for Minnesota income tax purposes; ( b) is includable in
taxable income of corporations and financial institutions for purposes of the Minnesota franchise tax; ( c) is not
an item of tax preference includable in alternative minimum taxable income for purposes of the federal
alternative minimum tax applicable to all taxpayers or the Minnesota alternative minimum tax applicable to
individuals, estates and trusts; and ( d) is includable in adjusted current earnings of corporations in determiningalternative minimum taxable income for purposes of federal and Minnesota alternative minimum taxes.
4. The City has designated the Bonds as " qualified tax-exempt obligations" within the meaning ofSection 265( b)( 3) of the Internal Revenue Code of 1986, as amended ( the " Code"), and, financial institutions
described in Section 265( b)( 5) of the Code may treat the Bonds for purposes of Section 265( b)( 2) and291( e)( 1)( B) of the Code as if they were acquired on August 7, 1986.
The opinions expressed in paragraphs 1 and 2 above are subject, as to enforceability, to the effect ofany state or federal laws relating to bankruptcy, insolvency, reorganization, moratorium or creditors' rights andthe application of equitable principles, whether considered at law or in equity.
The opinion expressed in paragraphs 3 and 4 above is subject to the condition of the City' scompliance with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in
order that interest thereon may be, and continue to be, excluded from gross income for federal income taxpurposes and that the Bonds be and continue to be qualified tax-exempt obligations. The City has covenantedto comply with these continuing requirements. Its failure to do so could result in the inclusion of interest on
7 OORSEYDORSEY & WHITNEY LLP
the Bonds in federal gross income and in Minnesota taxable net income, retroactive to the date of issuance ofthe Bonds. Except as stated in this opinion, we express no opinion regarding federal, state or other taxconsequences to owners of the Bonds.
We have not been engaged, and have not undertaken, to review the accuracy, completeness orsufficiency of any offering materials relating to the Bonds, and, accordingly, we express no opinion withrespect thereto.
Dated this day of September, 2017.
Very truly yours,
APPENDIX C
Form of Continuing Disclosure
CONTINUING DISCLOSURE FOR THE BONDS
Continuing Disclosure. ( a) Purpose and Beneficiaries. To provide for the public availability of certaininformation relating to the Bonds and the security therefor and to permit the purchaser(s) and otherparticipating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2- 12promulgated by the SEC under the Securities Exchange Act of 1934 ( 17 C. F.R. § 240. 15c2- 12), relating tocontinuing disclosure ( as in effect and interpreted from time to time, the " Rule"), which will enhance the
marketability of the Bonds, the City hereby makes the following covenants and agreements for the benefit ofthe owners ( as hereinafter defined) from time to time of the outstanding Bonds. The City is the only obligatedperson in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respectof which continuing disclosure must be made. If the City fails to comply with any provisions of this section, any person aggrieved thereby, including the owners of any outstanding Bonds, may take whatever action atlaw or in equity may appear necessary or appropriate to enforce performance and observance of any agreementor covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to theextent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a defaultunder this section constitute a default under the Bonds or under any other provision of the resolutions. As usedin this section, owner or bondowner means, in respect of a bond, the registered owner or owners thereof
appearing in the bond register maintained by the registrar or any Beneficial Owner ( as hereinafter defined) thereof, if such Beneficial Owner provides to the registrar evidence of such beneficial ownership in form andsubstance reasonably satisfactory to the registrar. As used herein, Beneficial Owner means, in respect of abond, any person or entity which ( i) has the power, directly or indirectly, to vote or consent with respect to, orto dispose of ownership of, such bond ( including persons or entities holding Bonds through nominees, depositories or other intermediaries), or ( ii) is treated as the owner of the bond for federal income tax purposes.
b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection ( c) hereof, either directly or indirectly through an agent designated by the City, the following information at the followingtimes:
1) on or before 270 days after the end of each fiscal year of the City, commencing with the fiscalyear ending December 31, 2017, the following financial information and operating data in respectof the City (the " Disclosure Information'):
A) the audited financial statements of the City for such fiscal year prepared in accordance withgenerally accepted accounting principles in accordance with the governmental accountingstandards promulgated by the Governmental Accounting Standards Board or as otherwiseprovided under Minnesota law, as in effect from time to time, or, if and to the extent such
financial statements have not been prepared in accordance with such generally acceptedaccounting principles for reasons beyond the reasonable control of the City, noting thediscrepancies therefrom and the effect thereof, and certified as to accuracy andcompleteness in all material respects by the fiscal officer of the City; and
B) to the extent not included in the financial statements referred to in paragraph (A) hereof, the
information for such fiscal year or for the period most recently available of the typecontained in the Official Statement under headings: City Property Values; Trend ofValuations, Larger Taxpayers; Direct Debt; Tax Capacity Rates; Tax Levies and
Collections; Special Assessment Levies and Collections.
Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the datespecified, the City shall provide on or before such date unaudited financial statements in the format requiredfor the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt
thereof, the City shall provide the audited financial statements. Any or all of the Disclosure Information maybe incorporated by reference, if it is updated as required hereby, from other documents, including official
statements, which have been filed with the SEC or have been made available to the public on the Internet Web
site of the Municipal Securities Rulemaking Board ( the " MSRB"). The City shall clearly identify in theDisclosure Information each document so incorporated by reference. If any part of the Disclosure Informationcan no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure Information need no longer be provided if the City includes in the Disclosure Information astatement to such effect; provided, however, if such operations have been replaced by other City operations inrespect of which data is not included in the Disclosure Information and the City determines that certainspecified data regarding such replacement operations would be a Material Fact ( as defined in paragraph ( 2) hereof), then, from and after such determination, the Disclosure Information shall include such additional
specified data regarding the replacement operations. If the Disclosure Information is changed or this section isamended as permitted by this paragraph ( b)( 1) or subsection ( d), then the City shall include in the nextDisclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for theamendment and the effect of any change in the type of financial information or operating data provided.
2) In a timely manner not in excess of ten business days after the occurrence of the event, notice ofthe occurrence of any of the following events ( each a " Material Fact"):
A) Principal and interest payment delinquencies;
B) Non-payment related defaults, ifmaterial;
C) Unscheduled draws on debt service reserves reflecting financial difficulties; D) Unscheduled draws on credit enhancements reflecting financial difficulties; E) Substitution of credit or liquidity providers, or their failure to perform; F) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue ( IRS Form 5701- TEB) or othermaterial notices or determinations with respect to the tax status of the security, or othermaterial events affecting the tax status of the security;
G) Modifications to rights of security holders, if material; H) Bond calls, ifmaterial, and tender offers;
1) Defeasances;
J) Release, substitution, or sale of property securing repayment of the securities, if material; K) Rating changes; L) Bankruptcy, insolvency, receivership or similar event of the obligated person; M) The consummation of a merger, consolidation, or acquisition involving an obligated person
or the sale of all or substantially all of the assets of the obligated person, other than in theordinary course of business, the entry into a definitive agreement to undertake such anaction or the termination of a definitive agreement relating to any such actions, other thanpursuant to its terms, if material; and
N) Appointment of a successor or additional trustee or the change of name of a trustee, if
material.
As used herein, for those events that must be reported if material, an event is " material" if it is an event as to
which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto indeciding to buy, hold or sell a bond or, if not disclosed, would significantly alter the total informationotherwise available to an investor from the Official Statement, information disclosed hereunder or information
generally available to the public. Notwithstanding the foregoing sentence, an event is also " material" if it is anevent that would be deemed material for purposes of the purchase, holding or sale of a bond within themeaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of theevent.
For the purposes of the event identified in ( L) hereinabove, the event is considered to occur when any of thefollowing occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in aproceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which acourt or governmental authority has assumed jurisdiction over substantially all of the assets or business of theobligated person, or if such jurisdiction has been assumed by leaving the existing governing body and officials
or officers in possession but subject to the supervision and orders of a court or governmental authority, or theentry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmentalauthority having supervision or jurisdiction over substantially all of the assets or business of the obligatedperson.
3) In a timely manner, notice of the occurrence of any of the following events or conditions:
A) the failure of the City to provide the Disclosure Information required under paragraphb)( 1) at the time specified thereunder;
B) the amendment or supplementing of this section pursuant to subsection ( d), together with acopy of such amendment or supplement and any explanation provided by the City undersubsection (d)( 2);
C) the termination of the obligations of the City under this section pursuant to subsection ( d); D) any change in the accounting principles pursuant to which the financial statements
constituting a portion of the Disclosure Information are prepared; andE) any change in the fiscal year of the City.
c) Manner of Disclosure.
1) The City agrees to make available to the MSRB, in electronic format as prescribed by the MSRBfrom time to time, the information described in subsection (b).
2) All documents provided to the MSRB pursuant to subsection ( c) shall be accompanied byidentifying information as prescribed by the MSRB from time to time.
d) Term; Amendments; Interpretation.
1) The covenants of the City in this section shall remain in effect so long as any bonds areoutstanding. Notwithstanding the preceding sentence, however, the obligations of the City underthis section shall terminate and be without further effect as of any date on which the City deliversto the registrar an opinion of Bond Counsel to the effect that, because of legislative action or
final judicial or administrative actions or proceedings, the failure of the City to comply with therequirements of this section will not cause participating underwriters in the primary offering ofthe Bonds to be in violation of the Rule or other applicable requirements of the Securities
Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatorythereof.
2) This section ( and the form and requirements of the Disclosure Information) may be amended orsupplemented by the City from time to time, without notice to ( except as provided in paragraphc)( 3) hereof) or the consent of the owners of any Bonds, by a resolution of this Council filed in
the office of the recording officer of the City accompanied by an opinion of Bond Counsel, whomay rely on certificates of the City and others and the opinion may be subject to customaryqualifications, to the effect that: ( i) such amendment or supplement ( a) is made in connectionwith a change in circumstances that arises from a change in law or regulation or a change in the
identity, nature or status of the City or the type of operations conducted by the City, or ( b) isrequired by, or better complies with, the provisions of paragraph ( b)( 5) of the Rule; ( ii) this
section as so amended or supplemented would have complied with the requirements of paragraph
b)( 5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change incircumstances applicable under clause ( i)( a) and assuming that the Rule as in effect andinterpreted at the time of the amendment or supplement was in effect at the time of the primaryoffering; and ( iii) such amendment or supplement does not materially impair the interests of thebondowners under the Rule.
If the Disclosure Information is so amended, the City agrees to provide, contemporaneously withthe effectiveness of such amendment, an explanation of the reasons for the amendment and the
effect, if any, of the change in the type of financial information or operating data being providedhereunder.
3) This section is entered into to comply with the continuing disclosure provisions of the Rule andshould be construed so as to satisfy the requirements of paragraph (b)( 5) of the Rule.
APPENDIX D
Forms of Establishment of Issue Price Certificates
ISSUE PRICE CERTIFICATE FOR COMPETITIVE SALES WITH AT LEAST THREE BIDS
FROM ESTABLISHED UNDERWRITERS
PRINCIPAL AMOUNT]
BOND CAPTION]
ISSUE PRICE CERTIFICATE
The undersigned, on behalf of [ NAME OF UNDERWRITER] ("[ SHORT NAME OF
UNDERWRITER]"), hereby certifies as set forth below with respect to the sale of the obligations namedabove ( the " Bonds").
Reasonably Expected Initial Offering Price.
a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Publicby [ SHORT NAME OF UNDERWRITER] are the prices listed in Schedule A ( the " Expected OfferingPrices"). The Expected Offering Prices are the prices for the Maturities of the Bonds used by [SHORT NAMEOF UNDERWRITER] in formulating its bid to purchase the Bonds. Attached as Schedule B is a true andcorrect copy of the bid provided by [SHORT NAME OF UNDERWRITER] to purchase the Bonds.
b) [ SHORT NAME OF UNDERWRITER] was not given the opportunity to review other bidsprior to submitting its bid.
c) The bid submitted by [ SHORT NAME OF UNDERWRITER] constituted a firm offer topurchase the Bonds.
2. Defined Terms.
a) Maturity means Bonds with the same credit and payment terms. Bonds with different
maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separateMaturities.
b) Public means any person ( i.e., an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. Persons generally are " relatedparties" for purposes of this certificate if they have more than 50 percent common ownership or control, directly or indirectly.
c) Sale Date means the first day on which there is a binding contract in writing for the sale ofthe respective Maturity of the Bonds. The Sale Date of each Maturity of the Bonds is [ DATE].
d) Underwriter means ( i) any person that agrees pursuant to a written contract with the Issuer (orwith the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to thePublic, and ( ii) any person that agrees pursuant to a written contract directly or indirectly with a persondescribed in clause ( i) of this paragraph to participate in the initial sale of the Bonds to the Public ( including amember of a selling group or a party to a retail distribution agreement participating in the initial sale of theBonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing in thiscertificate represents [ SHORT NAME OF UNDERWRITER]' s interpretation of any laws, includingspecifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the TreasuryRegulations thereunder. The undersigned understands that the foregoing information will be relied upon bythe Issuer[ and the Borrower] with respect to certain of the representations set forth in the [ Tax
Certificate][ Tax Exemption Agreement] and with respect to compliance with the federal income tax rules
affecting the Bonds, and by [ BOND COUNSEL] in connection with rendering its opinion that the interest onthe Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal
Revenue Service Form 8038[ -G][ -GC][ -TC], and other federal income tax advice that it may give to the Issuerand the Borrower] from time to time relating to the Bonds.
UNDERWRITER]
By: Name:
Dated: [ ISSUE DATE]
SCHEDULE A
EXPECTED OFFERING PRICES
Attached)
SCHEDULE B
COPY OF UNDERWRITER' S BID
Attached)
ISSUE PRICE CERTIFICATE —COMPETITIVE SALES WITH FEWER THAN THREE BIDS
FROM ESTABLISHED UNDERWRITERS — HOLD OFFERING PRICE
PRINCIPAL AMOUNT]
BOND CAPTION]
ISSUE PRICE CERTIFICATE
The undersigned, on behalf of [NAME OF UNDERWRITER/REPRESENTATIVE] ( ["[ SHORT NAME
OF UNDERWRITER]")][ the " Representative")][, on behalf of itself and [ NAMES OF OTHER
UNDERWRITERS] ( together, the " Underwriting Group"),] hereby certifies as set forth below with respect to thesale of the obligations named above ( the " Bonds").
1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity of theGeneral Rule Maturities, the first price at which at least 10% of such Maturity was sold to the Public is therespective price listed in Schedule A.
Initial Offering Price ofthe Hold -the -Offering -Price Maturities.
a) [ SHORT NAME OF UNDERWRITER][ The Underwriting Group] offered the Hold -the -Offering - Price Maturities to the Public for purchase at the specified initial offering prices listed in Schedule B ( the " InitialOffering Prices") on or before the Sale Date. If there is a Hold -the -Offering -Price Maturity, a copy of the pricingwire for the Bonds is attached to this certificate as Schedule C.
b) As set forth in the [ Bond Purchase Agreement][ Notice of Sale and bid award], [ SHORT NAME
OF UNDERWRITER][ each member of the Underwriting Group] has agreed in writing that, ( i) for each Maturityof the Hold -the -Offering -Price Maturities it would neither offer nor sell any of the Bonds of such Maturity to anyperson at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for suchMaturity (the " Hold -the -Offering -Price Rule"), and ( ii) any selling group agreement shall contain the agreement ofeach dealer who is a member of the selling group, and any retail distribution agreement shall contain the agreementof each broker-dealer who is a party to the retail distribution agreement, to comply with the Hold -the -Offering - Price Rule. Based on its own knowledge and, in the case of sales by other Underwriters, representations obtainedfrom the other Underwriters, no Underwriter has offered or sold any Maturity of the Hold -the -Offering -PriceMaturities at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds duringthe Holding Period.
Defined Terms.
a) General Rule Maturities means those Maturities of the Bonds, if any, listed in Schedule A heretoas the " General Rule Maturities."
b) Hold -the -Offering -Price Maturities means those Maturities of the Bonds, if any, listed inSchedule B hereto as the " Hold -the -Offering -Price Maturities."
c) Holding Period means, with respect to a Hold -the -Offering -Price Maturity, the period starting onthe Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date ([ DATE]), or (ii)
the date on which [ SHORT NAME OF UNDERWRITER][ the Underwriters] [ has][ have] sold at least 10% of such
Hold -the -Offering -Price Maturity to the Public at one or more prices, each of which is no higher than the InitialOffering Price for such Maturity.
d) Issuer means [ DESCRIBE ISSUER].
e) Maturity means Bonds with the same credit and payment terms. Bonds with different maturitydates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities.
f) Public means any person ( i.e., an individual, trust, estate, partnership, association, company, orcorporation) other than an Underwriter or a related party to an Underwriter. Persons generally are " related parties"
for purposes of this certificate if they have more than 50 percent common ownership or control, directly orindirectly.
g) Sale Date means the first day on which there is a binding contract in writing for the sale of therespective Maturity of the Bonds. The Sale Date of each Maturity of the Bonds is [ DATE].
h) Underwriter means ( i) any person that agrees pursuant to a written contract with the Issuer ( orwith the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to thePublic, and ( ii) any person that agrees pursuant to a written contract directly or indirectly with a person describedin clause ( i) of this paragraph to participate in the initial sale of the Bonds to the Public ( including a member of aselling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing in thiscertificate represents [ NAME OF UNDEWRITING FIRM][ the Representative' s] interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the TreasuryRegulations thereunder. The undersigned understands that the foregoing information will be relied upon by theIssuer[ and the Borrower] with respect to certain of the representations set forth in the [ Tax Certificate][ Tax
Exemption Agreement] and with respect to compliance with the federal income tax rules affecting the Bonds, andby [ BOND COUNSEL] in connection with rendering its opinion that the interest on the Bonds is excluded fromgross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038[ -G][ -
GC][ -TC], and other federal income tax advice that it may give to the Issuer [ and the Borrower] from time to timerelating to the Bonds.
UNDERWRITER] [REPRESENTATIVE]
By:_ Name:
Dated: [ ISSUE DATE]
SCHEDULE A
SALE PRICES OF THE GENERAL RULE MATURITIES
Attached)
SCHEDULE B
INITIAL OFFERING PRICES OF THE HOLD -THE -OFFERING -PRICE MATURITIES
Attached)
SCHEDULE C
PRICING WIRE
Attached)
OFFICIAL PROPOSAL FORM
Electronic Proposals available via i-Deal/Parity®; see Terms of Proposals)
CITY OF NEW ULM, MINNESOTA
5, 560,000") GENERAL OBLIGATION
PUBLIC UTILITY REVENUE BONDS, SERIES 2017A
Members of the City Council Sale Date: August 1, 2017
City of New Ulm, Minnesota Until 10: 00 A.M. C.T.
c/ o PFM Financial Advisors LLC Fax: ( 612/338-7264)
For the principal amount of $5, 560,000(') General Obligation Public Utility Revenue Bonds, Series 2017A ( the " Series2017A Bonds"), legally issued and as described in the Terms of Proposals, we will pay the City of New Ulm, Minnesotathe " City") $ ( not less than $ 5,476,600) plus accrued interest on the total principal of
5,560,000(') to date of delivery, provided the Series 2017A Bonds bear the following interest rates:
Year Amount(') Interest Rate Year Amount(') Interest Rate
2018 185, 000 2028 295, 000
2019 230,000 2029 305, 000
2020 235, 000 2030 320,000
2021 240,000 2031 330,000
2022 245, 000 2032 340, 000
2023 255, 000 2033 350, 000
2024 260,000 2034 365, 000
2025 270,000 2035 380, 000
2026 275, 000 2036 395, 000
2027 285, 000
Preliminary, subject to change.
The Series 2017A Bonds mature on December 1, in each of the years as indicated above and said interest is payable
semiannually on June 1 and December 1 of each year, commencing June 1, 2018. Our good faith deposit in the amountof $55, 600 has been filed with PFM Financial Advisors LLC according to the terms and conditions as defined in theTerms of Proposals published in the Preliminary Official Statement dated July 17, 2017. All blank spaces of this offerare intentional and are not to be construed as an omission.
NOT PART OF THIS PROPOSAL:
Explanatory Note: According to our computation, this proposal involves the following:
Net Interest Cost
True Interest Rate
Respectfully submitted,
Syndicate Manager
By
A list of the firms associated with us in this proposal ison the reverse side of this proposal.)
The foregoing offer is hereby accepted by and on behalf of the City of New Ulm, Minnesota, this I` day of August, 2017.
Mayor City Manager
OFFICIAL PROPOSAL FORM
Electronic Proposals available via i- Deal/Parity®; see Terms of Proposals)
CITY OF NEW ULM, MINNESOTA
2,995,000 GENERAL OBLIGATION
PERMANENT IMPROVEMENT REVOLVING FUND BONDS, SERIES 2017B
Members of the City CouncilCity of New Ulm, Minnesotac/ o PFM Financial Advisors LLC
Sale Date: August 1, 2017
Until 10: 00 A.M. C.T.
Fax: ( 612/338-7264)
For the principal amount of $2, 995, 000(') General Obligation Permanent Improvement Revolving Fund Bonds, Series2017B ( the " Series 2017B Bonds"), legally issued and as described in the Terms of Proposals, we will pay the City ofNew Ulm, Minnesota ( the " City") $ ( not less than $ 2,975, 533) plus accrued interest on the
total principal of $2,995, 000(' to date of delivery, provided the Series 2017B Bonds bear the following interest rates:
Year AmounP Interest Rate Year Amount') Interest Rate
2018 455, 000 2023 255, 000
2019 475, 000 2024 260,000
2020 235, 000 2025 270,000
2021 240,000 2026 275, 000
2022 245, 000 2027 285, 000
1) Preliminary, subject to change.
The Series 2017B Bonds mature on December 1, in each of the years as indicated above and said interest is payablesemiannually on June 1 and December 1 of each year, commencing June 1, 2018. Our good faith deposit in the amountof $29,950 has been filed with PFM Financial Advisors LLC according to the terms and conditions as defined in theTerms of Proposals published in the Preliminary Official Statement dated July 17, 2017. All blank spaces of this offerare intentional and are not to be construed as an omission.
NOT PART OF THIS PROPOSAL:
Explanatory Note: According to our computation, this proposal involves the following:
Net Interest Cost
True Interest Rate
Respectfully submitted,
Syndicate Manager
In
A list of the firms associated with us in this proposal ison the reverse side of this proposal.)
The foregoing offer is hereby accepted by and on behalf of the City of New Ulm, Minnesota, this I` day of August, 2017.
Mayor City Manager
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 4 c
Agenda Section: New Business Originating Department: Administration
Resolution: N/A
Prepared By: Mayor, Robert BeussmanOrdinance: N/A
Number of Attachments: None Presented By: Mayor, Robert Beussman
Item• Consider motion confirming the appointment of Tom Romaine to the Tree AdvisoryCommission.
City Manager' s Proposed Action: Motion by Second by approving the confirmation of the appointment of Tom Romaine to the TreeAdvisory Commission to fill the unexpired term of Casey McCoy.
Board/Commission Recommendation: N/A
Overview:
N/A
Primary Issues/ Alternatives to Consider: N/A
Budgetary/Fiscal Issues: N/A
Attachments:
N/A
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 4 d
Agenda Section: New Business Originating Department: Administration
Resolution: N/A
Prepared By: Mayor, Robert BeussmanOrdinance: N/A
Number of Attachments: None Presented By: Mayor, Robert Beussman
Item• Consider motion confirming the appointment of Jeannie Leighty to the HeritagePreservation Commission.
City Manager' s Proposed Action: Motion by Second by approving the confirmation of the appointment of Jeannie Leighty to theHeritage Preservation Commission to fill the unexpired term of John Guggisberg.
Board/ Commission Recommendation: N/A
Overview:
N/A
Primary Issues/Alternatives to Consider: N/A
Budgetary/Fiscal Issues: N/A
Attachments:
N/A
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 4 e
Agenda Section: New Business Originating Department: Administration
Resolution: N/A
Prepared By: Mayor, Robert BeussmanOrdinance: N/A
Number ofAttachments: None Presented By: Mayor, Robert Beussman
Item• Consider motion confirming the appointment of Deanna Fenske to the Human RightsCommission.
City Manager' s Proposed Action: Motion by Second by approving the confirmation of the appointment of Deanna Fenske to theHuman Rights Commission to fill the unexpired term of Ron Fleischmann.
Board/Commission Recommendation: N/A
Overview:
N/A
Primary Issues/Alternatives to Consider: N/A
Budgetary/Fiscal Issues: N/A
Attachments:
N/A
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 4 f
Agenda Section: New Business Originating Department: Engineering
Resolution: Yes
Prepared By: City EngineerOrdinance: N/A
Number of Attachments: Three Presented By: City Engineer
Item: Consider resolution approving MnDOT Detour Agreement No. 1028705.
City Manager' s Proposed Action: Moved by second by offering the resolution, waive the reading, approving MnDOT DetourAgreement No. 1028705 and authorize the City Manager and Finance Director to execute the agreement for and in behalfof the City of New Ulm.
Board/Commission Recommendation:
N/A
Overview:
MnDOT is proceeding with plans to deliver State Project 0804- 81, a reconstruction project on Highway 14/ 15 from NorthBroadway in New Ulm through the Highway 14/ 15 intersection east of the Minnesota River in Nicollet County. As partof the two year phased project, MnDOT has proposed utilizing 20t` South Street from the Minnesota River to Broadwayas a temporary Trunk Highway Detour for an estimated duration of 603 days expected to begin in April, 2018.
Primal Issues/Alternatives to Consider:
The 20` South Street roadway is of adequate width and structure to accommodate this detour and the associated trafficloadings. The State may have to restrict cross -traffic at the Minnesota Street/HyVee Driveway configuration to minimizevehicular conflicts at that location.
Budgetary/Fiscal Issues: The estimated payment to the City for road life consumed is $9, 898. 85.
Attachments:
MnDOT cover letter dated June 26, 2017
MnDOT Detour Agreement No. 1028705
Example Resolution
MDEPARTMENT OF
TRANSPORTATION
Date: June 26, 2017
Steve Koehler, City Engineer
100 North BroadwayNew Ulm, MN 56073
RE: Proposed Detour Agreement
Detour Agreement No. 1028705 City of New UlmS. P. 4680-124 (T.H. 90=391)
S. P. 4680-126
State Cost for T.H. detour
Dear Mr. Koehler:
District 7 - Mankato
2151 Bassett Drive, Mankato, MN 56001
Office Telephone: (507) 304-6100
Transmitted herewith in duplicate is a proposed detour agreement with the City of New Ulm. This agreement
provides for payment by the State to the City for road life consumed on 20th Street South, used as a Temporary
Trunk Highway detour for State Project 0804-81, Trunk Highways 14/ 15 in New Ulm.
Kindly present this agreement to the City Council for their approval and execution, which includes original
signatures of the City Council authorized City officers, on the two copies of the agreement. Also required are two
original copies of a resolution passed by the City Council authorizing its officers to sign the agreement in itsbehalf. A suggested form of such resolution is enclosed.
Please return the two original signed copies of the agreement and resolution, once they have been executed by
the City. A copy will be returned to the City when fully executed.
Sincerely,
Susan Museus
Contracts and Agreements Administrator
MnDOT District 7 — Mankato
Enc. Proposed Agreement (2)
cc: Maryanne Kelly-Sonnek —M. S. 682
Zachary TessFile
An equal opportunity employer
MnDOT Contract No: 1028705
STATE OF MINNESOTA
DEPARTMENT OF TRANSPORTATION
And
CITY OF NEW ULM
DETOUR AGREEMENT
State Project Number (S.P.):
Trunk Highway Number (T.H.): Federal Project Number:
For Trunk Highway No. 14/ 15 Detour
0804- 81
14= 007
NHPP 0014 (336)
Original Amount Encumbered
9, 898.85
This agreement is between the State of Minnesota, acting through its Commissioner of Transportation (" State") and Cityof New Ulm acting through its City Council (" City").
Recitals
1. The State is about to perform roadway and bridge construction upon, along and adjacent to Trunk Highway (T.H.) No. 14 and 15 from North Broadway Street to 1, 040 feet west of County State Aid Highway (C. S. A.H.) 21, TrunkHighway No. 15 from 1, 040 feet west of County State Aid Highway 21 to 3, 725 feet north of County State AidHighway 21 and T.H. 14 from 1, 040 feet west of County State Aid Highway 21 to 3, 480 feet south of County StateAid Highway 21 under State Project No. 0804- 81 ( T.H. 14= 007); and
2. The State requires a detour to carry Trunk Highway No. 14 and 15 traffic on 20th Street South during theconstruction; and
3. The State is willing to reimburse the City for the road life consumed by the detour as hereinafter set forth; and
4. Minnesota Statutes § 471. 59, subdivision 10, § 161. 25, and § 161. 20, subdivision 2( b), authorize the parties to enter
into this Agreement.
Agreement
1. Term of Agreement
1. 1 Effective Date. This Agreement will be effective on the date the State obtains all signatures required byMinnesota Statutes § 16C.05, subdivision 2.
1. 2 Expiration Date. This Agreement will expire when the State removes all detour signs, returns the temporaryTrunk Highway detour to the City, and pays for the detour compensation.
2. Agreement Between the Parties
2. 1 Detour.
A. Location. The State will establish the T.H. 14 and 15 detour route on the following City street as detailed inthe project plans or Special Provisions:
Stage 1 — 20"' Street South for a total distance of 0. 4 miles.
Stage 2 — 20'' Street South for a total distance of 0. 4 miles.
B. Modification ofthe Detour Route. The State may modify the detour route or may add additional roadwaysto the official detour during construction. The State will request concurrence from the City for changes tothe detour route. If such change increases the State' s obligation over Article 3. 2, the agreement will be
amended.
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Detour Agreement without Local Maintenance (Municipal Agreements)
MnDOT Contract No: 1028705
C. Axle Loads and Over -Dimension Loads. The City will permit 10 -ton axle loads on the detour route. Over - dimension loads will not be permitted except in cases of extreme emergency.
D. Traffic Control Devices. The State may install, maintain and remove any traffic control devices it considersnecessary to properly control the detoured traffic. The State may paint roadway markings, such as thecenterline, edge lines and necessary messages.
E. Detour Maintenance. The State will perform any necessary bituminous patching and ordinary maintenanceon the roadway or shoulder of the City street used for the detour, at no cost or expense to the City. Bituminous patching is defined as any work, including continuous full width overlays, less than 100 feet inlength. All State expenditures beyond those required for bituminous patching and ordinary maintenance willbe credited against the road life consumed reimbursement due the City.
F. Duration. The State will provide the City with advance notice identifying the dates the State intends toplace and remove the detour signing.
2. 2 Basis ofState Cost (Road Life Consumed). The State will reimburse the City for the road life consumed by thedetour using the following methods, as set forth in the Detour Management Study Final Report datedJanuary 1991, and updated by MnDOT's Policy on Cost Participation for Cooperative Construction Projects andMaintenance Responsibilities between MnDOT and Local Units of Government.
A. The " Gas Tax Method" formula, multiplies the Combined Tax Factor per mile times the Average DailyTraffic ("ADT") count of vehicles diverted from the Trunk Highway times the city street length in milestimes the duration of the detour in days to determine the State' s cost for the road life consumed by thedetour.
B. The City may, at its option, perform an " Equivalent Overlay Method" analysis. A State -approved firm, at nocost or expense to the State, must perform the testing and analysis. The City will keep records and accountsto verify any claim it might bring against the State for additional costs using the " Equivalent OverlayMethod".
3. Payment
3. 1 For Road Life Consumer. $ 9, 898. 85 is the State' s estimated cost for the road life consumed by the detour basedon the data below:
Tax Factor ADT Road Lenz Duration (Dam Cost
files
Stage 1 0. 00513 8000 0.4 363 $ 5, 959. 01Stage 2 0. 00513 8000 0. 4 240 $ 3, 939. 84
Total Road Life Consumed $ 9, 898. 85
The State' s total payment for the road life consumed by the detour is equal to the amount computed by using theGas Tax Method" formula plus any amount determined by using the " Equivalent Overlay Method" analysis
that is in excess of twice the " Gas Tax Method" amount.
3.2 Maximum Obligation. $25, 000. 00 is the maximum obligation of the State under this Agreement and must not
be exceeded unless the maximum obligation is increased by execution of an amendment to this Agreement.
3. 3 Conditions ofPayment. The State will pay the City the State' s total road life consumed payment amount afterperforming the following conditions.
A. Execution of this Agreement and the City's receipt of the executed Agreement.
B. State' s encumbrance of the State' s total payment amount.
C. State' s removal of all detour signs.
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Detour Agreement without Local Maintenance (Municipal Agreements)
MnDOT Contract No: 1028705
D. State notifies the City of the removal of the detour signs, and the number of days the detour was in effect.
E. State' s receipt of a written request from the City for payment.
4. Release of Road Restoration Obligations
By accepting the State' s road life consumed payment plan and total payment amount, the City releases the State of itsobligation, under Minnesota Statutes § 161. 25, to restore the city street used as a T.H. 14 and 15 detour to as good ofcondition as they were before designation as temporary Trunk Highways.
5. Authorized Representatives
Each party's Authorized Representative is responsible for administering this Agreement and is authorized to give andreceive any notice or demand required or permitted by this Agreement.
5. 1 The State's Authorized Representative will be:
Name/Title: Susan Museus/ Contract Administrator (or successor)
Address: 2151 Bassett Drive, Mankato, MN 56001
Telephone: 507- 304- 6202
E -Mail: [email protected]
5.2 The City's Authorized Representative will be:
Name/Title: Steve Koehler/City Engineer (or successor) Address: 100 North Broadway, New Ulm, MN 56073Telephone: 507- 359- 8245
E -Mail: [email protected]
6. Assignment; Amendments; Waiver; Contract Complete
6. 1 Assignment. Neither party may assign or transfer any rights or obligations under this Agreement without theprior consent of the other party and a written assignment agreement, executed and approved by the same partieswho executed and approved this Agreement, or their successors in office.
6. 2 Amendments. Except for the changes in detour route under Article 2. 1, any amendment to this Agreement mustbe in writing and will not be effective until it has been executed and approved by the same parties who executedand approved the original Agreement, or their successors in office.
6.3 Waiver. If a party fails to enforce any provision of this Agreement, that failure does not waive the provision orthe party' s right to subsequently enforce it.
6.4 Contract Complete. This Agreement contains all prior negotiations and agreements between the State and the
City. No other understanding regarding this Agreement, whether written or oral, may be used to bind eitherparty.
7. Liability
The City and State will be responsible for their own acts and omissions, to the extent authorized by law. MinnesotaStatutes § 3. 736 governs the State' s liability. Minnesota Statutes, Chapter 466 governs the liability of the City.
8. State Audits
Under Minnesota Statutes § 16C.05, subdivision 5, the City's books, records, documents, and accounting proceduresand practices relevant to this Agreement are subject to examination by the State and the State Auditor or LegislativeAuditor, as appropriate, for a minimum of six years from the end of this Agreement.
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Detour Agreement without Local Maintenance ( Municipal Agreements)
MnDOT Contract No: 1028705
9. Government Data Practices
The City and State must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by the State under this Agreement, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the City under this Agreement. The civil remedies ofMinnesota Statutes § 13. 08 apply to the release of the data referred to in this clause by either the City or the State.
10. Governing Law; Jurisdiction; Venue
Minnesota law governs the validity, interpretation and enforcement of this Agreement. Venue for all legalproceedings arising out of this agreement, or its breach, must be in the appropriate state or federal court withcompetent jurisdiction in Ramsey County, Minnesota.
11. Termination; Suspension
11. 1 By Mutual Agreement. This Agreement may be terminated by mutual agreement of the parties or by the Statefor insufficient funding as described below.
11. 2 Termination for Insufficient Funding. The State may immediately terminate this Agreement if it does notobtain funding from the Minnesota Legislature, or other funding source; or if funding cannot be continued at alevel sufficient to allow for the payment of the services covered here. Termination must be by written or faxnotice to the City. The State is not obligated to pay for any services that are provided after notice and effectivedate of termination. However, the City will be entitled to payment, determined on a pro rata basis, for servicessatisfactorily performed to the extent that funds are available. The State will not be assessed any penalty if thisAgreement is terminated because of the decision of the Minnesota Legislature, or other funding source, not toappropriate funds.
11. 3 Suspension. In the event of a total or partial government shutdown, the State may suspend this Agreement andall work, activities, performance and payments authorized through this Agreement. Any work performed duringa period of suspension will be considered unauthorized work and will be undertaken at the risk of non-payment.
12. Force Majeure
Neither party will be responsible to the other for a failure to perform under this Agreement (or a delay inperformance), if such failure or delay is due to a force majeure event. A force majeure event is an event beyond aparty's reasonable control, including but not limited to, unusually severe weather, fire, floods, other acts of God, labordisputes, acts of war or terrorism, or public health emergencies.
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Detour Agreement without Local Maintenance (Municipal Agreements)
STATE ENCUMBRANCE VERIFICATION
Individual certifies that funds have been encumbered as
required by Minnesota Statutes § 16A. 15 and § 16C.05.
Signed:
Date:
SWIFT Purchase Order:
CITY OF NEW ULM
The undersigned certify that they have lawfullyexecuted this contract on behalf of the Governmental
Unit as required by applicable charter provisions, resolutions or ordinances.
By:
Title:
Date:
By:
Title:
Date:
MnDOT Contract No: 1028705
DEPARTMENT OF TRANSPORTATION
Approved:
LE
District Engineer) .
Date:
COMMISSIONER OF ADMINISTRATION
Date:
With Delegated Authority)
INCLUDE COPY OF RESOLUTION APPROVING THE AGREEMENT AND AUTHORIZING ITSEXECUTION.
5-
Detour Agreement without Local Maintenance (Municipal Agreements)
CITY OF NEW ULM
RESOLUTION
IT IS RESOLVED that the City of New Ulm enter into MnDOT Agreement No. 1028705 withthe State of Minnesota, Department of Transportation for the following purposes:
To provide for payment by the State to the City for the use of 20th Street South as a detour routeduring the contract construction to be performed upon, along and adjacent to Trunk HighwayNo. 14 and 15 from North Broadway Street to 1, 040 feet west of County State Aid Highway No. 21, Trunk Highway No. 15 from 1, 040 feet west of County State Aid Highway No. 21 to 3, 725 feet north ofCounty State Aid Highway No. 21 and Trunk Highway No. 14 from 1, 040 feet west of County State AidHighway No. 21 to 3, 480 feet south of County State Aid Highway No. 21 under State ProjectNo. 0804- 81 ( T.H. 14= 007).
IT IS FURTHER RESOLVED that the and theTitle)
are authorized to execute the Agreement and anyTitle)
amendments to the Agreement.
CERTIFICATION
I certify that the above Resolution is an accurate copy of the Resolution adopted by the Councilof the City ofNew Ulm at an authorized meeting held on the day of
2017, as shown by the minutes of the meeting in my possession.
Subscribed and sworn to before me this
day of , 2017
Notary Public
My Commission Expires
Signature)
Type or Print Name)
Title)
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 4 g
Agenda Section: New Business Originating Department: Administration
Resolution: Yes
Prepared By: Human Resources DirectorOrdinance: N/A
Number of Attachments: 1 Presented By: City Manager
Item• Consider resolution to accept the Occupational Safety & Health Administration (OSHA)
safety grant in the amount of $7, 000.
City Manager' s Proposed Action: Motion by Seconded by offering the resolution and waive the reading to accept anOccupational Safety & Health Administration (OSHA) safety grant in the amount of $7, 000.
Board/Commission Recommendation:
At the June 20, 2017 City Council meeting we had applied for a $ 10, 000 OSHA safety grant.
Overview:
1. This safety hazard abatement grant program is administered quarterly through the MN Department of Labor andIndustry (MNDLI).
Primary Issues/ Alternatives to Consider: N/A
Budgetary/Fiscal Issues: The $7, 000 OSHA safety grant will go towards the cost of the City Hall Security Upgrade project.
Attachments:
Grant approval letter from the Minnesota Department of Labor and Industry (MNDLI).
443 Lafayette Road N. St. Paul, Minnesota 55155i
MINNESOTA DEPARTMENT OF ( 651) 284-5005
www.dli.mn.gov 1- 800-342- 6364LABOR & INDUSTRY TTY: ( 651) 297- 418
July 12, 2017
SHAWNA BOOMGARDENCITY OF NEW ULM
100 NORTH BROADWAY
New Ulm, MN 56073
Dear SHAWNA BOOMGARDEN:
Your Safety Grant application has been reviewed and we have recommended approval of your application to the DeputyCommissioner's Office. However, program resources are insufficient to provide full assistance to all applicants to whichthe commissioner intends to award grants. Therefore, we are reducing the maximum reimbursement and the number ofitems that you requested in your application. Your approved project, for the purposes of this safety grant, is: securityproject, for a total project cost of $147, 300.00, with a maximum grant award of $7, 000. 00. 1 am enclosing the original ofyour Safety Grant agreement for your review and signature. If you agree to accept the grant award, please sign yourname in box two on page three of the original. If you do not wish to accept the amount awarded, please contact myoffice and I will cancel your grant award.
To expedite the processing of your application, please email or fax your signed agreement to the Safety GrantAdministrator within 7 days of their receipt. Your signed agreement will be sent to the Deputy Commissioner's Office forsignature, and thereby, creating an effective date. You will then have 120 days from that effective date to complete yourproject.
Please be advised that you cannot purchase any equipment or conduct any training prior to the effective date of yourcontract. Any receipts, invoices or retainers dated prior to the contract's effective date will not be covered by the grant.
A fully executed agreement will be sent to you for your records along with a Certificate of Completion form. After youcomplete your purchase, project, or conclude your training, submit your request for reimbursement to me according tothe instructions on the Certification of Completion Form.
Should you have any questions or concerns, you may contact the Safety Grant Administrator at ( 651) 284-5162 or tollfree at 1- 800- 731- 7232. You may also e- mail Margie.mohr@state. mn. us.
Sincerely,
Tyrone Taylor
Director, Workplace Safety Consultation
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 4 h
Agenda Section: New Business Originating Department: Library
Resolution: Yes
Prepared By: Kris WileyOrdinance: N/A
Number of Attachments: Two (2) Presented By: Kris Wiley
Item: Consider resolution accepting donations and memorials to the New Ulm Public Library.
City Manager' s Proposed Action: Motion by , and Second by , to offer resolution and waive the reading acceptingdonations & memorials to the New Ulm Public Library for the period April 1, 2017 — June 30, 2017.
Board/Commission Recommendation:
On July 13, 2017, the New Ulm Public Library Board by a vote of 9- 0 approved Resolution No. 2017-22, ApprovingApril 1, 2017 — June 30, 2017, Donations & Memorials.
Overview:
The Library receives donations and memorials throughout the calendar year. Some are cash donations, and some are in theform of materials or equipment. In the attached list of April -June 2017 donations, non-cash donations show the amountpaid by the donor for the materials/equipment purchase or an estimate in case the amount is unknown. Donations aredeposited into the appropriate 212- 5500 account depending on the wishes of the donor; e. g. large -print materials, children' s materials, AV materials, etc.
Primary Issues/Alternatives to Consider: Thank you letters are sent to all donors.
Budgetary/Fiscal Issues: None.
Attachments:
New Ulm Public Library Board Resolution No. 2017- 22 Approving April 1, 2017 — June 30, 2017, Donations andMemorials
List of April 1, 2017 — June 30, 2017, Donations and Memorials
NEW ULM PUBLIC LIBRARY BOARD
RESOLUTION NO. 2017-22FIRST READING AND ADOPTION
APPROVING APRIL 1, 2017 - JUNE 30, 2017,
DONATIONS AND MEMORIALS
Section 465.03 of Minnesota Statutes —"GIFTS TO MUNICIPALITIES"— states: "Anycity, county, school district or town may accept a grant or devise of real or personalproperty and maintain such property for the benefit of its citizens in accordance with theterms prescribed by the donor. Nothing herein shall authorize such acceptance or usefor religious or sectarian purposes. Every such acceptance shall be by resolution of thegoverning body adopted by a two- thirds majority, expressing such terms in full."
The attached list describes donations received by the Library between April 1, 2017, and June 30, 2017.
The Library Board of the New Ulm Public Library accepts these donations with gratitudeto the donors. Approved at a meeting of the New Ulm Public Library Board on July 13, 2017, by the following vote:
AYES: 9
NOES: 0
ABSENT: 0
ABSTAIN: 0
APPROVED:
Vincent Bourgault, Chair
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City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 4 i
Agenda Section: New Business Originating Department: Administration
Resolution: Yes
Prepared By: Community DevelopmentDepartmentOrdinance: N/A
Number ofAttachments: 1 Presented By: Community DevelopmentDirector
Item• Consider resolution approving the request of Brad Retzlaff to waive the loan repaymentrequirements of the Small Cities Development Program.
City Manager' s Proposed Action: Moved by second by approving with one condition the request of Brad Retzlaff to waive the loanrepayment requirements of the Small Cities Development Program.
Board/ Commission Recommendation: N/A
Overview:
The City of New Ulm participated in the Small Cities Development Program ( SCDP) administered by the State ofMinnesota from 2009 to 2011.
The purpose of the program was to finance rental and commercial rehabilitation projects in the downtown area. The City was required to adopt policies for the administration of these activities. Each commercial rehabilitation project had three different loan components. They included a Deferred Loan, SCDPInstallment Loan and a City of New Ulm Installment Loan. The SCDP had a requirement that the outstanding loan balance without interest must be repaid if the property is sold, transferred or otherwise conveyed during the term of the loan. The repayment requirement is not a federal or state regulation but instead is a City policy decision. As a result, theCity can waive the requirement. The Mark W. Retzlaff Revocable Trust was a participant in the SCDP. The mortgage document was dated March 17, 2011.
The street address of the subject property is 21 North Minnesota Street. The current status of their loan repayments is as follows:
Deferred Loan — Ten year term
Current repayment balance is $ 6, 190
SCDP Installment Loan — Fully repaidNew Ulm Installment Loan — Ten year term
Current repayment balance is $ 2, 572. 36Loan payments are current
The owners of the business at the time of the mortgage have passed away. Brad and John Retzlaff are the new ownersof the property and business. They have requested a waiver of the SCDP repayment requirement. The City has previously granted a similar waiver to the Grand New Ulm, LLC. The current outstanding loan balance to market property value ratio would be 5%. The name of the new ownership entity is in the process of being determined.
Primary Issues/Alternatives to Consider:
Staff would recommend approval of the waiver due to the fact that ownership will remain in the family and the newowners have been active in the business for an extended period of time.
Condition:
Approval of this request should be subject to the new owners signing of an Assignment and Assumption Agreementwith the City. The agreement will transfer all the rights, responsibilities and obligations under the loan documents to
the new owners. The agreement will be recorded with Brown County and the recording cost will be paid by the newowners.
Budgetary/Fiscal Issues: N/A
Attachments:
Letter from Brad Retzlaff requesting waiver.
June 16, 2017
Brian Gramentz
City Manager100 North BroadwayNew Ulm, MN 56073
Dear Mr. Gramentz, Mayor, and City Councilors:
Currently, Brad ( myself) and John Retzlaff are the owners of Retzlaff Our Own Hardware Inc. d/ b/ a Retzlaff Ace Hardware (herein after referred to as " Retzlaff Hardware").
In 2011, Retzlaff Hardware participated in the Small Cities Development Program ( herein after
referred to as " SCDP") administered by the City of New Ulm. It consisted of three parts: 1. SCDP Deferred Loan; 2. SCDP Installment Loan; and 3. City Revolving Loan. Together theytotaled $ 16,412.00. The SCDP Installment Loan has been fully repaid. The remaining loanpayments are current for the City Revolving Loan and remaining balance is approximately
7, 700.00.
The ownership of Retzlaff Hardware has been maintained in the name of our father and mothersince the disbursement of the SCDP loan package. They have since both passed away and it isnow necessary to transfer ownership of the property to my brother and myself. John and I havebeen a large part of the business for over 40 years and business operations will continue as theyhave in the past. This is only an ownership name change.
Regulation for the SCDP require repayment of the outstanding loan balance without interest ifthe property is sold, transferred, or otherwise conveyed during the term of the loan. It is ourunderstanding that the repayment provision is a City Policy decision. As a result, the City canmodify or waive this requirement on a case by case basis. Please consider this letter ourrespectful request that the City Council waive the repayment clause and allow my brother andmyself to assume the SCDP loan package, thus continuing the current payment plan.
If you have any questions, please feel free to contact myself directly. We appreciate yourconsideration of our request.
Si rely,
Brad Retzlaff
Owner Retzlaff Ace Hardware
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 4 j
Agenda Section: New Business Originating Department: Park & Recreation
Resolution: Yes
Prepared By: Tom Schmitz
Park & Recreation DirectorOrdinance: N/A
Number of Attachments: None (0) Presented By: Tom
SchmitzParkRecreation Director
Item• Consider resolution to accept donations offered to the City for the Park and RecreationDepartment.
City Manager' s Proposed Action: Motion by Second by to offer the resolution and waive the reading to accept the donations tothe City ofNew Ulm for the Park and Recreation Department, for the following: German Park paver stone & improvements ( cash)
1. $ 100.00 from Laura Reinarts
Dog Park improvements ( cash) 2. $ 40. 00 from Happy Tails Dog Park Group3. $ 50. 00 from Brice Andree
Board/ Commission Recommendation:
On July 10, 2017 the Park and Recreation Commission recommended the City Council accept these donations.
Overview:
N/A
Primary Issues/ Alternatives to Consider: Thank you letters will be sent to donors.
Budgetary/Fiscal Issues: Grand total of $190. 00 in cash donations.
Attachments:
None
City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 4 k
Agenda Section: New Business Originating Department: Park and Recreation
Resolution: N/A
Prepared By: Tom Schmitz, DirectorOrdinance: N/A
Number of Attachments: Two (2) Presented By: Tom Schmitz, Director
Item• Consider motion authorizing conversion of tennis courts to pickleball courts in LincolnPark.
City Manager' s Proposed Action: Motion by Second by to authorize converting the two existing tennis courts to six pickleball courts inLincoln Park.
Board/Commission Recommendation:
On Jul 10, 2017, the Park and Recreation Commission unanimously recommended the above proposed action.
Overview:
1. Pickleball is one of the fastest growing active sports, for all ages, in the United States. 2. Pickleball combines the principles of tennis, badminton and ping pong; on a court similar to tennis, but smaller. 3. Pickleball is currently played at the Recreation Center with three temporary nets on Vogel Fieldhouse court #2, five
days per week, after lunch.
4. Enthusiasts desire to expand play to outdoor courts and there are none in New Ulm. 5. Both Lincoln and Washington Parks have two tennis courts each, side by side. 6. Park and Recreation Department pickleball is managed by the Recreation Program Supervisor, Mr. Joey Schugel. 7. Mr. Schugel has met with representatives of the New Ulm Tennis Association (NUTA) to discuss possible conversion
of tennis court(s) into pickleball courts. NUTA is supportive of this conversion. 8. Consensus derived at this meeting was to convert both Lincoln Park tennis courts into six pickleball courts, because of
close proximity to the ISD88 Middle School existing tennis courts. 9. The footprint of the tennis courts at Lincoln Park will not change for this project.
10. The existing two tennis courts at Washington Park will be maintained.
Primary Issues/Alternatives to Consider: 1. Authorize conversion of both Lincoln Park tennis courts into six pickleball courts. 2. Not authorize conversion of both Lincoln Park tennis courts into six pickleball courts.
Budgetary/Fiscal Issues: 1. Resurfacing all the tennis courts at both Washington and Lincoln Parks was budgeted in 2017. 2. By completing this conversion during the resurfacing, additional costs will be minimized and are estimated at
4, 200.00.
Attachments:
1. Drawing of 6 pickleball courts. 2. Photo example of a 6 court pickleball complex.
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City of New UlmRequest for Council Action
Meeting Date: July 18, 2017 Agenda Item Number: 41
Agenda Section: New Business Originating Department: Park & Recreation
Resolution: N/A
Prepared By: Tom Schmitz, Park &
Recreation DirectorOrdinance: N/A
Number of Attachments: Two (2) Presented By: Tom Schmitz, Park &
Recreation Director
Item• Consider motion awarding the bid for the playground replacement project in German Parkto Webber Recreational Design, Inc.
City Manager' s Proposed Action: Moved by Second by to award the bid for the playground replacement project in
German Park to Webber Recreational Design, Inc., the lowest bidder meeting plans and specifications, in the amount of222, 791. 94.
Board/Commission Recommendation:
1. On July 10, 2017, the Park and Recreation Commission unanimously recommended the above proposed action.
Overview:
1. Three qualified vendors submitted concepts on the MN State Contract or similar Cooperative Purchase Programs. 2. Recommendation is to order Miracle Recreation Equipment through Webber Recreational Design Inc. 3. The playground has unique features and components not found in any other parks in the city. 4. Some elements include Bavarian alpine mountain castle theme, musical components and gravity rail. 5. Poured -in-place, fall zone rubber surfacing will be used, similar to Hermann Heights Park, because of its greater
accessibility and reduced maintenance needs. 6. This is the final replacement project, in the 10 -year plan, to eliminate older and non-compliant playgrounds. 7. The site will be excavated and prepared by the Public Works Department with surveying assistance from the
Engineering Department. 8. Installation is planned for autumn 2017 or spring 2018.
Primary Issues/Alternatives to Consider: 1. Award the project.
2. Not award the project.
Budgetary/Fiscal Issues: 225, 000. 00 is budgeted for this project from 2016 and 2017 funds.
Attachments:
1. Color renditions.
2. Site dimension layout (four layouts)
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