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7.3. SR 11-02-2020 Request for Action To Item Number Mayor and City Council 7.3 Agenda Section Meeting Date Prepared by Public Hearing November 2, 2020 Lori Ziemer, Finance Director Item Description Reviewed by Capital Improvement Plan and Issuance of Cal Portner, City Administrator Capital Improvement Bonds, and Authorize the Reviewed by Issuance of General Obligation Bonds Action Requested 1) Open the public hearing to consider the approval of a Capital Improvement Plan and giving preliminary approval to the issuance of capital improvement bonds in one or more series an aggregate amount not to exceed $17,500,000. 2) Close the public hearing. 3) Adopt, by motion, the following resolutions:  Resolution Approving a Capital Improvement Plan and Giving Preliminary Approval to the Issuance of Capital Improvement Bonds  Resolution Providing for the Sale of $9,895,000 General Obligation Capital Improvement Plan Bonds, Series 2020A  Resolution Providing for the Sale of $5,970,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2020B  Resolution Providing for the Sales of $7,295,000 Taxable General Obligation Sewer Revenue Refunding Bonds, Series 2020C Background/Discussion Capital improvement bonds may be issued by a municipality to finance capital improvements for the acquisition or betterment of public lands, buildings, or other improvements for the purpose of a city hall, library, public safety facility, and public works facility. A capital improvement plan identifying these expenditures is to be approved on or before the public hearing regarding issuance of bonds for such expenditures. The plan must cover at least a five-year period beginning with the date of its adoption and set forth the estimated schedule, timing, and details of specific capital improvements by year, together with the estimated costs, the need for the improvement, and sources of revenue to pay for the improvement. In preparing the capital improvement plan, the City Council must consider for each project and for the overall plan: 1) Condition of the city’s existing infrastructure, including the projected need for repair or replacement. 2) Likely demand for the improvement. 3) Estimated cost of the improvement. 4) Available public resources. 5) Level of overlapping debt in the city. 6) Relative benefits and costs of alternative uses of funds. The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Updated: August 2020 7) Operating costs of the proposed improvements. 8) Alternative for providing services most efficiently through shared facilities with other cities or local governments. The CIP is a strategic planning tool used to assist the City Council in identifying and addressing community needs through long-term capital planning and balanced public investment in supporting the city’s physical infrastructure. Staff and Council have reviewed the proposed 2020-2025 CIP. Staff has been working with our financial advisor, Baker Tilly, in recommending the issuance of $9,895,000 General Obligation Capital Improvement Plan Bonds, Series 2020A, to finance the Public Safety Facility expansion and a portion of Fire Station 3, with the remaining bonds to be issued in 2021. It is also recommended to refund the city’s existing debt. The issuance of $5,970,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2020B, will refund the General Obligation Capital Improvement Plan Bonds, Series 2010A, and the General Obligation Capital Improvement Plan Bonds, Series 2012A, resulting in savings of about $300,000. The issuance of $7,295,000 Taxable General Obligation Sewer Revenue Refunding Bonds, Series 2020C, will refund the General Obligation Sewer Revenue Bonds, Series 2014B, resulting in savings of about $393,000. Financial Impact Projects and funding sources are identified in the 2020-2025 CIP. The bonds are a general obligation of the city payable by a tax levy or other sources. Mission/Policy/Goal Develop a sustainable and prosperous community that reflects the culture of citizens and what is important to the majority. Attachments  Capital Improvement Plan 2020-2025  Pre-Sale Summary for Issuance of Bonds, Series 2020ABC  Resolution Approving a Capital Improvement Plan and Giving Preliminary Approval to the Issuance of Capital Improvement Bonds  Resolution Providing for the Sale of $9,895,000 General Obligation Capital Improvement Plan Bonds, Series 2020A  Resolution Providing for the Sale of $5,970,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2020B  Resolution Providing for the Sales of $7,295,000 Taxable General Obligation Sewer Revenue Refunding Bonds, Series 2020C N:\\Public Bodies\\Agenda Packets\\11-02-2020\\Final\\x7.3 sr CIP & 2020 Bonds.docx City of Elk River, MN Capital Improvement Plan 2020 - 2025 TABLE OF CONTENTS INTRODUCTION: City Officials………………………………………………………………………………….. 1 Capital Improvement Plan Overview ……………………………………………………… 2 CAPITAL IMPROVEMENT PLAN: Capital Improvement Financing……………………………………………………………. 4 Capital Improvement Plan Summary ……………………………………………………… 6 Categories of Expenditures ……………………………………………………………. 6 Timing of Projects and Expenditures …………………………………………………. 7 Funding Sources ………………………………………………………………………… 8 Impact on Operating Budget ………………………………………………....................... 9 Projects by Year ……………………………………………………………………………. 10 Projects by Funding Source ………………………………………………………………. 13 PROJECT DETAILS: AD-03 Administration – Vehicles …………………………………………………. 17 BL-10 City Hall ……………………………………………………………………… 18 BL-12 City Facilities Upgrades ………………………………………………….... 19 BL-15 Phone System …………………………………………………………….... 20 BM-01 Building Maint. – Vehicles/Equipment …………………………………… 21 BZ-02 Building Safety Equipment …………………………………………….…. 22 EL-01 Election Equipment ………………………………………………………... 23 EP-02 Radio Communications Upgrade ……………………………………….... 24 FD-01 Fire – Vehicles ……………………………………………………………... 25 FD-02 Fire – Trucks ……………………………………………………………….. 26 FS-03 Fire Station #3 ……………………………………………………………... 27 FS-04 Fire Station #3 – Equipment ……………………………………………... 28 II-01 Hwy 169 Frontage/Backage Road Improvements …………………..…. 29 II-02 Hwy 169 Utility Modifications ………………………………………….….. 30 II-03 169 Redefine ……………………………………………………………….. 31 II-08 Kelley Pkwy/Twin Lakes Rd/TH 10 Intersection …………………….…. 32 II-20 County Projects – Cost Share ………………………………………….… 33 II-22 School Street Traffic Enhancements ……………………………..……… 34 II-34 Wayfinding Signage ………………………………………………..……… 35 LS-01 Liquor Stores – Improvements ……………………………………..…….. 36 MPF-02 Multipurpose Facility …………………………………………….………… 37 PD-01 Police – Marked Squads ……………………………………………….…. 38 PD-02 Police – Unmarked Squads ………………………………………………. 39 PD-03 Police – CSO Vehicles …………………………………………………….. 40 PF-64 Trail Development – TH 10 Extension …………………………………… 41 PIF-20 2020 Park Improvement Projects ………………………………………… 42 PIF-21 2021 Park Improvement Projects ………………………………………… 43 PIF-22 2022 Park Improvement Projects ……………………………………….... 44 PIF-23 2023 Park Improvement Projects ………………………………………… 45 PIF-24 2024 Park Improvement Projects ………………………………………… 46 PIF-25 2025 Park Improvement Projects ………………………………………... 47 PK-01 Parks – Pickup Trucks …………………………………………………….. 48 PK-02 Parks – Mobile Equipment ………………………………………………… 49 Plan-02 Comprehensive/Transportation Plan …………………………………….. 50 PM-01 Pavement Management Program ………………………………………… 51 PM-02 Parking Lot Improvements ………………………………………………… 52 PR-48 Orono Park Parking Lot ……………………………………………………. 53 PS-03 Public Safety Building Expansion ………………………………………… 54 ST-01 Streets – Pickup Trucks ……………………………………………………. 55 ST-02 Streets – Dump Trucks ……………………………………………………. 56 ST-03 Streets – Mobile Equipment ………………………………………………. 57 STM-1 Storm Water Projects …………………………………………………….... 58 SW-01 Sewer – Windsor Park III ………………………………………………….. 59 TC-01-20 2020 Technology Upgrades …………………………………………….... 60 TC-01-21 2021 Technology Upgrades ………………………………….................. 61 TC-01-22 2022 Technology Upgrades ………………………………………………. 62 TC-01-23 2023 Technology Upgrades …………………………………................... 63 TC-01-24 2024 Technology Upgrades …………………………………................... 64 TC-01-25 2025 Technology Upgrades …………………………………………….... 65 CITY OF ELK RIVER, MINNESOTA CITY OFFICIALS Term Expires CITY COUNCIL December 31, John Dietz Mayor 2022 Garrett Christianson Council member 2022 Nate Ovall Council member 2020 Jennifer Wagner Council member 2022 Matthew Westgaard Council member 2020 CITY MANAGEMENT STAFF Calvin Portner City Administrator Lori Ziemer Finance Director Ron Nierenhausen Police Chief Mark Dickinson Fire Chief Michael Hecker Parks & Recreation Director Justin Femrite Public Works Director/Chief Engineer Suzanne Fischer Community Development Director 1 CAPITAL IMPROVEMENT PLAN 2020 – 2025 The City of Elk River’s Capital Improvement Plan (CIP) for the years 2020-2025 has been prepared as a strategic planning tool for the City Council to identify proposed capital improvement projects that address community priorities over the next six years. The CIP outlines projected capital expenditures based on the city’s long-range plans, goals, and policies. In addition to identifying the specific capital projects, the CIP also outlines how these projects are anticipated to be financed. The primary objective of preparing a CIP is to develop a comprehensive program that allows the Council to align capital investments with specified projects based on the community’s needs, while taking into consideration the best use of the limited resources available to provide efficient and effective delivery of services. The CIP will also provide a planning foundation for future needs assessments to ensure the City is appropriately responding to the critical infrastructure needs necessary for sustainable future growth. This document will provide the Council with the information to begin the process for planning improvements that meet the City’s physical infrastructure needs. Consequently, the CIP serves as a flexible guide to properly identify the critical components of the City’s infrastructure, yet maintain flexibility in determining project timeframes, project scope and possible funding sources. The CIP continues the emphasis of managing the City’s limited resources by prudently planning for known and/or anticipated future capital expenditures. Capital improvements to streets, parks, buildings, equipment, software, and vehicles are included in the CIP. This plan is designed to show details of each specific capital improvement together with the estimated project costs, the need for the improvement, the sources of revenue to pay for the improvement, as well as the timing and location for each improvement. Specific information is shown on each project within this document. With the adoption of the attached plan, and the projects contained herein, Council and staff have carefully considered for each project and the overall plan: •The condition of the city’s existing infrastructure, including the projected need for repair or replacement •The likely demand for the improvement •The estimated cost of the improvement •The available resources •The level of overlapping debt •The relative benefits and costs of alternative uses of the funds •Operating costs of the proposed improvements •Alternatives for providing services most efficiently through shared facilities with other cities or local governments. 2 City staff estimates the amount of funding that is needed for projects to be completed in the next six years. This uniqueness of the type of project generally is associated with a funding source. Cash flow estimates are done frequently to review cash reserve levels associated with the project funds. Projects listed in the first year are included in the budget and upon each annual update of the CIP some projects will be deleted, added, or even delayed reflecting community needs and financial ability to fund the project. Approval of the CIP by Council does not authorize spending or initiation of a given project nor allocate funding for any of the projects. The City Council simply supports and accepts this document with the provision that capital improvement planning is subject to the dynamics of community growth and political leadership and acknowledges that other unanticipated needs may take precedence over planned projects 3 Capital Improvement Financing Implementing capital improvements requires the utilization of sound, economical financing methods. The City of Elk River has several financing mechanisms available, ranging from cash reserves to special-purpose funds to borrowing through the issuance of municipal bonds. Several funding sources may be used for a project. The following funding sources are identified as potential financing mechanisms for the projects in the CIP: Internal Sources: Capital Outlay Reserve – this fund was established to help build reserves for the purchase of the city’s information technology hardware and software. Development Fund – this fund accounts for activities related to economic development within the city. Equipment Replacement Fund – this fund was established to account for the purchases of the city’s vehicles and mobile equipment. Funding is provided through departmental charges based on the amortization of their respective equipment. Government Buildings Reserve – this fund was established to provide funding for the replacement and/or rehabilitation of city facilities. The major source of revenue is from landfill expansion fees. GRE Reserve – this fund was established to account for unrestricted revenues received from the license agreement between the city and Great River Energy. The agreement terminated in 2019 and eventually the fund will cease to exist. The available funds can be used for city projects that cannot be financed by alternative revenue sources. Library Fund – this fund accounts for any library maintenance costs which are not paid by the Great River Regional Library System. Liquor Fund – this fund accounts for the operations and maintenance of the city’s two off-sale municipal liquor stores. A portion of the profits provide funding for park improvement projects. Multipurpose Facility – this fund accounts for the operation and maintenance of the multipurpose facility which is funded by user fees. Park Dedication – this fund accounts for park dedication fees from developers and funds expenditures for park land acquisitions and park capita l improvements. Park Improvement – this fund was established to account for the replacement and maintenance of park equipment and for the beautification of city parks. It is financed by an annual transfer from the Liquor Fund. 4 Pavement Management – this fund accounts for franchise taxes collected on gas and electric bills which the city uses to fund street projects. Special Assessments – costs of the improvements are levied against those properties that benefit from a particular improvement to finance such improvements. Stormwater Utility – this fund accounts for customer stormwater service charges that are used to finance the stormwater system expenses. Street/Capital Improvement – this fund is used to account for various improvement projects that cannot be easily financed by alternative revenue sources. Trunk Utility – this fund is used on trunk water and sewer improvement projects for which assessments were collected. These funds would be used in lieu of having to issue bonds on future system expansion/improvements. External Sources: Capital Improvement Bonds – these general obligation bonds are issued to finance infrastructure and facility improvement projects. They are backed by the full faith and credit of the City and are subject to the city’s debt limit. Capital Equipment Notes – these notes can be used to purchase capital equipment having an expected useful life at least as long as the term of the notes. The notes are backed by the full faith and credit of the City subject to the city’s debt limit and have a maximum term of 10 years. ERMU – a portion of project costs that are paid by Elk River Municipal Utilities. Federal Grants – grants received from federal agencies approved by the City Council. MnDot – a portion of public works improvement costs on state-aid roads are paid by the Minnesota Department of Transportation. Municipal State Aid – money received from the state for street construction projects. State aid allotments for street construction are based on population and fiscal need. 5 Capital Improvement Plan Summary Categories of Expenditures Street construction is the largest expenditure category in the CIP. The proposed Hwy 169 improvements make up the largest share of streets and utilities expenditures. Building improvements include the expansion to the Public Safety Building and the construction of Fire Station 3, as well as HVAC and energy efficiency upgrades to city facilities. The equipment category includes public works equipment, squad cars, fire apparatus, and city vehicles. Summary of CIP Projects by Category Category 2020 2021 2022 2023 2024 2025 Total Buildings 1,437,000$ 15,306,300$ 500,000$ 100,000$ -$ -$ 17,343,300$ Development 275,000 125,000 - - - - 400,000 Equipment 1,202,600 2,581,000 1,050,500 932,500 805,200 1,595,000 8,166,800 Parks/Trails 677,000 1,560,000 250,000 140,000 155,000 340,000 3,122,000 Streets 540,000 6,500,000 300,000 3,970,000 5,200,000 13,050,000 29,560,000 Utilities - 2,054,000 - 1,250,000 - 250,000 3,554,000 TOTAL 4,131,600$ 28,126,300$ 2,100,500$ 6,392,500$ 6,160,200$ 15,235,000$ 62,146,100$ 6 Timing of Projects and Expenditures The total amount of capital expenditures included in the CIP is $62,146,100. The projects and equipment in the CIP have been staged appropriately to align with affordability and available funding sources. Each project has a financing plan and a review of funding sources is important in the context of total expenditures. Through long-term financial planning, the city strives to minimize impact on local property taxes. All projects and expenditures are subject to approval and annual appropriation by the City Council, as well as city purchasing and capital expenditure policies. Summary of CIP Expenditures by Year 7 Funding Sources A variety of funding sources will be utilized to fund the projects and expenditures. It is estimated that 23% of the CIP will be financed with debt. General obligation bonds will be issued to fund the facility projects and fire apparatus equipment. The street funds will finance 23% of the street improvement projects along with intergovernmental revenues from the state and federal grants which will add 22% of funding sources. A variety of capital project funds contain money that has been set aside for capital expenditures for facility improvements and the purchase of public works equipment, squad cars, and technology equipment. Summary of CIP Funding Sources 8 Impact on Operating Budget Identifying potential costs associated with implementation of the proposed capital improvement projects is a critical aspect of long-term financial planning. Many of the projects included in the Capital Improvement Plan will have little or not impact on th e operating budget. Generally, equipment replacement items will have a positive impact on future operating budgets due to lower maintenance costs. The CIP identifies HVAC and energy efficiency upgrades in many city facilities. These improvements and upgrades are primarily maintenance in nature should have a positive impact on the operating budget with significant energy savings. Street improvement projects will result in substantial savings in maintenance costs. The park improvement projects represent identified maintenance or replacement of existing asses and should have little impact on the operating budget. The expansion of the Public Safety Building and the construction of Fire Station 3 will involve higher operating costs for utilities and insurance. The additional annual operating expense is estimated to be $100,000 beginning in 2022. 9 Capital Improvement Plan City of Elk River, Minnesota PROJECTS BY YEAR Data in Year 2020 and 2025 Project Name Department Project # Project Cost 2020 AD-03Administration - Vehicles 4,000Administration BL-10City Hall 137,000Public Buildings BM-01Building Maint. - Vehicles/Equipment 27,000Building Maintenance BZ-02Building Safety Equipment 13,500Building & Safety EL-01Election Equipment 15,600Elections FD-02Fire - Trucks 56,000Fire FS-03Fire Station #3 350,000Fire Stations II-08Kelley Pkwy/Twin Lakes Rd/TH 10 Intersection 75,000Infrastructure Improvements II-22School Street Traffic Enhancements 40,000Infrastructure Improvements II-34Wayfinding Signage 200,000Infrastructure Improvements MPF-02Multipurpose Facility 600,000Multipurpose Facility PD-01Police - Marked Squads 234,000Police PF-64Trail Development - TH 10 Extension 25,000Park Development/Improvement PIF-202020 Park Improvement Projects 652,000Park Improvement Fund PK-02Parks - Mobile Equipment 175,000Park Maintenance Plan-02Comprehensive/Transportation Plan 75,000Planning PM-01Pavement Management Program 425,000Infrastructure Improvements PS-03Public Safety Building Expansion 350,000Public Safety Building ST-02Streets - Dump Trucks 497,500Streets TC-01-202020 Technology Upgrades 180,000Technology/Communications 4,131,600Total for 2020 2021 BL-12City Facilities Upgrades 1,086,300Public Buildings EP-02Radio Communications Upgrade 600,000Emergency Management FS-03Fire Station #3 7,000,000Fire Stations FS-04Fire Station #3 - Equipment 1,150,000Fire Stations II-01Hwy 169 Frontage/Backage Road Improvements 500,000Infrastructure Improvements II-02Hwy 169 Utility Modifications 500,000Infrastructure Improvements II-20County Projects - Cost Share 500,000Infrastructure Improvements LS-01Liquor Stores - Improvements 20,000Liquor Fund PD-01Police - Marked Squads 117,000Police PD-02Police - Unmarked Squads 123,000Police PF-64Trail Development - TH 10 Extension 960,000Park Development/Improvement PIF-212021 Park Improvement Projects 250,000Park Improvement Fund PK-01Parks - Pickup Trucks 117,000Park Maintenance PK-02Parks - Mobile Equipment 36,000Park Maintenance Plan-02Comprehensive/Transportation Plan 125,000Planning PM-01Pavement Management Program 5,100,000Infrastructure Improvements PM-02Parking Lot Improvements 350,000Infrastructure Improvements PR-48Orono Park Parking Lot 400,000Park Development/Improvement PS-03Public Safety Building Expansion 7,200,000Public Safety Building ST-01Streets - Pickup Trucks 65,000Streets ST-02Streets - Dump Trucks 263,000Streets 2020-2025 CAPITAL IMPROVEMENT PLAN 10 Project Name Department Project # Project Cost STM-1Storm Water Projects 175,000Storm Water SW-01Sewer - Windsor Park III 1,379,000Sewer Department TC-01-212021 Technology Upgrades 110,000Technology/Communications 28,126,300Total for 2021 2022 BL-10City Hall 500,000Public Buildings BM-01Building Maint. - Vehicles/Equipment 40,000Building Maintenance FD-01Fire - Vehicles 50,000Fire FD-02Fire - Trucks 52,000Fire PD-01Police - Marked Squads 175,500Police PD-02Police - Unmarked Squads 47,000Police PD-03Police - CSO Vehicles 46,000Police PIF-222022 Park Improvement Projects 250,000Park Improvement Fund PM-01Pavement Management Program 300,000Infrastructure Improvements ST-02Streets - Dump Trucks 265,000Streets ST-03Streets - Mobile Equipment 225,000Streets TC-01-222022 Technology Upgrades 150,000Technology/Communications 2,100,500Total for 2022 2023 BM-01Building Maint. - Vehicles/Equipment 40,000Building Maintenance FD-02Fire - Trucks 52,000Fire II-02Hwy 169 Utility Modifications 1,000,000Infrastructure Improvements II-20County Projects - Cost Share 20,000Infrastructure Improvements LS-01Liquor Stores - Improvements 100,000Liquor Fund PD-01Police - Marked Squads 58,500Police PD-02Police - Unmarked Squads 76,000Police PD-03Police - CSO Vehicles 46,000Police PIF-232023 Park Improvement Projects 140,000Park Improvement Fund PK-01Parks - Pickup Trucks 35,000Park Maintenance PK-02Parks - Mobile Equipment 90,000Park Maintenance PM-01Pavement Management Program 3,600,000Infrastructure Improvements PM-02Parking Lot Improvements 350,000Infrastructure Improvements ST-01Streets - Pickup Trucks 160,000Streets ST-02Streets - Dump Trucks 265,000Streets STM-1Storm Water Projects 250,000Storm Water TC-01-232023 Technology Upgrades 110,000Technology/Communications 6,392,500Total for 2023 2024 II-03169 Redefine 3,900,000Infrastructure Improvements II-20County Projects - Cost Share 1,000,000Infrastructure Improvements PD-01Police - Marked Squads 117,000Police PD-02Police - Unmarked Squads 92,200Police PD-03Police - CSO Vehicles 46,000Police PIF-242024 Park Improvement Projects 155,000Park Improvement Fund PK-02Parks - Mobile Equipment 70,000Park Maintenance PM-01Pavement Management Program 300,000Infrastructure Improvements ST-01Streets - Pickup Trucks 50,000Streets ST-03Streets - Mobile Equipment 370,000Streets TC-01-242024 Technology Upgrades 60,000Technology/Communications 6,160,200Total for 2024 2020-2025 CAPITAL IMPROVEMENT PLAN 11 Project Name Department Project # Project Cost 2025 BL-15Phone System 180,000Public Buildings FD-01Fire - Vehicles 100,000Fire II-01Hwy 169 Frontage/Backage Road Improvements 1,500,000Infrastructure Improvements II-08Kelley Pkwy/Twin Lakes Rd/TH 10 Intersection 6,500,000Infrastructure Improvements PD-01Police - Marked Squads 234,000Police PD-02Police - Unmarked Squads 114,000Police PIF-252025 Park Improvement Projects 340,000Park Improvement Fund PK-01Parks - Pickup Trucks 170,000Park Maintenance PK-02Parks - Mobile Equipment 65,000Park Maintenance PM-01Pavement Management Program 4,700,000Infrastructure Improvements PM-02Parking Lot Improvements 350,000Infrastructure Improvements ST-01Streets - Pickup Trucks 110,000Streets ST-02Streets - Dump Trucks 270,000Streets ST-03Streets - Mobile Equipment 260,000Streets STM-1Storm Water Projects 250,000Storm Water TC-01-252025 Technology Upgrades 92,000Technology/Communications 15,235,000Total for 2025 GRAND TOTAL 62,146,100 2020-2025 CAPITAL IMPROVEMENT PLAN 12 Capital Improvement Plan City of Elk River, Minnesota PROJECTS BY FUNDING SOURCE 2020 2025thru Total20202021202220232024Source2025Project #Priority Capital Improvement Bonds FS-03Fire Station #3 7,350,0003,950,000 3,400,000 PS-03Public Safety Building Expansion 6,050,0006,050,000 Capital Improvement Bonds Total 13,400,00010,000,000 3,400,000 Capital Equipment Notes FS-04Fire Station #3 - Equipment 1,150,0001,150,000 Capital Equipment Notes Total 1,150,0001,150,000 Capital Outlay Reserve BZ-02Building Safety Equipment 13,50013,500 EL-01Election Equipment 15,60015,600 TC-01-202020 Technology Upgrades 115,000115,000 TC-01-212021 Technology Upgrades 90,00090,000 TC-01-222022 Technology Upgrades 142,500142,500 TC-01-232023 Technology Upgrades 98,00098,000 TC-01-242024 Technology Upgrades 54,00054,000 TC-01-252025 Technology Upgrades 83,60083,600 Capital Outlay Reserve Total 612,200144,100 90,000 142,500 98,000 54,000 83,600 Capital Projects - Active ER II-20County Projects - Cost Share 150,000150,000 Capital Projects - Active ER Total 150,000150,000 City Development Fund Plan-02Comprehensive/Transportation Plan 75,00075,000 City Development Fund Total 75,00075,000 Equipment Replacement Fund AD-03Administration - Vehicles 4,0004,000 BM-01Building Maint. - Vehicles/Equipment 107,00027,000 40,000 40,000 FD-01Fire - Vehicles 150,00050,000 100,000 FD-02Fire - Trucks 160,00056,000 52,000 52,000 PD-01Police - Marked Squads 936,000234,000 117,000 175,500 58,500 117,000 234,000 PD-02Police - Unmarked Squads 452,200123,000 47,000 76,000 92,200 114,000 PD-03Police - CSO Vehicles 138,00046,000 46,000 46,000 PK-01Parks - Pickup Trucks 322,000117,000 35,000 170,000 2020-2025 CAPITAL IMPROVEMENT PLAN 13 Total20202021202220232024Source2025Project #Priority PK-02Parks - Mobile Equipment 436,000175,000 36,000 90,000 70,000 65,000 ST-01Streets - Pickup Trucks 385,00065,000 160,000 50,000 110,000 ST-02Streets - Dump Trucks 1,560,500497,500 263,000 265,000 265,000 270,000 ST-03Streets - Mobile Equipment 855,000225,000 370,000 260,000 Equipment Replacement Fund Total 5,505,700993,500 721,000 900,500 822,500 745,200 1,323,000 ERMU BL-15Phone System 36,00036,000 TC-01-202020 Technology Upgrades 65,00065,000 TC-01-212021 Technology Upgrades 20,00020,000 TC-01-222022 Technology Upgrades 7,5007,500 TC-01-232023 Technology Upgrades 12,00012,000 TC-01-242024 Technology Upgrades 6,0006,000 TC-01-252025 Technology Upgrades 8,4008,400 ERMU Total 154,90065,000 20,000 7,500 12,000 6,000 44,400 Federal Grants II-08Kelley Pkwy/Twin Lakes Rd/TH 10 Intersection 2,000,0002,000,000 PF-64Trail Development - TH 10 Extension 640,000640,000 Federal Grants Total 2,640,000640,000 2,000,000 Government Buildings Reserve BL-10City Hall 637,000137,000 500,000 BL-12City Facilities Upgrades 776,000776,000 BL-15Phone System 144,000144,000 MPF-02Multipurpose Facility 600,000600,000 PS-03Public Safety Building Expansion 1,500,0001,500,000 Government Buildings Reserve Total 3,657,000737,000 2,276,000 500,000 144,000 GRE Reserve EP-02Radio Communications Upgrade 600,000600,000 II-34Wayfinding Signage 200,000200,000 GRE Reserve Total 800,000200,000 600,000 Library BL-12City Facilities Upgrades 216,500216,500 Library Total 216,500216,500 Liquor Fund BL-12City Facilities Upgrades 58,80058,800 LS-01Liquor Stores - Improvements 120,00020,000 100,000 Liquor Fund Total 178,80078,800 100,000 MnDOT Cooperative Funds 2020-2025 CAPITAL IMPROVEMENT PLAN 14 Total20202021202220232024Source2025Project #Priority II-08Kelley Pkwy/Twin Lakes Rd/TH 10 Intersection 1,000,0001,000,000 MnDOT Cooperative Funds Total 1,000,0001,000,000 Multipurpose Facility BL-12City Facilities Upgrades 35,00035,000 Multipurpose Facility Total 35,00035,000 Municipal State Aid II-01Hwy 169 Frontage/Backage Road Improvements 750,000750,000 II-03169 Redefine 2,900,0002,900,000 II-08Kelley Pkwy/Twin Lakes Rd/TH 10 Intersection 3,000,0003,000,000 II-20County Projects - Cost Share 1,120,000350,000 20,000 750,000 PM-01Pavement Management Program 2,500,0002,500,000 Municipal State Aid Total 10,270,0002,850,000 20,000 3,650,000 3,750,000 Park Dedication II-20County Projects - Cost Share 250,000250,000 PF-64Trail Development - TH 10 Extension 345,00025,000 320,000 Park Dedication Total 595,00025,000 320,000 250,000 Park Improvement Fund PIF-202020 Park Improvement Projects 652,000652,000 PIF-212021 Park Improvement Projects 250,000250,000 PIF-222022 Park Improvement Projects 250,000250,000 PIF-232023 Park Improvement Projects 140,000140,000 PIF-242024 Park Improvement Projects 155,000155,000 PIF-252025 Park Improvement Projects 340,000340,000 Park Improvement Fund Total 1,787,000652,000 250,000 250,000 140,000 155,000 340,000 Pavement Management Fund II-01Hwy 169 Frontage/Backage Road Improvements 750,000750,000 II-08Kelley Pkwy/Twin Lakes Rd/TH 10 Intersection 75,00075,000 II-22School Street Traffic Enhancements 40,00040,000 PM-01Pavement Management Program 11,675,000425,000 2,500,000 300,000 3,550,000 300,000 4,600,000 PM-02Parking Lot Improvements 1,050,000350,000 350,000 350,000 PR-48Orono Park Parking Lot 400,000400,000 Pavement Management Fund Total 13,990,000540,000 3,250,000 300,000 3,900,000 300,000 5,700,000 Special Assessments II-08Kelley Pkwy/Twin Lakes Rd/TH 10 Intersection 500,000500,000 SW-01Sewer - Windsor Park III 1,379,0001,379,000 2020-2025 CAPITAL IMPROVEMENT PLAN 15 Total20202021202220232024Source2025Project #Priority Special Assessments Total 1,879,0001,379,000 500,000 Storm Water PM-01Pavement Management Program 250,000100,000 50,000 100,000 STM-1Storm Water Projects 675,000175,000 250,000 250,000 Storm Water Total 925,000275,000 300,000 350,000 Street/Capital Improvement II-01Hwy 169 Frontage/Backage Road Improvements 500,000500,000 Plan-02Comprehensive/Transportation Plan 75,00075,000 Street/Capital Improvement Total 575,000575,000 Trunk Utility Fund II-02Hwy 169 Utility Modifications 1,500,000500,000 1,000,000 Plan-02Comprehensive/Transportation Plan 50,00050,000 Trunk Utility Fund Total 1,550,000550,000 1,000,000 Yet To Be Determined II-03169 Redefine 1,000,0001,000,000 Yet To Be Determined Total 1,000,0001,000,000 GRAND TOTAL 62,146,10013,431,600 18,826,300 2,100,500 6,392,500 6,160,200 15,235,000 2020-2025 CAPITAL IMPROVEMENT PLAN 16 PROJECT DETAILS Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Lease of an electric pool vehicle. Justification In support of the Energy City initiatives and the EV charging station program. Description Project #AD-03 Useful Life Unassigned Project Name Administration - Vehicles Category Vehicles Type Vehicle Contact Building & Env. Admin. Department Administration Total2020 2021 2022 2023 2024Expenditures 2025 4,0004,000Vehicles 4,000 4,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 4,0004,000Equipment Replacement Fund 4,000 4,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 17 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2020 - Carpet replacement 2022 - City Hall roof replacement Justification City hall roof is beyond its 20 year life expectancy and repairs are needed more frequently. Description Project #BL-10 Useful Life Unassigned Project Name City Hall Category Buildings Type Maintenance Contact Building Maintenance Supv. Department Public Buildings Total2020 2021 2022 2023 2024Expenditures 2025 500,000500,000Buildings 137,000137,000Building Maintenance 137,000 500,000 637,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 637,000137,000 500,000Government Buildings Reserve 137,000 500,000 637,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 18 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Improvements to various city facilities to include: * LED lighting upgrade * Boiler plant replacement * Modify building controls * Commissioning of mechanical systems Justification Building upgrades identified for energy consumption and indoor air handling components, as well as adding new technology to city facilities Description Project #BL-12 Useful Life Unassigned Project Name City Facilities Upgrades Category Buildings Type Building Contact Building Maintenance Supv. Department Public Buildings Total2020 2021 2022 2023 2024Expenditures 2025 1,086,3001,086,300Buildings 1,086,300 1,086,300Total Total2020 2021 2022 2023 2024Funding Sources 2025 776,000776,000Government Buildings Reserve 35,00035,000Multipurpose Facility 216,500216,500Library 58,80058,800Liquor Fund 1,086,300 1,086,300Total 2020-2025 CAPITAL IMPROVEMENT PLAN 19 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Phone system replacement Justification The phone system was installed in 2015 and is scheduled for replacement due to technology and communication advancements Description Project #BL-15 Useful Life 10 years Project Name Phone System Category Technology/Communiciations E Type Equipment Contact IT Manager Department Public Buildings Total2020 2021 2022 2023 2024Expenditures 2025 180,000Equipment180,000 180,000Total180,000 Total2020 2021 2022 2023 2024Funding Sources 2025 144,000Government Buildings Reserve 144,000 36,000ERMU36,000 180,000Total180,000 2020-2025 CAPITAL IMPROVEMENT PLAN 20 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Replacement vehicles/equipment for building maintenance division: 2020 - Genie lift & trailer 2021 - 2001 Ford F250 2022 - 2008 Ford F350 Justification Based on annual condition assessment Description Project #BM-01 Useful Life Unassigned Project Name Building Maint. - Vehicles/Equipment Category Vehicles Type Vehicle Contact Building Maintenance Supv. Department Building Maintenance Total2020 2021 2022 2023 2024Expenditures 2025 27,00027,000Equipment 80,00040,000 40,000Vehicles 27,000 40,000 40,000 107,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 107,00027,000 40,000 40,000Equipment Replacement Fund 27,000 40,000 40,000 107,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 21 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Plan review table Justification Ability to review plans electronically to improve effeciency and access and eliminate paper submission processes as identified by the City Council in their goal for business friendly operations. Description Project #BZ-02 Useful Life 10 years Project Name Building Safety Equipment Category Equipment Type Equipment Contact Building Offical Department Building & Safety Total2020 2021 2022 2023 2024Expenditures 2025 13,50013,500Equipment 13,500 13,500Total Total2020 2021 2022 2023 2024Funding Sources 2025 13,50013,500Capital Outlay Reserve 13,500 13,500Total 2020-2025 CAPITAL IMPROVEMENT PLAN 22 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Election equipment Justification Cost share agreement with Sherburne County payable in annual installments 2017 - 2020 Description Project #EL-01 Useful Life Unassigned Project Name Election Equipment Category Equipment Type Equipment Contact City Clerk Department Elections Total2020 2021 2022 2023 2024Expenditures 2025 15,60015,600Equipment 15,600 15,600Total Total2020 2021 2022 2023 2024Funding Sources 2025 15,60015,600Capital Outlay Reserve 15,600 15,600Total 2020-2025 CAPITAL IMPROVEMENT PLAN 23 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Upgrade portable radios for police and fire Justification Replace obsolete portable radios that are 15-20 years old. Current radios are no longer manufactured so support is limited and parts are difficult to obtain. Description Project #EP-02 Useful Life 10 years Project Name Radio Communications Upgrade Category Equipment Type Equipment Contact Fire Chief Department Emergency Management Total2020 2021 2022 2023 2024Expenditures 2025 600,000600,000Equipment 600,000 600,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 600,000600,000GRE Reserve 600,000 600,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 24 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Replace fire vehicles as follows: 2022 - 2013 Chev Tahoe - Fire Marshal 2025 - 2015 Chev Tahoe - Fire Chief 2011 Chev Tahoe - Duty Officer Justification Based on annual condition assessment. Description Project #FD-01 Useful Life 10 years Project Name Fire - Vehicles Category Vehicles Type Vehicle Contact Fire Chief Department Fire Total2020 2021 2022 2023 2024Expenditures 2025 150,00050,000Vehicles 100,000 50,000 150,000Total100,000 Total2020 2021 2022 2023 2024Funding Sources 2025 150,00050,000Equipment Replacement Fund 100,000 50,000 150,000Total100,000 2020-2025 CAPITAL IMPROVEMENT PLAN 25 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2020 - 2002 Ford F350 Utility 1 2022 - 2004 Ford F350 Grass 3 2023 - 2006 Ford F350 Grass 4 Justification Based on annual condition assessment. Description Project #FD-02 Useful Life 15 years Project Name Fire - Trucks Category Vehicles Type Vehicle Contact Fire Chief Department Fire Total2020 2021 2022 2023 2024Expenditures 2025 160,00056,000 52,000 52,000Vehicles 56,000 52,000 52,000 160,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 160,00056,000 52,000 52,000Equipment Replacement Fund 56,000 52,000 52,000 160,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 26 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Construct Fire Station #3 due to population growth and to decrease call time for the eastern part of City. Justification A fire station feasibility and facility study was conducted in 2017 to evaluate the current facilities, locations and transportation infrastructure. The city has a number of barriers that have an impact on response time including Hwy 10, Hwy 169, the Mis Description Project #FS-03 Useful Life 50 years Project Name Fire Station #3 Category Buildings Type Building Contact Fire Chief Department Fire Stations Total2020 2021 2022 2023 2024Expenditures 2025 350,000350,000Design 7,000,0007,000,000Construction 350,000 7,000,000 7,350,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 7,350,0003,950,000 3,400,000Capital Improvement Bonds 3,950,000 3,400,000 7,350,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 27 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Fire Station #3 equipment includes: * Fire engine *Fire tanker * Grass truck * Other equipment needs Justification Fire Station #3 will be constructed in 2021 and will require fire apparatus and equipment. Description Project #FS-04 Useful Life 20 years Project Name Fire Station #3 - Equipment Category Equipment Type Equipment Contact Fire Chief Department Fire Stations Total2020 2021 2022 2023 2024Expenditures 2025 1,150,0001,150,000Equipment 1,150,000 1,150,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 1,150,0001,150,000Capital Equipment Notes 1,150,000 1,150,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 28 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Design and implement improvements to the frontage and backage road system east and west of the Hwy 169 Redefine project (this replaces the Line Ave improvements) Justification Improvements to the local road connections to Hwy 169 to assure the successful completion of connectiing commercial uses along both the east and west sides of Hwy 169 from the railroad north to 197th Ave Description Project #II-01 Useful Life 25 years Project Name Hwy 169 Frontage/Backage Road Improvements Category Street Construction Type Infrastructure Contact Public Works Director Department Infrastructure Improvements Total2020 2021 2022 2023 2024Expenditures 2025 100,000100,000Design 400,000400,000Land Acquisition 1,500,000Construction1,500,000 500,000 2,000,000Total1,500,000 Total2020 2021 2022 2023 2024Funding Sources 2025 500,000500,000Street/Capital Improvement 750,000Municipal State Aid 750,000 750,000Pavement Management Fund 750,000 500,000 2,000,000Total1,500,000 2020-2025 CAPITAL IMPROVEMENT PLAN 29 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Trunk sanitary sewer system modifications to accommodate Hwy 169 Redefine project Justification Relocate utilities in the MNDOT ROW Description Project #II-02 Useful Life 25 years Project Name Hwy 169 Utility Modifications Category Utilities Type Infrastructure Contact Public Works Director Department Infrastructure Improvements Total2020 2021 2022 2023 2024Expenditures 2025 1,500,000500,000 1,000,000Utilities 500,000 1,000,000 1,500,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 1,500,000500,000 1,000,000Trunk Utility Fund 500,000 1,000,000 1,500,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 30 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Local cost share for MNDOT project to remove 5 signal systems from TH 169 through Elk River Justification Safety and mobility improvement to the TH 169 corridor and provide better local connection across the highway. Visual quality enhanced railings, street lights, plantings, colors and textures of the final elements of the 169 project. Description Project #II-03 Useful Life 25 years Project Name 169 Redefine Category Street Construction Type Infrastructure Contact Public Works Director Department Infrastructure Improvements Total2020 2021 2022 2023 2024Expenditures 2025 1,000,0001,000,000Improvements 2,900,0002,900,000Construction 3,900,000 3,900,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 2,900,0002,900,000Municipal State Aid 1,000,0001,000,000Yet To Be Determined 3,900,000 3,900,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 31 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Complete frontage road Kelley Parkway and Twin Lakes Road extension to new signalized intersection on TH 10/169 at 168th Avenue Justification System expansion and access control on TH 10/169 corridor from 171st Avenue to 165th Avenue Description Project #II-08 Useful Life 25 years Project Name Kelley Pkwy/Twin Lakes Rd/TH 10 Intersection Category Street Construction Type Improvement Contact Public Works Director Department Infrastructure Improvements Total2020 2021 2022 2023 2024Expenditures 2025 75,00075,000Design 6,500,000Construction6,500,000 75,000 6,575,000Total6,500,000 Total2020 2021 2022 2023 2024Funding Sources 2025 2,000,000Federal Grants 2,000,000 3,000,000Municipal State Aid 3,000,000 500,000Special Assessments 500,000 1,000,000MnDOT Cooperative Funds 1,000,000 75,00075,000Pavement Management Fund 75,000 6,575,000Total6,500,000 2020-2025 CAPITAL IMPROVEMENT PLAN 32 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 City participation in projects initiated by Sherburne County Justification Projects include: 2021 - CSAH 13 Roundabout and Trail 2023 - CR 33 Realignment ($500,000 less $480,000 turnback value) 2024 - CR 44 Reconstruction and Trail Description Project #II-20 Useful Life 25 years Project Name County Projects - Cost Share Category Street Construction Type Infrastructure Contact Public Works Director Department Infrastructure Improvements Total2020 2021 2022 2023 2024Expenditures 2025 1,520,000500,000 20,000 1,000,000Improvements 500,000 20,000 1,000,000 1,520,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 150,000150,000Capital Projects - Active ER 1,120,000350,000 20,000 750,000Municipal State Aid 250,000250,000Park Dedication 500,000 20,000 1,000,000 1,520,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 33 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Upgrade two School Street flashing pedestrian crossings west of Freeport Ave and east of Jackson Ave and upgrade pedestrian ramps along the corridor, relocate the traffic signal at School Street and Lions Park Drive to the west. Justification Existing flashing pedestrian crossings and pedestrian ramps do not meet current design standards. The existing traffic signal at the School Street and Lions Park Drive intersection will be relocated. Description Project #II-22 Useful Life 15 years Project Name School Street Traffic Enhancements Category Street Maintenance Type Maintenance Contact Public Works Director Department Infrastructure Improvements Total2020 2021 2022 2023 2024Expenditures 2025 40,00040,000Improvements 40,000 40,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 40,00040,000Pavement Management Fund 40,000 40,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 34 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 The Wayfinding Master Plan is a blueprint for creating an easy to follow system of signs for entrance identification, directional signs for various modes of transportation, parking, parks, interpretive, and kiosks. Justification Enhance overall brand of the community, establish identity, ease navigation, market city amenities, and promote economic development. Description Project #II-34 Useful Life 25 years Project Name Wayfinding Signage Category Landscaping/Boulevards Type Improvement Contact City Clerk Department Infrastructure Improvements Total2020 2021 2022 2023 2024Expenditures 2025 200,000200,000Improvements 200,000 200,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 200,000200,000GRE Reserve 200,000 200,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 35 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2021 - Westbound monument sign 2023 - Northbound roof replacement Justification Westbound Liquor - The monument sign needs to be updated with the new logo and the addition of LED lighting will make it more noticeable at night. Northbound Liquor - Built in 1996, Northbound liquor store is of the age where the roof will need repla Description Project #LS-01 Useful Life 20 years Project Name Liquor Stores - Improvements Category Buildings Type Maintenance Contact Liquor Operations Manager Department Liquor Fund Total2020 2021 2022 2023 2024Expenditures 2025 100,000100,000Buildings 20,00020,000Improvements 20,000 100,000 120,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 120,00020,000 100,000Liquor Fund 20,000 100,000 120,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 36 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 * Design services of the Multipurpose Facility * Construction of the retail lease space Justification Provide retail lease space at the Multipurpose Facility Description Project #MPF-02 Useful Life 20 years Project Name Multipurpose Facility Category Buildings Type Building Contact Multipurpose Facility Supt. Department Multipurpose Facility Total2020 2021 2022 2023 2024Expenditures 2025 200,000200,000Design 400,000400,000Buildings 600,000 600,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 600,000600,000Government Buildings Reserve 600,000 600,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 37 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2020 - 2015 Ford Utility (3), 2017 Ford Utility 2021 - 2016 Ford (2) 2022 - 2014 Ford Utility, 2017 Ford Utility (2) 2023 - 2018 Ford Utility 2024 - 2019 Ford Utility Hybrid, 2020 Ford Utility Hybrid 2025 - 2020 Ford Utility Hybrid (4) Justification Based on annual condition assessment Description Project #PD-01 Useful Life 5 years Project Name Police - Marked Squads Category Vehicles Type Vehicle Contact Police Captain Department Police Total2020 2021 2022 2023 2024Expenditures 2025 936,000234,000 117,000 175,500 58,500 117,000Vehicles 234,000 234,000 117,000 175,500 58,500 117,000 936,000Total234,000 Total2020 2021 2022 2023 2024Funding Sources 2025 936,000234,000 117,000 175,500 58,500 117,000Equipment Replacement Fund 234,000 234,000 117,000 175,500 58,500 117,000 936,000Total234,000 2020-2025 CAPITAL IMPROVEMENT PLAN 38 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2021 - 2012 Chev Impala (2), 2012 Chev Tahoe 2022 - 2013 Chev Tahoe 2023 - 2014 Ford Utility, 2015 Chev Equinox 2024 - 2016 Ford Taurus 2025 - 2015 Ford Utility (2), 2016 Ford Taurus Justification Based on annual condition assessment. Description Project #PD-02 Useful Life 7 years Project Name Police - Unmarked Squads Category Vehicles Type Vehicle Contact Police Captain Department Police Total2020 2021 2022 2023 2024Expenditures 2025 452,200123,000 47,000 76,000 92,200Vehicles 114,000 123,000 47,000 76,000 92,200 452,200Total114,000 Total2020 2021 2022 2023 2024Funding Sources 2025 452,200123,000 47,000 76,000 92,200Equipment Replacement Fund 114,000 123,000 47,000 76,000 92,200 452,200Total114,000 2020-2025 CAPITAL IMPROVEMENT PLAN 39 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2022 - 2014 Ford Utility 2023 - 2014 Ford Utility 2024 - 2017 Ford Utility Justification Based on annual condition assessment Description Project #PD-03 Useful Life 6 years Project Name Police - CSO Vehicles Category Vehicles Type Vehicle Contact Police Captain Department Police Total2020 2021 2022 2023 2024Expenditures 2025 138,00046,000 46,000 46,000Vehicles 46,000 46,000 46,000 138,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 138,00046,000 46,000 46,000Equipment Replacement Fund 46,000 46,000 46,000 138,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 40 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 TH 10 Trail Extension - Design and install lighted trail from Gary St to Morton Ave Justification The bulk of this project will be constructed with the MNDOT TH 10 resurfacing project expected in 2021. The project is partially funded with a federal grant. Description Project #PF-64 Useful Life 20 years Project Name Trail Development - TH 10 Extension Category Park Improvements Type Improvement Contact Public Works Director Department Park Development/Improvement Total2020 2021 2022 2023 2024Expenditures 2025 25,00025,000Design 960,000960,000Construction 25,000 960,000 985,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 640,000640,000Federal Grants 345,00025,000 320,000Park Dedication 25,000 960,000 985,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 41 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2020 projects include: Houlton restoration (FMR match) - $10,000 Lions Park Master Plan - $15,000 Woodland Trails Grant Match - $387,000 Woodland Trails Amenities - $90,000 (Well, shelter/shelter pads, trails, picnic tables) YAC dugouts - $150,000 Justification Annual maintenance/repairs of our park system. Description Project #PIF-20 Useful Life Unassigned Project Name 2020 Park Improvement Projects Category Park Improvements Type Maintenance Contact Park & Rec. Director Department Park Improvement Fund Total2020 2021 2022 2023 2024Expenditures 2025 652,000652,000Improvements 652,000 652,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 652,000652,000Park Improvement Fund 652,000 652,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 42 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2021 park projects include: Country Crossing lighted basketball court - $100,000 Trott Brook tennis court - $150,000 Justification Annual maintenance/repairs of our park system. Description Project #PIF-21 Useful Life Unassigned Project Name 2021 Park Improvement Projects Category Park Improvements Type Maintenance Contact Park & Rec. Director Department Park Improvement Fund Total2020 2021 2022 2023 2024Expenditures 2025 250,000250,000Improvements 250,000 250,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 250,000250,000Park Improvement Fund 250,000 250,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 43 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2022 park projects include: Lions Park playground - $250,000 Justification Annual maintenance/repairs of our park system. Description Project #PIF-22 Useful Life Unassigned Project Name 2022 Park Improvement Projects Category Park Improvements Type Maintenance Contact Park & Rec. Director Department Park Improvement Fund Total2020 2021 2022 2023 2024Expenditures 2025 250,000250,000Improvements 250,000 250,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 250,000250,000Park Improvement Fund 250,000 250,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 44 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2023 projects include: West Oaks, Kliever Point, Kliever Lake Filels sport court resurfacing - $40,000 Woodland Trails storage garage - $100,000 Justification Annual maintenance/repairs of our park system. Description Project #PIF-23 Useful Life Unassigned Project Name 2023 Park Improvement Projects Category Park Improvements Type Maintenance Contact Park & Rec. Director Department Park Improvement Fund Total2020 2021 2022 2023 2024Expenditures 2025 140,000140,000Improvements 140,000 140,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 140,000140,000Park Improvement Fund 140,000 140,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 45 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2024 projects include: Country Crossing playground - $100,000 Deerfield Park basketball court - $25,000 Ridgewood Park basketball court - $30,000 Justification Annual maintenance/repairs of our park system. Description Project #PIF-24 Useful Life Unassigned Project Name 2024 Park Improvement Projects Category Park Improvements Type Maintenance Contact Park & Rec. Director Department Park Improvement Fund Total2020 2021 2022 2023 2024Expenditures 2025 155,000155,000Improvements 155,000 155,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 155,000155,000Park Improvement Fund 155,000 155,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 46 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2025 park projects include: Heritage Landing/Country Crossing trail - $120,000 Mississippi Road trail - $120,000 Trott Brook Park playground - $100,000 Justification Annual maintenance/repairs of our park system. Description Project #PIF-25 Useful Life Unassigned Project Name 2025 Park Improvement Projects Category Park Improvements Type Maintenance Contact Park & Rec. Director Department Park Improvement Fund Total2020 2021 2022 2023 2024Expenditures 2025 340,000Improvements340,000 340,000Total340,000 Total2020 2021 2022 2023 2024Funding Sources 2025 340,000Park Improvement Fund 340,000 340,000Total340,000 2020-2025 CAPITAL IMPROVEMENT PLAN 47 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2021 - 2001 Chev 1500 2005 Chev 2500 2007 GMC 3500 2023 - 2008 Ford F250 2025 - 2009 Chev 2500 2011 Ford F550 2012 GMC 3500 Justification Based on annual condition assessment. Description Project #PK-01 Useful Life Unassigned Project Name Parks - Pickup Trucks Category Vehicles Type Vehicle Contact Street/Park Supt. Department Park Maintenance Total2020 2021 2022 2023 2024Expenditures 2025 322,000117,000 35,000Vehicles 170,000 117,000 35,000 322,000Total170,000 Total2020 2021 2022 2023 2024Funding Sources 2025 322,000117,000 35,000Equipment Replacement Fund 170,000 117,000 35,000 322,000Total170,000 2020-2025 CAPITAL IMPROVEMENT PLAN 48 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2020 - 2006 Toro Groundsmaster, MB Sidewalk Machine 2021 - Toro Ballfield Groomer, 2005 Ski-Doo Snowmobile 2023 - 2009 John Deere Tractor 5095 2024 - 2012 John Deere Tractor 4720 2025 - 2014 Cat 257D Skid Steer Justification Based on annual condition assessment Description Project #PK-02 Useful Life Unassigned Project Name Parks - Mobile Equipment Category Equipment Type Equipment Contact Street/Park Supt. Department Park Maintenance Total2020 2021 2022 2023 2024Expenditures 2025 436,000175,000 36,000 90,000 70,000Equipment 65,000 175,000 36,000 90,000 70,000 436,000Total65,000 Total2020 2021 2022 2023 2024Funding Sources 2025 436,000175,000 36,000 90,000 70,000Equipment Replacement Fund 65,000 175,000 36,000 90,000 70,000 436,000Total65,000 2020-2025 CAPITAL IMPROVEMENT PLAN 49 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Update the Comprehensive Plan, which includes the transportation plan and urban services district study, as part of the Hwy 169 Redefine project. Justification With the Hwy 169 Redefine project an updated comprehensive and transportation plan and a study of urban services will aid all city departments in their prospective future planning. Description Project #Plan-02 Useful Life Unassigned Project Name Comprehensive/Transportation Plan Category City-Wide Development Type Study Contact Planning Manager Department Planning Total2020 2021 2022 2023 2024Expenditures 2025 200,00075,000 125,000Study 75,000 125,000 200,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 75,00075,000Street/Capital Improvement 50,00050,000Trunk Utility Fund 75,00075,000City Development Fund 75,000 125,000 200,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 50 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Preventative maintenance on our streets includes sealcoating, crackfilling and small overlay projects. Street improvement projects to replace, overlay or rehabilitate aged and deteriorated streets, storm drainage, and adjacent walks will be completed e Justification Individual street pavement conditions will dictate what pavement management technique will be utilized to extend the life of that specific street segment. These techniques may range from preventative maintenance to a full reconstruction of the surface an Description Project #PM-01 Useful Life 25 years Project Name Pavement Management Program Category Street Construction Type Improvement Contact Public Works Director Department Infrastructure Improvements Total2020 2021 2022 2023 2024Expenditures 2025 200,000100,000 100,000Design 12,800,0004,900,000 3,400,000Construction 4,500,000 1,425,000425,000 200,000 200,000 200,000 200,000Preventative Maintenance 200,000 425,000 5,100,000 300,000 3,600,000 300,000 14,425,000Total4,700,000 Total2020 2021 2022 2023 2024Funding Sources 2025 2,500,0002,500,000Municipal State Aid 11,675,000425,000 2,500,000 300,000 3,550,000 300,000Pavement Management Fund 4,600,000 250,000100,000 50,000Storm Water 100,000 425,000 5,100,000 300,000 3,600,000 300,000 14,425,000Total4,700,000 2020-2025 CAPITAL IMPROVEMENT PLAN 51 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Overlay and sealcoat public parking lots as needed Justification Projects will be prioritized based on condition and available funding after all street maintenance project needs are met. Description Project #PM-02 Useful Life 15 years Project Name Parking Lot Improvements Category Street Maintenance Type Improvement Contact Public Works Director Department Infrastructure Improvements Total2020 2021 2022 2023 2024Expenditures 2025 1,050,000350,000 350,000Parking Lot 350,000 350,000 350,000 1,050,000Total350,000 Total2020 2021 2022 2023 2024Funding Sources 2025 1,050,000350,000 350,000Pavement Management Fund 350,000 350,000 350,000 1,050,000Total350,000 2020-2025 CAPITAL IMPROVEMENT PLAN 52 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Overlay and sealcoat driveways and public parking lots at Orono Park Justification Orono Park driveways and parking lots are in need of replacement with the Active ER improvements planned for the park, Description Project #PR-48 Useful Life Unassigned Project Name Orono Park Parking Lot Category Park Improvements Type Improvement Contact Park & Rec. Director Department Park Development/Improvement Total2020 2021 2022 2023 2024Expenditures 2025 400,000400,000Parking Lot 400,000 400,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 400,000400,000Pavement Management Fund 400,000 400,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 53 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 The public safety building project includes: Police - * garage expansion * 2nd floor build-out for administrative space Fire - * Expansion and upgrade of fire station personnel support spaces * Expansion of training room used for fire a Justification A facility study of the fire station and public safety facility was conducted by Five Bugles in 2017. The study concluded that the Police Department in the Pulbic Safety Facility will include expansion of the indoor parking garage to accommodate 26 vehi Description Project #PS-03 Useful Life 20 years Project Name Public Safety Building Expansion Category Buildings Type Building Contact Police Chief Department Public Safety Building Total2020 2021 2022 2023 2024Expenditures 2025 350,000350,000Design 7,200,0007,200,000Construction 350,000 7,200,000 7,550,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 1,500,0001,500,000Government Buildings Reserve 6,050,0006,050,000Capital Improvement Bonds 6,050,000 1,500,000 7,550,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 54 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2021 - 2008 Ford F550 2023 - 1988 Ford F350, 2002 Dodge Ram 1500, 2010 Ford F550, 2024 - 2011 Dodge 5500 2025 - 2008 Ford F250, 2010 Ford F550 Justification Based on annual condition assessment Description Project #ST-01 Useful Life 10 years Project Name Streets - Pickup Trucks Category Vehicles Type Vehicle Contact Street/Park Supt. Department Streets Total2020 2021 2022 2023 2024Expenditures 2025 385,00065,000 160,000 50,000Vehicles 110,000 65,000 160,000 50,000 385,000Total110,000 Total2020 2021 2022 2023 2024Funding Sources 2025 385,00065,000 160,000 50,000Equipment Replacement Fund 110,000 65,000 160,000 50,000 385,000Total110,000 2020-2025 CAPITAL IMPROVEMENT PLAN 55 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2020 - 2003 Sterling Dump Truck, 2006 International Dump Truck 2021 - 2007 International Dump Truck 2022 - 2009 Sterling Dump Truck 2023 - 2007 International Dump Truck 2025 - 2011 International Dump Truck Justification Based on annual condition assessment. Description Project #ST-02 Useful Life 15 years Project Name Streets - Dump Trucks Category Heavy Equipment Type Vehicle Contact Street/Park Supt. Department Streets Total2020 2021 2022 2023 2024Expenditures 2025 1,560,500497,500 263,000 265,000 265,000Vehicles 270,000 497,500 263,000 265,000 265,000 1,560,500Total270,000 Total2020 2021 2022 2023 2024Funding Sources 2025 1,560,500497,500 263,000 265,000 265,000Equipment Replacement Fund 270,000 497,500 263,000 265,000 265,000 1,560,500Total270,000 2020-2025 CAPITAL IMPROVEMENT PLAN 56 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 2022 - 2008 Cat Loader 2024 - 2012, JD Tractor, 2012 Elgin Sweeper 2025 - 2000 Vermeer Brush Chipper, 2011 Schwarze Patch Trailer, 2015 Cat Skid Steer Justification Based on annual condition assessment. Description Project #ST-03 Useful Life 15 years Project Name Streets - Mobile Equipment Category Heavy Equipment Type Equipment Contact Street/Park Supt. Department Streets Total2020 2021 2022 2023 2024Expenditures 2025 855,000225,000 370,000Equipment 260,000 225,000 370,000 855,000Total260,000 Total2020 2021 2022 2023 2024Funding Sources 2025 855,000225,000 370,000Equipment Replacement Fund 260,000 225,000 370,000 855,000Total260,000 2020-2025 CAPITAL IMPROVEMENT PLAN 57 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Bi-annual pond cleaning, stormwater repairs, BMP inventory. 2021 - Dodge Ave south of 8th St - Basin 197 2023 - Trott Brook 2025 - Elk Park Center basin and Zane Street basin (Storm water infrastructure projects combined with street projects are i Justification These projects include the testing, removal, and disposal of sediment deposits from our stormwater ponds. This is needed to assure the storm water system is functioning as designed and achieving the water quality standards of our NPDES permit. The s Description Project #STM-1 Useful Life Unassigned Project Name Storm Water Projects Category Utilities Type Maintenance Contact Storm Water Coordinator Department Storm Water Total2020 2021 2022 2023 2024Expenditures 2025 675,000175,000 250,000Construction/Maintenance 250,000 175,000 250,000 675,000Total250,000 Total2020 2021 2022 2023 2024Funding Sources 2025 675,000175,000 250,000Storm Water 250,000 175,000 250,000 675,000Total250,000 2020-2025 CAPITAL IMPROVEMENT PLAN 58 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Connection to city sewer system for Windsor Park III addition Justification Windsor Park III homeowners association have requested to connect to the city sewer system to alleviate problems with their existing private treatment system. All project costs, including SAC and trunk area fees, are being assessed to the homeowners. Description Project #SW-01 Useful Life 25 years Project Name Sewer - Windsor Park III Category Utilities Type Infrastructure Contact Public Works Director Department Sewer Department Total2020 2021 2022 2023 2024Expenditures 2025 1,379,0001,379,000Utilities 1,379,000 1,379,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 1,379,0001,379,000Special Assessments 1,379,000 1,379,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 59 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Technology upgrades include: $25,000 - Enterprise backup system $30,000 - Wireless network replacement $6,000 - Laptops/computers - Council Justification Annual replacement and upgrade of information technology software/hardware. Description Project #TC-01-20 Useful Life Unassigned Project Name 2020 Technology Upgrades Category Technology/Communiciations E Type Technology Contact IT Manager Department Technology/Communications Total2020 2021 2022 2023 2024Expenditures 2025 180,000180,000Software/Hardware 180,000 180,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 115,000115,000Capital Outlay Reserve 65,00065,000ERMU 180,000 180,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 60 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Technology upgrades include: $100,000 - Network core switch $10,000 - Enterprise backup licensing Justification Annual replacement and upgrade of information technology software/hardware. Description Project #TC-01-21 Useful Life Unassigned Project Name 2021 Technology Upgrades Category Technology/Communiciations E Type Technology Contact IT Manager Department Technology/Communications Total2020 2021 2022 2023 2024Expenditures 2025 110,000110,000Software/Hardware 110,000 110,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 90,00090,000Capital Outlay Reserve 20,00020,000ERMU 110,000 110,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 61 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Technology upgrades include: $25,000 - Enterprise backup licensing $35,000 - Virus software $35,000 - Wireless network replacement $25,000 - Security camera server $30,000 - Fiber network to connect Library and WWTP Justification Annual replacement and upgrade of information technology software/hardware. Description Project #TC-01-22 Useful Life Unassigned Project Name 2022 Technology Upgrades Category Technology/Communiciations E Type Technology Contact IT Manager Department Technology/Communications Total2020 2021 2022 2023 2024Expenditures 2025 150,000150,000Software/Hardware 150,000 150,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 142,500142,500Capital Outlay Reserve 7,5007,500ERMU 150,000 150,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 62 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Technology upgrades include: $60,000 - Firewall $25,000 - Microsoft server $25,000 - Mobile management software Justification Annual replacement and upgrade of technology software and hardware. Description Project #TC-01-23 Useful Life Project Name 2023 Technology Upgrades Category Technology/Communiciations E Type Technology Contact IT Manager Department Technology/Communications Total2020 2021 2022 2023 2024Expenditures 2025 110,000110,000Software/Hardware 110,000 110,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 98,00098,000Capital Outlay Reserve 12,00012,000ERMU 110,000 110,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 63 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Technology upgrades include: $60,000 - Security cameras Justification Annual replacement and upgrade of technology hardware and software Description Project #TC-01-24 Useful Life Unassigned Project Name 2024 Technology Upgrades Category Technology/Communiciations E Type Technology Contact IT Manager Department Technology/Communications Total2020 2021 2022 2023 2024Expenditures 2025 60,00060,000Software/Hardware 60,000 60,000Total Total2020 2021 2022 2023 2024Funding Sources 2025 54,00054,000Capital Outlay Reserve 6,0006,000ERMU 60,000 60,000Total 2020-2025 CAPITAL IMPROVEMENT PLAN 64 Capital Improvement Plan City of Elk River, Minnesota Data in Year 2020 and 2025 Technology upgrades include: $42,000 - Enterprise backup hardware/software $50,000 - Email archiver, spam, ATP Justification Annual replacement and upgrade of technology hardware and software Description Project #TC-01-25 Useful Life Unassigned Project Name 2025 Technology Upgrades Category Technology/Communiciations E Type Technology Contact IT Manager Department Technology/Communications Total2020 2021 2022 2023 2024Expenditures 2025 92,000Software/Hardware 92,000 92,000Total92,000 Total2020 2021 2022 2023 2024Funding Sources 2025 83,600Capital Outlay Reserve 83,600 8,400ERMU8,400 92,000Total92,000 2020-2025 CAPITAL IMPROVEMENT PLAN 65 City of Elk River, Minnesota Pre-Sale Summaryfor Issuance of Bonds $9,895,000 General Obligation Capital Improvement Plan Bonds,Series2020A (the “2020A Bonds”) $5,970,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2020B (the “2020B Bonds” $7,295,000 Taxable General Obligation Sewer Revenue Refunding Bonds, Series 2020C (the “2020C Bonds”) Collectively the 2020A Bonds, the 2020B Bonds and the 2020C Bonds are referred to as the “Bonds” The City Council has under consideration the issuance of the(i)2020A Bonds to finance various capital improvements identified in the City’s 2020-2025 Capital Improvement Plan;(ii)the 2020B Bonds tocurrent refund two outstanding bond issuesof the City;and (iii)the 2020C Bonds toadvance refund one outstanding bond issue of the City. This document provides information relative to the proposed issuance. KEY EVENTS:The following summary schedule includes the timing of some of the key events that will occur relative to the bond issuance: November 2, 2020Councilholds Public Hearing on the 2020A Bonds and setssale date and termsfor all series of Bonds Week ofNovember 23,2020Rating conferenceis conducted December 7,2020, 10:30a.m.Competitive proposals are received December 7,2020,6:30p.m.Council considers award of the Bonds December 29,2020Proceeds are received February 1, 2021Redemption of the 2010A and 2012A Bonds RATING:An applicationwill be made toS&PGlobal Ratings(S&P)for a ratingon the Bonds. The City’s general obligation debt is currently rated “AA+” by S&P. THE MARKET:Performance of the tax-exempt market is often measured by the Bond Buyer’s Index th (“BBI”) which measures the yield of high grade municipal bonds in the 20year for general obligation bondsrated Aa2 by Moody’s or AA by S&P (the BBI 20-Bond GO th Index)and the 30year for revenue bondsrated A1 by Moody’s or A+ by S&P (the BBI 25-Bond Revenue Index). The following chart illustrates these two indices over the past five years: _1582775 .135.136 894.134 : October 29, 2020 Study No.: 0Date Interest rates for the taxable municipal market are quoted as a spread to U.S. Treasury Securities. To give you an indication of the relative position of that market, the chart below tracks the yield of the 10-year and 30-year U.S. Treasury over the last five years: RISKS/SPECIALThe outcome of thesefinancingswill rely on the market conditions at the time of the sale. Any projections included herein are estimates based on current market conditions. CONSIDERATIONS: $9,895,000 General Obligation Capital Improvement Plan Bonds, Series 2020A Description of Issue PURPOSE:Proceeds of the 2020ABonds will be used tofinance various capital improvements identified in the City’s 2020-2025 Capital Improvement Plan(CIP), to beadopted November 2, 2020.Specifically, the City expects to use proceeds of the 2020A Bonds to finance anexpansionof the Public Safety Building and a portion of the City’s Fire Station #3.The projects will include an expansionof the indoor parking garage for the Police Department and an expansion and upgrade of the Fire Station personnel support spaces and training room.TheCity expects to issue additional CIP bonds in 2021 to finance the remainder of Fire Station #3. The amount of proceeds from the 2020A Bonds available for financing the construction of the City’s Fire Station #3 will be dependent on the final sizing of the 2020A Bonds and the 2020B Bonds on the day of sale and consideration of the $10 million bank qualification limit as discussed below.The City has determined to keep the borrowing amount of the 2020A Bonds such that they can be designated as bank qualified. Generally, interest rates on bank qualified tax-exemptbonds are lower than tax exempt bonds that are not bank qualified. AUTHORITY: Statutory Authority:The 2020ABonds are being issued pursuant to Minnesota Statutes, Section 475.521, and the City’s 2020-2025Capital Improvement Plan, to be adopted onNovember 2, 2020.The resolution under consideration approving the issuance of the 2020A Bonds specifies that the issuance of CIP bonds cannot exceed Page 2 $17,500,000.This amount includes the 2020A Bonds and the anticipatedadditional borrowing for Fire Station #3 in 2021. Statutory Requirements:Pursuant to Minnesota Statutes, Section 475.521, the maximum calendar year debt service on all outstanding bonds issues under a capital improvement plan, including the proposed issue, cannot exceed an amount equal to 0.16% of the estimated market value of the property within the City for taxes payable in the year the bonds are issued or sold. The City currently has two outstanding bond issues subject to this statutory limitation: The maximum calendar year debt service on the City’s outstanding CIP debt, and the 2020A Bonds, is estimated to be $1,734,531, which is less than the maximum annual debt service limitation of $4,075,960,as summarized below.The estimated maximum calendar year CIP debt service includes the debt service on the City’s 2010A CIP Bonds and 2012A CIP Bonds prior to their refunding as discussed under the 2020B Bonds. Estimated Market Value For Taxes Payable in Statutory Principal and Statutory Maximum 2020Interest LimitationPrincipal and Interest $2,547,475,2000.16%$4,075,960 The City must also have an adopted 5-year Capital Improvement Plan and comply with the public hearing requirements outlined in Minnesota Statutes, Section 475.521. The public hearing for the 2020A Bonds is scheduled for November2, 2020 and the 30-day petition period ends on December 2, 2020. SECURITY ANDThe 2020ABonds are ageneral obligation of the City, secured by its full faith and credit and taxing power. SOURCE OF PAYMENT: Upon completion of the sale of the 2020A Bonds, debt service tax levies equal to 105% of the principal and interest due on the 2020A Bonds will be certified to the County Auditor.The Citywill make their first levy for the 2020A Bonds in 2020 for collection in 2021. Thosetax collections and/or available City funds will be used to make the interest payments due August1, 2021and February1, 2022. Thereafter, each year’s tax levy collections will be used to make the interest payment due on August1 of the collection year and the February1, principal and interest payment due in the following year. STRUCTURINGIn consultation with Citystaff, the 2020A Bonds have been structured with 20 principal SUMMARY:payments beginning on February1, 2023 to provide for approximately even annual debt service requirements. As noted above, the financing amount of Fire Station #3 is an estimate based on an amount that meets the bank qualification limit and final project funding will be determined on the day of sale. SCHEDULESSchedules attached for the 2020A Bonds can be found in Appendix A and include: ATTACHED: Sources and uses of funds Projected debt service scheduleas a whole and by purpose, based on the current interest rate environment Page 3 Calendar year debt service paymentson the City’s outstanding CIPbonds andthe 2020A Bonds SALE TERMS ANDVariability of Issue Size:A specific provision in the sale terms permits modifications to the issue size and/or maturity structure to customize the issue once the price and MARKETING: interest rates are set on the day of sale. Prepayment Provisions:The 2020A Bonds maturing on or after February 1, 2031may be prepaid at a price of par plus accrued interest on or after February 1, 2030. Bank Qualification:The City does not expect to issue more than $10 million in tax- exempt obligations that countagainst the $10 million limit for thiscalendar year; therefore, the 2020ABonds are designated as bank qualified. A portion of the 2020B Bonds will count toward the $10 million bank qualification limitation. Premium Bidding:Any excess proceeds generated on the 2020A Bonds as original issue premium and/orunused discount will be used to increase the deposit to construction fund for Fire Station #3, to the extent the total borrowing of the 2020A Bonds is within the required limitations to be designated as bank qualified. $5,970,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2020B Description of Issue PURPOSE:Proceeds of the 2020B Bonds will be used to refund (i)the February 1, 2022and February 1, 2023maturities of the City’s General Obligation Capital Improvement Plan Bonds, Series 2010A (the “2010A Bonds”), datedApril 21,2010;and(ii)theFebruary 1, 2022 through February 1, 2033maturities of the City’s General Obligation Capital Improvement Plan Bonds, Series 2012A (the “2012A Bonds”), dated March 15, 2012 (the 2010A Bonds and the 2012A Bonds together the “Prior CIP Bonds”).The maturities to be refunded are currently outstanding in the aggregate principal amount of $5,865,000.The purpose of the refunding is to achieve interest cost savings. Proceeds of the 2010A were originally issued to acquire the City Health and Public Safety Building by refunding the Elk River Economic Development Authority’s Public Safety Building Lease Revenue Bonds, Series 2002A, and City Hall Expansion Revenue Bonds, Series 2002B. Proceeds of the 2012A Bonds were originally issued to finance a Public Works facility expansion and renovation. AUTHORITY: Statutory Authority:The 2020B Bonds are being issued pursuant to Minnesota Statutes, Chapter 475. Statutory Requirements:Pursuant to Minnesota Statutes, Section 475.521, the maximum calendar year debt service on all outstanding bonds issues under a capital improvement plancannot exceed an amount equal to 0.16% of the estimated market value of the property within the City for taxes payable in the year the bonds are issued or sold. This test was met at the time the Prior CIP Bonds were issued. Page 4 SECURITY ANDThe 2020B Bonds are a general obligation of the City, secured by its full faith and credit and taxing power. SOURCE OF PAYMENT: On February 1, 2021the City will (1) make their originally scheduled debt service payments of $674,700on the 2010A Bonds and $380,087.50on the 2012A Bonds with taxes previously levied and collected for these payments and (ii) redeem the outstanding principal of the 2010A Bonds in the amount of $1,375,000and the outstanding principal of the 2012A Bonds in the amount of $4,595,000. The City will begin making payments on the 2020B Bonds on August 1, 2021, realizing interest cost savings. The City willmake their first levy for the 2020B Bonds in 2020 for collection in 2021. Each year’s tax levy collections will be used to make the interest payment due on August1 of the collection year and the February1, principal and interest payment due in the following year. STRUCTURINGIn consultation with Citystaff, the 2020B Bonds have been structured to provide for SUMMARY:approximately equal annual savings over the same as each of the Prior CIPBonds. The refunding of the Prior CIP Bonds is being conducted as a current refunding, where bond proceeds are used within ninety (90) days of settlement to redeem the outstanding callable maturities of the Prior CIP Bonds. Projected savings resulting from this refunding transaction is detailed in the table below. These estimates are net of all costs associated with the refunding. Actual results will be determined by market conditions at the time of the sale. 2010A Bonds2012A Bonds Estimated Net Future Value Savings$45,426 $275,283 Estimated Net Present Value Savings$44,795 $255,869 Estimated NPV Benefit/ Refunded D/S %3.188%5.263% Schedules attached for the 2020B Bonds can be found in Appendix B and include: SCHEDULES ATTACHED: Refunding summary Debt servicecomparisonas a whole and by each of the Prior CIP Bonds, given current market conditions Debt Service to Maturity and to Callfor the Prior CIP Bonds Estimated debt service, given current market conditions SALE TERMS ANDVariability of Issue Size:A specific provision in the sale terms permits modifications to the issue size and/or maturity structure to customize the issue once the price and MARKETING: interest rates are set on the day of sale. Prepayment Provisions:The 2020B Bonds maturing on or after February 1, 2030may be prepaid at a price of par plus accrued interest on or after February 1, 2029. Page 5 Bank Qualification:The City’s 2020B Bonds are a current refunding of outstanding bond issues that were originally designated as bank qualified; therefore, only the portion of the 2020B Bonds that exceeds the principal being refunded counts towards the 2020 bank qualification limit. The amount of the Prior CIPBonds being refunded is $5,865,000and the estimated par amount of the 2020B Bonds is $5,970,000. The difference of $105,000isthe amount that countstowards the $10 million bank qualification limit.This amount will likely change based on resizing of the 2020BBonds on the day of sale. Excess Premium/Unused Discount:The pricing of the 2020B Bonds may produce an amount of original issue premium or unused allowance for underwriter compensation that causes the amount of bond proceeds to be in excess of what is required to effect the refunding transaction. Any amount of surplus proceeds will be used, to the extent possible, to reduce the principalamount of the 2020B Bonds and the underwriter compensation will be adjusted accordingly. $7,295,000 Taxable General Obligation Sewer Revenue Refunding Bonds, Series 2020C Description of Issue PURPOSE:Proceeds of the 2020C Bonds will be used to refund the February 1, 2023through February 1, 2035 maturities of the City’s General Obligation Sewer Revenue Bonds, Series 2014B, dated August 21, 2014(the “2014B Bonds”). Proceeds of the 2014B Bonds were originally issued to financea wastewater facility improvement project. AUTHORITY: Statutory Authority:The Bonds are being issued pursuant to Minnesota Statutes, Chapters 475 and 444. Statutory Authority: Pursuant to Minnesota Statutes, Chapter 444 and the resolution awardingthe 2020C Bonds, the City will covenant to maintainutility fees andcharges sufficient to generate revenues to support the operation of the City’s Sewer Utility Fund and pay debt serviceon all bonds payable from the sewer utility including the 2020C Bonds.The City is required to annually review the budget for the Sewer Utility Fund to determine whether current rates and charges are sufficient and to adjust them as necessary. SECURITY ANDThe 2020C Bonds are ageneral obligation of the City, secured by its full faith and credit and taxing power. Principal and interest payments on the 2020C Bonds will be repaid SOURCE OF from net revenues of the Sewer UtilityFund. PAYMENT: On February 1, 2022, the redemption date of the 2014B Bonds, proceeds of the 2020CBonds will be used to redeem the outstanding principal of the 2014B Bonds in the amount of $7,040,000. The City will be required to make its regularly scheduled debt service payments on the 2014B Bonds from available Sewer Utility revenuesto and including the redemption date of the 2014B Bonds.Beginning with the August 1, 2022interest payment, the City will begin making debt service payments on the 2020CBonds, realizing interest cost savings. Page 6 STRUCTURINGIn consultation with Citystaff, the 2020C Bonds have been structured to provide for SUMMARY:approximately equal annual savings over the same term as the 2014B Bonds. The issuance of the 2020C Bonds is being conducted as a“crossover” advance refunding in which the proceeds of the 2020C Bonds will be placed in an escrow account with a major bank, certain amounts of which are invested in permitted securities.These investments, their earnings, and any cash balances are structured to pay interest on the 2020CBonds to and includingFebruary 1, 2022 (the call date of the 2014B Bonds), at which time the escrow account will redeem the callablematurities for the 2014B Bonds. A verification agent will be retained to verify the sufficiency of the escrow account to satisfy is cashflow requirements. Projected savings resulting from this refunding transaction is detailed in the table below. These estimates are net of all costs associated with the refunding. Actual results will be determined by market conditions at the time of the sale: 2014B Bonds Estimated Net Future Value Savings$411,695 Estimated Net Present Value Savings$352,915 Estimated NPV Benefit/ Refunded D/S %4.746% Schedules attached forthe 2020CBonds can be found in Appendix C and include: SCHEDULES ATTACHED: Refunding summary Debt servicecomparison, given current market conditions Debt Service to Maturity and to Callfor the 2014B Bonds Estimated net debt service, given current market conditions Crossover escrow fund cashflow SALE TERMS ANDVariability of Issue Size:A specific provision in the sale terms permits modifications to the issue size and/or maturity structure to customize the issue once the price and MARKETING: interest rates are set on the day of sale. Prepayment Provisions:The 2020C Bonds maturing on or after February 1, 2031may be prepaid at a price of par plus accrued interest on or after February 1, 2030. Bank Qualification:The 2020C Bonds are taxable obligations and,therefore, bank qualification does not apply. Federal Considerations:The Tax Cuts and Jobs Act signed into law on December 22, 2017, prohibits the issuance of tax-exempt bonds to advance refund outstanding tax- exempt bonds after 2017. Federal limitations restricting the issuance of advance refunding bonds do to not apply to taxable bonds that refund tax-exempt bonds. Therefore, the 2020CBonds are being issued as taxable obligations. Interest cost Page 7 savings resulting from the issuance of taxablerefunding bonds are possible because current taxable interest rates are estimated to be lower than the tax-exempt rates at the time of issuance of the 2014BBonds. Post Issuance Compliance POST ISSUANCEThe issuance of the Bonds will result in post-issuance compliance responsibilities. The responsibilities arein two primary areas: (i)compliance with federal arbitrage COMPLIANCE: requirements and (ii)compliance with secondary disclosure requirements. Note: The 2020C Bonds are beingissued as taxable obligations of the City, the proceeds of which, are not subject to federal arbitrage requirements. Federal arbitrage requirementsinclude a wide range of implications that have been taken into account as thisissue has been structured. Post-issuance compliance responsibilities for thistax-exempt issue include both rebate and yield restriction provisions of the IRS Code. In general terms the arbitrage requirements control the earnings on unexpended bond proceeds, including investment earnings, moneys held for debt service payments (which are considered to be proceeds under the IRS regulations), and/or reserves. Under certain circumstances any “excess earnings” will need to be paid to the IRS to maintain the tax-exempt status of the Bonds.Any interest earnings on gross bond proceeds or debt service funds should not be spent until it has been determined based on actual facts that they are not “excess earnings” as defined by the IRS Code. The arbitrage rules provide for spend-down exceptions for proceeds that are spent within either a 6-month, 18-month or, for certain construction issues, a 24-month period each in accordance with certain spending criteria. Proceeds that qualify for an exception will be exempt from rebate. These exceptions are based on actual expenditures and not based on reasonable expectations, and expenditures, including any investment proceeds will have to meet the spending criteria to qualify for the exclusion. The City expects to meet the 24-month spending exception for the 2020A Bonds. The 2020B Bonds are being issued for the purpose of conducting a current refunding, therefore, the City will meet the 6-month spending exception on the 2020B Bonds. Regardless of whether the issue qualifies for an exemption from the rebate provisions, yield restriction provisions will apply to the 2020A and 2020B Bond proceeds (including interest earnings) unspent after three years and the debt service fund throughout the term of the 2020A Bonds and the 2020B Bonds. These moneys should be monitored until these issuesare retired. Secondary disclosure requirementsresult from an SEC requirement that underwriters provide ongoing disclosure information to investors. To meet this requirement, any prospectiveunderwriter will require the Cityto commit to providing the information needed to comply under a continuing disclosure agreement. Baker Tilly Municipal Advisors, LLC (“Baker Tilly MA”) currently provides both arbitrage and continuing disclosure services to the City. Baker Tilly MA will work with City staff to include the Bonds under the existing Agreement for Municipal Advisor Services. Page 8 SUPPLEMENTALSupplementary information will be available to staff including detailed terms and conditions of sale, comprehensive structuring schedules and information to assist in INFORMATION AND meeting post-issuance compliance responsibilities. BOND RECORD: Upon completion of the financing, a bond record will be provided that contains pertinent documents and final debt service calculations for the transaction. Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020 Baker Tilly Municipal Advisors, LLC. Page 9 APPENDIX A General Obligation Capital Improvement Plan Bonds, Series 2020A schedules Page 10 $9,895,000 City of Elk River, Minnesota General Obligation Capital Improvement Plan Bonds, Series 2020A Issue Summary Total Issue Sources And Uses Dated 12/29/2020 | Delivered 12/29/2020 Public Safety ExpansionFire StationIssue Summary Sources Of Funds Par Amount of Bonds....................................................$7,680,000.00$2,215,000.00$9,895,000.00 Total Sources..............................................................$7,680,000.00$2,215,000.00$9,895,000.00 Uses Of Funds Deposit to Project Construction Fund..............................7,522,942.002,170,134.789,693,076.78 Total Underwriter's Discount (1.500%)............................115,200.0033,225.00148,425.00 Costs of Issuance.........................................................40,359.7811,640.2252,000.00 Rounding Amount.........................................................1,498.22-1,498.22 Total Uses...................................................................$7,680,000.00$2,215,000.00$9,895,000.00 2020A GO CIP Bonds 20 Yr | Issue Summary | 10/22/2020 | 3:25 PM Page 11 $9,895,000 City of Elk River, Minnesota General Obligation Capital Improvement Plan Bonds, Series 2020A Issue Summary DEBT SERVICE SCHEDULE DatePrincipalCouponInterestTotal P+I105% LevyFiscal Total 12/29/2020------ 08/01/2021--89,656.8689,656.8694,139.70- 02/01/2022--76,123.7576,123.7579,929.94174,069.64 08/01/2022--76,123.7576,123.7579,929.94- 02/01/2023445,000.000.600%76,123.75521,123.75547,179.94627,109.88 08/01/2023--74,788.7574,788.7578,528.19- 02/01/2024445,000.000.650%74,788.75519,788.75545,778.19624,306.38 08/01/2024--73,342.5073,342.5077,009.63- 02/01/2025445,000.000.700%73,342.50518,342.50544,259.63621,269.25 08/01/2025--71,785.0071,785.0075,374.25- 02/01/2026450,000.000.850%71,785.00521,785.00547,874.25623,248.50 08/01/2026--69,872.5069,872.5073,366.13- 02/01/2027450,000.001.000%69,872.50519,872.50545,866.13619,232.25 08/01/2027--67,622.5067,622.5071,003.63- 02/01/2028460,000.001.100%67,622.50527,622.50554,003.63625,007.25 08/01/2028--65,092.5065,092.5068,347.13- 02/01/2029465,000.001.200%65,092.50530,092.50556,597.13624,944.25 08/01/2029--62,302.5062,302.5065,417.63- 02/01/2030470,000.001.300%62,302.50532,302.50558,917.63624,335.25 08/01/2030--59,247.5059,247.5062,209.88- 02/01/2031475,000.001.400%59,247.50534,247.50560,959.88623,169.75 08/01/2031--55,922.5055,922.5058,718.63- 02/01/2032485,000.001.500%55,922.50540,922.50567,968.63626,687.25 08/01/2032--52,285.0052,285.0054,899.25- 02/01/2033490,000.001.600%52,285.00542,285.00569,399.25624,298.50 08/01/2033--48,365.0048,365.0050,783.25- 02/01/2034495,000.001.700%48,365.00543,365.00570,533.25621,316.50 08/01/2034--44,157.5044,157.5046,365.38- 02/01/2035505,000.001.800%44,157.50549,157.50576,615.38622,980.75 08/01/2035--39,612.5039,612.5041,593.13- 02/01/2036515,000.001.850%39,612.50554,612.50582,343.13623,936.25 08/01/2036--34,848.7534,848.7536,591.19- 02/01/2037520,000.001.950%34,848.75554,848.75582,591.19619,182.38 08/01/2037--29,778.7529,778.7531,267.69- 02/01/2038535,000.002.000%29,778.75564,778.75593,017.69624,285.38 08/01/2038--24,428.7524,428.7525,650.19- 02/01/2039545,000.002.100%24,428.75569,428.75597,900.19623,550.38 08/01/2039--18,706.2518,706.2519,641.56- 02/01/2040555,000.002.150%18,706.25573,706.25602,391.56622,033.13 08/01/2040--12,740.0012,740.0013,377.00- 02/01/2041565,000.002.200%12,740.00577,740.00606,627.00620,004.00 08/01/2041--6,525.006,525.006,851.25- 02/01/2042580,000.002.250%6,525.00586,525.00615,851.25622,702.50 Total$9,895,000.00-$2,140,875.61$12,035,875.61$12,637,669.39- SIGNIFICANT DATES Dated...................................................................................................................................................................12/29/2020 Delivery Date.........................................................................................................................................................12/29/2020 First Coupon Date.................................................................................................................................................8/01/2021 Yield Statistics Bond Year Dollars.................................................................................................................................................$119,449.56 Average Life..........................................................................................................................................................12.072 Years Average Coupon....................................................................................................................................................1.7922843% Net Interest Cost (NIC)...........................................................................................................................................1.9165418% True Interest Cost (TIC)..........................................................................................................................................1.9160003% Bond Yield for Arbitrage Purposes...........................................................................................................................1.7742370% All Inclusive Cost (AIC)...........................................................................................................................................1.9663544% IRS Form 8038 Net Interest Cost...................................................................................................................................................1.7922843% Weighted Average Maturity.....................................................................................................................................12.072 Years 2020A GO CIP Bonds 20 Yr | Issue Summary | 10/22/2020 | 3:25 PM Page 12 $7,680,000 City of Elk River, Minnesota General Obligation Capital Improvement Plan Bonds, Series 2020A Public Safety Expansion DEBT SERVICE SCHEDULE DatePrincipalCouponInterestTotal P+I105% LevyFiscal Total 12/29/2020------ 08/01/2021--69,603.7269,603.7273,083.91- 02/01/2022--59,097.5059,097.5062,052.38135,136.28 08/01/2022--59,097.5059,097.5062,052.38- 02/01/2023345,000.000.600%59,097.50404,097.50424,302.38486,354.75 08/01/2023--58,062.5058,062.5060,965.63- 02/01/2024345,000.000.650%58,062.50403,062.50423,215.63484,181.25 08/01/2024--56,941.2556,941.2559,788.31- 02/01/2025345,000.000.700%56,941.25401,941.25422,038.31481,826.63 08/01/2025--55,733.7555,733.7558,520.44- 02/01/2026350,000.000.850%55,733.75405,733.75426,020.44484,540.88 08/01/2026--54,246.2554,246.2556,958.56- 02/01/2027350,000.001.000%54,246.25404,246.25424,458.56481,417.13 08/01/2027--52,496.2552,496.2555,121.06- 02/01/2028355,000.001.100%52,496.25407,496.25427,871.06482,992.13 08/01/2028--50,543.7550,543.7553,070.94- 02/01/2029360,000.001.200%50,543.75410,543.75431,070.94484,141.88 08/01/2029--48,383.7548,383.7550,802.94- 02/01/2030365,000.001.300%48,383.75413,383.75434,052.94484,855.88 08/01/2030--46,011.2546,011.2548,311.81- 02/01/2031370,000.001.400%46,011.25416,011.25436,811.81485,123.63 08/01/2031--43,421.2543,421.2545,592.31- 02/01/2032375,000.001.500%43,421.25418,421.25439,342.31484,934.63 08/01/2032--40,608.7540,608.7542,639.19- 02/01/2033380,000.001.600%40,608.75420,608.75441,639.19484,278.38 08/01/2033--37,568.7537,568.7539,447.19- 02/01/2034385,000.001.700%37,568.75422,568.75443,697.19483,144.38 08/01/2034--34,296.2534,296.2536,011.06- 02/01/2035390,000.001.800%34,296.25424,296.25445,511.06481,522.13 08/01/2035--30,786.2530,786.2532,325.56- 02/01/2036400,000.001.850%30,786.25430,786.25452,325.56484,651.13 08/01/2036--27,086.2527,086.2528,440.56- 02/01/2037405,000.001.950%27,086.25432,086.25453,690.56482,131.13 08/01/2037--23,137.5023,137.5024,294.38- 02/01/2038415,000.002.000%23,137.50438,137.50460,044.38484,338.75 08/01/2038--18,987.5018,987.5019,936.88- 02/01/2039425,000.002.100%18,987.50443,987.50466,186.88486,123.75 08/01/2039--14,525.0014,525.0015,251.25- 02/01/2040430,000.002.150%14,525.00444,525.00466,751.25482,002.50 08/01/2040--9,902.509,902.5010,397.63- 02/01/2041440,000.002.200%9,902.50449,902.50472,397.63482,795.25 08/01/2041--5,062.505,062.505,315.63- 02/01/2042450,000.002.250%5,062.50455,062.50477,815.63483,131.25 Total$7,680,000.00-$1,662,498.72$9,342,498.72$9,809,623.66- SIGNIFICANT DATES Dated...................................................................................................................................................................12/29/2020 Delivery Date........................................................................................................................................................12/29/2020 First Coupon Date.................................................................................................................................................8/01/2021 Yield Statistics Bond Year Dollars.................................................................................................................................................$92,742.67 Average Life..........................................................................................................................................................12.076 Years Average Coupon....................................................................................................................................................1.7925932% Net Interest Cost (NIC)..........................................................................................................................................1.9168079% True Interest Cost (TIC)..........................................................................................................................................1.9162715% Bond Yield for Arbitrage Purposes..........................................................................................................................1.7742370% All Inclusive Cost (AIC)..........................................................................................................................................1.9666110% IRS Form 8038 Net Interest Cost...................................................................................................................................................1.7925932% Weighted Average Maturity....................................................................................................................................12.076 Years 2020A GO CIP Bonds 20 Yr | Public Safety Expansion | 10/22/2020 | 3:25 PM Page 13 $2,215,000 City of Elk River, Minnesota General Obligation Capital Improvement Plan Bonds, Series 2020A Fire Station DEBT SERVICE SCHEDULE DatePrincipalCouponInterestTotal P+I105% LevyFiscal Total 12/29/2020------ 08/01/2021--20,053.1420,053.1421,055.80- 02/01/2022--17,026.2517,026.2517,877.5638,933.36 08/01/2022--17,026.2517,026.2517,877.56- 02/01/2023100,000.000.600%17,026.25117,026.25122,877.56140,755.13 08/01/2023--16,726.2516,726.2517,562.56- 02/01/2024100,000.000.650%16,726.25116,726.25122,562.56140,125.13 08/01/2024--16,401.2516,401.2517,221.31- 02/01/2025100,000.000.700%16,401.25116,401.25122,221.31139,442.63 08/01/2025--16,051.2516,051.2516,853.81- 02/01/2026100,000.000.850%16,051.25116,051.25121,853.81138,707.63 08/01/2026--15,626.2515,626.2516,407.56- 02/01/2027100,000.001.000%15,626.25115,626.25121,407.56137,815.13 08/01/2027--15,126.2515,126.2515,882.56- 02/01/2028105,000.001.100%15,126.25120,126.25126,132.56142,015.13 08/01/2028--14,548.7514,548.7515,276.19- 02/01/2029105,000.001.200%14,548.75119,548.75125,526.19140,802.38 08/01/2029--13,918.7513,918.7514,614.69- 02/01/2030105,000.001.300%13,918.75118,918.75124,864.69139,479.38 08/01/2030--13,236.2513,236.2513,898.06- 02/01/2031105,000.001.400%13,236.25118,236.25124,148.06138,046.13 08/01/2031--12,501.2512,501.2513,126.31- 02/01/2032110,000.001.500%12,501.25122,501.25128,626.31141,752.63 08/01/2032--11,676.2511,676.2512,260.06- 02/01/2033110,000.001.600%11,676.25121,676.25127,760.06140,020.13 08/01/2033--10,796.2510,796.2511,336.06- 02/01/2034110,000.001.700%10,796.25120,796.25126,836.06138,172.13 08/01/2034--9,861.259,861.2510,354.31- 02/01/2035115,000.001.800%9,861.25124,861.25131,104.31141,458.63 08/01/2035--8,826.258,826.259,267.56- 02/01/2036115,000.001.850%8,826.25123,826.25130,017.56139,285.13 08/01/2036--7,762.507,762.508,150.63- 02/01/2037115,000.001.950%7,762.50122,762.50128,900.63137,051.25 08/01/2037--6,641.256,641.256,973.31- 02/01/2038120,000.002.000%6,641.25126,641.25132,973.31139,946.63 08/01/2038--5,441.255,441.255,713.31- 02/01/2039120,000.002.100%5,441.25125,441.25131,713.31137,426.63 08/01/2039--4,181.254,181.254,390.31- 02/01/2040125,000.002.150%4,181.25129,181.25135,640.31140,030.63 08/01/2040--2,837.502,837.502,979.38- 02/01/2041125,000.002.200%2,837.50127,837.50134,229.38137,208.75 08/01/2041--1,462.501,462.501,535.63- 02/01/2042130,000.002.250%1,462.50131,462.50138,035.63139,571.25 Total$2,215,000.00-$478,376.89$2,693,376.89$2,828,045.73- SIGNIFICANT DATES Dated....................................................................................................................................................................12/29/2020 Delivery Date.........................................................................................................................................................12/29/2020 First Coupon Date..................................................................................................................................................8/01/2021 Yield Statistics Bond Year Dollars..................................................................................................................................................$26,706.89 Average Life...........................................................................................................................................................12.057 Years Average Coupon.....................................................................................................................................................1.7912116% Net Interest Cost (NIC)............................................................................................................................................1.9156177% True Interest Cost (TIC)...........................................................................................................................................1.9150587% Bond Yield for Arbitrage Purposes...........................................................................................................................1.7742370% All Inclusive Cost (AIC)...........................................................................................................................................1.9654634% IRS Form 8038 Net Interest Cost....................................................................................................................................................1.7912116% Weighted Average Maturity.....................................................................................................................................12.057 Years 2020A GO CIP Bonds 20 Yr | Fire Station | 10/22/2020 | 3:26 PM Page 14 5 Page 1 APPENDIX B General Obligation Capital Improvement Plan Refunding Bonds, Series 2020Bschedules Page 16 $5,970,000 City of Elk River, Minnesota General Obligation Capital Improvement Plan Refunding Bonds, Series 2020B Issue Summary Refunding Summary Dated 12/29/2020 | Delivered 12/29/2020 Current Current Refunding of Refunding of Series 2010ASeries 2012AIssue Summary Sources Of Funds Par Amount of Bonds....................................................................$1,375,000.00$4,595,000.00$5,970,000.00 Total Sources..............................................................................$1,375,000.00$4,595,000.00$5,970,000.00 Uses Of Funds Deposit to Current Refunding Fund.................................................1,350,000.004,515,000.005,865,000.00 Total Underwriter's Discount (1.000%)............................................13,750.0045,950.0059,700.00 Costs of Issuance.........................................................................9,673.3732,326.6342,000.00 Rounding Amount.........................................................................1,576.631,723.373,300.00 Total Uses...................................................................................$1,375,000.00$4,595,000.00$5,970,000.00 Flow of Funds Detail State and Local Government Series (SLGS) rates for....................... Date of OMP Candidates............................................................... Primary Purpose Fund Solution Method..........................................Gross FundedGross FundedGross Funded Total Cost of Investments...............................................................$1,350,000.00$4,515,000.00$5,865,000.00 Total Draws..................................................................................$1,350,000.00$4,515,000.00$5,865,000.00 Issues Refunded And Call Dates 2010A GO CIP Bonds - FOS tb......................................................2/01/2021 2012A GO CIP Bonds - FOS tb......................................................2/01/2021 PV Analysis Summary (Net to Net) Net PV Cashflow Savings @ 1.180%(Bond Yield)...........................43,217.99254,146.09297,364.08 Contingency or Rounding Amount...................................................1,576.631,723.373,300.00 Net Present Value Benefit..............................................................$44,794.62$255,869.46$300,664.08 Net PV Benefit / Refunded Principal................................................3.318%5.667%5.126% Net PV Benefit / Refunding Principal...............................................3.258%5.568%5.036% Average Annual Cash Flow Savings................................................14,616.5421,043.0517,829.79 Total New Net D/S........................................................................2,062,450.395,353,602.897,416,053.28 Total Prior D/S..............................................................................2,106,300.005,627,162.507,733,462.50 Total Cashflow Savings..................................................................43,849.61273,559.61317,409.22 Bond Statistics Average Life..................................................................................1.591 Years6.698 Years5.522 Years Average Coupon............................................................................0.5829490%1.2298068%1.1868887% Net Interest Cost (NIC)..................................................................1.2116003%1.3790996%1.3679862% Bond Yield for Arbitrage Purposes..................................................1.1804047%1.1804047%1.1804047% True Interest Cost (TIC)..................................................................1.2200548%1.3823685%1.3711821% All Inclusive Cost (AIC)..................................................................1.6738202%1.4948382%1.5072222% 2020 GO Ref Bonds (10A, 1 | Issue Summary | 10/22/2020 | 1:52 PM Page 17 $5,970,000 City of Elk River, Minnesota General Obligation Capital Improvement Plan Refunding Bonds, Series 2020B Issue Summary Debt Service Comparison DateTotal P+IExisting D/SNet New D/SOld Net D/SSavings 02/01/2021-1,054,787.501,054,787.501,054,787.50- 02/01/20221,111,075.78-1,111,075.781,152,675.0041,599.22 02/01/20231,105,315.00-1,105,315.001,154,575.0049,260.00 02/01/2024418,985.00-418,985.00440,175.0021,190.00 02/01/2025416,547.50-416,547.50438,175.0021,627.50 02/01/2026413,922.50-413,922.50436,075.0022,152.50 02/01/2027415,735.00-415,735.00437,975.0022,240.00 02/01/2028416,935.00-416,935.00439,650.0022,715.00 02/01/2029412,700.00-412,700.00435,625.0022,925.00 02/01/2030413,080.00-413,080.00436,000.0022,920.00 02/01/2031413,010.00-413,010.00436,125.0023,115.00 02/01/2032412,480.00-412,480.00436,000.0023,520.00 02/01/2033411,480.00-411,480.00435,625.0024,145.00 Total$6,361,265.78$1,054,787.50$7,416,053.28$7,733,462.50$317,409.22 PV Analysis Summary (Net to Net) Net FV Cashflow Savings.........................................................................................................................................317,409.22 Gross PV Debt Service Savings................................................................................................................................297,364.08 Net PV Cashflow Savings @ 1.180%(Bond Yield)......................................................................................................297,364.08 Contingency or Rounding Amount.............................................................................................................................3,300.00 Net Future Value Benefit..........................................................................................................................................$320,709.22 Net Present Value Benefit........................................................................................................................................$300,664.08 Net PV Benefit / $6,267,364.08 PV Refunded Debt Service.........................................................................................4.797% Net PV Benefit / $5,865,000 Refunded Principal........................................................................................................5.126% Net PV Benefit / $5,970,000 Refunding Principal.......................................................................................................5.036% Refunding Bond Information Refunding Dated Date..............................................................................................................................................12/29/2020 Refunding Delivery Date...........................................................................................................................................12/29/2020 2020 GO Ref Bonds (10A, 1 | Issue Summary | 10/22/2020 | 1:52 PM Page 18 $1,375,000 City of Elk River, Minnesota General Obligation Capital Improvement Plan Refunding Bonds, Series 2020B Current Refunding of Series 2010A Debt Service Comparison DateTotal P+IExisting D/SNet New D/SOld Net D/SSavings 02/01/2021-674,700.00674,700.00674,700.00- 02/01/2022693,610.39-693,610.39714,000.0020,389.61 02/01/2023694,140.00-694,140.00717,600.0023,460.00 Total$1,387,750.39$674,700.00$2,062,450.39$2,106,300.00$43,849.61 PV Analysis Summary (Net to Net) Net FV Cashflow Savings...........................................................................................................................................43,849.61 Gross PV Debt Service Savings.................................................................................................................................43,217.99 Net PV Cashflow Savings @ 1.180%(Bond Yield).......................................................................................................43,217.99 Contingency or Rounding Amount...............................................................................................................................1,576.63 Net Future Value Benefit............................................................................................................................................$45,426.24 Net Present Value Benefit..........................................................................................................................................$44,794.62 Net PV Benefit / $1,405,317.90 PV Refunded Debt Service...........................................................................................3.188% Net PV Benefit / $1,350,000 Refunded Principal..........................................................................................................3.318% Net PV Benefit / $1,375,000 Refunding Principal.........................................................................................................3.258% Refunding Bond Information Refunding Dated Date................................................................................................................................................12/29/2020 Refunding Delivery Date.............................................................................................................................................12/29/2020 2020 GO Ref Bonds (10A, 1 | Current Refunding of Seri | 10/23/2020 | 8:47 AM Page 19 $4,595,000 City of Elk River, Minnesota General Obligation Capital Improvement Plan Refunding Bonds, Series 2020B Current Refunding of Series 2012A Debt Service Comparison DateTotal P+IExisting D/SNet New D/SOld Net D/SSavings 02/01/2021-380,087.50380,087.50380,087.50- 02/01/2022417,465.39-417,465.39438,675.0021,209.61 02/01/2023411,175.00-411,175.00436,975.0025,800.00 02/01/2024418,985.00-418,985.00440,175.0021,190.00 02/01/2025416,547.50-416,547.50438,175.0021,627.50 02/01/2026413,922.50-413,922.50436,075.0022,152.50 02/01/2027415,735.00-415,735.00437,975.0022,240.00 02/01/2028416,935.00-416,935.00439,650.0022,715.00 02/01/2029412,700.00-412,700.00435,625.0022,925.00 02/01/2030413,080.00-413,080.00436,000.0022,920.00 02/01/2031413,010.00-413,010.00436,125.0023,115.00 02/01/2032412,480.00-412,480.00436,000.0023,520.00 02/01/2033411,480.00-411,480.00435,625.0024,145.00 Total$4,973,515.39$380,087.50$5,353,602.89$5,627,162.50$273,559.61 PV Analysis Summary (Net to Net) Net FV Cashflow Savings........................................................................................................................................273,559.61 Gross PV Debt Service Savings...............................................................................................................................254,146.09 Net PV Cashflow Savings @ 1.180%(Bond Yield).....................................................................................................254,146.09 Contingency or Rounding Amount............................................................................................................................1,723.37 Net Future Value Benefit.........................................................................................................................................$275,282.98 Net Present Value Benefit.......................................................................................................................................$255,869.46 Net PV Benefit / $4,862,046.17 PV Refunded Debt Service.........................................................................................5.263% Net PV Benefit / $4,515,000 Refunded Principal.......................................................................................................5.667% Net PV Benefit / $4,595,000 Refunding Principal.......................................................................................................5.568% Refunding Bond Information Refunding Dated Date.............................................................................................................................................12/29/2020 Refunding Delivery Date...........................................................................................................................................12/29/2020 2020 GO Ref Bonds (10A, 1 | Current Refunding of Seri | 10/23/2020 | 8:47 AM Page 20 $7,370,000 City of Elk River, Minnesota General Obligation Capital Improvement Plan Bonds, Series 2010A Debt Service To Maturity And To Call DateRefunded D/S To CallPrincipalCouponInterestRefunded D/S Bonds 12/29/2020------ 02/01/20211,350,000.001,350,000.00-4.000%-- 08/01/2021----27,000.0027,000.00 02/01/2022--660,000.004.000%27,000.00687,000.00 08/01/2022----13,800.0013,800.00 02/01/2023--690,000.004.000%13,800.00703,800.00 Total$1,350,000.00$1,350,000.00$1,350,000.00-$81,600.00$1,431,600.00 Yield Statistics Base date for Avg. Life & Avg. Coupon Calculation....................................................................................................12/29/2020 Average Life...........................................................................................................................................................1.600 Years Average Coupon.....................................................................................................................................................3.7777778% Weighted Average Maturity (Par Basis)....................................................................................................................1.600 Years Weighted Average Maturity (Original Price Basis).....................................................................................................1.598 Years Refunding Bond Information Refunding Dated Date.............................................................................................................................................12/29/2020 Refunding Delivery Date..........................................................................................................................................12/29/2020 2010A GO CIP Bonds - FOS | SINGLE PURPOSE | 10/22/2020 | 1:52 PM Page 21 $6,975,000 City of Elk River, Minnesota General Obligation Capital Improvement Plan Bonds, Series 2012A Debt Service To Maturity And To Call DateRefunded D/S To CallPrincipalCouponInterestRefunded D/S Bonds 12/29/2020------ 02/01/20214,515,000.004,515,000.00-2.000%-- 08/01/2021----51,837.5051,837.50 02/01/2022--335,000.002.000%51,837.50386,837.50 08/01/2022----48,487.5048,487.50 02/01/2023--340,000.002.000%48,487.50388,487.50 08/01/2023----45,087.5045,087.50 02/01/2024--350,000.002.000%45,087.50395,087.50 08/01/2024----41,587.5041,587.50 02/01/2025--355,000.002.000%41,587.50396,587.50 08/01/2025----38,037.5038,037.50 02/01/2026--360,000.002.250%38,037.50398,037.50 08/01/2026----33,987.5033,987.50 02/01/2027--370,000.002.250%33,987.50403,987.50 08/01/2027----29,825.0029,825.00 02/01/2028--380,000.002.375%29,825.00409,825.00 08/01/2028----25,312.5025,312.50 02/01/2029--385,000.002.500%25,312.50410,312.50 08/01/2029----20,500.0020,500.00 02/01/2030--395,000.002.500%20,500.00415,500.00 08/01/2030----15,562.5015,562.50 02/01/2031--405,000.002.500%15,562.50420,562.50 08/01/2031----10,500.0010,500.00 02/01/2032--415,000.002.500%10,500.00425,500.00 08/01/2032----5,312.505,312.50 02/01/2033--425,000.002.500%5,312.50430,312.50 Total$4,515,000.00$4,515,000.00$4,515,000.00-$732,075.00$5,247,075.00 Yield Statistics Base date for Avg. Life & Avg. Coupon Calculation....................................................................................................12/29/2020 Average Life...........................................................................................................................................................6.847 Years Average Coupon.....................................................................................................................................................2.3679231% Weighted Average Maturity (Par Basis)....................................................................................................................6.847 Years Weighted Average Maturity (Original Price Basis).....................................................................................................6.771 Years Refunding Bond Information Refunding Dated Date.............................................................................................................................................12/29/2020 Refunding Delivery Date..........................................................................................................................................12/29/2020 2012A GO CIP Bonds - FOS | SINGLE PURPOSE | 10/22/2020 | 1:52 PM Page 22 $5,970,000 City of Elk River, Minnesota General Obligation Capital Improvement Plan Refunding Bonds, Series 2020B Issue Summary DEBT SERVICE SCHEDULE DatePrincipalCouponInterestTotal P+I105% Levy 02/01/2021----- 02/01/20221,050,000.000.550%61,075.781,111,075.781,166,629.57 02/01/20231,055,000.000.600%50,315.001,105,315.001,160,580.75 02/01/2024375,000.000.650%43,985.00418,985.00439,934.25 02/01/2025375,000.000.700%41,547.50416,547.50437,374.88 02/01/2026375,000.000.850%38,922.50413,922.50434,618.63 02/01/2027380,000.001.000%35,735.00415,735.00436,521.75 02/01/2028385,000.001.100%31,935.00416,935.00437,781.75 02/01/2029385,000.001.200%27,700.00412,700.00433,335.00 02/01/2030390,000.001.300%23,080.00413,080.00433,734.00 02/01/2031395,000.001.400%18,010.00413,010.00433,660.50 02/01/2032400,000.001.500%12,480.00412,480.00433,104.00 02/01/2033405,000.001.600%6,480.00411,480.00432,054.00 Total$5,970,000.00-$391,265.78$6,361,265.78$6,679,329.07 SIGNIFICANT DATES Dated...................................................................................................................................................................12/29/2020 Delivery Date.........................................................................................................................................................12/29/2020 First Coupon Date.................................................................................................................................................8/01/2021 Yield Statistics Bond Year Dollars.................................................................................................................................................$32,965.67 Average Life..........................................................................................................................................................5.522 Years Average Coupon....................................................................................................................................................1.1868887% Net Interest Cost (NIC)...........................................................................................................................................1.3679862% True Interest Cost (TIC)..........................................................................................................................................1.3711821% Bond Yield for Arbitrage Purposes...........................................................................................................................1.1804047% All Inclusive Cost (AIC)...........................................................................................................................................1.5072222% IRS Form 8038 Net Interest Cost...................................................................................................................................................1.1868887% Weighted Average Maturity.....................................................................................................................................5.522 Years 2020 GO Ref Bonds (10A, 1 | Issue Summary | 10/22/2020 | 1:52 PM Page 23 APPENDIX C Taxable General Obligation Sewer Revenue Refunding Bonds, Series 2020Cschedules Page 24 $7,295,000 City of Elk River, Minnesota Taxable General Obligation Sewer Revenue Refunding Bonds, Series 2020C Crossover Refunding of Series 2014B Refunding Summary Dated 12/29/2020 | Delivered 12/29/2020 Sources Of Funds Par Amount of Bonds............................................................................................................................................$7,295,000.00 Total Sources.....................................................................................................................................................$7,295,000.00 Uses Of Funds Deposit to Crossover Escrow Fund.........................................................................................................................7,165,192.63 Total Underwriter's Discount (1.100%)....................................................................................................................80,245.00 Costs of Issuance.................................................................................................................................................49,200.00 Rounding Amount.................................................................................................................................................362.37 Total Uses...........................................................................................................................................................$7,295,000.00 Flow of Funds Detail State and Local Government Series (SLGS) rates for...............................................................................................10/22/2020 Date of OMP Candidates....................................................................................................................................... Crossover Escrow Fund Solution Method................................................................................................................Net Funded Total Cost of Investments......................................................................................................................................$7,165,192.63 Interest Earnings @ 0.120%..................................................................................................................................9,347.76 Total Draws..........................................................................................................................................................$7,174,540.39 Issues Refunded And Call Dates 2014B GO Sewer Rev Bonds - PS tb......................................................................................................................2/01/2022 PV Analysis Summary (Net to Net) Net PV Cashflow Savings @ 2.063%(TIC)..............................................................................................................352,552.52 Contingency or Rounding Amount..........................................................................................................................362.37 Net Present Value Benefit.....................................................................................................................................$352,914.89 Net PV Benefit / Refunded Principal.......................................................................................................................5.013% Net PV Benefit / Refunding Principal.......................................................................................................................4.838% Average Annual Cash Flow Savings........................................................................................................................27,422.17 Total New Net D/S................................................................................................................................................9,566,325.00 Total Prior D/S......................................................................................................................................................9,977,657.50 Total Cashflow Savings..........................................................................................................................................411,332.50 Bond Statistics Average Life.........................................................................................................................................................8.323 Years Average Coupon...................................................................................................................................................1.9304808% Net Interest Cost (NIC)..........................................................................................................................................2.0626399% Bond Yield for Arbitrage Purposes..........................................................................................................................1.9171159% True Interest Cost (TIC).........................................................................................................................................2.0629795% All Inclusive Cost (AIC)..........................................................................................................................................2.1534721% 2020 Txbl GO Ref Bonds (1 | SINGLE PURPOSE | 10/22/2020 | 1:55 PM Page 25 $7,295,000 City of Elk River, Minnesota Taxable General Obligation Sewer Revenue Refunding Bonds, Series 2020C Crossover Refunding of Series 2014B Debt Service Comparison DateTotal P+IEscrowExisting D/SNet New D/SOld Net D/SSavings 02/01/2021--557,502.50557,502.50557,502.50- 02/01/2022134,540.39(7,174,540.39)7,716,205.00676,205.00676,205.00- 02/01/2023638,557.50--638,557.50672,205.0033,647.50 02/01/2024639,695.00--639,695.00670,830.0031,135.00 02/01/2025644,755.00--644,755.00674,205.0029,450.00 02/01/2026639,190.00--639,190.00672,205.0033,015.00 02/01/2027638,095.00--638,095.00668,730.0030,635.00 02/01/2028640,605.00--640,605.00673,730.0033,125.00 02/01/2029636,885.00--636,885.00668,130.0031,245.00 02/01/2030641,985.00--641,985.00672,230.0030,245.00 02/01/2031641,250.00--641,250.00674,355.0033,105.00 02/01/2032639,750.00--639,750.00669,975.0030,225.00 02/01/2033642,465.00--642,465.00675,085.0032,620.00 02/01/2034644,265.00--644,265.00674,345.0030,080.00 02/01/2035645,120.00--645,120.00677,925.0032,805.00 Total$8,467,157.89(7,174,540.39)$8,273,707.50$9,566,325.00$9,977,657.50$411,332.50 PV Analysis Summary (Net to Net) Net FV Cashflow Savings........................................................................................................................................411,332.50 Gross PV Debt Service Savings...............................................................................................................................352,552.52 Net PV Cashflow Savings @ 2.063%(TIC)................................................................................................................352,552.52 Contingency or Rounding Amount............................................................................................................................362.37 Net Future Value Benefit.........................................................................................................................................$411,694.87 Net Present Value Benefit.......................................................................................................................................$352,914.89 Net PV Benefit / $7,435,541.90 PV Refunded Debt Service.........................................................................................4.746% Net PV Benefit / $7,040,000 Refunded Principal.......................................................................................................5.013% Net PV Benefit / $7,295,000 Refunding Principal.......................................................................................................4.838% Refunding Bond Information Refunding Dated Date.............................................................................................................................................12/29/2020 Refunding Delivery Date...........................................................................................................................................12/29/2020 2020 Txbl GO Ref Bonds (1 | SINGLE PURPOSE | 10/22/2020 | 1:55 PM Page 26 $10,000,000 City of Elk River, Minnesota General Obligation Sewer Revenue Bonds Series 2014B (Post-Sale) Debt Service To Maturity And To Call DateRefunded D/S To CallPrincipalCouponInterestRefunded D/S Bonds 12/29/2020------ 02/01/2021---2.000%-- 02/01/20227,040,000.007,040,000.00-2.000%-- 08/01/2022----108,602.50108,602.50 02/01/2023--455,000.002.500%108,602.50563,602.50 08/01/2023----102,915.00102,915.00 02/01/2024--465,000.002.500%102,915.00567,915.00 08/01/2024----97,102.5097,102.50 02/01/2025--480,000.002.500%97,102.50577,102.50 08/01/2025----91,102.5091,102.50 02/01/2026--490,000.002.750%91,102.50581,102.50 08/01/2026----84,365.0084,365.00 02/01/2027--500,000.003.000%84,365.00584,365.00 08/01/2027----76,865.0076,865.00 02/01/2028--520,000.003.000%76,865.00596,865.00 08/01/2028----69,065.0069,065.00 02/01/2029--530,000.003.000%69,065.00599,065.00 08/01/2029----61,115.0061,115.00 02/01/2030--550,000.003.250%61,115.00611,115.00 08/01/2030----52,177.5052,177.50 02/01/2031--570,000.003.400%52,177.50622,177.50 08/01/2031----42,487.5042,487.50 02/01/2032--585,000.003.400%42,487.50627,487.50 08/01/2032----32,542.5032,542.50 02/01/2033--610,000.003.400%32,542.50642,542.50 08/01/2033----22,172.5022,172.50 02/01/2034--630,000.003.400%22,172.50652,172.50 08/01/2034----11,462.5011,462.50 02/01/2035--655,000.003.500%11,462.50666,462.50 Total$7,040,000.00$7,040,000.00$7,040,000.00-$1,703,950.00$8,743,950.00 Yield Statistics Base date for Avg. Life & Avg. Coupon Calculation....................................................................................................12/29/2020 Average Life...........................................................................................................................................................8.515 Years Average Coupon.....................................................................................................................................................2.8424854% Weighted Average Maturity (Par Basis)....................................................................................................................8.515 Years Weighted Average Maturity (Original Price Basis)......................................................................................................8.487 Years Refunding Bond Information Refunding Dated Date.............................................................................................................................................12/29/2020 Refunding Delivery Date..........................................................................................................................................12/29/2020 2014B GO Sewer Rev Bonds | SINGLE PURPOSE | 10/22/2020 | 1:55 PM Page 27 $7,295,000 City of Elk River, Minnesota Taxable General Obligation Sewer Revenue Refunding Bonds, Series 2020C Crossover Refunding of Series 2014B NET DEBT SERVICE SCHEDULE DatePrincipalCouponInterestTotal P+IEscrowExisting D/SNet New D/S105% Overlevy 02/01/2021-----557,502.50557,502.50585,377.63 02/01/2022--134,540.39134,540.39(7,174,540.39)7,716,205.00676,205.00710,015.25 02/01/2023515,000.000.750%123,557.50638,557.50--638,557.50670,485.38 02/01/2024520,000.000.950%119,695.00639,695.00--639,695.00671,679.75 02/01/2025530,000.001.050%114,755.00644,755.00--644,755.00676,992.75 02/01/2026530,000.001.150%109,190.00639,190.00--639,190.00671,149.50 02/01/2027535,000.001.400%103,095.00638,095.00--638,095.00669,999.75 02/01/2028545,000.001.600%95,605.00640,605.00--640,605.00672,635.25 02/01/2029550,000.001.800%86,885.00636,885.00--636,885.00668,729.25 02/01/2030565,000.001.900%76,985.00641,985.00--641,985.00674,084.25 02/01/2031575,000.002.000%66,250.00641,250.00--641,250.00673,312.50 02/01/2032585,000.002.100%54,750.00639,750.00--639,750.00671,737.50 02/01/2033600,000.002.200%42,465.00642,465.00--642,465.00674,588.25 02/01/2034615,000.002.300%29,265.00644,265.00--644,265.00676,478.25 02/01/2035630,000.002.400%15,120.00645,120.00--645,120.00677,376.00 Total$7,295,000.00-$1,172,157.89$8,467,157.89(7,174,540.39)$8,273,707.50$9,566,325.00$10,044,641.25 SIGNIFICANT DATES Dated Date.............................................................................................................................................................................12/29/2020 Delivery Date...........................................................................................................................................................................12/29/2020 First Coupon Date...................................................................................................................................................................8/01/2021 Yield Statistics Bond Year Dollars...................................................................................................................................................................$60,718.44 Average Life............................................................................................................................................................................8.323 Years Average Coupon......................................................................................................................................................................1.9304808% Net Interest Cost (NIC).............................................................................................................................................................2.0626399% True Interest Cost (TIC)............................................................................................................................................................2.0629795% Bond Yield for Arbitrage Purposes.............................................................................................................................................1.9171159% All Inclusive Cost (AIC).............................................................................................................................................................2.1534721% IRS Form 8038 Net Interest Cost.....................................................................................................................................................................1.9304808% Weighted Average Maturity.......................................................................................................................................................8.323 Years 2020 Txbl GO Ref Bonds (1 | SINGLE PURPOSE | 10/22/2020 | 1:55 PM Page 28 $7,295,000 City of Elk River, Minnesota Taxable General Obligation Sewer Revenue Refunding Bonds, Series 2020C Crossover Refunding of Series 2014B Crossover Escrow Fund Cashflow DatePrincipalRateInterestReceiptsDisbursementsCash Balance 12/29/2020---0.63-0.63 08/01/202167,672.000.110%5,089.2572,761.2572,761.640.24 02/01/20227,097,520.000.120%4,258.517,101,778.517,101,778.75- Total$7,165,192.00-$9,347.76$7,174,540.39$7,174,540.39- Investment Parameters Investment Model \[PV, GIC, or Securities\]..............................................................................................................Securities Default investment yield target...............................................................................................................................Bond Yield Cash Deposit.......................................................................................................................................................0.63 Cost of Investments Purchased with Bond Proceeds................................................................................................7,165,192.00 Total Cost of Investments......................................................................................................................................$7,165,192.63 Target Cost of Investments at bond yield.................................................................................................................$7,027,704.09 Actual positive or (negative) arbitrage......................................................................................................................(137,488.54) Yield to Receipt....................................................................................................................................................0.1203293% Yield for Arbitrage Purposes..................................................................................................................................1.9171159% State and Local Government Series (SLGS) rates for...............................................................................................10/22/2020 2020 Txbl GO Ref Bonds (1 | SINGLE PURPOSE | 10/22/2020 | 1:55 PM Page 29 CITY OF ELK RIVER COUNTY OF SHERBURNE STATE OF MINNESOTA RESOLUTION NO. _____ RESOLUTION APPROVING A CAPITAL IMPROVEMENT PLAN AND GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF CAPITAL IMPROVEMENT BONDS BE IT RESOLVED by the City Council (the “Council”) of the City of Elk River, Minnesota (the “City”) as follows: Section 1. Background. 1.01. The City is authorized under Minnesota Statutes, 475.521 (the “Act”) to prepare a capital improvement plan and carry out programs for financing certain capital improvements. The City may issue general obligation bonds pursuant to the Act to finance the cost of capital improvements described in the plan. 1.02. Before the approval of the Plan and issuance of any general obligation bonds under the Act, the City is required to hold a public hearing on the plan and issuance of the bonds. 1.03. Pursuant to the Act, the City has caused to be prepared a five-year capital improvement plan (the “Plan”), which describes certain capital improvements in the City for the years 2020 through 2025. 1.04. The City has determined that it is in its best interests to give preliminary approval to the issuance and sale of capital improvement bonds pursuant to the Act (the “Bonds”), in one or more series an aggregate amount not to exceed $17,500,000 (in addition to amounts issued to finance other capital improvements under the Plan) to finance a portion of the capital improvements set forth in the Plan including without limitation capital improvements related to the City’s Public Safety Building and the City’s fire station #3. 1.05. On this date, the Council held a public hearing on the Plan and the issuance of the Bonds, after publication in the City’s official newspaper of a notice of public hearing at least 14 days but no more than 28 days before the date of the public hearing. Section 2. Plan Approved. 2.01. The Council finds that the Plan will provide for certain capital improvements which serve the interests of the City as a whole. 2.02. The Plan is approved in the form on file in City Hall. EL185-64-680623.v1 Section 3. Bonds Authorized. 3.01. The City hereby gives preliminary approval to the issuance of Bonds in one or more series an aggregate amount not to exceed $17,500,000 (in addition to amounts issued to finance other capital improvements under the Plan) to finance a portion of the capital improvements set forth in the Plan including without limitation capital improvements related to the City’s Public Safety Building and the City’s fire station #3 and costs of issuance of the Bonds, subject to further details regarding the sale of the Bonds to be set forth in a resolution to be considered by the City Council at a subsequent meeting. 3.02. If a petition requesting a vote on the issuance of the Bonds, signed by voters equal to 5% of the votes cast in the last municipal general election, is filed with the City Clerk within 30 days after the date of the public hearing, the City may issue the Bonds only after obtaining approval of a majority of voters voting on the question at an election. 3.03. Pursuant to Minnesota Statutes, Section 462.356, subd. 2, the Council, by at least a two-thirds vote of all of its members, finds that the Plan and the improvements to be financed with the Bonds do not impact and do not have a relationship to the City’s comprehensive plan; the Plan and improvements are consistent with the City’s comprehensive plan; therefore, the Council dispenses with the requirements of Minnesota Statutes, Section 462.356, subd. 2 relating to planning commission review of the Plan and the improvements. 3.04 City staff are authorized and directed to take all other actions necessary to carry out the intent of this resolution. nd Approved this 2 day of November, 2020, by the City Council of the City of Elk River, Minnesota. CITY OF ELK RIVER, MINNESOTA _________________________________ John J Dietz, Mayor ATTEST: ________________________________ Tina Allard, City Clerk 2 EL185-64-680623.v1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ELK RIVER, MINNESOTA HELD: November 2, 2020 Pursuant to due call and notice thereof, a regular meeting of the City Council of City of Elk River, Minnesota, was duly called and held at the City Hall in the City on Monday, the 2nd day of November, 2020, at 6:30 o’clock P.M. The following members were present: and the following were absent: Member _______________________ introduced the following resolution and moved its adoption: RESOLUTION 20-____ PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $9,895,000 GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS, SERIES 2020A BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: 1. Finding; Amount and Purpose. It is hereby found, determined and declared that the City of Elk River, Minnesota (the “City”), should issue $9,895,000 General Obligation General Obligation Capital Improvement Plan Bonds, Series 2020A, to finance a portion of the capital improvements identified in the City’s 2020-2025 Capital Improvement Plan adopted this same date, including without limitation capital improvements related to the City’s Public Safety Building and the City’s fire station #3. 2. Meeting. This City Council shall meet on the date and at the time and place specified in the form of Terms of Proposal attached hereto as Exhibit A for the purpose of awarding the sale of the Bonds. 3. Competitive Negotiated Sale. The City has retained Baker Tilly Municipal Advisors, LLC (“Baker Tilly MA”) as an independent municipal advisor, and the City Council hereby determines to sell the Bonds by private negotiation, by way of a competitive sale in response to Terms of Proposal for the Bonds which are not published in any newspaper or journal. 4. Terms of Proposal. The terms and conditions of the Bonds and the sale thereof are fully set forth in the “Terms of Proposal” attached hereto as Exhibit A and hereby made a part hereof, provided that the Bonds may be issued in one or more series. EL185-64-682677.v1 5. Official Statement. The City Finance Director and other officers or employees of the City are hereby authorized to participate with Baker Tilly MA in the preparation of an official statement for the Bonds. The motion for the adoption of the foregoing resolution was duly seconded by member _______________ and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. 2 EL185-64-682677.v1 STATE OF MINNESOTA ) CITY OF ELK RIVER ) SS. SHERBURNE COUNTY ) I, the undersigned, being the duly qualified and acting Clerk of the City of Elk River, Minnesota (the “City”), DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council called and held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to the City’s $9,895,000 General Obligation General Obligation Capital Improvement Plan Bonds, Series 2020A. WITNESS my hand as such Clerk of the City this ____ day of November, 2020. _______________________________________ City Clerk S-1 EL185-64-682677.v1 EXHIBIT A THE CITY HAS AUTHORIZED BAKER TILLY MUNICIPAL ADVISORS, LLC TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $9,895,000* CITY OF ELK RIVER, MINNESOTA GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS, SERIES 2020A (BOOK ENTRY ONLY) Proposals for the above-referenced obligations (the “Series 2020A Bonds”) will be received by the City of Elk River, Minnesota (the “City”) on Monday, December 7, 2020 (the “Sale Date”) until 10:30 A.M., Central Time (the “Sale Time”) at the offices of Baker Tilly Municipal Advisors, LLC (“Baker Tilly MA”), 380 Jackson Street, Suite 300, Saint Paul, Minnesota, 55101, after which time proposals will be opened and tabulated. Consideration for award of the Series 2020A Bonds will be by the City Council at its meeting commencing at 6:30 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Baker Tilly MA will assume no liability for the inability of a bidder or its proposal to reach Baker Tilly MA prior to the Sale Time, and neither the City nor Baker Tilly MA shall be responsible for any failure, misdirection or error in the means of transmission selected by any bidder. All bidders are advised that each proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Series 2020A Bonds regardless of the manner in which the proposal is submitted. (a) Sealed Bidding. Completed, signed proposals may be submitted to Baker Tilly MA by email to bondservice@bakertilly.com or by fax (651) 223-3046, and must be received prior to the Sale Time. OR ® (b) Electronic Bidding. Proposals may also be received via PARITY. For purposes of the electronic ® bidding process, the time as maintained by PARITY shall constitute the official time with respect to all ® proposals submitted to PARITY. Each bidder shall be solely responsible for making necessary ® arrangements to access PARITY for purposes of submitting its electronic proposal in a timely manner and ® in compliance with the requirements of the Terms of Proposal. Neither the City, its agents, nor PARITY shall have any duty or obligation to undertake registration to bid for any prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and neither the City, its agents, nor ® PARITY shall be responsible for a bidder’s failure to register to bid or for any failure in the proper operation of, or have any liability for any delays or interruptions of or any damages caused by the services ®® of PARITY. The City is using the services of PARITY solely as a communication mechanism to conduct ® the electronic bidding for the Series 2020A Bonds, and PARITY is not an agent of the City. ® If any provisions of this Terms of Proposal conflict with information provided by PARITY, this Terms of ® Proposal shall control. Further information about PARITY, including any fee charged, may be obtained from: ®nd PARITY, 1359 Broadway, 2 Floor, New York, New York 10018 Customer Support: (212) 849-5000 * Preliminary; subject to change. Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020 Baker Tilly Municipal Advisors, LLC. A-1 DETAILS OF THE SERIES 2020A BONDS The Series 2020A Bonds will be dated as of the date of delivery and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 2021. Interest will be computed on the basis of a 360- day year of twelve 30-day months. The Series 2020A Bonds will mature February 1 in the years and amounts* as follows: 2023 $445,000 2027 $450,000 2031 $475,000 2035 $505,000 2039 $545,000 2024 $445,000 2028 $460,000 2032 $485,000 2036 $515,000 2040 $555,000 2025 $445,000 2029 $465,000 2033 $490,000 2037 $520,000 2041 $565,000 2026 $450,000 2030 $470,000 2034 $495,000 2038 $535,000 2042 $580,000 * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Series 2020A Bonds or the amount of any maturity or maturities in multiples of $5,000. In the event the amount of any maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per $1,000 of Series 2020A Bonds as that of the original proposal. Gross spread for this purpose is the differential between the price paid to the City for the new issue and the prices at which the proposal indicates the securities will be initially offered to the investing public. Proposals for the Series 2020A Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of redemption scheduled to conform to the maturity schedule set forth above. In order to designate term bonds, the proposal must specify “Years of Term Maturities” in the spaces provided on the proposal form. BOOK ENTRY SYSTEM The Series 2020A Bonds will be issued by means of a book entry system with no physical distribution of Series 2020A Bonds made to the public. The Series 2020A Bonds will be issued in fully registered form and one Series 2020A Bond, representing the aggregate principal amount of the Series 2020A 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 for the Series 2020A Bonds. Individual purchases of the Series 2020A Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Series 2020A Bonds. 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 other nominees of beneficial owners. The lowest bidder (the “Purchaser”), as a condition of delivery of the Series 2020A Bonds, will be required to deposit the Series 2020A Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable regulations of the Securities and Exchange Commission. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2030, and on any day thereafter, to redeem Series 2020A Bonds due on or after February 1, 2031. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Series 2020A Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All redemptions shall be at a price of par plus accrued interest. A-2 SECURITY AND PURPOSE The Series 2020A Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. The proceeds of the Series 2020A Bonds will be used to finance construction of various capital improvements identified in the City’s 2020-2025 Capital Improvement Plan adopted November 2, 2020. BANK QUALIFIED TAX-EXEMPT OBLIGATIONS The City will designate the Series 2020A Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. BIDDING PARAMETERS Proposals shall be for not less than $9,746,575 plus accrued interest, if any, on the total principal amount of the Series 2020A Bonds. No proposal can be withdrawn or amended after the time set for receiving proposals on the Sale Date unless the meeting of the City scheduled for award of the Series 2020A Bonds is adjourned, recessed, or continued to another date without award of the Series 2020A Bonds having been made. Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity as stated on the proposal must be 98.0% or greater. Series 2020A Bonds of the same maturity shall bear a single rate from the date of the Series 2020A Bonds to the date of maturity. No conditional proposals will be accepted. ESTABLISHMENT OF ISSUE PRICE In order to provide the City with information necessary for compliance with Section 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder (collectively, the “Code”), the Purchaser will be required to assist the City in establishing the issue price of the Series 2020A Bonds and shall complete, execute, and deliver to the City prior to the closing date, a written certification in a form acceptable to the Purchaser, the City, and Bond Counsel (the “Issue Price Certificate”) containing the following for each maturity of the Series 2020A Bonds (and, if different interest rates apply within a maturity, to each separate CUSIP number within that maturity): (i) the interest rate; (ii) the reasonably expected initial offering price to the “public” (as said term is defined in Treasury Regulation Section 1.148-1(f) (the “Regulation”)) or the sale price; and (iii) pricing wires or equivalent communications supporting such offering or sale price. Any action to be taken or documentation to be received by the City pursuant hereto may be taken or received on behalf of the City by Baker Tilly MA. The City intends that the sale of the Series 2020A Bonds pursuant to this Terms of Proposal shall constitute a “competitive sale” as defined in the Regulation based on the following: (i) the City shall cause this Terms of Proposal to be disseminated to potential bidders in a manner that is reasonably designed to reach potential bidders; (ii) all bidders shall have an equal opportunity to submit a bid; (iii) the City reasonably expects that it will receive bids from at least three bidders that have established industry reputations for underwriting municipal bonds such as the Series 2020A Bonds; and (iv) the City anticipates awarding the sale of the Series 2020A Bonds to the bidder who provides a proposal with the lowest true interest cost, as set forth in this Terms of Proposal (See “AWARD” herein). Any bid submitted pursuant to this Terms of Proposal shall be considered a firm offer for the purchase of the Series 2020A Bonds, as specified in the proposal. The Purchaser shall constitute an “underwriter” as said term is defined in the Regulation. By submitting its proposal, the Purchaser confirms that it shall require any agreement among underwriters, a selling group agreement, or other agreement to which it is a A-3 party relating to the initial sale of the Series 2020A Bonds, to include provisions requiring compliance with the provisions of the Code and the Regulation regarding the initial sale of the Series 2020A Bonds. If all of the requirements of a “competitive sale” are not satisfied, the City shall advise the Purchaser of such fact prior to the time of award of the sale of the Series 2020A Bonds to the Purchaser. In such event, any proposal submitted will not be subject to cancellation or withdrawal. Within twenty-four (24) hours of the notice of award of the sale of the Series 2020A Bonds, the Purchaser shall advise the City and Baker Tilly MA if 10% of any maturity of the Series 2020A Bonds (and, if different interest rates apply within a maturity, to each separate CUSIP number within that maturity) has been sold to the public and the price at which it was sold. The City will treat such sale price as the “issue price” for such maturity, applied on a maturity-by-maturity basis. The City will not require the Purchaser to comply with that portion of the Regulation commonly described as the “hold-the-offering-price” requirement for the remaining maturities, but the Purchaser may elect such option. If the Purchaser exercises such option, the City will apply the initial offering price to the public provided in the proposal as the issue price for such maturities. If the Purchaser does not exercise that option, it shall thereafter promptly provide the City and Baker Tilly MA the prices at which 10% of such maturities are sold to the public; provided such determination shall be made and the City and Baker Tilly MA notified of such prices whether or not the closing date has occurred, until the 10% test has been satisfied as to each maturity of the Series 2020A Bonds or until all of the Series 2020A Bonds of a maturity have been sold. GOOD FAITH DEPOSIT To have its proposal considered for award, the Purchaser is required to submit a good faith deposit via wire transfer to the City in the amount of $98,950 (the “Deposit”) no later than 1:30 P.M., Central Time on the Sale Date. The Purchaser shall be solely responsible for the timely delivery of its Deposit, and neither the City nor Baker Tilly MA have any liability for delays in the receipt of the Deposit. If the Deposit is not received by the specified time, the City may, at its sole discretion, reject the proposal of the lowest bidder, direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder. A Deposit will be considered timely delivered to the City upon submission of a federal wire reference number by the specified time. Wire transfer instructions will be available from Baker Tilly MA following the receipt and tabulation of proposals. The successful bidder must send an e-mail including the following information: (i) the federal reference number and time released; (ii) the amount of the wire transfer; and (iii) the issue to which it applies. Once an award has been made, the Deposit received from the Purchaser will be retained by the City and no interest will accrue to the Purchaser. The amount of the Deposit will be deducted at settlement from the purchase price. In the event the Purchaser fails to comply with the accepted proposal, said amount will be retained by the City. AWARD The Series 2020A Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Series 2020A Bonds, (ii) reject all proposals without cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms herein. A-4 BOND INSURANCE AT PURCHASER'S OPTION The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance with respect to the Series 2020A Bonds. If the Series 2020A Bonds qualify for municipal bond insurance and a bidder desires to purchase a policy, such indication, the maturities to be insured, and the name of the desired insurer must be set forth on the bidder’s proposal. The City specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the City. All costs associated with the issuance and administration of such policy and associated ratings and expenses (other than any independent rating requested by the City) shall be paid by the successful bidder. Failure of the municipal bond insurer to issue the policy after the award of the Series 2020A Bonds shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the Series 2020A Bonds. CUSIP NUMBERS If the Series 2020A Bonds qualify for the assignment of CUSIP numbers such numbers will be printed on the Series 2020A Bonds; however, neither the failure to print such numbers on any Series 2020A Bond nor any error with respect thereto will constitute cause for failure or refusal by the Purchaser to accept delivery of the Series 2020A Bonds. Baker Tilly MA will apply for CUSIP numbers pursuant to Rule G-34 implemented by the Municipal Securities Rulemaking Board. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the Purchaser. SETTLEMENT On or about December 29, 2020, the Series 2020A Bonds will be delivered without cost to the Purchaser through DTC in New York, New York. Delivery will be subject to receipt by the Purchaser of an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement, payment for the Series 2020A Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of payment for the Series 2020A Bonds has been made impossible by action of the City, or its agents, the Purchaser shall be liable to the City for any loss suffered by the City by reason of the Purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Series 2020A Bonds, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the Series 2020A Bonds will be conditioned upon receiving evidence of this undertaking at or prior to delivery of the Series 2020A Bonds. OFFICIAL STATEMENT The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to the Series 2020A Bonds, and said Preliminary Official Statement has been deemed final by the City as of the date thereof within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For an electronic copy of the Preliminary Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Municipal Advisor to the City, Baker Tilly Municipal Advisors, LLC, by telephone (651) 223-3000, or by email bondservice@bakertilly.com. The Preliminary Official Statement will also be made available at https://connect.bakertilly.com/bond-sales- calendar. A-5 EL185-64-682677.v1 A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the maturity dates, principal amounts, and interest rates of the Series 2020A Bonds, together with any other information required by law. By awarding the Series 2020A Bonds to the Purchaser, the City agrees that, no more than seven business days after the date of such award, it shall provide to the Purchaser an electronic copy of the Final Official Statement. The City designates the Purchaser as its agent for purposes of distributing the Final Official Statement to each syndicate member, if applicable. The Purchaser agrees that if its proposal is accepted by the City, (i) it shall accept designation and (ii) it shall enter into a contractual relationship with its syndicate members for purposes of assuring the receipt of the Final Official Statement by each such syndicate member. Dated November 2, 2020 BY ORDER OF THE CITY COUNCIL /s/ Tina Allard City Clerk A-6 EL185-64-682677.v1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ELK RIVER, MINNESOTA HELD: November 2, 2020 Pursuant to due call and notice thereof, a regular meeting of the City Council of City of Elk River, Minnesota, was duly called and held at the City Hall in the City on Monday, the 2nd day of November, 2020, at 6:30 o’clock P.M. The following members were present: and the following were absent: Member _______________________ introduced the following resolution and moved its adoption: RESOLUTION 20-____ PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $5,970,000 GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN REFUNDING BONDS, SERIES 2020B BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: 1. Finding; Amount and Purpose. It is hereby found, determined and declared that the City of Elk River, Minnesota (the “City”), should issue $5,970,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2020B, to refund (i) the February 1, 2022 and February 1, 2023 maturities of the City's General Obligation Capital Improvement Plan Bonds, Series 2010A, dated April 21, 2010; and (ii) the February 1, 2022 through February 1, 2033 maturities of the City's General Obligation Capital Improvement Plan Bonds, Series 2012A, dated March 15, 2012. 2. Meeting. This City Council shall meet on the date and at the time and place specified in the form of Terms of Proposal attached hereto as Exhibit A for the purpose of awarding the sale of the Bonds. 3. Competitive Negotiated Sale. The City has retained Baker Tilly Municipal Advisors, LLC (“Baker Tilly MA”) as an independent municipal advisor, and the City Council hereby determines to sell the Bonds by private negotiation, by way of a competitive sale in response to Terms of Proposal for the Bonds which are not published in any newspaper or journal. 4. Terms of Proposal. The terms and conditions of the Bonds and the sale thereof are fully set forth in the “Terms of Proposal” attached hereto as Exhibit A and hereby made a part hereof, provided that the Bonds may be issued in one or more series. EL185-66-682690.v1 5. Official Statement. The City Finance Director and other officers or employees of the City are hereby authorized to participate with Baker Tilly MA in the preparation of an official statement for the Bonds. The motion for the adoption of the foregoing resolution was duly seconded by member _______________ and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. 2 EL185-66-682690.v1 STATE OF MINNESOTA ) CITY OF ELK RIVER ) SS. SHERBURNE COUNTY ) I, the undersigned, being the duly qualified and acting Clerk of the City of Elk River, Minnesota (the “City”), DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council called and held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to the City’s $5,970,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2020B. WITNESS my hand as such Clerk of the City this ___ day of November, 2020. _______________________________________ City Clerk S-1 EL185-66-682690.v1 EXHIBIT A THE CITY HAS AUTHORIZED BAKER TILLY MUNICIPAL ADVISORS, LLC TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $5,970,000* CITY OF ELK RIVER, MINNESOTA GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN REFUNDING BONDS, SERIES 2020B (BOOK ENTRY ONLY) Proposals for the above-referenced obligations (the “Series 2020B Bonds”) will be received by the City of Elk River, Minnesota (the “City”) on Monday, December 7, 2020 (the “Sale Date”) until 10:30 A.M., Central Time (the “Sale Time”) at the offices of Baker Tilly Municipal Advisors, LLC (“Baker Tilly MA”), 380 Jackson Street, Suite 300, Saint Paul, Minnesota, 55101, after which time proposals will be opened and tabulated. Consideration for award of the Series 2020B Bonds will be by the City Council at its meeting commencing at 6:30 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Baker Tilly MA will assume no liability for the inability of a bidder or its proposal to reach Baker Tilly MA prior to the Sale Time, and neither the City nor Baker Tilly MA shall be responsible for any failure, misdirection or error in the means of transmission selected by any bidder. All bidders are advised that each proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Series 2020B Bonds regardless of the manner in which the proposal is submitted. (a) Sealed Bidding. Completed, signed proposals may be submitted to Baker Tilly MA by email to bondservice@bakertilly.com or by fax (651) 223-3046, and must be received prior to the Sale Time. OR ® (b) Electronic Bidding. Proposals may also be received via PARITY. For purposes of the electronic ® bidding process, the time as maintained by PARITY shall constitute the official time with respect to all ® proposals submitted to PARITY. Each bidder shall be solely responsible for making necessary ® arrangements to access PARITY for purposes of submitting its electronic proposal in a timely manner and ® in compliance with the requirements of the Terms of Proposal. Neither the City, its agents, nor PARITY shall have any duty or obligation to undertake registration to bid for any prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and neither the City, its agents, nor ® PARITY shall be responsible for a bidder’s failure to register to bid or for any failure in the proper operation of, or have any liability for any delays or interruptions of or any damages caused by the services ®® of PARITY. The City is using the services of PARITY solely as a communication mechanism to conduct ® the electronic bidding for the Series 2020B Bonds, and PARITY is not an agent of the City. ® If any provisions of this Terms of Proposal conflict with information provided by PARITY, this Terms of ® Proposal shall control. Further information about PARITY, including any fee charged, may be obtained from: ®nd PARITY, 1359 Broadway, 2 Floor, New York, New York 10018 Customer Support: (212) 849-5000 * Preliminary; subject to change. Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020 Baker Tilly Municipal Advisors, LLC. A-1 DETAILS OF THE SERIES 2020B BONDS The Series 2020B Bonds will be dated as of the date of delivery and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 2021. Interest will be computed on the basis of a 360- day year of twelve 30-day months. The Series 2020B Bonds will mature February 1 in the years and amounts* as follows: 2022 $1,050,000 2025 $375,000 2028 $385,000 2031 $395,000 2023 $1,055,000 2026 $375,000 2029 $385,000 2032 $400,000 2024 $ 375,000 2027 $380,000 2030 $390,000 2033 $405,000 * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Series 2020B Bonds or the amount of any maturity or maturities in multiples of $5,000. In the event the amount of any maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per $1,000 of Series 2020B Bonds as that of the original proposal. Gross spread for this purpose is the differential between the price paid to the City for the new issue and the prices at which the proposal indicates the securities will be initially offered to the investing public. Proposals for the Series 2020B Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of redemption scheduled to conform to the maturity schedule set forth above. In order to designate term bonds, the proposal must specify “Years of Term Maturities” in the spaces provided on the proposal form. BOOK ENTRY SYSTEM The Series 2020B Bonds will be issued by means of a book entry system with no physical distribution of Series 2020B Bonds made to the public. The Series 2020B Bonds will be issued in fully registered form and one Series 2020B Bond, representing the aggregate principal amount of the Series 2020B 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 for the Series 2020B Bonds. Individual purchases of the Series 2020B Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Series 2020B Bonds. 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 other nominees of beneficial owners. The lowest bidder (the “Purchaser”), as a condition of delivery of the Series 2020B Bonds, will be required to deposit the Series 2020B Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable regulations of the Securities and Exchange Commission. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2029, and on any day thereafter, to redeem Series 2020B Bonds due on or after February 1, 2030. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Series 2020B Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All redemptions shall be at a price of par plus accrued interest. A-2 SECURITY AND PURPOSE The Series 2020B Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. The proceeds of the Series 2020B Bonds will be used to refund (i) the February 1, 2022 and February 1, 2023 maturities of the City's General Obligation Capital Improvement Plan Bonds, Series 2010A, dated April 21, 2010; and (ii) the February 1, 2022 through February 1, 2033 maturities of the City's General Obligation Capital Improvement Plan Bonds, Series 2012A, dated March 15, 2012. BANK QUALIFIED TAX-EXEMPT OBLIGATIONS The City will designate the Series 2020B Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. BIDDING PARAMETERS Proposals shall be for not less than $5,910,300 plus accrued interest, if any, on the total principal amount of the Series 2020B Bonds. No proposal can be withdrawn or amended after the time set for receiving proposals on the Sale Date unless the meeting of the City scheduled for award of the Series 2020B Bonds is adjourned, recessed, or continued to another date without award of the Series 2020B Bonds having been made. Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity as stated on the proposal must be 98.0% or greater. Series 2020B Bonds of the same maturity shall bear a single rate from the date of the Series 2020B Bonds to the date of maturity. No conditional proposals will be accepted. ESTABLISHMENT OF ISSUE PRICE In order to provide the City with information necessary for compliance with Section 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder (collectively, the “Code”), the Purchaser will be required to assist the City in establishing the issue price of the Series 2020B Bonds and shall complete, execute, and deliver to the City prior to the closing date, a written certification in a form acceptable to the Purchaser, the City, and Series 2020B Bond Counsel (the “Issue Price Certificate”) containing the following for each maturity of the Series 2020B Bonds (and, if different interest rates apply within a maturity, to each separate CUSIP number within that maturity): (i) the interest rate; (ii) the reasonably expected initial offering price to the “public” (as said term is defined in Treasury Regulation Section 1.148-1(f) (the “Regulation”)) or the sale price; and (iii) pricing wires or equivalent communications supporting such offering or sale price. Any action to be taken or documentation to be received by the City pursuant hereto may be taken or received on behalf of the City by Baker Tilly MA. The City intends that the sale of the Series 2020B Bonds pursuant to this Terms of Proposal shall constitute a “competitive sale” as defined in the Regulation based on the following: (i) the City shall cause this Terms of Proposal to be disseminated to potential bidders in a manner that is reasonably designed to reach potential bidders; (ii) all bidders shall have an equal opportunity to submit a bid; (iii) the City reasonably expects that it will receive bids from at least three bidders that have established industry reputations for underwriting municipal bonds such as the Series 2020B Bonds; and (iv) the City anticipates awarding the sale of the Series 2020B Bonds to the bidder who provides a proposal with the lowest true interest cost, as set forth in this Terms of Proposal (See “AWARD” herein). A-3 Any bid submitted pursuant to this Terms of Proposal shall be considered a firm offer for the purchase of the Series 2020B Bonds, as specified in the proposal. The Purchaser shall constitute an “underwriter” as said term is defined in the Regulation. By submitting its proposal, the Purchaser confirms that it shall require any agreement among underwriters, a selling group agreement, or other agreement to which it is a party relating to the initial sale of the Series 2020B Bonds, to include provisions requiring compliance with the provisions of the Code and the Regulation regarding the initial sale of the Series 2020B Bonds. If all of the requirements of a “competitive sale” are not satisfied, the City shall advise the Purchaser of such fact prior to the time of award of the sale of the Series 2020B Bonds to the Purchaser. In such event, any proposal submitted will not be subject to cancellation or withdrawal. Within twenty-four (24) hours of the notice of award of the sale of the Series 2020B Bonds, the Purchaser shall advise the City and Baker Tilly MA if 10% of any maturity of the Series 2020B Bonds (and, if different interest rates apply within a maturity, to each separate CUSIP number within that maturity) has been sold to the public and the price at which it was sold. The City will treat such sale price as the “issue price” for such maturity, applied on a maturity-by-maturity basis. The City will not require the Purchaser to comply with that portion of the Regulation commonly described as the “hold-the-offering-price” requirement for the remaining maturities, but the Purchaser may elect such option. If the Purchaser exercises such option, the City will apply the initial offering price to the public provided in the proposal as the issue price for such maturities. If the Purchaser does not exercise that option, it shall thereafter promptly provide the City and Baker Tilly MA the prices at which 10% of such maturities are sold to the public; provided such determination shall be made and the City and Baker Tilly MA notified of such prices whether or not the closing date has occurred, until the 10% test has been satisfied as to each maturity of the Series 2020B Bonds or until all of the Series 2020B Bonds of a maturity have been sold. GOOD FAITH DEPOSIT To have its proposal considered for award, the Purchaser is required to submit a good faith deposit via wire transfer to the City in the amount of $59,700 (the “Deposit”) no later than 1:30 P.M., Central Time on the Sale Date. The Purchaser shall be solely responsible for the timely delivery of its Deposit, and neither the City nor Baker Tilly MA have any liability for delays in the receipt of the Deposit. If the Deposit is not received by the specified time, the City may, at its sole discretion, reject the proposal of the lowest bidder, direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder. A Deposit will be considered timely delivered to the City upon submission of a federal wire reference number by the specified time. Wire transfer instructions will be available from Baker Tilly MA following the receipt and tabulation of proposals. The successful bidder must send an e-mail including the following information: (i) the federal reference number and time released; (ii) the amount of the wire transfer; and (iii) the issue to which it applies. Once an award has been made, the Deposit received from the Purchaser will be retained by the City and no interest will accrue to the Purchaser. The amount of the Deposit will be deducted at settlement from the purchase price. In the event the Purchaser fails to comply with the accepted proposal, said amount will be retained by the City. AWARD The Series 2020B Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Series 2020B Bonds, (ii) reject all proposals without cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms herein. A-4 BOND INSURANCE AT PURCHASER'S OPTION The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance with respect to the Series 2020B Bonds. If the Series 2020B Bonds qualify for municipal bond insurance and a bidder desires to purchase a policy, such indication, the maturities to be insured, and the name of the desired insurer must be set forth on the bidder’s proposal. The City specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the City. All costs associated with the issuance and administration of such policy and associated ratings and expenses (other than any independent rating requested by the City) shall be paid by the successful bidder. Failure of the municipal bond insurer to issue the policy after the award of the Series 2020B Bonds shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the Series 2020B Bonds. CUSIP NUMBERS If the Series 2020B Bonds qualify for the assignment of CUSIP numbers such numbers will be printed on the Series 2020B Bonds; however, neither the failure to print such numbers on any Series 2020B Bond nor any error with respect thereto will constitute cause for failure or refusal by the Purchaser to accept delivery of the Series 2020B Bonds. Baker Tilly MA will apply for CUSIP numbers pursuant to Rule G-34 implemented by the Municipal Securities Rulemaking Board. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the Purchaser. SETTLEMENT On or about December 29, 2020, the Series 2020B Bonds will be delivered without cost to the Purchaser through DTC in New York, New York. Delivery will be subject to receipt by the Purchaser of an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement, payment for the Series 2020B Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of payment for the Series 2020B Bonds has been made impossible by action of the City, or its agents, the Purchaser shall be liable to the City for any loss suffered by the City by reason of the Purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Series 2020B Bonds, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the Series 2020B Bonds will be conditioned upon receiving evidence of this undertaking at or prior to delivery of the Series 2020B Bonds. OFFICIAL STATEMENT The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to the Series 2020B Bonds, and said Preliminary Official Statement has been deemed final by the City as of the date thereof within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For an electronic copy of the Preliminary Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Municipal Advisor to the City, Baker Tilly Municipal Advisors, LLC, by telephone (651) 223-3000, or by email bondservice@bakertilly.com. The Preliminary Official Statement will also be made available at https://connect.bakertilly.com/bond-sales- calendar. A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the maturity dates, principal amounts, and interest rates of the Series 2020B Bonds, together with any other information required by law. By awarding the Series 2020B Bonds to the Purchaser, the City agrees that, no more than seven business days after the date of such award, it shall provide to the Purchaser an electronic copy of the A-5 EL185-66-682690.v1 Final Official Statement. The City designates the Purchaser as its agent for purposes of distributing the Final Official Statement to each syndicate member, if applicable. The Purchaser agrees that if its proposal is accepted by the City, (i) it shall accept designation and (ii) it shall enter into a contractual relationship with its syndicate members for purposes of assuring the receipt of the Final Official Statement by each such syndicate member. Dated November 2, 2020 BY ORDER OF THE CITY COUNCIL /s/ Tina Allard City Clerk A-6 EL185-66-682690.v1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ELK RIVER, MINNESOTA HELD: November 2, 2020 Pursuant to due call and notice thereof, a regular meeting of the City Council of City of Elk River, Minnesota, was duly called and held at the City Hall in the City on Monday, the 2nd day of November, 2020, at 6:30 o’clock P.M. The following members were present: and the following were absent: Member _______________________ introduced the following resolution and moved its adoption: RESOLUTION 20-___ PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $7,295,000 TAXABLE GENERAL OBLIGATION SEWER REVENUE REFUNDING BONDS, SERIES 2020C BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: 1. Finding; Amount and Purpose. It is hereby found, determined and declared that the City of Elk River, Minnesota (the “City”), should issue $7,295,000 Taxable General Obligation Sewer Revenue Refunding Bonds, Series 2020C, to refund the February 1, 2023 through February 1, 2035 maturities of the City's General Obligation Sewer Revenue Bonds, Series 2014B, dated August 21, 2014. 2. Meeting. This City Council shall meet on the date and at the time and place specified in the form of Terms of Proposal attached hereto as Exhibit A for the purpose of awarding the sale of the Bonds. 3. Competitive Negotiated Sale. The City has retained Baker Tilly Municipal Advisors, LLC (“Baker Tilly MA”) as an independent municipal advisor, and the City Council hereby determines to sell the Bonds by private negotiation, by way of a competitive sale in response to Terms of Proposal for the Bonds which are not published in any newspaper or journal. 4. Terms of Proposal. The terms and conditions of the Bonds and the sale thereof are fully set forth in the “Terms of Proposal” attached hereto as Exhibit A and hereby made a part hereof, provided that the Bonds may be issued in one or more series. EL185-67-682704.v1 5. Official Statement. The City Finance Director and other officers or employees of the City are hereby authorized to participate with Baker Tilly MA in the preparation of an official statement for the Bonds. The motion for the adoption of the foregoing resolution was duly seconded by member _______________ and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. 2 EL185-67-682704.v1 STATE OF MINNESOTA ) CITY OF ELK RIVER ) SS. SHERBURNE COUNTY ) I, the undersigned, being the duly qualified and acting Clerk of the City of Elk River, Minnesota (the “City”), DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council called and held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to the City’s $7,295,000 Taxable General Obligation Sewer Revenue Refunding Bonds, Series 2020C. WITNESS my hand as such Clerk of the City this ____ day of November, 2020. _______________________________________ City Clerk S-1 EL185-67-682704.v1 EXHIBIT A THE CITY HAS AUTHORIZED BAKER TILLY MUNICIPAL ADVISORS, LLC TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $7,295,000* CITY OF ELK RIVER, MINNESOTA TAXABLE GENERAL OBLIGATION SEWER REVENUE REFUNDING BONDS, SERIES 2020C (BOOK ENTRY ONLY) Proposals for the above-referenced obligations (the “Series 2020C Bonds”) will be received by the City of Elk River, Minnesota (the “City”) on Monday, December 7, 2020 (the “Sale Date”) until 10:30 A.M., Central Time (the “Sale Time”) at the offices of Baker Tilly Municipal Advisors, LLC (“Baker Tilly MA”), 380 Jackson Street, Suite 300, Saint Paul, Minnesota, 55101, after which time proposals will be opened and tabulated. Consideration for award of the Series 2020C Bonds will be by the City Council at its meeting commencing at 6:30 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Baker Tilly MA will assume no liability for the inability of a bidder or its proposal to reach Baker Tilly MA prior to the Sale Time, and neither the City nor Baker Tilly MA shall be responsible for any failure, misdirection or error in the means of transmission selected by any bidder. All bidders are advised that each proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Series 2020C Bonds regardless of the manner in which the proposal is submitted. (a) Sealed Bidding. Completed, signed proposals may be submitted to Baker Tilly MA by email to bondservice@bakertilly.com or by fax (651) 223-3046, and must be received prior to the Sale Time. OR ® (b) Electronic Bidding. Proposals may also be received via PARITY. For purposes of the electronic ® bidding process, the time as maintained by PARITY shall constitute the official time with respect to all ® proposals submitted to PARITY. Each bidder shall be solely responsible for making necessary ® arrangements to access PARITY for purposes of submitting its electronic proposal in a timely manner and ® in compliance with the requirements of the Terms of Proposal. Neither the City, its agents, nor PARITY shall have any duty or obligation to undertake registration to bid for any prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and neither the City, its agents, nor ® PARITY shall be responsible for a bidder’s failure to register to bid or for any failure in the proper operation of, or have any liability for any delays or interruptions of or any damages caused by the services ®® of PARITY. The City is using the services of PARITY solely as a communication mechanism to conduct ® the electronic bidding for the Series 2020C Bonds, and PARITY is not an agent of the City. ® If any provisions of this Terms of Proposal conflict with information provided by PARITY, this Terms of ® Proposal shall control. Further information about PARITY, including any fee charged, may be obtained from: * Preliminary; subject to change. Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020 Baker Tilly Municipal Advisors, LLC. A-1 ®nd PARITY, 1359 Broadway, 2 Floor, New York, New York 10018 Customer Support: (212) 849-5000 DETAILS OF THE SERIES 2020C BONDS The Series 2020C Bonds will be dated as of the date of delivery and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 2021. Interest will be computed on the basis of a 360- day year of twelve 30-day months. The Series 2020C Bonds will mature February 1 in the years and amounts* as follows: 2023 $515,000 2026 $530,000 2029 $550,000 2032 $585,000 2034 $615,000 2024 $520,000 2027 $535,000 2030 $565,000 2033 $600,000 2035 $630,000 2025 $530,000 2028 $545,000 2031 $575,000 * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Series 2020C Bonds or the amount of any maturity or maturities in multiples of $5,000. In the event the amount of any maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per $1,000 of Series 2020C Bonds as that of the original proposal. Gross spread for this purpose is the differential between the price paid to the City for the new issue and the prices at which the proposal indicates the securities will be initially offered to the investing public. Proposals for the Series 2020C Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of redemption scheduled to conform to the maturity schedule set forth above. In order to designate term bonds, the proposal must specify “Years of Term Maturities” in the spaces provided on the proposal form. BOOK ENTRY SYSTEM The Series 2020C Bonds will be issued by means of a book entry system with no physical distribution of Series 2020C Bonds made to the public. The Series 2020C Bonds will be issued in fully registered form and one Series 2020C Bond, representing the aggregate principal amount of the Series 2020C 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 for the Series 2020C Bonds. Individual purchases of the Series 2020C Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Series 2020C Bonds. 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 other nominees of beneficial owners. The lowest bidder (the “Purchaser”), as a condition of delivery of the Series 2020C Bonds, will be required to deposit the Series 2020C Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable regulations of the Securities and Exchange Commission. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2030, and on any day thereafter, to redeem Series 2020C Bonds due on or after February 1, 2031. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Series 2020C Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be redeemed. A-2 DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All redemptions shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Series 2020C Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge net revenues of the City's Sewer Utility Fund. The proceeds of the Series 2020C Bonds will be used to refund the February 1, 2023 through February 1, 2035 maturities of the City's General Obligation Sewer Revenue Bonds, Series 2014B, dated August 21, 2014. TAXABILITY OF INTEREST The interest to be paid on the Series 2020C Bonds is included in gross income of the recipient for United States and State of Minnesota income tax purposes, and is subject to Minnesota corporate and bank excise taxes measured by income. BIDDING PARAMETERS Proposals shall be for not less than $7,214,755 plus accrued interest, if any, on the total principal amount of the Series 2020C Bonds. No proposal can be withdrawn or amended after the time set for receiving proposals on the Sale Date unless the meeting of the City scheduled for award of the Series 2020C Bonds is adjourned, recessed, or continued to another date without award of the Series 2020C Bonds having been made. Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity as stated on the proposal must be 98.0% or greater. Series 2020C Bonds of the same maturity shall bear a single rate from the date of the Series 2020C Bonds to the date of maturity. No conditional proposals will be accepted. GOOD FAITH DEPOSIT To have its proposal considered for award, the Purchaser is required to submit a good faith deposit via wire transfer to the City in the amount of $72,950 (the “Deposit”) no later than 1:30 P.M., Central Time on the Sale Date. The Purchaser shall be solely responsible for the timely delivery of its Deposit, and neither the City nor Baker Tilly MA have any liability for delays in the receipt of the Deposit. If the Deposit is not received by the specified time, the City may, at its sole discretion, reject the proposal of the lowest bidder, direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder. A Deposit will be considered timely delivered to the City upon submission of a federal wire reference number by the specified time. Wire transfer instructions will be available from Baker Tilly MA following the receipt and tabulation of proposals. The successful bidder must send an e-mail including the following information: (i) the federal reference number and time released; (ii) the amount of the wire transfer; and (iii) the issue to which it applies. Once an award has been made, the Deposit received from the Purchaser will be retained by the City and no interest will accrue to the Purchaser. The amount of the Deposit will be deducted at settlement from the purchase price. In the event the Purchaser fails to comply with the accepted proposal, said amount will be retained by the City. AWARD The Series 2020C Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. A-3 The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Series 2020C Bonds, (ii) reject all proposals without cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance with respect to the Series 2020C Bonds. If the Series 2020C Bonds qualify for municipal bond insurance and a bidder desires to purchase a policy, such indication, the maturities to be insured, and the name of the desired insurer must be set forth on the bidder’s proposal. The City specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the City. All costs associated with the issuance and administration of such policy and associated ratings and expenses (other than any independent rating requested by the City) shall be paid by the successful bidder. Failure of the municipal bond insurer to issue the policy after the award of the Series 2020C Bonds shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the Series 2020C Bonds. CUSIP NUMBERS If the Series 2020C Bonds qualify for the assignment of CUSIP numbers such numbers will be printed on the Series 2020C Bonds; however, neither the failure to print such numbers on any Series 2020C Bond nor any error with respect thereto will constitute cause for failure or refusal by the Purchaser to accept delivery of the Series 2020C Bonds. Baker Tilly MA will apply for CUSIP numbers pursuant to Rule G-34 implemented by the Municipal Securities Rulemaking Board. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the Purchaser. SETTLEMENT On or about December 29, 2020, the Series 2020C Bonds will be delivered without cost to the Purchaser through DTC in New York, New York. Delivery will be subject to receipt by the Purchaser of an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement, payment for the Series 2020C Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of payment for the Series 2020C Bonds has been made impossible by action of the City, or its agents, the Purchaser shall be liable to the City for any loss suffered by the City by reason of the Purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Series 2020C Bonds, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the Series 2020C Bonds will be conditioned upon receiving evidence of this undertaking at or prior to delivery of the Series 2020C Bonds. OFFICIAL STATEMENT The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to the Series 2020C Bonds, and said Preliminary Official Statement has been deemed final by the City as of the date thereof within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For an electronic copy of the Preliminary Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Municipal Advisor to the City, Baker Tilly Municipal Advisors, LLC, by telephone (651) 223-3000, or by email bondservice@bakertilly.com. A-4 The Preliminary Official Statement will also be made available at https://connect.bakertilly.com/bond- sales-calendar. A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the maturity dates, principal amounts, and interest rates of the Series 2020C Bonds, together with any other information required by law. By awarding the Series 2020C Bonds to the Purchaser, the City agrees that, no more than seven business days after the date of such award, it shall provide to the Purchaser an electronic copy of the Final Official Statement. The City designates the Purchaser as its agent for purposes of distributing the Final Official Statement to each syndicate member, if applicable. The Purchaser agrees that if its proposal is accepted by the City, (i) it shall accept designation and (ii) it shall enter into a contractual relationship with its syndicate members for purposes of assuring the receipt of the Final Official Statement by each such syndicate member. Dated November 2, 2020 BY ORDER OF THE CITY COUNCIL /s/ Tina Allard City Clerk A-5 EL185-67-682704.v1