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2025-07-07 City Council Agenda Packet City of Albertville Council Agenda Monday, July 07, 2025 City Council Chambers 7 pm PUBLIC COMMENTS -The City of Albertville welcomes and encourages public input on issues listed on the agenda or of general community interest. Citizens wishing to address the Council regarding specific agenda items, other than public hearings, are invited to do so under Public Forum and are asked to fill out a “Request to Speak Card.” Presentations are limited to five (5) minutes. 1. Call to Order 2. Pledge of Allegiance – Roll Call Pages 3. Recognitions – Presentations - Introductions 4. Public Forum – (time reserved 5 minutes) 5. Amendments to the Agenda 6. Consent Agenda All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent Agenda following the approval of the remaining Consent items. Items pulled will be approved by a separate motion. A. Approve the June 2, 2025, regular City Council Meeting minutes as presented. 3-6 B. Approve the June 16, 2025, regular City Council Meeting minutes as presented. 7-9 C. Authorize the Monday, July 7, 2025, payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request. 10 D. Approve a Special Event Permit and Temporary Liquor License for the Albertville Lions for their Annual Cruisin’ & Rockin’ Car Show on August 23, 2025, from 2 pm to 9 pm 11-12 E. Not waive the City’s monetary limits on Tort Liability established by Minnesota Statues, Section 466.04. 13-14 F. Authorize Staff to accept the quote from Marco Technologies for replacement of NAS hardware for local back-up upgrade not to exceed $7,500. 15-21 7. Public Hearing – None 8. Wright County Sheriff’s Office – Updates, reports, etc. 9. Department Business A. City Council 1. Committee Updates (STMA Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) B. Building – None C. City Clerk – None City of Albertville City Council Agenda Monday, July 7, 2025 Page 2 of 2 D. Finance 1. Issuance and Sale of 2025A General Obligation Bonds 22-53 (Motion to adopt Resolution No. 2025-20 providing for the issuance and sale of $9,100,000 General Obligation Bonds, Series 2025A, providing for the Issuance and Levying a tax for the Payment thereof.) E. Fire – None F. Planning and Zoning – None G. Public Works/Engineering – None H. Legal – None I. Administration 1. City Administrator’s Update – Verbal 10. Announcements and/or Upcoming Meetings July 8 Planning Commission, 7 pm July 14 STMA Arena Board, 6 pm July 21 Council Budget Workshop, 6:15 pm July 21 City Council, 7 pm July 25 Joint Power Water Board, 6 pm Parks Committee, 7 pm August 4 Council Budget Workshop, 6:15 pm August 4 City Council, 7 pm 11. Adjournment ALBERTVILLE CITY COUNCIL DRAFT REGULAR MEETING MINUTES June 2, 2025 – 7 pm Council Chambers Albertville City Hall 1.Call to Order Mayor Hendrickson called the meeting to order at 7 pm. 2.Pledge of Allegiance – Roll Call Present: Mayor Hendrickson, Councilmembers Cocking, Hayden, Olson, and Zagorski. Staff Present: City Administrator Nafstad, Fire Chief Bullen, City Attorney Couri, Planning Consultant Faulkner, Finance Director Lannes and City Clerk Luedke. 3. Recognitions – Presentations – Introductions A.STMA Youth Baseball Association Mr. Chris Geryol, Levi Fry, and Ron Wetzel representing STMA Youth Baseball, attended the meeting and provided an update on the registration numbers, highlights from the past year, and current challenges and opportunities. They also shared information regarding recent field improvements as well as upcoming projects and opportunities for the improvements. City Administrator Nafstad reported the City was working on improvements at Field 1 and 2. 4.Public Forum – None 5.Amendments to the Agenda City Administrator Nafstad requested to move item F1. Mold-Tech Plat and Site Plan after 7B. Consider Vacate Drainage and Utility Easement for Mold-Tech so that the approvals follow the public hearing for Mold-Tech. City Attorney Couri requested to add an item under H1. under Legal entitled “Purchase Agreement for the Sale of Land to Mold-Tech”. MOTION made by Councilmember Olson, seconded by Councilmember Zagorski to approve the June 2, 2025, agenda as amended. Ayes: Cocking, Hayden, Hendrickson, Olson, and Zagorski. Nays: None. The motion carried. 6.Consent Agenda All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent Agenda following the approval of the remaining Consent items. Items pulled will be approved by a separate motion. A.Authorize the Monday, June 2, 2025, payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request. Agenda Page 3 City Council Meeting Draft Minutes Page 2 Regular Meeting of June 2, 2025 B. Approve additions and revisions to the Albertville Fire Department’s Standard Operating Policies and Procedures. C. Approve Special Event Permit including Temporary Outdoor Music Permit for BJ’s Sport Tavern located at 5788 Main Avenue NE for the Special Event on June 14, 2025, during Albertville Friendly City Days. D. Approve Special Event Permit including Community Festival Permit for Neighbors Eatery and Saloon located at 5772 Main Avenue NE for Thursday, June 12 through Sunday, June 15, 2025, during Albertville Friendly City Days. E. Approve Special Event Permit for the Family Youth Community Connections (FYCC) to hold their Dueling Pianos event on June 20, 2025, from 6 pm to 10 pm in Central Park. MOTION made by Councilmember Cocking, seconded by Councilmember Olson to approve June 2, 2025, consent agenda as submitted. Ayes: Cocking, Hayden, Hendrickson, Olson, and Zagorski. Nays: None. The motion carried. 7. Public Hearing A. Public Hearing – Proposed Tax Increment Financing (TIF) District Mayor Hendrickson opened the public hearing. City Administrator Nafstad presented the staff report which included the establishment of TIF District #22 in support of the Mold-Tech expansion project. He provided details on the financial considerations including the $235,000 estimated value of the City-owned parcel, $77,000 in interest from the Interfund loan, and administrative costs in which would be reimbursed through the TIF. Nafstad reported the economic development TIF would generate an estimated $322,728 over the nine-year term. He answered questions from Council. No one from the public requested to speak. MOTION made by Councilmember Cocking, seconded by Councilmember Hayden to close the public hearing. Ayes: Cocking, Hayden, Hendrickson, Olson and Zagorski. Nays: None. The motion carried. MOTION made by Councilmember Zagorski, seconded by Councilmember Hayden to adopt Resolution No. 2025-15 Establishing Tax Increment Financing District No. 22 within Development District No. 1 and adopting the Tax Increment Financing Plan Therefor; Authorizing the terms of an Interfund Loan; Authorizing the Execution of a Development Agreement; and Approving a Business Subsidy. Ayes: Cocking, Hayden, Hendrickson and Zagorski. Nays: None. The motion carried. B. Public Hearing – Consider Request to Vacate Drainage and Utility Easement per Mold-Tech Plat Application Mayor Hendrickson opened the public hearing. City Administrator Nafstad presented an overview of the parcels currently owned by the City and Glacier Properties. He explained that, in order to proceed with a replat of the properties, the existing easements must first be vacated. He noted the easements would generally be recreated in the proposed plat. Administrator Nafstad stated that vacating the easements was contingent upon the recording of the new Glacier Ridge Properties plat. Agenda Page 4 City Council Meeting Draft Minutes Page 3 Regular Meeting of June 2, 2025 No one from the public requested to speak. MOTION made by Councilmember Cocking, seconded by Councilmember Hayden to close the public hearing. Ayes: Cocking, Hayden, Hendrickson, Olson and Zagorski. Nays: None. The motion carried. MOTION made by Councilmember Cocking, seconded by Councilmember Zagorski to adopt Resolution No. 2025-18 vacating drainage and utility easement on Bartel’s Industrial Park Lot 1, Block 3 and Barthel’s Industrial Park 2nd Addition Lot 1, Block 4 within the City of Albertville. Ayes: Cocking, Hayden, Hendrickson, Olson and Zagorski. Nays: None. The motion carried. 8. Wright County Sheriff’s Office – Updates, reports, etc. The Wright County Sheriff Deputy who was presented provided an update on events happening within the City. 9. Department Business A. City Council 1. Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) There were no Council Committee updates. B. Building – None C. City Clerk 1. Set Preliminary 2025 Budget Workshops City Clerk Luedke said City staff would like to set the 2025 budget workshops to discuss the 2026 preliminary budget. She reported the purposed workshop dates were July 21, August 4 and August 18, 2025, if needed and asked if Council preferred to meet before or after the regular City Council meeting. She added in the past; the workshops were set for 6:15 pm. MOTION made by Councilmember Olson, seconded by Councilmember Zagorski to set workshops for July 21, August 4 and August 18, 2025, at 6:15 pm to discuss the 2026 preliminary budget. Ayes: Cocking, Hayden, Hendrickson, Olson, and Zagorski. Nays: None. The motion carried. D. Finance – None E. Fire – None F. Planning and Zoning 1. Mold-Tech Plat and Site Plan Planning Consultant Faulkner presented the staff report which included background information on the site plan, proposed building expansion and design elements. She said the Planning Commission held a public hearing, discussed the applications and recommended approval of the site plan and final plat. Agenda Page 5 City Council Meeting Draft Minutes Page 4 Regular Meeting of June 2, 2025 MOTION made by Councilmember Hayden, seconded by Councilmember Cocking to adopt Resolution No. 2025-16 approving The Preliminary and Final Plat Entitled Glacier Ridge Properties Addition and Resolution No. 2025-17 approving the Site Plan for Mold-Tech with Conditions. Ayes: Cocking, Hayden, Hendrickson, Olson, and Zagorski. Nays: None. The motion carried. G. Public Works/Engineering – None H. Legal 1. Purchase Agreement for the Sale of Land to Mold-Tech City Attorney Couri presented a standard purchase agreement, similar to previous agreements for the conveyance of City-owned land. He said the agreement allows for the property to be sold for $1 and was backed by two securities: 1) TIF generated after project completion, and 2) a claw back clause requiring the buyer to either return the property or pay the $235,000 market value if the construction is not underway within a year. He answered questions from Council. MOTION made by Councilmember Cocking, seconded by Councilmember Hayden to approve the purchase agreement for the sale of land to Mold-Tech. Ayes: Cocking, Hayden, Hendrickson, Olson, and Zagorski. Nays: None. The motion carried. I. Administration 1. City Administrator’s Update City Administrator Nafstad provided an update on upcoming City events and projects. He presented image samples for the Gateway Arch Sign for the Main Avenue project and requested feedback on potential lighting and wording options. There was Council discussion regarding the lighting and wording samples for the Gateway Arch. No formal action was taken. Announcements and/or Upcoming Meetings June 9 STMA Arena Board, 6 pm June 10 Planning Commission, 7 pm June 11-15 2025Albertville Friendly City Days June 16 City Council, 7 pm June19 City Offices closed in observance of Juneteenth June 23 Joint Power Water Board, 6 pm Parks Committee, 7 pm July 7 City Council, 7pm 10. Adjournment MOTION made by Councilmember Cocking, second by Councilmember Hayden to adjourn the meeting at 8:06 pm. Ayes: Cocking, Hayden, Hendrickson, Olson, and Zagorski. Nays: None. The motion carried. Respectfully submitted, _____________________________ Kristine A. Luedke, City Clerk Agenda Page 6 ALBERTVILLE CITY COUNCIL DRAFT REGULAR MEETING MINUTES June 16, 2025 – 7 pm Council Chambers Albertville City Hall 1.Call to Order Mayor Hendrickson called the meeting to order at 7 pm. 2.Pledge of Allegiance – Roll Call Present: Mayor Hendrickson, Councilmembers Cocking, Hayden, Olson, and Zagorski. Staff Present: City Administrator Nafstad, Fire Chief Bullen, City Attorney Couri, and City Clerk Luedke. 3. Recognitions – Presentations – Introductions Mayor Hendrickson requested the Council observe 30 seconds of silence to honor the victims of the shootings that occurred that weekend involving Minnesota elected officials. Senator Lucero addressed the Council regarding the recent shooting involving the elected officials. He expressed appreciation for the response by law enforcement at the local, state, and federal levels. Senator Lucer also provided an update on the State’s budget, outlining areas of funding decreases and sharing information about the State’s bonding bill. He concluded his remarks by answering questions from Council. 4.Public Forum – None 5.Amendments to the Agenda City Clerk Luedke requested to add item C1. Special Event Permit Application for 152 Club for Chad Smith Ride for Life Event. MOTION made by Councilmember Cocking, seconded by Councilmember Olson to approve the June 16, 2025, agenda as amended. Ayes: Cocking, Hayden, Hendrickson, Olson, and Zagorski. Nays: None. The motion carried. 6.Consent Agenda All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent Agenda following the approval of the remaining Consent items. Items pulled will be approved by a separate motion. A.Approve the May 19, 2025, regular City Council Meeting minutes as presented. B.Authorize the Monday, June 16, 2025, payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request. Agenda Page 7 City Council Meeting Draft Minutes Page 2 Regular Meeting of June 16, 2025 MOTION made by Councilmember Olson, seconded by Councilmember Zagorski to approve June 16, 2025, consent agenda as submitted. Ayes: Hayden, Hendrickson, Olson, and Zagorski. Nays: None. Absent: Cocking. The motion carried. 7. Public Hearing – None 8. Wright County Sheriff’s Office – Updates, reports, etc. Wright County Deputy Oltmann provided an update on the traffic conditions related to the ongoing road construction on County Road 19. He also reported on law enforcement activities during the Albertville Friendly City Days. The Deputy responded to questions from Council. 9. Department Business A. City Council 1. Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) Councilmember Olson provided an update for the FYCC meeting which included a discussion regarding the upcoming retirement of FYCC Director Greninger and the advertisement for the job posting. City Administrator Nafstad provided additional information about Director Greninger’s retirement and outlined the responsibilities associated with the position. Both Olson and Nafstad answered questions from other Councilmembers. Councilmember Olson reported that he had attended the Region 7W Transportation Policy Board meeting. He provided information on several long-range transportation projects and answered questions for the other Councilmembers. B. Building – None C. City Clerk 1. Special Event Permit – 152 Club – Chad Smith Ride for Life City Clerk Luedke presented the staff report and additional details on the special event permit application from the Chad Smith Ride for Life organization. She reported the event was scheduled to be held at The 152 Club and included an outdoor music permit application. Clerk Luedke answered questions from Council. MOTION made by Councilmember Zagorski, seconded by Councilmember Olson to approve Special Event Permit including a Temporary Outdoor Music Permit for 152 Club located at 5794 Main Avenue for the Chad Smith Ride for Life event on June 21, 2025. Ayes: Cocking, Hayden, Hendrickson, Olson, and Zagorski. Nays: None. The motion carried. D. Finance – None E. Fire – None F. Planning and Zoning 1. Mold-Tech Conditional Use Permit City Administrator Nafstad presented the staff report including background information on the request for Conditional Use Permit related to proof of parking. He explained during the building Agenda Page 8 City Council Meeting Draft Minutes Page 3 Regular Meeting of June 16, 2025 expansion project, Mold-Tech would be adding twenty new parking stalls bringing the total number of on-site spaces to eighty-nine. Nafstad noted that the applicant has demonstrated that this number of parking spaces would be adequate parking for their operational needs. MOTION made by Councilmember Cocking, seconded by Councilmember Hayden to adopt Resolution No. 2025-19 approving the Conditional Use Permit for Proof of Parking for Mold- Tech. Ayes: Cocking, Hayden, Hendrickson, Olson, and Zagorski. Nays: None. The motion carried. G. Legal – None I. Administration City Administrator Nafstad provided an update on the Central Park and Main Ave projects. He also reviewed additional options for the Gateway Arch Signs that were presented at the June 2 City Council meeting. Announcements and/or Upcoming Meetings June 19 City Offices closed in observance of Juneteenth June 23 Joint Power Water Board, 6 pm Parks Committee, 7 pm July 3 City Offices closed in observance of the 4th of July July 7 City Council, 7pm July 8 Planning Commission, 7 pm July 14 STMA Arena Board, 6 pm July 21 Council Budget Workshop, 6:15 pm July 21 City Council, 7 pm 1. Adjournment MOTION made by Councilmember Cocking, second by Councilmember Hayden to adjourn the meeting at 7:48 pm. Ayes: Hayden, Hendrickson, Olson, and Zagorski. Nays: None. The motion carried. Respectfully submitted, _____________________________ Kristine A. Luedke, City Clerk Agenda Page 9 Mayor and Council Request for Action July 7, 2025 SUBJECT: CONSENT – FINANCE – PAYMENT OF BILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize the Monday, July 7, 2025, payment of the claims as presented except the bills specifically pulled, which are passed by separate motion. The claims listing has been provided to Council as a separate document. The claims listing is available for public viewing at City Hall upon request. BACKGROUND: The City processes claims on a semi-monthly basis. The bills are approved through their respective departments and administration and passed onto the City Council for approval. KEY ISSUES: •Account codes starting with 810 are STMA Arena Expenses/Vendors (bolded) and key issues will be presented in the claims listing document. POLICY/PRACTICES CONSIDERATIONS: It is the City’s policy to review and approve payables on a semi-monthly basis. FINANCIAL CONSIDERATIONS: City staff have reviewed and recommends approval of payments presented. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve all bills pursuant to Minnesota State Law, which requires all bills to be paid in a timely manner, generally within 30 days unless one party determines to dispute the billing. Responsible Person: Tina Lannes, Finance Director Submitted through: Adam Nafstad, City Administrator-PWD Attachment: •List of Claims (under separate cover) Agenda Page 10 Mayor and Council Request for Action ______________________________________________________________________________ July 7, 2025 SUBJECT: CONSENT – CITY CLERK – SPECIAL EVENT PERMIT AND TEMPORARY LIQUOR LICENSE FOR THE ALBERTVILLE LIONS RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: MOTION TO: Approve a Special Event Permit and Temporary Liquor License for the Albertville Lions for their Annual Cruisin’ & Rock’n Car Show on August 23, 2025, from 2 pm to 9 pm. BACKGROUND: The Albertville Lions have submitted a special event permit and temporary liquor license application for their annual classic car show scheduled for Saturday, August 23, 2025. The event will be held in the Albertville Central Park area including the Farmer’s Market Pavilion and the Depot. The Lions are not requesting any road closures with all of the show vehicles utilizing the paved parking lot located by the baseball fields. The car show will include a variety of food options and live music. The Albertville Lions have also submitted a temporary liquor license for the event. KEY ISSUES: •The annual car show event will take place in Central Park, the Farmer’s Market Pavilion and the Depot. The Lions are not requesting any road closures during the event. •The event will be held from 2 pm to 9 pm with event tear down to conclude by 9:30 pm. •The Lions have also submitted a one-day temporary liquor license application for the event and has provided the required certificate of liability insurance. •The estimate attendance at the event will be between 250 and 400 people. •Outdoor special events shall only occur between April 1 to November 1 of each year. POLICY/PRACTICES CONSIDERATIONS: Special event permits, and temporary liquor licenses are subject to the approval of the Albertville City Council. LEGAL CONSIDERATIONS: The applicant shall comply with the regulations for a special event permit and temporary liquor license. Responsible Person: Kris Luedke, City Clerk Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: •Site Map •The special event permit and temporary liquor license application are on file in the City Clerk’s Office Agenda Page 11 Agenda Page 12 Mayor and Council Request for Action July 7, 2025 SUBJECT: CONSENT – FINANCE – TORT LIABILITY INSURANCE RENEWAL RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Not waive the City’s monetary limits on tort liability established by Minnesota Statues, Section 466.04. BACKGROUND: Waiving the monetary limits increases exposure and raises the premium on an average of 3%. The League of Minnesota Cities Insurance Trust (LMCIT) requires “Cities obtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide whether or not to waive the statutory tort limits to the extent of the coverage purchased. This decision must be made by the City Council. Cities purchasing coverage must complete and return this form to LMCIT before the effective date of the coverage.” The City Council must decide whether to waive or not waive the statutory limits prior to the October 1, 2025, expiration/renewal date per LMCIT requirements for coverage to continue beyond that date. Upon submission of this "signed and dated" Waiver Form, the LMCIT will issue an Extension of Coverage Binder effective with an October 1, 2025, effective date. It usually takes more than thirty (30) days for the LMCIT to process a renewal application. The Extension of Coverage Binder assures the City of coverage beyond the October 1, 2025, renewal date. POLICY/PRACTICES CONSIDERATIONS: It is the City’s policy to review and approve tort liability options annually. FINANCIAL CONSIDERATIONS: City staff have reviewed and recommend not waiving the tort liability. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to contract for insurance coverage including waiving the statutory tort liability limit. Responsible Person: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachment: •Liability Coverage – Waiver Form Agenda Page 13 League of Minnesota Cities 3/2/2023 Liability Coverage Waiver Form Page 1 LIABILITY COVERAGE WAIVER FORM The decision to waive or not waive the statutory tort limits must be made annually by the member’s governing body, in consultation with its attorney if necessary. Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort liability limits to the extent of the coverage purchased. The decision has the following effects: •If the member does not waive the statutory tort limits, an individual claimant could recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless of whether the member purchases the optional LMCIT excess liability coverage. •If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap liability limits are only waived to the extent of the member’s liability coverage limits, and the LMCIT per occurrence limit is $2,000,000). The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of claimants. •If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. LMCIT Member Name: Check one: The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn. Stat. § 466.04. The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. § 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of member’s governing body meeting: Signature:__________________________ Position: Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust (LMCIT) must complete and return this form to LMCIT before their effective date of coverage. Email completed form to your city’s underwriter, to pstech@lmc.org, or fax to 651.281.1298. Agenda Page 14 Mayor and Council Request for Action July 7, 2025 SUBJECT: CONSENT – FINANCE – CITY NETWORK ATTACHED STORAGE REPLACEMENT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize staff to accept the quote from Marco Technologies for replacement of NAS hardware for local back-up upgrade not to exceed $7,500. BACKGROUND: The life of NAS drives ranges from 3-5 years on average. The current Synology NAS drives were purchased in 2017. In 2019, the City added hard drives to increase storage to the maximum allowed for the backup devices. Currently one of the NAS drives is failing and the other is running out of storage space. These NAS drives also are used by Azure to download our off-site backup. The replacement option is to replace the two Synology NAS drives with one QNAP SAN/NAS storage system since the City would still have two back-up devices on site (QNAP SAN/NAS will be at City Hall, plus the Disaster Recovery server at the Public Works building) and Azure off site back-up. POLICY/PRACTICE CONSIDERATIONS: The Mayor and City Council have the authority to approve or deny requests for computer hardware within the City. FINANCIAL CONSIDERATIONS: Funding would come from the Capital Reserves Fund. Responsible Person: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: •Marco quote for QNAP replacement Agenda Page 15 Jeff Kirchoff Prepared By: Technology Advisor 320-296-1522 jeff.kirchoff@marconet.com Quote Number: 204509 PROPOSAL FOR CITY OF ALBERTVILLE TINA LANNES June 25, 2025 Agenda Page 16 SCHEDULE A - SCHEDULE OF PRODUCTS TO PRODUCT AGREEMENT(S) IT - Ticket# 7853060 Synology Drive Failure -- CITY OF ALBERTVILLE Prepared by:Prepared for:Ship To:Quote Information: Marco - Hutchinson CITY OF ALBERTVILLE CITY OF ALBERTVILLE Quote #: 204509 Jeff Kirchoff 320-296-1522 jeff.kirchoff@marconet.com PO BOX 9 ALBERTVILLE, MN 55301 Tina Lannes 763.497.3384 tinal@albertvillemn.gov 5959 MAIN AVE NE ALBERTVILLE, MN 55301-9776 Tina Lannes 763.497.3384 tinal@albertvillemn.gov Version: 4 Date Issued: 06/25/2025 Expiration Date: 06/30/2025 Special Pricing Program: *PLEASE SELECT* Product - QNAP Replacement Description One-Time Qty Ext. One-Time Latest drives in stock Seagate IronWolf 8 TB Hard Drive - 3.5" Internal - SATA (SATA/600) - Conventional Magnetic Recording (CMR) Method - 7200rpm - 3 Year Warranty $299.00 4 $1,196.00 Expansion cards and NAS recently available QNAP Dual-port, 10 GbE Network Expansion Card - PCI Express 3.0 x8 - 2 Port(s) - Optical Fiber - Low-profile Bracket Height - 40GBase-R2, 50GBase-R2 - SFP+ - Plug- in Card $279.81 1 $279.81 QNAP TS-1273AU-RP-8G SAN/NAS Storage System - AMD Ryzen V1500B Quad-core (4 Core) 2.20 GHz - 12 x HDD Supported - 0 x HDD Installed - 12 x SSD Supported - 0 x SSD Installed - 8 GB RAM DDR4 SDRAM - Serial ATA/600 Controller - RAID Supported - 0, 1, 5, 6, 1 $2,463.49 1 $2,463.49 QNAP Mounting Rail Kit for Network Storage System $113.33 1 $113.33 Subtotal:$4,052.63 Professional Services Labor - QNAP/Veeam Description One-Time Qty Ext. One-Time Marco Professional Services - Fixed Fee - Milestone 1 - Progress Billed Monthly $594.00 1 $594.00 Marco Professional Services - T&M - Estimate - Progress Billed Monthly $2,070.00 1 $2,070.00 Subtotal:$2,664.00 2 Agenda Page 17 SCHEDULE A - SCHEDULE OF PRODUCTS TO PRODUCT AGREEMENT(S) QNAP/Veeam ABOUT THIS PROFESSIONAL SERVICES ENGAGEMENT In addition to the Professional Service Engagement Agreement located at www.marconet.com/legal/business-it-product- agreements/professional-service-engagement-agreement, the following applies to this Professional Service Engagement: ENGAGEMENT OVERVIEW - DESIRED GOALS AND OUTCOMES - CURRENT SITUATION CITY OF ALBERTVILLE would like to replace their current (2) Synology NAS devices with (1) QNAP TS-1273AU-RP-8G SAN/NAS Storage System (12 x HDD/SSD Supported). Marco to provision and physically install new QNAP device and configure for Veeam Backups. Current setup has Primary Host replicating to the DR Host. Replacing Primary Host Synology Veeam Repository. Secondary Synology is no longer needed. Currently scaling out to Azure Storage. ENGINEERING - DESCRIPTION OF SERVICES AND DELIVERABLES The following solution will be considered “in-scope” for the purposes of this engagement: Existing configuration with Synology Backup Appliances: Vverify and update for QNAP Configuration Retention Policy: 30 Days Immutability - start at 14 days and review to enable full 30 days Veeam general and best practices, Marco Engineer will: o Use Unique, local (non-domain) accounts with 14-20 char passwords for each component/credential and will not share passwords/accounts across components (e.g. NAS admin, local admin server admin, repository) o NOTE: If any existing issues or unsupported platforms are found during implementation, a change order will be required for new labor estimate and additional scope of work. Additional purchases may also be required in order to bring environment under supported configuration. QNAP NAS - On Prem Repository: o Configure networking and update firmware o Disable SMB o Use RAID level 10 for resiliency and performance and configure storage pool o Additional security: Update QTS OS to latest and security updates o Storage Volume - iSCSI Create disk pool iSCSI LUN with Thin provisioning Create iSCSI ACL for additional security Backup and Replication Configuration: iSCSI initiator - NAS target o iSCSI ACL for additional security Windows Server Disk Manager o Initialize GPT, Assign Drive Letter, ReFS with allocation unit size of 64k and format Repositories - Add New Scale Out backup repository o Do not use per VM backup files. Yes - all jobs will be automatically updated to point to the scale-out (If existing simple repository) o Performance Tier - Local NAS 3 Agenda Page 18 SCHEDULE A - SCHEDULE OF PRODUCTS TO PRODUCT AGREEMENT(S) ReFS/iSCSI o Capacity Tier - Azure Cloud o Add Scale-out backup repository Performance Tier - Add Local Repository Capacity Tier (External Repository - Azure blob) Minimum 30 day retention on Cold Tier Inventory o Add vCenter if available or local VM Hosts to inventory o Add physical infrastructure and protection groups for non virtual servers, requires use of Veeam Agent Configure Backup Jobs o VMWare should be organized and clearly visible for Backed Up and non-critical VMs. Create VMWare and move VMs under either Backed Up, or non-critical VM folders Veeam B&R and Proxy servers should be moved into the non-critical s as they do not require backup of themselves. Ensure encryption keys and initial Veeam configuration backup stored in SPTechStor https://helpcenter.veeam.com/docs/backup/vsphere/vbr_config.html?ver=110 o Encrypt backup sets for at rest encryption and store encryption key in a safe location o Configure jobs with Weekly Synthetic full and incremental daily updates for best blend of performance, data retention, and Azure costs. Avoid Active Full backups which will not leverage block clone space savings Include the "Backed Up" VMWare folder for VMWare hypervisors, and Exclude the Non-Critical folder o Set Frequency and Retention Forward Incremental with weekly Synthetic Fulls Retention Policy: 30 Days Immutability - start at 14 days and review to enable full 30 days Add production SQL Server backups to backup job and confirm frequency of backups required (Where applicable) o SOBR capacity tier (Azure Blob): Copy backups as they are created o If bandwidth saturation is a concern with CITY OF ALBERTVILLE use Veeam bandwidth throttling to limit for Azure data copy Notifications: If customer email address is currently setup under global notifications, verify whether they would prefer to continue to receive daily digests from Veeam Configuration Backup o Export a configuration backup with encryption enabled and add a password Config backup will be located under the Repository, under a folder called VeeamConfigBackup Do this for each repository o Upload to SPTechStor along with password in secret server COORDINATION - DESCRIPTION OF SERVICES AND DELIVERABLES The following tasks and deliverables for our Coordination Team will be considered “in-scope” for the purposes of this engagement: Ordering/tracking of product (if applicable) Technical resource assignment Technical resource scheduling Scheduling of internal kick off & customer kick off meetings Project plan / project task list build Project communication / project status updates 4 Agenda Page 19 SCHEDULE A - SCHEDULE OF PRODUCTS TO PRODUCT AGREEMENT(S) Facilitation of change orders (if applicable) Project closure CLIENT RESPONSIBILITIES Depending upon ISP bandwidth and bandwidth saturation due to client use, initial seeding may be required along with change order and additional labor estimate. Additional bandwidth may be required for optimum transfer to cloud and/or 2nd site Marco requires administrative access to firewall for connectivity to Marco Veeam management consoles as well as administrative access into Hypervisors and Servers Additional sites (offsite copy or server/storage) require private tunnel (VPN) for connectivity. Additional networking labor to configure connectivity will require a change order All Backup and Replication VMs, Proxy VMs, and VM Replicas require valid Windows Server licensing. It is the responsibility of CITY OF ALBERTVILLE to ensure Windows server licensing remains in compliance per Microsoft EULA Participate in design, planning meetings as required. Assist by communicating directly with end users to communicate timelines, procedures and expectations. SERVICES ASSUMPTIONS, EXCLUSIONS, AND NOTES Please list any Assumptions, Exclusions, and Important Notes for the purposes of this engagement: Depending upon ISP bandwidth and bandwidth saturation due to client use, initial seeding may be required along with change order and additional labor estimate. Additional bandwidth may be required for optimum transfer to cloud. 5 Agenda Page 20 SCHEDULE A - SCHEDULE OF PRODUCTS TO PRODUCT AGREEMENT(S) Quote Summary - One-Time Expenses Description Amount Product - QNAP Replacement $4,052.63 Professional Services Labor - QNAP/Veeam $2,664.00 Total:$6,716.63 Payment Options Description Payments Interval Amount One-Time Payment One-Time Payment 1 One-Time $6,716.63 Summary of Selected Payment Options Description Amount One-Time Payment: One-Time Payment 6 Agenda Page 21 Mayor and Council Request for Action July 7, 2025 SUBJECT: FINANCE – ISSUANCE AND SALE OF 2025A GENERAL OBLIGATION BONDS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Adopt Resolution No. 2025-20 providing for the issuance and sale of $9,100,000 General Obligation Bonds, Series 2025A, providing for the Issuance and Levying a tax for the Payment thereof. BACKGROUND: Ms. Tammy Omdal, Northland Securities, the City’s Financial Consulting firm was present at the March 3rd City Council meeting. She reported the General Obligation Bonds would be used to finance the Main Avenue and Central Park improvements and the sales of the bonds would be approximately $9,100,000. Ms. Omdal said the public bid would be held on the morning of July 7th and she would attend the July 7th Council meeting to present the bids. KEY ISSUES: •General Obligation Bonds would be used to finance the improvements to Main Avenue and Central Park. •The public bid for the sale of the bonds will be held on the morning of July 7, 2025. •Ms. Omdal will be in attendance to present the bid information. POLICY CONSIDERATIONS: It is the City’s policy to review and approve the sale and issuance of bonds. FINANCIAL CONSIDERATIONS: The bonds will be funded by capital reserves, WAC fees, water rates, park dedication fees along with debt levy over the 20-year life of the issuance. LEGAL CONSIDERATIONS: The Mayor and Council have the statutory authority to issue bonds pursuant to the bond indentures. Responsible Person: Finance, Tina Lannes, Finance Director Submitted through: Adam Nafstad, City Administrator Attachments: •Resolution No. 2025-20 Agenda Page 22 EXTRACT OF MINUTES OF A MEETING CITY COUNCIL OF THE CITY OF ALBERTVILLE, MINNESOTA HELD: JULY 7, 2025 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Albertville, Wright County, Minnesota, was duly held at the City Hall on July 7, 2025, at 7:00 P.M., for the purpose, in part of authorizing the issuance and awarding the sale of $9,080,000 General Obligation Bonds, Series 2025A. The following members were present: and the following were absent: Member _______________ introduced the following resolution and moved its adoption: RESOLUTION NO. 2025-20 RESOLUTION AUTHORIZING THE ISSUANCE AND AWARDING THE SALE OF $9,080,000 GENERAL OBLIGATION BONDS, SERIES 2025A, PLEDGING FOR THE SECURITY THEREOF NET REVENUES AND TAX ABATEMENTS AND LEVYING A TAX FOR THE PAYMENT THEREOF A. WHEREAS, the City Council of the City of Albertville (the "City") has heretofore determined and declared that it is necessary and expedient to issue $9,080,000 General Obligation Bonds, Series 2025A (the "Bonds" or individually a "Bond"), pursuant to Minnesota Statutes, Chapter 475; and 1. Sections 469.1812 through 469.1815, particularly Section 469.1814, to finance the cost of burying power lines, street lighting improvements, and park improvements in the City (the "Tax Abatement Project"); 2. Section 444.075 to finance improvements to the municipal water system (the "Water System Improvements"); 3. Section 444.075 to finance improvements to the municipal sanitary sewer system (the "Sanitary Sewer System Improvements"); and 4. Section 444.075 to finance improvements to the municipal storm water system (the "Storm Water System Improvements"); 5. Section 475.58, Subdivision 3b to finance street reconstruction projects under the City's Street Reconstruction Plan adopted on March 3, 2025 (the "Street Reconstruction Projects"). B. WHEREAS, on March 3 ,2025, following duly published notice thereof, the Council held a public hearing on the proposed abatement to finance the Tax Abatement Project and all persons who wished to speak or provide written information relative to the public hearing were afforded an opportunity to do so; and Agenda Page 23 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 2 C. WHEREAS, the City has heretofore established a tax abatement program (the "Tax Abatement Program") pursuant to the provisions of Minnesota Statutes, Sections 469.1812 through 469.1815, with respect to providing for the abatement of property taxes for a period of fifteen (15) years on various properties in the City, as described in the resolution adopted by the City Council on March 3, 2025, approving the Tax Abatement Program, as herein amended (the "Tax Abatement Resolution"); and D. WHEREAS, the amount of the property taxes abated are estimated to be at least equal to the principal on the Tax Abatement Portion of the Bonds, as hereinafter defined, and pursuant to the provisions of the Tax Abatement Resolution, Bond proceeds are to be expended to provide money to pay for the Tax Abatement Project; and E. WHEREAS, the City owns and operates a municipal water system (the "Water System"), a municipal sanitary sewer system (the "Sanitary Sewer System"), and a municipal storm water system (the "Storm Water System," and together with the Water System and the Sanitary Sewer System, the "System"), as separate revenue producing public utilities; and F. WHEREAS, the net revenues of the Sanitary Sewer System are pledged to the payment of the City's outstanding (i) General Obligation Sewer Revenue Crossover Refunding Bonds, Series 2013A, in the original principal amount of $2,515,000, dated January 1, 2013; and (ii) General Obligation Sanitary Sewer Revenue Bonds, Series 2019A, in the original principal amount of $5,720,000, dated September 24, 2019 (together, the "Outstanding Sanitary Sewer Bonds"); and G. WHEREAS, the net revenues of the Water System and the Storm Water System are pledged to the payment of the City's outstanding General Obligation Utility Revenue Bonds, Series 2011A, in the original principal amount of $520,000, dated April 1, 2011 (the "Outstanding Water and Storm Water Bonds"); and H. WHEREAS, on March 3, 2025, following duly published notice thereof, the City Council held a public hearing on the issuance of not to exceed approximately $6,520,000 principal amount of bonds to finance the Street Reconstruction Projects and all persons who wished to speak or provide written information relative to the public hearing were afforded an opportunity to do so; and I. WHEREAS, no petition signed by voters equal to 5 percent of the votes cast in the City in the last municipal general election requesting a vote on the issuance of the street reconstruction bonds was filed with the City Administrator within 30 days after the public hearing on March 3, 2025; and J. WHEREAS, the Bonds, together with any outstanding bonds of the City that are subject to the City's net debt limit, do not exceed the City's net debt limit; and K. WHEREAS, the City has retained Northland Securities, Inc., in Minneapolis, Minnesota ("Northland"), as its independent municipal advisor for the sale of the Bonds and was therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been solicited by Northland; and Agenda Page 24 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 3 L. WHEREAS, the proposals set forth on Exhibit A attached hereto were received by the Finance Director, or designee, at the offices of Northland at 10:30 A.M. on the date hereof, pursuant to the Notice of Sale established for the Bonds; and M. WHEREAS, it is in the best interests of the City that the Bonds be issued in book- entry form as hereinafter provided; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Albertville, Minnesota, as follows: 1. Acceptance of Proposal. The proposal of __________________ (the "Purchaser"), to purchase the Bonds, in accordance with the Notice of Sale, at the rates of interest hereinafter set forth, and to pay therefor the sum of $__________, plus interest accrued to settlement, is hereby found, determined and declared to be the most favorable proposal received, is hereby accepted and the Bonds are hereby awarded to the Purchaser. 2. Bond Terms. (a) Original Issue Date; Denominations; Maturities; Term Bond Option. The Bonds shall be dated July 29, 2025, as the date of original issue and shall be issued forthwith on or after such date in fully registered form, shall be numbered from R-1 upward in the denomination of $5,000 each or in any integral multiple thereof of a single maturity (the "Authorized Denominations") and shall mature on February 1 in the years and amounts as follows: Year Amount Year Amount 2027 2040 2028 2041 2029 2042 2030 2043 2031 2044 2032 2045 2033 2046 2034 2047 2035 2048 2036 2049 2037 2050 2038 2051 2039 As may be requested by the Purchaser, one or more term Bonds may be issued having mandatory sinking fund redemption and final maturity amounts conforming to the foregoing principal repayment schedule, and corresponding additions may be made to the provisions of the applicable Bond(s). (b) Allocation. The aggregate principal amount of $___________ maturing in each of the years and amounts hereinafter set forth is issued to finance the Tax Abatement Project (the Agenda Page 25 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 4 "Tax Abatement Portion" of the Bonds). The aggregate principal amount of $___________ maturing in each of the years and amounts hereinafter set forth is issued to finance the Water System Improvements (the "Water Portion"). The aggregate principal amount of $___________ maturing in each of the years and amounts hereinafter set forth is issued to finance the Sanitary Sewer System Improvements (the "Sanitary Sewer Portion"). The aggregate principal amount of $___________ maturing in each of the years and amounts hereinafter set forth is issued to finance the Storm Water System Improvements (the "Storm Water Portion"). The aggregate principal amount of $___________ maturing in each of the years and amounts hereinafter set forth is issued to finance the Street Reconstruction Projects (the "Street Reconstruction Portion of the Bonds"). Year Tax Abatement Portion Water Portion Sanitary Sewer Portion Storm Water Portion Street Reconstruction Portion Total 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 If Bonds are prepaid, the prepayments shall be allocated to the portions of debt service (and hence allocated to the payment of Bonds treated as relating to a particular portion of debt service) as provided in this paragraph. If the source of prepayment moneys is the general fund of the City, or other generally available source, including the levy of taxes, the prepayment may be allocated to any portions of debt service in such amounts as the City shall determine. If the Agenda Page 26 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 5 source of a prepayment is taxes abated for the Tax Abatement Project, the prepayment shall be allocated to the Tax Abatement Portion of debt service. If the source of a prepayment is excess net revenues of the System, the prepayments can be allocated to the Water Portion, the Sanitary Sewer Portion and the Storm Water Portion as designated by the City. (c) Book Entry Only System. The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York or any of its successors or its successors to its functions hereunder (the "Depository") will act as securities depository for the Bonds, and to this end: (i) The Bonds shall be initially issued and, so long as they remain in book entry form only (the "Book Entry Only Period"), shall at all times be in the form of a separate single fully registered Bond for each maturity of the Bonds; and for purposes of complying with this requirement under paragraphs 5 and 10 Authorized Denominations for any Bond shall be deemed to be limited during the Book Entry Only Period to the outstanding principal amount of that Bond. (ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond register maintained by the Bond Registrar (as hereinafter defined) in the name of CEDE & CO., as the nominee (it or any nominee of the existing or a successor Depository, the "Nominee"). (iii) With respect to the Bonds neither the City nor the Bond Registrar shall have any responsibility or obligation to any broker, dealer, bank, or any other financial institution for which the Depository holds Bonds as securities depository (the "Participant") or the person for which a Participant holds an interest in the Bonds shown on the books and records of the Participant (the "Beneficial Owner"). Without limiting the immediately preceding sentence, neither the City, nor the Bond Registrar, shall have any such responsibility or obligation with respect to (A) the accuracy of the records of the Depository, the Nominee or any Participant with respect to any ownership interest in the Bonds, or (B) the delivery to any Participant, any Owner or any other person, other than the Depository, of any notice with respect to the Bonds, including any notice of redemption, or (C) the payment to any Participant, any Beneficial Owner or any other person, other than the Depository, of any amount with respect to the principal of or premium, if any, or interest on the Bonds, or (D) the consent given or other action taken by the Depository as the Registered Holder of any Bonds (the "Holder"). For purposes of securing the vote or consent of any Holder under this Resolution, the City may, however, rely upon an omnibus proxy under which the Depository assigns its consenting or voting rights to certain Participants to whose accounts the Bonds are credited on the record date identified in a listing attached to the omnibus proxy. (iv) The City and the Bond Registrar may treat as and deem the Depository to be the absolute owner of the Bonds for the purpose of payment of the principal of and premium, if any, and interest on the Bonds, for the purpose of giving notices of redemption and other matters with respect to the Bonds, for the purpose of obtaining any consent or other action to be taken by Holders for the purpose of registering transfers with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as Agenda Page 27 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 6 paying agent hereunder, shall pay all principal of and premium, if any, and interest on the Bonds only to the Holder or the Holders of the Bonds as shown on the bond register, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. (v) Upon delivery by the Depository to the Bond Registrar of written notice to the effect that the Depository has determined to substitute a new Nominee in place of the existing Nominee, and subject to the transfer provisions in paragraph 10 hereof, references to the Nominee hereunder shall refer to such new Nominee. (vi) So long as any Bond is registered in the name of a Nominee, all payments with respect to the principal of and premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, by the Bond Registrar or City, as the case may be, to the Depository as provided in the Letter of Representations to the Depository required by the Depository as a condition to its acting as book-entry Depository for the Bonds (said Letter of Representations, together with any replacement thereof or amendment or substitute thereto, including any standard procedures or policies referenced therein or applicable thereto respecting the procedures and other matters relating to the Depository's role as book-entry Depository for the Bonds, collectively hereinafter referred to as the "Letter of Representations"). (vii) All transfers of beneficial ownership interests in each Bond issued in book- entry form shall be limited in principal amount to Authorized Denominations and shall be effected by procedures by the Depository with the Participants for recording and transferring the ownership of beneficial interests in such Bonds. (viii) In connection with any notice or other communication to be provided to the Holders pursuant to this Resolution by the City or Bond Registrar with respect to any consent or other action to be taken by Holders, the Depository shall consider the date of receipt of notice requesting such consent or other action as the record date for such consent or other action; provided, that the City or the Bond Registrar may establish a special record date for such consent or other action. The City or the Bond Registrar shall, to the extent possible, give the Depository notice of such special record date not less than fifteen calendar days in advance of such special record date to the extent possible. (ix) Any successor Bond Registrar in its written acceptance of its duties under this Resolution and any paying agency/bond registrar agreement, shall agree to take any actions necessary from time to time to comply with the requirements of the Letter of Representations. (d) Termination of Book-Entry Only System. Discontinuance of a particular Depository's services and termination of the book-entry only system may be effected as follows: (i) The Depository may determine to discontinue providing its services with respect to the Bonds at any time by giving written notice to the City and discharging its responsibilities with respect thereto under applicable law. The City may terminate the Agenda Page 28 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 7 services of the Depository with respect to the Bond if it determines that the Depository is no longer able to carry out its functions as securities depository or the continuation of the system of book-entry transfers through the Depository is not in the best interests of the City or the Beneficial Owners. (ii) Upon termination of the services of the Depository as provided in the preceding paragraph, and if no substitute securities depository is willing to undertake the functions of the Depository hereunder can be found which, in the opinion of the City, is willing and able to assume such functions upon reasonable or customary terms, or if the City determines that it is in the best interests of the City or the Beneficial Owners of the Bond that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds shall no longer be registered as being registered in the bond register in the name of the Nominee, but may be registered in whatever name or names the Holder of the Bonds shall designate at that time, in accordance with paragraph 10. To the extent that the Beneficial Owners are designated as the transferee by the Holders, in accordance with paragraph 10, the Bonds will be delivered to the Beneficial Owners. (iii) Nothing in this subparagraph (d) shall limit or restrict the provisions of paragraph 10. (e) Letter of Representations. The provisions in the Letter of Representations are incorporated herein by reference and made a part of the resolution, and if and to the extent any such provisions are inconsistent with the other provisions of this resolution, the provisions in the Letter of Representations shall control. 3. Purposes. The Tax Abatement Portion of the Bonds shall provide funds to finance the Tax Abatement Project. The Water Portion of the Bonds shall provide funds to finance the Water System Improvements. The Sanitary Sewer Portion of the Bonds shall provide funds to finance the Sanitary Sewer System Improvements. The Storm Water Portion of the Bonds shall provide funds to finance the Storm Water System Improvements. The Street Reconstruction Portion of the Bonds shall provide funds to finance the Street Reconstruction Projects. The Tax Abatement Project, the Water System Improvements, the Sanitary Sewer System Improvements, the Storm Water System Improvements and the Street Reconstruction Projects are herein referred to together as the Project. Pursuant to the Tax Abatement Resolution, the City's share of real estate taxes generated on the property identified in the Tax Abatement Program (the "Tax Abatements") have been pledged to the payment of the Tax Abatement Portion of the Bonds. The principal amount of the Tax Abatement Portion of the Bonds does not exceed the estimated amount of Tax Abatements, which is $3,645,000. Proceeds of the Tax Abatement Portion of the Bonds shall be expended on costs or uses permitted by Minnesota Statutes, Sections 469.1812 through 469.1815, and shall not be expended on any costs or devoted to any other uses. The total cost of the Project, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. The City covenants that it shall do all things and perform all acts required of it to assure that work on the Project proceeds with due diligence to completion and that any and all permits and studies required under law for the Project are obtained. Agenda Page 29 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 8 4. Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2026, calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per annum set forth opposite the maturity years as follows: Maturity Year Interest Rate Maturity Year Interest Rate 2027 2040 2028 2041 2029 2042 2030 2043 2031 2044 2032 2045 2033 2046 2034 2047 2035 2048 2036 2049 2037 2050 2038 2051 2039 5. Redemption. All Bonds maturing on February 1, 2034 and thereafter, shall be subject to redemption and prepayment at the option of the City on February 1, 2033, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and the principal amounts within each maturity to be redeemed shall be determined by the City; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected registered holder of the Bonds at least thirty (30) days prior to the date fixed for redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall Agenda Page 30 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 9 authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by the Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 6. Bond Registrar. Northland Bond Services, a division of First National Bank of Omaha, in Minneapolis, Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor-paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12. 7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in substantially the form set forth on Exhibit B attached hereto. 8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of the City by the signatures of its Mayor and City Administrator and be sealed with the seal of the City; provided, as permitted by law, both signatures may be photocopied facsimiles and the corporate seal has been omitted. In the event of disability or resignation or other absence of either officer, the Bonds may be signed by the manual or facsimile signature of the officer who may act on behalf of the absent or disabled officer. In case either officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. 9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue of July 29, 2025. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Registration; Transfer; Exchange. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. Agenda Page 31 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 10 Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no Bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the Holder making the exchange is entitled to receive. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City. All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the Holder thereof or his, her or its attorney duly authorized in writing. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond and any legal or unusual costs regarding transfers and lost Bonds. Transfers shall also be subject to reasonable regulations of the City contained in any agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close its transfer books between record dates and payment dates. The Finance Director is hereby authorized to negotiate and execute the terms of said agreement. 11. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest Payment; Record Date. Interest on any Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever Agenda Page 32 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 11 money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the Special Record Date. 13. Treatment of Registered Owner. The City and Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subject to the payment provisions in paragraph 12) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 14. Delivery; Application of Proceeds. The Bonds when so prepared and executed shall be delivered by the Finance Director to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. Fund and Accounts. There is hereby established a special fund to be designated "General Obligation Bonds, Series 2025A Fund" (the "Fund") to be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. The Operation and Maintenance Account for the Water System, the Operation and Maintenance Account for the Sanitary Sewer System and the Operation and Maintenance for the Storm Water System (collectively, the "Operation and Maintenance Accounts") heretofore established by the City shall continue to be maintained in the manner heretofore and herein provided by the City. In such records there shall be established accounts of the Fund for the purposes and in the amounts as follows: (a) Construction Account. To the Construction Account there shall be credited the proceeds of the sale of the Bonds, less capitalized interest. From the Construction Account there shall be paid all costs of issuance of the Bonds and all costs and expenses of financing the Project, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65. Moneys in the Construction Account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes herein levied or covenanted to be levied; and provided further that if upon completion of the Project there shall remain any unexpended balance in the Construction Account, the balance shall be transferred to the Debt Service Account. (b) Debt Service Account. There shall be maintained separate subaccounts in the Debt Service Account to be designated the " Tax Abatement Project Debt Service Subaccount," "Water System Improvements Debt Service Subaccount," the "Sanitary Sewer System Improvements Debt Service Subaccount," the "Storm Water System Improvements Debt Service Subaccount" and the "Street Reconstruction Projects Debt Service Subaccount." There are hereby irrevocably appropriated and pledged to, and there shall be credited to the separate subaccounts of the Debt Service Account: Agenda Page 33 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 12 (i) Tax Abatement Project Debt Service Subaccount. To the Tax Abatement Project Debt Service Subaccount there shall be credited: (1) Tax Abatements; (2) all collections of taxes herein and hereafter levied (the "Taxes") for the payment of the Tax Abatement Portion of the Bonds; (3) capitalized interest in the amount of $___________ (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Tax Abatement Portion of the Bonds on or before February 1, 2026; (4) a pro rata share of all funds remaining in the Construction Account after completion of the Tax Abatement Project and payment of the costs thereof; (5) all investment earnings on funds held in the Tax Abatement Project Debt Service Subaccount; and (6) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Tax Abatement Debt Service Subaccount. The amount of any surplus remaining in the Tax Abatement Project Debt Service Subaccount when the Tax Abatement Portion of the Bonds and interest thereon are paid shall be used consistent with Minnesota Statutes, Section 475.61, Subdivision 4. The Tax Abatement Debt Service Subaccount shall be used solely to pay the principal and interest on the Tax Abatement Portion of the Bonds. (ii) Water System Improvements Debt Service Subaccount. To the Water System Improvements Debt Service Subaccount there shall be credited: (A) the net revenues of the Water System not otherwise pledged and applied to the payment of other obligations of the City, in an amount, together with other funds which may herein or hereafter from time to time be irrevocably appropriated to the Water System Improvements Debt Service Subaccount, sufficient to meet the requirements of Minnesota Statutes, Section 475.61 for the payment of the principal and interest of the Water Portion of the Bonds; (B) all collections of taxes which may hereafter be levied in the event that the net revenues of the Water System and other funds herein pledged to the payment of the principal and interest on the Water Portion of the Bonds are insufficient therefore; (C) a pro rata share of all funds remaining in the Construction Account after completion of the Project and payment of the costs thereof; (D) all investment earnings on funds held in the Water System Improvements Debt Service Subaccount; and (E) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Water System Improvements Debt Service Subaccount. The amount of any surplus remaining in the Water System Improvements Debt Service Subaccount when the Water Portion of the Bonds and interest thereon are paid shall be used consistent with Minnesota Statutes, Section 475.61, Subdivision 4. The Water System Improvements Debt Service Subaccount shall be used solely to pay the principal and interest on the Water Portion of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from said subaccount as provided by law. (iii) Sanitary Sewer System Improvements Debt Service Subaccount. To the Sanitary Sewer System Improvements Debt Service Subaccount there shall be credited: (A) the net revenues of the Sanitary Sewer System not otherwise pledged and applied to the payment of other obligations of the City, in an amount, together with other funds which may herein or hereafter from time to time be irrevocably appropriated to the Sanitary Sewer System Improvements Debt Service Subaccount, sufficient to meet the Agenda Page 34 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 13 requirements of Minnesota Statutes, Section 475.61 for the payment of the principal and interest of the Sanitary Sewer Portion of the Bonds; (B) all collections of taxes which may hereafter be levied in the event that the net revenues of the Sanitary Sewer System and other funds herein pledged to the payment of the principal and interest on the Sanitary Sewer Portion of the Bonds are insufficient therefore; (C) a pro rata share of all funds remaining in the Construction Account after completion of the Project and payment of the costs thereof; (D) all investment earnings on funds held in the Sanitary Sewer System Improvements Debt Service Subaccount; and (E) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Sanitary Sewer System Improvements Debt Service Subaccount. The amount of any surplus remaining in the Sanitary Sewer System Improvements Debt Service Subaccount when the Sanitary Sewer Portion of the Bonds and interest thereon are paid shall be used consistent with Minnesota Statutes, Section 475.61, Subdivision 4. The Sanitary Sewer System Improvements Debt Service Subaccount shall be used solely to pay the principal and interest and any premium for redemption of the Sanitary Sewer Portion of the Bonds and any other General Obligation Bonds of the City hereafter issued by the City and made payable from said subaccount as provided by law. (iv) Storm Water System Improvements Debt Service Subaccount. To the Storm Water System Improvements Debt Service Subaccount there shall be credited: (A) the net revenues of the Storm Water System not otherwise pledged and applied to the payment of other obligations of the City, in an amount, together with other funds which may herein or hereafter from time to time be irrevocably appropriated to the Storm Water System Improvements Debt Service Subaccount, sufficient to meet the requirements of Minnesota Statutes, Section 475.61 for the payment of the principal and interest of the Storm Water Portion of the Bonds; (B) all collections of taxes which may hereafter be levied in the event that the net revenues of the Storm Water System and other funds herein pledged to the payment of the principal and interest on the Storm Water Portion of the Bonds are insufficient therefore; (C) a pro rata share of all funds remaining in the Construction Account after completion of the Project and payment of the costs thereof; (D) all investment earnings on funds held in the Storm Water System Improvements Debt Service Subaccount; and (E) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Storm Water System Improvements Debt Service Subaccount. The amount of any surplus remaining in the Storm Water System Improvements Debt Service Subaccount when the Storm Water Portion of the Bonds and interest thereon are paid shall be used consistent with Minnesota Statutes, Section 475.61, Subdivision 4. The Storm Water System Improvements Debt Service Subaccount shall be used solely to pay the principal and interest on the Storm Water Portion of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from said subaccount as provided by law. (v) Street Reconstruction Projects Debt Service Subaccount. To the Street Reconstruction Projects Debt Service Subaccount there shall be credited: (A) capitalized interest in the amount of $___________ (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay Agenda Page 35 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 14 interest due on the Street Reconstruction Portion of the Bonds on or before February 1, 2026; (B) all collections of taxes herein or hereafter levied for the payment of the principal and interest on the Street Reconstruction Portion of the Bonds; (C) a pro rata share of all funds remaining in the Construction Account after completion of the Project and payment of the costs thereof; (D) all investment earnings on funds held in the Street Reconstruction Projects Debt Service Subaccount; and (E) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Street Reconstruction Projects Debt Service Subaccount. The amount of any surplus remaining in the Street Reconstruction Projects Debt Service Subaccount when the Street Reconstruction Portion of the Bonds and interest thereon are paid shall be used consistent with Minnesota Statutes, Section 475.61, Subdivision 4. The Street Reconstruction Projects Debt Service Subaccount shall be used solely to pay the principal and interest on the Street Reconstruction Portion of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from said subaccount as provided by law. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued and (2) in addition to the above in an amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Construction Account, Operation and Maintenance Accounts or Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. Money in the Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"). 16. Covenants Relating to the Tax Abatement Portion of the Bonds. (a) Tax Abatements; Use of Tax Abatements. The City Council has adopted the Tax Abatement Resolution and has thereby approved the Tax Abatements, including the pledge thereof to the payment of the Tax Abatement Portion of the Bonds. The Tax Abatement Resolution is hereby amended to reflect that the first collection of Tax Abatements shall be payable in 2026. The City Council hereby confirms the Tax Abatement Resolution, which is hereby incorporated as though set forth herein. (b) Tax Levy. To provide moneys for payment of principal and the interest on the Tax Abatement Portion of the Bonds, there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: Agenda Page 36 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 15 Levy Years Collection Years Amount See Attached Schedule in Exhibit C (c) Coverage Test. The Taxes are such that if collected in full they, together with other revenues herein pledged for the payment of the Tax Abatement Portion of the Bonds and together with estimated collections of Tax Abatements, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Tax Abatement Portion of the Bonds. The Taxes shall be irrepealable so long as any of the Tax Abatement Portion of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 17. Outstanding Utility Bonds. It is hereby found, determined and declared that the net revenues of the System are sufficient in an amount to pay when due the principal and interest on the Outstanding Utility Bonds and a sum at least five percent in excess thereof. 18. Covenants Relating to the Water Portion of the Bonds. (a) Sufficiency of Net Revenues; Coverage Test. It is hereby found, determined and declared that the net revenues of the Water System are sufficient in an amount to pay when due the principal and interest on the Water Portion of the Bonds and a sum at least five percent in excess thereof. It is hereby found, determined and declared that the net revenues of the Water System and the Storm Water System are sufficient in an amount to pay when due the principal and interest on the Outstanding Water and Storm Water Bonds and a sum at least five percent in excess thereof. The net revenues of the Water System are hereby pledged on a parity lien with the Outstanding Water and Storm Water Bonds and shall be applied for that purpose, but solely to the extent required to meet, together with other pledged sums, the principal and interest requirements of the Water Portion of the Bonds. As used herein the term net revenues means the gross revenues derived by the City from the operation of the Water System, including all charges for service, use, availability, and connection to the Water System, and all monies received from the sale of any facilities or equipment of the Water System or any by-products thereof, less all normal, reasonable, or current costs of owning, operating, and maintaining the Water System. Nothing contained herein shall be deemed to preclude the City from making further pledges and appropriations of the net revenues of the Water System for the payment of other or additional obligations of the City, provided that it has first been determined by the City Council that the estimated net revenues of the Water System will be sufficient in addition to all other sources, for the payment of the Water Portion of the Bonds and such additional obligations and any such pledge and appropriation of the net revenues may be made superior or subordinate to, or on a parity with the pledge and appropriation herein. (b) Excess Net Revenues. Net revenues of the Water System in excess of those required for the foregoing may be used for any proper purpose. Agenda Page 37 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 16 (c) Covenant to Maintain Rates and Charges. In accordance with Minnesota Statutes, Section 444.075, the City hereby covenants and agrees with the Holders of the Bonds that it will impose and collect charges for the service, use, availability and connection to the Water System at the times and in the amounts required to produce net revenues adequate to pay all principal and interest when due on the Water Portion of the Bonds. Minnesota Statutes, Section 444.075, Subdivision 2, provides as follows: "Real estate tax revenues should be used only, and then on a temporary basis, to pay general or special obligations when the other revenues are insufficient to meet the obligations." 19. Covenants Relating to the Storm Water Portion of the Bonds. (a) Sufficiency of Net Revenues; Coverage Test. It is hereby found, determined and declared that the net revenues of the Storm Water System are sufficient in an amount to pay when due the principal and interest on the Storm Water Portion of the Bonds and a sum at least five percent in excess thereof. The net revenues of the Storm Water System are hereby pledged on a parity lien with the Outstanding Water and Storm Water Bonds and shall be applied for that purpose, but solely to the extent required to meet, together with other pledged sums, the principal and interest requirements of the Storm Water Portion of the Bonds. As used herein the term net revenues means the gross revenues derived by the City from the operation of the Storm Water System, including all charges for service, use, availability, and connection to the Storm Water System, and all monies received from the sale of any facilities or equipment of the Storm Water System or any by-products thereof, less all normal, reasonable, or current costs of owning, operating, and maintaining the Storm Water System. Nothing contained herein shall be deemed to preclude the City from making further pledges and appropriations of the net revenues of the Storm Water System for the payment of other or additional obligations of the City, provided that it has first been determined by the City Council that the estimated net revenues of the Storm Water System will be sufficient in addition to all other sources, for the payment of the Storm Water Portion of the Bonds and such additional obligations and any such pledge and appropriation of the net revenues may be made superior or subordinate to, or on a parity with the pledge and appropriation herein. (b) Excess Net Revenues. Net revenues of the Storm Water System in excess of those required for the foregoing may be used for any proper purpose. (c) Covenant to Maintain Rates and Charges. In accordance with Minnesota Statutes, Section 444.075, the City hereby covenants and agrees with the Holders of the Bonds that it will impose and collect charges for the service, use, availability and connection to the Storm Water System at the times and in the amounts required to produce net revenues adequate to pay all principal and interest when due on the Storm Water Portion of the Bonds. Minnesota Statutes, Section 444.075, Subdivision 2, provides as follows: "Real estate tax revenues should be used only, and then on a temporary basis, to pay general or special obligations when the other revenues are insufficient to meet the obligations." 20. Covenants Relating to the Sanitary Sewer Portion of the Bonds. Agenda Page 38 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 17 (a) Sufficiency of Net Revenues; Coverage Test. It is hereby found, determined and declared that the net revenues of the Sanitary Sewer System are sufficient in an amount to pay when due the principal and interest on the Sanitary Sewer Portion of the Bonds and the Outstanding Sanitary Sewer Bonds and a sum at least five percent in excess thereof. The net revenues of the Sanitary Sewer System are hereby pledged on a parity lien with the Outstanding Sanitary Sewer Bonds and shall be applied for that purpose, but solely to the extent required to meet, together with other pledged sums, the principal and interest requirements of the Sanitary Sewer Portion of the Bonds. As used herein the term net revenues means the gross revenues derived by the City from the operation of the Sanitary Sewer System, including all charges for service, use, availability, and connection to the Sanitary Sewer System, and all monies received from the sale of any facilities or equipment of the Sanitary Sewer System or any by-products thereof, less all normal, reasonable, or current costs of owning, operating, and maintaining the Sanitary Sewer System. Nothing contained herein shall be deemed to preclude the City from making further pledges and appropriations of the net revenues of the Sanitary Sewer System for the payment of other or additional obligations of the City, provided that it has first been determined by the City Council that the estimated net revenues of the Sanitary Sewer System will be sufficient in addition to all other sources, for the payment of the Sanitary Sewer Portion of the Bonds and such additional obligations and any such pledge and appropriation of the net revenues may be made superior or subordinate to, or on a parity with the pledge and appropriation herein. (b) Excess Net Revenues. Net revenues of the Sanitary Sewer System in excess of those required for the foregoing may be used for any proper purpose. (c) Covenant to Maintain Rates and Charges. In accordance with Minnesota Statutes, Section 444.075, the City hereby covenants and agrees with the Holders of the Bonds that it will impose and collect charges for the service, use, availability and connection to the Sanitary Sewer System at the times and in the amounts required to produce net revenues adequate to pay all principal and interest when due on the Sanitary Sewer Portion of the Bonds. Nothing herein shall preclude the City for levying taxes for the payment of the Sanitary Sewer Portion of the Bonds as permitted by Minnesota Statutes, Section 115.46. 21. Covenants Relating to the Street Reconstruction Portion of the Bonds. (a) Tax Levy. To provide moneys for payment of the principal and interest on the Street Reconstruction Portion of the Bonds there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: Year of Tax Levy Year of Tax Collection Amount See Attached Schedule in Exhibit B Agenda Page 39 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 18 (b) Coverage Test. The tax levies are such that if collected in full they, together with other revenues herein pledged for the payment of the Street Reconstruction Portion of the Bonds, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Street Reconstruction Portion of the Bonds. The tax levies shall be irrepealable so long as any of the Street Reconstruction Portion of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 22. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the net revenues of the Water System appropriated and pledged to the payment of principal and interest on the Water Portion of the Bonds, together with other funds irrevocably appropriated to the Water System Improvements Debt Service Subaccount herein established, shall at any time be insufficient to pay such principal and interest when due, the City covenants and agrees to levy, without limitation as to rate or amount an ad valorem tax upon all taxable property in the City sufficient to pay such principal and interest as it becomes due. If the net revenues of the Sanitary Sewer System appropriated and pledged to the payment of principal and interest on the Sanitary Sewer Portion of the Bonds, together with other funds irrevocably appropriated to the Sanitary Sewer System Improvements Debt Service Subaccount herein established, shall at any time be insufficient to pay such principal and interest when due, the City covenants and agrees to levy, without limitation as to rate or amount an ad valorem tax upon all taxable property in the City sufficient to pay such principal and interest as it becomes due. If the net revenues of the Storm Water System appropriated and pledged to the payment of principal and interest on the Storm Water Portion of the Bonds, together with other funds irrevocably appropriated to the Storm Water System Improvements Debt Service Subaccount herein established, shall at any time be insufficient to pay such principal and interest when due, the City covenants and agrees to levy, without limitation as to rate or amount an ad valorem tax upon all taxable property in the City sufficient to pay such principal and interest as it becomes due. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 23. Continuing Disclosure. The City is the sole obligated person with respect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described to: (a) Provide or cause to be provided to the Municipal Securities Rulemaking Board (the "MSRB") by filing at www.emma.msrb.org in accordance with the Rule, certain annual financial information and operating data in accordance with the Undertaking. The City reserves the right to modify from time to time the terms of the Undertaking as provided therein. Agenda Page 40 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 19 (b) Provide or cause to be provided to the MSRB notice of the occurrence of certain events with respect to the Bonds in not more than ten (10) business days after the occurrence of the event, in accordance with the Undertaking. (c) Provide or cause to be provided to the MSRB notice of a failure by the City to provide the annual financial information with respect to the City described in the Undertaking, in not more than ten (10) business days following such occurrence. (d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be enforceable on behalf of such Holders; provided that the right to enforce the provisions of these covenants shall be limited to a right to obtain specific enforcement of the City's obligations under the covenants. The Mayor and City Administrator of the City, or any other officer of the City authorized to act in their place (the "Officers") are hereby authorized and directed to execute on behalf of the City the Undertaking in substantially the form presented to the City Council subject to such modifications thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers. 24. Defeasance. When all Bonds have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered holders of the Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with respect to any Bonds which are due on any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 25. Compliance With Reimbursement Bond Regulations. The provisions of this paragraph are intended to establish and provide for the City's compliance with United States Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the "reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the City to reimburse itself for any expenditure which the City paid or will have paid prior to the Closing Date (a "Reimbursement Expenditure"). Agenda Page 41 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 20 The City hereby certifies and/or covenants as follows: (a) Not later than sixty days after the date of payment of a Reimbursement Expenditure, the City (or person designated to do so on behalf of the City) has made or will have made a written declaration of the City's official intent (a "Declaration") which effectively (i) states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional description of the property, project or program to which the Declaration relates and for which the Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the general functional purpose thereof from which the Reimbursement Expenditure was to be paid (collectively the "Program"); and (iii) states the maximum principal amount of debt expected to be issued by the City for the purpose of financing the Program; provided, however, that no such Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for the Program, defined in the Reimbursement Regulations to include engineering or architectural, surveying and soil testing expenses and similar prefatory costs, which in the aggregate do not exceed twenty percent of the "issue price" of the Bonds, and (ii) a de minimis amount of Reimbursement Expenditures not in excess of the lesser of $100,000 or five percent of the proceeds of the Bonds. (b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the Bonds or any of the other types of expenditures described in Section 1.150-2(d)(3) of the Reimbursement Regulations. (c) The "reimbursement allocation" described in the Reimbursement Regulations for each Reimbursement Expenditure shall and will be made forthwith following (but not prior to) the issuance of the Bonds, and not later than 18 months after the later of (i) the date of the payment of the Reimbursement Expenditure, or (ii) the date on which the Program to which the Reimbursement Expenditure relates is first placed in service, but in no event more than three years after the date of payment of the Reimbursement Expenditure. (d) Each such reimbursement allocation will be made in a writing that evidences the City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30 days after the Bonds are issued, shall be treated as made on the day the Bonds are issued. Provided, however, that the City may take action contrary to any of the foregoing covenants in this paragraph upon receipt of an opinion of its bond counsel for the Bonds stating in effect that such action will not impair the tax-exempt status of the Bonds. 26. Certificate of Registration and Tax Levy. A certified copy of this resolution is hereby directed to be filed with the County Auditor of Wright County, together with such other information as the County Auditor shall require, and there shall be obtained from the County Auditor a certificate that the Bonds have been entered in the County Auditor's Bond Register and that the tax levy required by law has been made. 27. Negative Covenant as to Use of Bond Proceeds and Project. The City hereby covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Project, in such Agenda Page 42 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 21 a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 28. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation (i) requirements relating to temporary periods for investments, (ii) limitations on amounts invested at a yield greater than the yield on the Bonds, and (iii) the rebate of excess investment earnings to the United States. The City expects to satisfy the twenty-four month exemption for gross proceeds of the Bonds as provided in Section 1.148-7(e) of the Regulations. The Mayor and/or City Administrator and/or Finance Director are hereby authorized and directed to make such elections as to arbitrage and rebate matters relating to the Bonds as they deem necessary, appropriate or desirable in connection with the Bonds, and all such elections shall be, and shall be deemed and treated as, elections of the City. 29. Designation of Qualified Tax-Exempt Obligations. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations: (a) the Bonds are issued after August 7, 1986; (b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (d) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City (and all entities treated as one issuer with the City, and all subordinate entities whose obligations are treated as issued by the City) during this calendar year 2025 will not exceed $10,000,000; and (e) not more than $10,000,000 of obligations issued by the City during this calendar year 2025 have been designated for purposes of Section 265(b)(3) of the Code; and (f) the aggregate face amount of the Bonds does not exceed $10,000,000. The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 30. Official Statement. The Official Statement relating to the Bonds prepared and distributed by Northland is hereby approved and the officers of the City are authorized in connection with the delivery of the Bonds to sign such certificates as may be necessary with respect to the completeness and accuracy of the Official Statement. Agenda Page 43 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 22 31. Severability. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 32. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. The motion for the adoption of the foregoing resolution was duly seconded by member _______________ and, after a full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Adopted by the City Council of the City of Albertville this 7th day of July 2025. _______________________________ Jillian Hendrickson, Mayor ATTEST: _______________________________ Adam Nafstad, City Administrator Agenda Page 44 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 23 STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF ALBERTVILLE I, the undersigned, being the duly qualified and acting City Administrator of the City of Albertville, Minnesota, do hereby certify that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council, duly called and held on the date therein indicated, insofar as such minutes relate to authorizing the issuance and awarding the sale of $9,080,000 General Obligation Bonds, Series 2025A. WITNESS my hand on July 7, 2025. _______________________________________ City Administrator Agenda Page 45 A-1 EXHIBIT A PROPOSALS [To be supplied by Northland Securities, Inc.] Agenda Page 46 B-24 EXHIBIT B FORM OF BOND UNITED STATES OF AMERICA STATE OF MINNESOTA WRIGHT COUNTY CITY OF ALBERTVILLE R-____ $_________ GENERAL OBLIGATION BOND, SERIES 2025A Interest Rate Maturity Date Date of Original Issue CUSIP ______% February 1, 20__ July 29, 2025 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: The City of Albertville, Wright County, Minnesota (the "Issuer"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, unless called for earlier redemption, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2026, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of Northland Bond Services, a division of First National Bank of Omaha, in Minneapolis, Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. So long as this Bond is registered in the name of the Depository or its Nominee as provided in the Resolution hereinafter described, and as those terms are defined therein, payment of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be made as provided in the Letter of Representations, as defined Agenda Page 47 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 25 B-25 in the Resolution, and surrender of this Bond shall not be required for payment of the redemption price upon a partial redemption of this Bond. Until termination of the book-entry only system pursuant to the Resolution, Bonds may only be registered in the name of the Depository or its Nominee. Optional Redemption. All Bonds of this issue (the "Bonds") maturing on February 1, 2034, and thereafter, are subject to redemption and prepayment at the option of the Issuer on February 1, 2033, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and the principal amounts within each maturity to be redeemed shall be determined by the Issuer; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected registered holder of the Bonds at least thirty (30) days prior to the date fixed for redemption. Prior to the date on which any Bond or Bonds are directed by the Issuer to be redeemed in advance of maturity, the Issuer will cause notice of the call thereof for redemption identifying the Bonds to be redeemed to be mailed to the Bond Registrar and all Bondholders, at the addresses shown on the Bond Register. All Bonds so called for redemption will cease to bear interest on the specified redemption date, provided funds for their redemption have been duly deposited. Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by the Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal amount of $9,080,000, all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination and redemption privilege, issued pursuant to and in full conformity with the Constitution, Charter of the Issuer and laws of the State of Minnesota and pursuant to a Agenda Page 48 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 26 B-26 resolution adopted by the City Council on July 7, 2025 (the "Resolution"), for the purpose of providing money to finance various municipal improvement projects within the jurisdiction of the Issuer. This Bond is payable out of the General Obligation Bonds, Series 2025A Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchange; Resolution. The Bonds are issuable solely in fully registered form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the office of the Bond Registrar. Transfer. This Bond is transferable by the Holder in person or the Holder's attorney duly authorized in writing at the office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized Denomination or Denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided herein with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. Qualified Tax-Exempt Obligation. This Bond has been designated by the Issuer as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution, Charter of the Issuer and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required Agenda Page 49 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 27 B-27 by law; that the Issuer has covenanted and agreed with the Holders of the Bonds that it will impose and collect charges for the service, use and availability of its municipal water utility system (the "Water System") at the times and in amounts necessary to produce net revenues, together with other sums pledged to the payment of the Water Portion of the Bonds, as defined in the Resolution, adequate to pay all principal and interest when due on the Water Portion of the Bonds; and that the Issuer will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property of the Issuer, without limitation as to rate or amount, for the years and in amounts sufficient to pay the principal and interest on Water Portion of the Bonds as they respectively become due, if the net revenues from the Water System, and any other sums irrevocably appropriated to the Debt Service Account are insufficient therefor; that the Issuer has covenanted and agreed with the Holders of the Bonds that it will impose and collect charges for the service, use and availability of its municipal sanitary sewer utility system (the "Sanitary Sewer System") at the times and in amounts necessary to produce net revenues, together with other sums pledged to the payment of the Sanitary Sewer Portion of the Bonds, as defined in the Resolution, adequate to pay all principal and interest when due on the Sanitary Sewer Portion of the Bonds; that the Issuer has covenanted and agreed with the Holders of the Bonds that it will impose and collect charges for the service, use and availability of its municipal water utility system (the "Storm Water System") at the times and in amounts necessary to produce net revenues, together with other sums pledged to the payment of the Storm Water Portion of the Bonds, as defined in the Resolution, adequate to pay all principal and interest when due on the Storm Water Portion of the Bonds; and that the Issuer will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property of the Issuer, without limitation as to rate or amount, for the years and in amounts sufficient to pay the principal and interest on Storm Water Portion of the Bonds as they respectively become due, if the net revenues from the Storm Water System, and any other sums irrevocably appropriated to the Debt Service Account are insufficient therefor; and that the Issuer will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property of the Issuer, without limitation as to rate or amount, for the years and in amounts sufficient to pay the principal and interest on Sanitary Sewer Portion of the Bonds as they respectively become due, if the net revenues from the Sanitary Sewer System, and any other sums irrevocably appropriated to the Debt Service Account are insufficient therefor and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and the date of its issuance and delivery to the original purchaser, does not exceed any constitutional, charter or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Albertville, Wright County, Minnesota, by its City Council has caused this Bond to be executed on its behalf by the facsimile signatures of its Mayor and its City Administrator, the corporate seal of the Issuer having been intentionally omitted as permitted by law. Agenda Page 50 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 28 B-28 Date of Registration: BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the Resolution mentioned within. NORTHLAND BOND SERVICES, A DIVISION OF FIRST NATIONAL BANK OF OMAHA Minneapolis, Minnesota, Bond Registrar By: Authorized Signature Registrable by: NORTHLAND BOND SERVICES, A DIVISION OF FIRST NATIONAL BANK OF OMAHA Payable at: NORTHLAND BOND SERVICES, A DIVISION OF FIRST NATIONAL BANK OF OMAHA CITY OF ALBERTVILLE, WRIGHT COUNTY, MINNESOTA /s/ Facsimile Mayor /s/ Facsimile City Administrator Agenda Page 51 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 29 B-29 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - ___________ as custodian for ______________ (Cust) (Minor) under the _____________________ Uniform (State) Transfers to Minors Act Additional abbreviations may also be used though not in the above list. ___________________________________________________________ ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ________________________________________________________________ the within Bond and does hereby irrevocably constitute and appoint _________________ attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated:_____________________ ______________________________ Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: ___________________________ Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges or any other "Eligible Guarantor Institution" as defined in 17 CFR 240.17 Ad-15(a)(2). The Bond Registrar will not affect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: ________________________________________ ________________________________________ ________________________________________ (Include information for all joint owners if the Bond is held by joint account.) Agenda Page 52 City of Albertville Resolution No. 2025-20 Meeting of July 7, 2025 Page 31 C-31 EXHIBIT C SCHEDULES [To be supplied by Northland Securities, Inc.] Agenda Page 53