recording in progress. >> Not on there yet. So when we get to Keith's thing, you need to abstain. >> Call this city council meeting to order for September 15th. All rise for the pledge of allegiance.
To the flag of the United States of America and to the republic for it stands, one nation under God, indivisible, with liberty and justice for all. >> Item number two, public comment. If anybody would like to approach the
council and comment on anything that is not on tonight's agenda, you're welcome to do so. Just want to state your name and address. West Minnesota Street. I just kind of want to go back on memory lane a little bit about the Minnesota Street upgrades on the overlay.
Uh I believe the council had made a comment that the road would be busted up after the roundabout was completed and uh I haven't seen any evidence of that obviously and then and why are we
why are we prepaying for something that hasn't been completed maybe an answer for that and I had mentioned that the road should last 20 years and I think the comment was made, it would probably last 30
years. So, I just want some of that documented in the m in the minutes of the meeting for sure. And maybe somebody can answer some of these questions. Um, but I haven't seen any evidence of the road being busted up at all from
construction, but that was made at comment here. I've been to to the meetings, so I got a pretty good me memory. But that's my concern. I mean, I know the show is going to go on. I know we got a
deadline to pay by the 17th, but I haven't seen any work done either. >> Tim, >> maybe somebody can answer. Why are we prepaying for something that's not done? So Tim, you're alluding to a portion of
Minnesota Street that's east of the roundabout that's already been done >> down to the new roundabout. >> Yeah, that's what I'm talking about. >> Bryce, do you recall if we have street improvements slated for later this fall? They're still yet to be done. I I I
think what you're referencing, Tim, is initially we didn't know when that roundabout was going to be done or it was it was such a tight squeeze on the the Minnesota 2 roundabout that we weren't we we did not think we would have an adequate time to complete the
improvements to Minnesota Street until next year. So, we had we had Minnesota Street West as part of this year's project, but the paving wouldn't be done until next year. Now that that project has gotten done ahead of schedule, we likely will will have that work
completed this year. We're waiting to confirm that with the contractor as they get into their um their schedule. They'll they'll obviously finish all of the other work first and make sure they can um finish that per the contract. >> I think they had a deadline of the 28th
to complete that >> roundabout. >> Okay. >> That would have been last last month reference. Sure. >> Yep. >> So, I think the concern I I don't have a lot of backup for all this. Um
I know there'll be interest after the 17th. I just it's hard to understand when you're paying for something that's not complete or even started that way. And they made a comment like I said about the road being busted up.
It's probably as best it is it is right now. I don't know. We can't go backwards and say, "Well, we're not going to do this now because that's the past." But they're going to cut it down an inch and a half. And hopefully it does last 20 years. I'm optimistic that it will.
>> Yeah. And to clarif on on M on West Minnesota Street, we're performing an overlay. So, we're not reconstructing that street. So, >> I understand that. >> Yeah. I I I think you're a little confused on why we're doing the overlay. >> Well, >> uh we're not doing it because of the construction of the roundabout. >> Yeah. That's
>> we we decided to wait with the overlay until that construction was done with so that it doesn't get pounded on with the heavy trucks. >> Yeah. But it didn't get pounded on. >> Okay. So >> it was that was No, there's no damage
there. I think some of the other part of Minnesota streets probably maybe not as good as what we have now. But I tried to call Bryce today. I wanted I just wanted to take a look at it. It's not that I don't think the show is going to go on
and they're going to do the overlay. I'm not saying that because I'm not going backwards, but I'm just trying to understand a little bit better just from the other meetings that I attended. So hopefully, you know, we document some of this. >> Understood. Yeah. And I apologize for
not getting back here. >> That's fine. I'm not here to be radical or anything like, >> you know, it's all the past. So that's it. Thank you. Thank you. >> Thank you, Tim. Would anybody else want to address the council?
>> If not, we'll close the public comment period. Moving on to item number three, approval of the agenda. >> I move to approve. >> Second. >> Seeing a motion, a second. Any further comment? All those in favor signify by I.
>> I. Opposed. Motion carries. Item number four, consent agenda. >> I move to approve and I'd like to have pulled for further discussion item E, L, and M. I'll second that. Any further
discussion? All those in favor of approving the consent agenda and pulling items E, L, and M, signify by I. >> I. >> I. >> Opposed. Motion carries.
Going back to item number 4E from the consent agenda, promotion of officer Vic Weiss from part-time to full-time. You question. >> Yeah. I just like it could be a conversation with the chief with respect
just the background on E and L, the new officer hire. This isn't pushing back saying we're not going to do it or shouldn't do it, but hiring officers is a big deal. You've worked really hard on it. So, I think it just be good for the public record for you to give us our
thought process and the public's thought process as to why we're doing these two things. And I want to hear more about the new hire as far as what your expectations are for that person. >> So, if you recall, um, this spring, Officer Vos left for St. Cloud Police
Department, kind of looking for a bigger department, bigger pond to swim in. So, that created a vacancy. So, we brought that to the council to accept his resignation and to fill his spot. We started out by opening up applications and basically got a goose egg for several rounds. Uh Caleb put it out
several times and we just didn't get any interest. Um and basically some of it was timing because just about everybody that was in skills at the time had job offers and everything else. Um and a lot of it just the the pool was picked over.
So to entice um somebody to apply, I came back to the council looking at the what most kids nowadays when I when I was getting hired years ago, I went to the paper every single Sunday and got the Star Tribune, St. Cloud Times, something in hard print because the
internet wasn't around at that time. Long time ago. Nowadays, the first thing kids do is they grab their smartphone, they look and they log into the Minnesota Post line. There's currently, I didn't look today, but in the past when we've been hiring, there's been 138 openings statewide for jobs in
Minnesota, and some of those are Minneapolis that are looking for 2-30, 300 officers. Um, some places are looking for 20, 30 officers. Some places are looking for five officers, but if you added them up, the state's probably looking for anywhere around 5, 600 officers, and the pool in some of these
schools is 75 to 100. So, there's just no possibility to fill those. So looking at some of these job postings that were out there, I kind of started taking what some other cities are doing to entice people and came back to the council and said if we were going to offer a sign on
bonus, here would be my recommendations based on others. And we had set it up that if an officer comes in with two plus years of experience that we would offer the person a $2,500 bonus to complete probation, which in our city is a six-month probation if they have uh a
year or more of experience. If they have less than a year, they have a one-year probation. And that would give us a chance to kind of shake them out and see once if they're worth continuing on for. Obviously, they got to first pass background and psychologicals. They got to back uh pass a um FTO process, but
assuming they make it out of all of those uh hoops along the way, once they finally get done with their FTO process and they have this probationary period, that would give us our first look. But that's just enough to entice somebody with experience to come here. and Vic hits those qualifications. And then in
the case of L, our our new person, um this person's coming fresh to us. Um green as can be. And you know, each one of them comes with its own um set of challenges. Um not so much in the case of Vic. Sometimes you you run the risk of old habits are hard to break. Um Vic
is one of those that comes along with a very good team atmosphere and a team player. Um so I mean, he's been a great addition here. He's got a good work ethic. And then with Jacob, you know, he's just excited. He's a brand new dad of six months and he's excited. He actually had a call back from the city
of Becker and he says, "I have an apartment in St. Joe and I like St. Joe better, so thank you." And so then he decided to stay with us. So he actually turned down another city to stay with us. Um, so I'm hoping, you always hope when you hire new people, they're going to go to a retirement age and not jump off. But I also have to respect those
officers that want to further their career because we can't give them everything they can in other cities. So, so that's kind of how we got to where they both are. We did sift through other applicants that were in there and the hiring panel was both sergeants. Um, Matt Johnson, our deputy chief, and myself, we sat in on them and we
selected these two to be our to fill our two gaps. So, obviously, we have two current openings with the uh resignation of Officer Vasan and Officer Honer. And then with the looking ahead towards the future of possibly the 2026 officer. Um that's what I alluded to at our work session that we do have another one that
came available that really is got a promising future as well. So we're just going to take it one step at a time. You want to address M as well or do you want to wait till get just these two first right now? >> No, thank you for that for the background. As far as I don't know if
any other counselors want to make comments or opine as far as M on Axon Lori I looked at that it just sounds like we're like a major league baseball team giving an extension to a good pitcher for a couple of years right?
I mean, this is already baked in till 2027 and now we're going out to 2030 >> for cost savings and actually it's uh we'll save more money by by extending it. Um, I know the police department, they've worked with a couple different
companies on this and Axon has by far exceeded what they um hope to get out of the devices. The the interaction that they can get from the squad cameras, from their body cameras to the um >> so the way from the way
>> Axon's the best. >> They really are. And and the hard part about it is you're paying you it's not so much a name, but it's what they've put into it. So, with Axon, they base it on what's called a five-year contract. And halfways through that contract, they do what's called a TAP program where they refresh all of our equipment. So,
halfways through the program, we get brand new body cameras. Part of this whole package, because battery life isn't there for a 10-hour shift, they get bumped around, they're in and out of climates and everything else. So, to make sure they're optimal, two and a half years into it, they refresh all of our equipment. The same thing with our
inquad cameras. So back in like 2022 or 23 I guess whatever it would be the five years prior to whenever we signed the contracts we were committed to 2027 and we came from using what's called Motorola's watch guard system which was not a superior product by any means and
there's a lot of agencies around us and I'll throw sock center out there they completely went all watchguard found out that they were not getting the support they've boxed them all back up again and now they're going to Axon and Melrose did the same thing and now Melro said they were too far committed and their council would hang them if they decided
to switch it out. So, they're just going to ride it out for as long as they can. Um, in this particular case, what Axon's saying is because we prepaid all the way through to 2027, and granted, we wouldn't have a bill due, but in 2027, we're not jumping off the Axon thing.
It's highly unlikely that there's going to be a better product that comes out. They're looking for us to extend it a little bit farther. So, they were going to give us credits back for what we've prepaid and do a new contract out. thus capturing 2025 prices rather than waiting till 2027 and starting at that
rate. So that's what they showed Lori. They first showed it to me in a Zoom meeting and I said, "This is over my budgetary mindset, but it sure sounds good and I just want to get somebody else's opinion on it." So we did a second Zoom meeting with Lori involved. Showed her and she came up with the same
thing that if you can buy into it at 2025 prices and extend it out to 2030, then we're, you know, saving money obviously. So Lori, it's not like it's costing us any more money in 2026. We're just extending a contract. >> Correct. So um and we won't pay for that
extension for a couple years that we start making and we'll do a I think they scheduled it over a three-year period to pay it through 2030, but yeah, we don't pay anything for a couple years, >> anything additional. And they did give us a nice discount and credits um to get
us to this pricing. And ironically, 2030 is a great number because after 2030, then somebody else is going to figure out who we're going to go with after that. No coincidental thing there at all. So,
>> I move to approve item 4, L, and M. >> I second that. Any further discussion? >> All those in favor signify by I. I opposed. Motion carries. Thank you, Dwight and Laura. Moving on to item
number five, fire department report. Keith and Joe. >> My name is Keith Belgi. I'm the president of the Relief Association. And um tonight we're just here to request a raise for our pension from $3,600 per year service to $4,600 per year of
service. In your packet that you guys all got for tonight, there was a uh well, there was a packet in there um that goes through all of our liabilities, assets, um total funding that we have right now. And basically I'm here to answer any questions you guys have and to ask for a vote for
raising their opinions. >> I don't have any questions at all being on the fire department and just to preface our conversations when we put this to vote myself and Andrew Mooney both being fighter fires will be abstaining >> and
I don't have any questions. since I talked to u Councilman Mooney and and Mr. B about this and it's not impacting our budget now. Basically, it's saying with the assets that PAR has, there's enough to
fund this at 104%. If uh our country went into another 2008 great recession, something really bad, then we would have to make a commitment to hit this uh $4,600 retirement benefit
that we uh that we uh have committed to. So, I'm confident that uh my fellow council people that can vote will vote for it. >> Just a comment that I appreciate everything that All of you do for this
city and so I have absolutely no problems with this. >> Thank you. >> Do we need a motion? >> Yes, we do. Do you have any other comments, Adam? >> No. >> I move to approve. >> Second. >> Seeing a motion, a second. Any other
comments? All those in favor signify by I. >> I. >> I. >> Opposed? Abstained? I >> motion carries. Thank you. On to item number six, conditional use
permit, cannabis cultivation. Thank you, mayor. Good evening, councilors. For your consideration this evening is a conditional use permit request for indoor cannabis cultivation. Applicant is Daniel Clark, owner of Green Cross Corp. Um, applicant is in
attendance this evening. And then the owner of the building where Mr. Clark is proposing to lease out this space is Corey Ellert. Location of the parcel is right off of Elm Street, just south of the Wagon trail head and the city's water tower.
Approximately 3,322 square ft of the building will be used for the cultivation facility. This property is zoned B2 highway commercial. Back in July, you'll recall that the council did approve the ordinance
amendment to allow indoor green houses, including cannabis cultivation within this B2 highway district. Included in your packet is a site layout of the interior of the building um where
the cultivation will occur. Um again, this is entirely indoors. Nothing's going to be visible from the street or from the exterior. The applicant is not proposing to do any exterior signage or improvements on the building. Um, and then parking is all going to be met on
site. Um, the property has approximately three spaces right in the front of the building that will be utilized and the applicant doesn't foresee needing more than one or two spaces. Planning commission and staff recommended some conditions that are
included in your resolution this evening. Um some template language regarding permit requirements. Um city reserving the right to conduct inspections. Um odors. Um all the odors shall be controlled to not create any nuisances.
Uh no exterior storage of materials and any waste that is created. Um needs to be contained in receptacles with closed lids. Uh there is an area on the site that has the trash recepticles that's enclosed with a gate. Um, so that gate
just needs to be locked or kept shut at all times. And then we just have some template language too re um in regards to just revion and expiration of the conditional use permit. If they are not to proceed forward or if they do not
proceed forward within a year, then the cup does um expire and they'd have to come back. And then also one of the conditions that the planning commission recommended was if the use expands to more than 25% for what is proposed this evening, they
do have to seek a amendment to the conditional use permit. That 25% is kind of consistent with what we've done in the past and that is um allows the planning commission to kind of look at other site elements that may um be
impacted due to that increase particularly parking. Um if Mr. Clark does expand his business and employs more people um then we'll want to make sure that parking is still adequate on site or is being addressed and then also um security cameras on exterior of the
building. Council has the right to also add conditions on access points, screening landscaping, limiting number, location of signs or exterior lighting, designating operating hours and noise levels, or any other
condition that the council deems necessary to protect the public interest. So last Monday, PC conducted a public hearing. The only person that spoke at that hearing was the applicant. To date, staff has not received any written
comments or phone calls in regards to the proposal. As such, the planning commission recommended approval 520 with comments on two conditions that are included in the resolution this evening. With that, the ask of the council is
action on resolution 2025-061. Council can also recommend any other additional conditions on that resolution. That would conclude my presentation. Any questions, I'd be happy to answer them. And like I said, the applicant is in attendance this evening. So,
>> Daniel, would you mind coming up so we can ask you questions? >> Thank you. >> You're welcome. >> Council, any questions? Um, well, I fully intend to support this as is. Can you give us some background
again? I know you were with us maybe once before. >> Sure. >> Or I went to planning. Um, and it doesn't have to be a long spiel, but your background. >> Sure. >> And where do you plan to sell what you grow in St. Joe?
>> Yeah. So, I'll start from the beginning. VC backed entrepreneur through Techars Tennessee Industries of the Future. That's for something separate. We structure glass at room temperature to make microructured 3D solar cells that are better than Chinese solar manufacturing in the past in California.
I ran a delivery service for about nine years through the medical marijuana industry. So I'm a seasoned veteran in the industry and um in regards to oh we have agreement with ENL the National Solar Lab to develop our solar but in regards to the topic at hand the cannabis
um we would love to give St. Joseph the product um available in this state, which will be from us. But that's your choice. I don't want to push too hard. We would even if we found a location for retail, we would be open to considering that, too. But we don't want to dim your
light. If you guys can sell our product here and make a whole bunch of money, there's plenty of other places for us to open our retail store. >> Yeah. I'm not I'm not pitching you to have you sell us your product. That's not going to be determined by us. I guess my question is, have you grown marijuana before?
>> Correct. For >> Okay. >> Quite a long time. >> And we don't even have our license yet. Where do you anticipate selling your product? I'm just curious, where are your trucks going to go? >> Sure. They're mainly going to go to like uptown the Minneapolis metropolitan area. And it would be pretty rare. Like
products harvest, we would set up a map with all the people that want the product. So maybe once every two weeks, once a month, the truck with the product leaves and is distributed to those So very minimal traffic in and out. >> And all the growing is indoors. >> Correct. It's done in a sealed room. So
we bring air in, but air is not exhausted out. >> Then why when I drive down to Redwing to see my son and I go past the casino and there's a native growing operation, there's a lot of it that's outside. >> So that's outdoor cannabis, but there's a lot of issues with that and the
quality is not up to par. And so the stuff they're going to be selling, Minnesota's really strict rules with the fungus in the east and bacteria. So, honestly, I think a lot of the product outside is going to fail their testing. >> They might have some inside, too, but I just saw a lot of it growing outside.
Um, how many people do you plan to employ? >> So, right now it's just going to be me and my investor, but eventually as expands and we expand the space and come back for another permit to do that, we're happy to hire people in the city of St. Joseph, but right now it's just
minimal. And if and when you get approval tonight, when do you think you'll be opening? What's your I mean, what do you think? What's your gut tell you? >> The horror stories from my consultant. Uh my hope is December, but like they're just the state is very strict and if
they want to knock you on one little thing, it takes 60 days. They have a kind of a little game they play. >> You have a lot more hoops to jump through the state than you do with us. >> Correct. But we're in a good position with this cup because once we send in the next 10 days our final application,
the first thing they're going to do is contact St. Joseph. And if St. Joseph is quick to respond and you say, "Hey, they have a CUP already." That speeds up the process. Okay? And I would think that they want to get people that actually can have the product because they're doing it backwards. They're giving permits to the retail stores and there's
not even a testing place that has a license. So why would you give out permits to the stores because they can't even sell it? You have to have the laborator. to test it and you have to have product. And so that's probably why there's been a delay with your guys' retail and other retail licenses. Maybe they're figuring out that we should get
the people that know what they're doing that can cultivate the product to the market first so they they can sell it. >> Um just to clarify, so everything that the planning commission that's already included or do we have to add that in? >> No, that's already included. Perfect.
Yep. I don't have any other questions. I just have the quip that if you can put in a good word at the OCM for us, we'd appreciate it. >> I was telling Nate about there's an article 367. So my bank, it didn't go through when I made the payment and so
they took 60 days for me to make the payment again. So they gave everybody the license and there's an article I cited and then finally they're like, "Okay, we're going to we'll tell you in two weeks." But he was saying that like you know, might be worse if you cite that article. They might just make your
life harder, too. This basically article that says that they have to do this in a timely manner and if they don't, they need to hire outside people. I've seen in the past with other states, they could take like a year to get the license and then they just bankrupt people. >> So,
>> so you're not utilizing this whole building for your grow. >> No, but it I mean as I imagine as things expand, we could. It's like 78,000 square feet and there's quite a lot of power there. It's a three-phase power system. So, it's enough. Right now, we
have about 50,000 watts um LED lights that we're using that can be expanded to about 200,000 watts. >> So, yeah, that section that's highlighted in kind of purple, it's kind of hard to see a little bit. Um that's the area of the building that he would
be occupying. >> Correct. And you're just leasing that amount or are you leasing the whole building? We're just leasing that section. >> Got it. Okay. >> Cory's been very helpful. Very, very good guy. We're happy that his brother can do construction. They've been
helping a lot. So, >> well, I think that's all the questions we have. Thank you, Daniel. >> You're welcome. With that, I'll move to approve resolution 2025-061 as presented. >> Second. >> Seeing a motion as second. Any further
comment? >> I thought it was 062. Did I >> Is it 061? >> Yep. >> Yeah. Okay. My note had something. Oh, that was some different thing. Second. >> I We We already have a motion second.
All those in favor signify by I. I >> oppose. Motion carries. Thank you, Daniel. >> Finding my place here. before you leave. >> I don't know. >> If you feel compelled to give me a tour, greatly appreciate that. And if it's
like a slow or a busy day and you need help, I'm also >> I I I think I would enjoy that. >> Thank you. >> Moving on to item number seven, issuance of general obligation bonds. >> Good evening. We have Tammy Omdal from
Northland Securities that is will be presenting our debt issue that went um for sale today. Um so she'll kind of go over it. I did put on your um desk there that um the summary of the bond issue that Tammy will be going through. Um and then I also put a PowerPoint for the
debt management study which is the next item on the agenda that Tammy will also go through. So I'll turn it over to Tammy. Mayor, Council, good evening. Tammy Umdall with Northland Securities here to present on these two items. And if I understand the order, the bond sale um
is first. Um this morning um the series 2025A of St. um City of St. Joseph was priced. These bonds are being sold to finance the street the 2025 um street improvements and um equipment
acquisition. Before the sale, um the city did go through the process of seeking a rating on these bonds and that rating of double A minus was affirmed. When I get to the debt study in the PowerPoint, I'll talk more about that. with respect to the
final pricing um the final um par amount at 2,145 and the final true interest cost true interest cost is used to evaluate the pricing on the bond because that takes into account the purchase price for the bond. So 3.29%
these are structured over 10-year term. With that, um, mayor, councel, there is a resolution related to the award of the sale for the bonds. After your consideration of that, then I will go through the PowerPoint, which is a more comprehensive review of the city stat study. And I'm going to step away from
the podium to grab my glasses. Thank you. >> No, they are. Thank you with that. Um, no further comments other than your consideration of the resolution. Um, unless Mayor, you want me to do the PowerPoint first? I defer to you. >> No, you can go ahead.
>> No further comments. >> Okay. Um, do you want to consider the resolution before I do the PowerPoint? Okay. >> I I mean, can't we do that? Just let this pass. That's fine. I've got a question then for you about this bond issue. >> Okay. So the coupon was 5%
on these bonds. Yes, >> correct. That is correct. >> The investors that bought these paid or 5% coupon is on the the bond, but the true interest cost at 3.29 means they paid a premium. >> That is correct. So Northland was the
underwriter. So Northland pays a premium. And on page three, I believe you have the bond sale summary before you. This document here. >> Go to page three. Y >> so the reoffering premium which was re used to reduce the principal amount
because the city did not you need that premium for other purposes and I'm under issue summary I am on the third line that says reoffering premium y >> 213,39170s was the reoffering premium and how bonds work and bonds for many years now just
given market conditions are priced with premium and the reason for that is the purchaser of that bond wants a higher coupon. So they pay more than the face value. But that starts first with the underwriter in purchasing the bonds from the city. >> So with respect to evaluating the cost
to the city, it's that true interest cost which takes into account that purchase price and that premium. >> So while investors will earn a coupon of 5%, >> the city will pay less in principle than it otherwise would have. So the premium
did we get all of it or do we split it between Northland and you? >> So Northland is the purchaser. So Northland is paying that premium. >> Oh, you're buying them into your own inventory. >> They were sold to investors today, but Northland is the underwriter. So the purchaser of the bonds. So that purchase
price comes from the underwriter that premium from Northland. And then the investors who purchase it also purchase those bonds at a premium. But that premium that you got comes back to lower our par value.
>> Correct. That is correct. Now that is u madam mayor council member just for a point of reference. A city an issuer has a choice on the use of that premium. And for St. Joe you already knew what your cost of your projects were. Lori was planning on prepaid assessments. So it
made financial sense in this case for the city to use that premium to reduce the princip. And I don't imagine a resident asking us, but if a resident said, "Well, why did you issue bonds at 5%." We would say our true cost was 3 something9. >> Correct.
>> That is absolutely >> because we were able to sell our bonds at a premium because we're an awesome city with an a double A minus credit rating. >> Correct. >> Which is like one of the best credit ratings you can get in the state for a city our size in my opinion.
So I move to approve that we did this bond sale that happened earlier today. >> Second >> 2025 063. I move to approve that. Seeing a motion and a second. Any further comments or questions?
All those in favor signify by I. >> I oppose. Motion carries. Thank you, >> Mayor Council. Now I have um a fairly brief presentation which I um do this time of year with the city and this is considered a debt study meaning it is
looking at um existing debt. I would note for year 2025 because this was prepared before um today's sale. It was based upon estimates for series 2025. It's not a material difference but I want to note that. I also want to start my comments that this debt study is not
something that the city hires Northland for. the city. One of the reasons you have a double A minus is because you have very strong financial management and your city already in conjunction with Northland goes through this debt study review. So, we're sharing information and confirming and
reviewing. So, I would note that. So, this isn't Northland coming in saying here's your debt study. It's really working with your staff with that. Um, and I believe Lori, you're controlling it. I want to cover four areas. The purpose I just talked about, I'll touch on that again. the study approach the outstanding obligations and the source
of revenue those repayment and as noted I want to talk about the credit rating so with respect to the purpose city uses the issuance of debt as an important essential tool for financing capital including equipment it's important to monitor the repayment of that debt you
do that in an annual basis as part of your budget and setting of debt service levies and utility revenues this just takes a longer term view of that this study the study approach. So again, we worked closely with Lori. Um Lori
maintains her records. We review based upon information to us and make sure that things are all in alignment which I can report that they are. I have a few charts now on slide five. This is the um tax levy for debt service on a projected
basis. The reason that and this is for projected out debt outstanding including the existing and what was the estimate for the 2025 which you just awarded a few short moments ago. So for the existing debt and this is planned you can see that some planned increase of
that debt service levy whether those will be the exact amounts will depend on your annual budget and potential other sources of revenue. This is just a snapshot in time based upon those certified levies for the existing outstanding debt
with um slide six. This is showing the what we call amortization. Amortization is just a word to mean the payment of principal. The city has rapid repayment of your principal and I'll have a slide on that in a moment. But you can see in
for fiscal year in 2025 just under 25 million. And the reason the chart goes like this is because this is showing the repayment of the existing debt. It does not layer in, this wasn't the purpose of the study, any new debt that would be on top of this. So this is just for
existing debt. Slide seven is a pie chart and you probably see something similar from Lori maybe during the budget process, but this is just taking a snapshot and showing like most cities in Minnesota, the majority of your debt is subject to tax levy. So the use of
leving of taxes to repay St. Joe like some communities in the state not all has sales tax revenue. So a quarter of your outstanding debt is payable from sales tax revenue pursuant to the special legislation and the voter approval. And then you have debt
outstanding payable from special assessments, a smaller portion utility funds and then a small slice being um from cash and other sources of revenue. If you can go to the next slide, Lori. This shows on a percentage basis. And
speaking of that rating, which I'll touch on, rapid amortization. So between now and 2036, it's um not projected. It's based upon debt that's already issued. 90% of that debt will be retired within that period. So very um favorable
amortization of that debt. If you can go to the next slide. So the credit rating. So on September 8th, S&P did affirm the double A minus. Just under 18% of the Minnesota cities that S&P rates um hold
that double A minus. So the the comment on for city your size, that is an excellent rating. Um speaks to um I'm going to jump ahead here, Lori, if you can go to slide 10. Some key points that I just pulled from the rating um report. Stable population. These are um S&P
globals where healthy financial profile realistic budgetary practices the elevated debt and liability profile stemming from city's capita capital initiatives. I would note even AAA sometimes score very low in this
category. It means that you're issuing debt and they look at that with respect to revenue. So this in and of itself is not a negative. is just noting that I would also point out that S&P as part of the process um Lori met with S&P shared
information. This accounts for some of the city's future plans for issuance of debt that you've been talking about in your meeting. So that is a favorable comment because they considered that when they affirmed your double A minus rating. Not to point out if those plans
change or more debt, they look at this and each time you issue debts debt and that rating, but that's a favorable comment. And then the last important wellunded pension plans. You just had a agenda item on here a short while ago. With that, I've come to the conclusion.
There's a more detailed report that prints out all the tables, but in summary, this is the key points from that. With that, Mayor Council, I would be happy to answer any questions that you may have for me. Uh Lori, have we ever had lower than
double A minus since you've been here or we've always been double A minus? Just curious. >> I think we were A+ when I started. >> Okay, thank you. >> Could we go back to page seven on the PowerPoint? So, this is more for Lori.
When we look at our total outstanding bonds, that includes the six million of bonds we sold for the community center. It does. And that's the sales tax piece. >> So the sales tax revenues, the regional sales tax revenue that's going pretty
much all towards those six million of interest and amortization. >> Yes. >> Okay. And then could we go to page five? So this is just for general information to fellow council members and anyone in
the public. This chart, Tammy, pretty much stays the same every year. Like if we never issued another bond or never issued another equipment certificate, that's what would happen. Correct? >> Everything would get retired. So next
year when we're here in 2026, we're just pushing it out there again. So it's not like our debt's going away. It's just our existing debt is being advertised. >> Correct. Correct. >> So has there ever been a chart Lori or Tammy that shows based on the
average amount of debt we've issued in the last five or 10 years. You'd put like another color up there to say based on what you've done in the past, this is what it would look like in you know where I'm going with this. >> So modeling out.
>> Yeah. Modeling out the way we've issued debt because we're issuing debt every year for good reasons. And it would be good to have another chart that shows our current debt going down, but then we're going to be layering on new debt
based on the fact that this is what we've done in the past five or 10 years. Is that something that's ever asked for or common or can be modeled? >> Not for this study. For St. Joe, it hasn't been just because it's always been existing debt. Is that something that can be modeled? Absolutely. That's
more of a long-term finance plan. >> Would that cost us more money to get that modeled? >> Um, in what you're asking for, no. Um, that so next year I will note that we will model in um plan new debt and I will I'm not making this decision for your finance director. I'm making note
of that and we'll >> No, it'd be interesting to see that because this is this is a I get that but it doesn't really tell the true picture as to what it really is going to look like in 2035 because we will by then have issued more debt. >> That is correct. And mayor council, I
would note one of the things and Lori can speak to this when you look at slide five which is up there in that structuring of the new debt so that you don't have when you issue new debt you're taking into account how quickly the existing debt is being paid off and
Lori did that this year to an extent and that >> your levy um for these new bonds that you just approved. Yeah, >> we were managing to a total debt service levy that Lori was seeking consistent with your budget plans. So I just note that where you see the bar going down
and your plan new debt issuance to the extent possible given the amount of debt instead of having it rise up structuring those payments around the existing debt advertising. Yeah, I'm thinking more about like from
2030 on out, those green bars are never going to go away because we're always going to be issuing debt. >> Um, you have plans to issue debt. Um, whether that will be always, I will defer to the council. >> You will always be issuing debt. >> I will defer to the council on that.
>> I don't have anything else. >> Any other questions for >> I have none. Thank you, Tammy. >> Thanks, Tammy. >> Thank you, mayor and council. Thank you, >> Mayor. If you could sign that contract for Tammy before she >> That's fine.
>> Item number 10, department reports, >> Dwight, Lori, and Nate >> preliminary budget. >> Oh, I'm sorry. >> We already talked about that. >> Let you tackle that, Lori. for the preliminary budget. I know we we
touched on it um earlier in the the workshop. Um I did not bring my paper in here. I left it on my desk. But um kind of to recap what was in the budget. Uh we did get some updated um yeah, that'll help. We did get updated
numbers on our market values for the preliminary budget and um it it worked in our favor. The market the net tax capacity market value slightly is slightly more than what I had put in your council packets. And so
it's looking at um uh overall levy in the urban properties going from 62.7% up to 63.1% and I think it was closer to 63.5% in the council packet. Um with that
we're looking at an overall levy change of 10.8% increase. 5% of that is the debt levy. The rest is operational. Looking at equipment that was scheduled in our five-year equipment plan. Uh 75% of the city's budget is really staff
and wages. We're looking at a additional police officer hire. Uh right now in the preliminary budget, it's set at at a lateral kind of a mid um midscale hire. Um depending on who we hire, that could
go down if it's um brand new right out of training. Um we also put a buffer in there where um ne negotiating with both our our bargaining units and um we don't know exactly where they'll settle yet. So, we put a little bit of buffer in
there on um wages and benefits for um for the staffing. And since that makes up 75% of the budget, you know, it has pretty, you know, a pretty big impact in the overall operations. What something I forgot to mention in our workshop is the
new law, the Minnesota paid leave law leave law. gets to participate as well as as well as um almost uh 95 close to 100% of the employers in Minnesota. Um and so there is an additional cost that we're going to incur with implementing
that new law. So that is incorporated into the the budget as well. um still undecided if we're going to go to a private plan or going with the state's plan, but either way, we have it um budgeted at the worst case scenario basically in the budget until we can
negotiate with the bargaining units um on settling with that final contract there. We looked at also the fire department is um looking at doing fire call service to the college of St. Benedict. They had
approached us. They are um running staffing issues for um internally being able to respond to some of those fire calls that they have. And so working with the fire chief, we came up with um an estimated call volume that we have
with the the um college and came up with a a contract pricing level for them to cover those calls. And and we will revisit that um annually in August to see if we're on target with the number of calls and what that dollar amount should be.
Can I ask a question about the fire department? >> Certainly. >> Did the fire department budget for new radios? >> They did. Um, >> is it in? >> Are the new radios in? >> So So yes, we have a a fiveyear they've
been part of the five-year plan. So in our five-year capital plan, we we put seed money aside every year. So hopefully we can make that purchase in the year needed. Uh we don't have the total funds set aside on the radios, but the fire chief has collecting donations. The fire relief is looking at um
contributing some into that and we applied for a federal grant that we're still waiting to hear on. >> So, we've just been allocating a certain amount into this fund for new radios. >> Yes. So, >> I thought in talking to Jeff that he would like to get those next year.
>> He is looking at it for next year because um >> you're confident you'll get them even with what we've done for our allocation. >> Okay. All right. And when we do allocate th that money in the fire department for the capital plan see money we put aside each year the town both townships that
were servicing also contribute into that fiveyear capital plan. >> So um with that uh if you have further questions that's kind of sums up what's in the budget. Um with the preliminary budget, we also have to set the truth and taxation hearing in December and
December 1st is we usually do the first meeting in December. Um in November, uh the property tax payers will get their statement on what this preliminary levy looks like for them uh with their current market values of their homes,
businesses. Um but so we'll have those numbers for the truth and taxation hearing, but we can um modify these. We can reduce If if we find, you know, we get into negotiations with the unions and we can bring those
values down, maybe it's the police hires more of a entry level instead of a lateral move that we can, you know, find some savings there. But today, we just don't know for for a fact what those numbers should be. So, we're trying to keep it at this level where we can reduce. We just can't increase um at
that final hearing. So, so the action tonight is also setting that hearing and stating it. Um I don't have the sorry I don't have the pack in front of me on my desk but it has the verbiage that needs to be said and then also adopting the preliminary levy.
>> I have the second part that I can read in a moment. >> Thank you. >> So we're looking for a motion to approve resolution 2025-064. >> So moved. >> Second. >> Seeing a motion I second. Any further comment? Questions for Lori? All those
in favor signify by I. I >> opposed. Motion carries. And we'd also like to state the public hearing for the final budget and levy will be held on December 1st, 2025 at 6 p.m. in these St. Joseph's City Council chambers. City
taxpayers may call city offices at the phone number of 320-363-7201 with any questions regarding their property notice that they will be receiving imminently in November. Comments can also be sent to city offices at our address of 75 Callaway
Street East, St. Joseph, Minnesota, 56374. Thank you, Lori. >> Thank you. >> Now, we're on item number 10, department reports. >> I have something real quick. So, um
update on a project that had sat dormant for some time. Um last week, uh city of St. cloud begin the process of annexation of the justice center. Um that opens up a 90day public comment period. Um and then after that 90 days
then they are tasked with um acting on that annexation um through approval. So um just an FYI um the city of St. Cloud does have uh their sketches um for the the justice center sketches are available on the city of St. Cloud
website and everything. Um, so if you want to see how that proposal is, just um, let me know. I can share that. So, just an update on where that is at. >> Lori, Dwight, anything else? >> Mayor and council reports. >> Well,
I just had a question um because I I feel like I've been out for a while. Is um, do we have any updates on the community center? Does anybody >> I can make that two announcements. >> Okay. >> So, I'll start with the
>> community center. >> Okay. So, um, following the reception we had out at the Bree's home, um, we had a meeting,
the fundraising committee like a week after that and it was evident to me and I sent an email to the group with a copy to uh, the mayor and John Rice and Greg Jake that it's
obvious we are not going to raise the amount of money we had hoped to raise in the quiet phase. It's not going to happen. So, we're going to pivot to the public phase.
Community awareness, get everybody on board, ask for the community to participate in raising as much money as we can. And at the same time, we're asking the architect
working with Jake to formulate a phase one community center, which is going to look different than our original goal. And in that, yeah, in that, I'm stepping down from the fundraising part. So, it's
going to go on. It's going to go on great. But I've and I said in the email I was personally disappointed that some of our um higher netw worth business owners and residents
never stepped up with any major pledges. The major pledges we had were from outside of St. Joe. So, I'm done beating my head against the ball and it's going to be great. We're going to take it out to the community and the council is
going to get updated, I would think, before the end of the year as to sooner than that as to what phase one will look like and what the budget for that will be. >> Okay. >> Did I express that accurately? >> Yeah. >> Yeah. Thank you. >> Do you have any other questions? >> No, thank you. I just wanted to since we
had that >> Yeah. The second thing I want to announce is on Thursday two residents uh Wman and Murphy and myself we met for 45 minutes here and we have uh formed
uh well it's not an ad hoc group the these people are going to move forward uh what we're calling an arbor task force that's a group of residents that are interested in the health and maintenance of our trees >> y >> in the city parks on public property.
So, our next meeting is um a week from Thursday. We're going to put more meat on the bone as to how that's going to go forward. It's obvious that Ryan and his department's part of that because they're going to implement what the committee comes up with or the task
force and then we hope to recruit a couple more people and then I'll step down. I don't need to be involved in it. But I was really excited to see uh Ryan buy in Murphy said we don't need any official council approval to have a
citizen task force do this >> and uh and and these and these two guys and I'm sure they're going to recruit some great people for it. So I'm concerned about our trees especially uh ash trees with the emerald ashbor disease and I'm hoping we get some
treatment done before before the end of this year. That's all I have. >> Thank you. Anybody else? >> I got one announcement for this Thursday. If anybody's looking for something to do, uh Big Brothers Big
Sisters is going to be at Milstream Park and they're having u an event or carnival of sorts for uh children, teenagers, and they're looking to recruit more big brothers and big sisters for littles who are in need of them. Um, I will be in a dunk tank. So,
if you want to drown me, come on by and pitch a bunch of softballs. Hopefully, it's warm that day. But that's something that Big Brothers Big Sisters is playing on this Thursday from 4 to 7:00 p.m. at Milstream Park. With that, I'm just looking for a motion
to adjurnn. >> So, move. >> Second. >> All those in favor signify by I. I >> opposed. >> We are journed. >> So, like that. Recording stopped.