February 2, 2021

Administrative Committee Minutes for February 2, 2021

Olmsted County Page 1

Past Recordings of Olmsted County Administrative Committee Can Be Found Here.

Administrative Committee Meeting Recordings

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1. Call to Order

Attendee Name Title Status Arrived

Stephanie Podulke Commissioner Remote

Matt Flynn Commissioner Absent

Mark Thein Commissioner Remote

2. Approve Administrative Committee Meeting Agenda

3. Consent Agenda

a. Current Status of Contingency Fund ($362,000 remains of $400,000 budgeted for 2021)

4. Discussion/Decision Agenda

a. Finance Budget Changes for 02/02/2021 Meeting

RESULT: APPROVED [UNANIMOUS]

AYES: Stephanie Podulke, Mark Thein

ABSENT: Matt Flynn

b. Approve Issuance and Sale of Taxable General Obligation Crossover Refunding Bonds, Series 2021A

RESULT: RECOMMENDED BY COMMITTEE FOR BOARD CONSENT AGENDA [UNANIMOUS] Next: 2/2/2021 9:00 AM


ABSENT: Matt Flynn

c. Approve Olmsted County Resolution Guidelines



ABSENT: Matt Flynn

d. Approve Disposition of Public Housing Property

http://olmstedcountymn.iqm2.com/Citizens/Default.aspx

https://teams.microsoft.com/l/meetup-join/19%3ameeting_MzllYzU0OWItMTdkOS00ZDE3LTg5OTktMjk0OWU0MzZmNThj%40thread.v2/0?context=%7b%22Tid%22%3a%223b13dafd-8985-4fad-8f2c-467a9832b60a%22%2c%22Oid%22%3a%222a8f034e-840d-44a4-b641-60a09e33fb5c%22%7d

Olmsted County Page 2



ABSENT: Matt Flynn

e. Approve Grant Application



ABSENT: Matt Flynn

5. Administrator / Deputy Administrator of General Government Reports

The Commissioners added the agenda item of the Sheriff Office Drone policy. They shared questions with Sheriff Torgerson, and discussed the steps taken to allow the public to have an opportunity to provide feedback.

6. Adjourn

Budget Change Summary

Name: 0801-0805 ISF Xfr Form: 0801-0805_ISF_XFR

Division: General Government Total Expense Requested: $10,000,000.00

Situation & Background:

There are several Internal Service Funds that require an infusion of cash to maintain a positive net position or, in the case of the Self-Insured Health Fund, a level of net position per policy.

The HHS Administrative Fund carries a negative $3 Million net position from reporting the PERA liability of the staff transferred to that fund from governmental funds.

The Self-Insured Health Fund net position should be between 40 and 50 percent of expenses per our internal management and external auditors policy.

Finance ERP modernization, Motor Pool electric vehicles and Building Funds projects require financial support.

Assessment:

The General Revenue and Health and Human Services Funds have adequate fund balance to support the net position needs of Internal Service Funds and have capacity to transfer $10,000,000.

Recommendation:

Transfer cash from the General Revenue and Health and Human Services Funds to support the net position needs of Internal Service Funds in the amount of $10,000,000 as follows.

$3,060,000 from the Health and Human Services Governmental Fund to the HHS Administrative Internal Services Fund.

$6.940,000 from the General Revenue Fund to these Internal Service Funds in these amounts:> $3,100,000 Finance> $2,290,000 Building Operations> $1,200,000 Self-Insured Health> $350,000 Motor Pool

Status: A Pending Request Department: Various Manager: Roman-Catala

Budget Change Details

Fund Dept Unit Object Type Line Amount Line Summary

0855 0140 1446 5115 Revenue ($1,000,000.00) ERP 2020 BGRV use of reserves reversed

0855 0140 1446 5910 Revenue $3,100,000.00 ERP years 2020, 2021

0855 0140 1446 5116 Revenue ($2,100,000.00) ERP BU

0801 0140 8100 6910 Expense $6,940,000.00

0801 0140 8100 5115 Revenue $6,940,000.00

0894 0140 1482 5910 Revenue $1,200,000.00 COVID, Increased claims

0894 0140 1482 5116 Revenue ($1,200,000.00)

0899 0149 1499 5910 Revenue $350,000.00 Electrical vehicles

0899 0149 1499 5116 Revenue ($350,000.00)

0895 0180 1311 5910 Revenue $2,290,000.00 PW Service Center; Judicial space

0895 0180 1311 5116 Revenue ($2,290,000.00)

8005 8005 8504 5910 Revenue $3,060,000.00 PERA NPL negative NP

8005 8005 8504 5116 Revenue ($3,060,000.00)

0805 0591 5629 6910 Expense $3,060,000.00

OLMSTED COUNTYBoard Approval Budget Change Summary

For Admin Committee 02/02/2021

Report ID: FinBud001Run Date: 1/22/2021 8:52:25 AM

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0805 0591 5629 5115 Revenue $3,060,000.00




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Budget Change Summary

Name: LAKE ZUMBRO PK IMPRVMNT CARRY FWD Form: 08130709366020-1

Division: Physical Development Total Expense Requested: -

Situation & Background:

Parks Dept is requesting $166,000 of Public Works Fund (0813) reserves be carried forward to 2021 and put toward Lake Zumbro Park improvements. $166,000 is the total of unspent funds from the Root River house demo and Lk Zumbro Pk improv projects uncompleted at year-end 2020. Due to delays in the Bierman house conversion process, State Historic Preservation Office (SHPO) would not allow any ground disturbance in 2020 at Lk Zumbro Pk. The Root River demo budget was based on sq ft & potential hazardous materials in the home. Asbestos removal and demo both came back with much lower final numbers than expected; therefore, leaving a significant portion of unspent funds.

A professional construction design is in progress for the park's retaining wall rehabilitation to ensure DNR approval. Demolition of the Fisherman's Inn restaurant and the retaining wall rehab are yet to be started. With little to no work on the project in 2020, it is hopeful that substantial progress can be made in 2021 with the county board's approval of this request to carry forward these funds from 2020's budget to 2021.

Assessment: There is no financial impact as this is a carry forward of already approved use of Public Works fund reserves.

Recommendation: Request approval to carry forward these funds from 2020 to 2021 budget.

Status: A Pending Request Department: Parks Manager: Karlin Ziegler

Budget Change Details

Fund Dept Unit Object Type Line Amount Line Summary

0813 0709 3680 6645 Expense ($65,572.00) Carry forward 2020 Root River house demobudget to 2021 Lake Zumbro Pk improvements

0860 0709 3661 6640 Expense $65,572.00 Carry forward 2020 Root River house demobudget to 2021 Lake Zumbro Pk improvements

0813 0709 3660 6640 Expense ($100,428.00)Carrry forward 2020 Lake Zumbro Pk improvments to 2021 Lake Zumbro Pk improvements

0860 0709 3661 6640 Expense $100,428.00Carrry forward 2020 Lake Zumbro Pk improvments to 2021 Lake Zumbro Pk improvements

0813 0709 3680 5115 Revenue ($65,572.00) Carry forward 2020 Root River house demobudget to 2021 Lake Zumbro Pk improvements

0813 0709 3660 5115 Revenue ($100,428.00)Carrry forward 2020 Lake Zumbro Pk improvments to 2021 Lake Zumbro Pk improvements

0860 0709 3661 5115 Revenue $166,000.00Carry forward 2020 Lake Zumbro Pk improvements & Root River house demo budget to 2021 Lake Zumbro PK improvements




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Admin CommitteeGL Coding Meeting Date Amount Description of Use

A Adopted Budget 0801-0140-8100-6880 400,000$ Adopted BalanceLess:(1) Approved use of contingency funds:

Court Prosecution costs - Inc 0801-0110-1220-6260 01/19/2021 38,000 Increase in CHIPS/TPR contract for 2021

B Total Approved use of contingency Funds: 38,000$

Amount Available (A - B) 362,000$

Estimated available at year end -$

Status of 2021 Contingency FundsAs of January 21, 2021

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Admin CommitteeGL Coding Meeting Date Amount Description of Use

A Adopted Budget 0801-0140-8100-6880 400,000$ Adopted BalanceLess:(1) Approved use of contingency funds:

Building Fund - Security 0895-0180-1311-6610 07/07/2020 210,000 Security for Gov't Center

Building Fund - Add'l Security 0895-0180-1311-6610 09/15/2020 50,000 Add'l security for Gov't Center

Administration 0801-0130-1310-6610 11/03/2020 74,000 Technology Improvements - for Board meetings

B Total Approved use of contingency Funds: 334,000$

Amount Available (A - B) 66,000$

Estimated available at year end -$

Status of 2020 Contingency FundsAs of January 21, 2021

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RESOLUTION AUTHORIZING ISSUANCE AND SALE OF

TAXABLE GENERAL OBLIGATION CROSSOVER

REFUNDING BONDS, SERIES 2021A

BE IT RESOLVED by the Board of Commissioners (the “Board”) of Olmsted County,

Minnesota (the “County”), as follows:

Section 1. PURPOSE; AUTHORITY. It is hereby determined to be in the best interests

of the County to issue its Taxable General Obligation Crossover Refunding Bonds, Series 2021A

(the “Bonds”), in the approximate principal amount of $31,130,000, as authorized pursuant to

Minnesota Statutes, Chapter 475 and Sections 373.40 and 400.101, as amended, for the purpose

of refunding in a crossover refunding the County’s General Obligation Crossover Refunding

Bonds, Series 2012A, and to pay costs associated with the issuance of the Bonds.

Section 2. NOTICE OF SALE. Northland Securities, Inc. (“Northland”), municipal

advisor to the County, has prepared a Notice of Sale for the Bonds in the form attached as

EXHIBIT A, which is hereby approved. Northland, as independent municipal advisor, pursuant

to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9), is hereby authorized to solicit

bids for the Bonds on behalf of the County on a competitive basis without requirement of published

notice.

Section 3. AWARD AND SALE. The Board shall meet at the times and place shown in

the attached Notice of Sale for the purpose of considering sealed bids for the purchase of the Bonds

and of taking such action thereon as may be in the best interest of the County.

[THIS SPACE INTENTIONALLY LEFT BLANK]

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Signed at Rochester, Minnesota this ____ day of February, 2021.

OLMSTED COUNTY BOARD OF COMMISSIONERS

Matt Flynn, Chairperson

ATTEST:

Lisa Morris-Helmstetler, Deputy Clerk to the County Board

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EXHIBIT A

NOTICE OF SALE

$31,130,000*

TAXABLE GENERAL OBLIGATION CROSSOVER REFUNDING BONDS, SERIES 2021A

OLMSTED COUNTY, MINNESOTA

(Book-Entry Only)

NOTICE IS HEREBY GIVEN that these Bonds will be offered for sale according to the following terms:

TIME AND PLACE:

Proposals (also referred to herein as “bids”) will be opened by the County’s Chief Financial Officer, or

designee, on Monday, March 1, 2021, at 11:00 A.M., CT, at the offices of Northland Securities, Inc. (the

County’s “Municipal Advisor”), 150 South 5th Street, Suite 3300, Minneapolis, Minnesota 55402.

Consideration of the Proposals for award of the sale will be by the County Board at its meeting at the

County Offices beginning Tuesday, March 2, 2021 at 9:00 A.M., CT.

SUBMISSION OF PROPOSALS

Proposals may be:

a) submitted to the office of Northland Securities, Inc.,

b) faxed to Northland Securities, Inc. at 612-851-5918,

c) for proposals submitted prior to the sale, the final price and coupon rates may be submitted to

Northland Securities, Inc. by telephone at 612-851-5900 or 612-851-5915, or

d) submitted electronically.

Notice is hereby given that electronic proposals will be received via PARITY™, or its successor, in the

manner described below, until 11:00 A.M., CT, on Monday, March 1, 2021. Proposals may be submitted

electronically via PARITY™ or its successor, pursuant to this Notice until 11:00 A.M., CT, but no Proposal

will be received after the time for receiving Proposals specified above. To the extent any instructions or

directions set forth in PARITY™, or its successor, conflict with this Notice, the terms of this Notice shall

control. For further information about PARITY™, or its successor, potential bidders may contact Northland

Securities, Inc. or i-Deal at 1359 Broadway, 2nd floor, New York, NY 10018, telephone 212-849-5021.

Neither the County nor Northland Securities, Inc. assumes any liability if there is a malfunction of

PARITY™ or its successor. All bidders are advised that each Proposal shall be deemed to constitute a

contract between the bidder and the County to purchase the Bonds regardless of the manner in which the

Proposal is submitted.

BOOK-ENTRY SYSTEM

The Bonds will be issued by means of a book-entry system with no physical distribution of bond certificates

made to the public. The Bonds will be issued in fully registered form and one bond certificate, representing

* The County reserves the right to increase or decrease the principal amount of the Bonds. Any such increase or decrease will be

made in multiples of $5,000 and may be made in any maturity. If any maturity is adjusted, the purchase price will also be

adjusted to maintain the same gross spread.

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the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede

& Co. as nominee of Depository Trust Company (“DTC”), New York, New York, which will act as

securities depository of the Bonds.

Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof

of a single maturity through book entries made on the books and records of DTC and its participants.

Principal and interest are payable by the County through Wells Fargo Bank, N.A., Minneapolis, Minnesota

(the “Paying Agent/Registrar”), to DTC, or its nominee as registered owner of the Bonds. Transfer of

principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of

principal and interest payments to beneficial owners by participants will be the responsibility of such

participants and other nominees of beneficial owners. The successful bidder, as a condition of delivery of

the Bonds, will be required to deposit the bond certificates with DTC. The County will pay reasonable and

customary charges for the services of the Paying Agent/Registrar.

DATE OF ORIGINAL ISSUE OF BONDS

Date of Delivery (Estimated to be April 7, 2021)

AUTHORITY/PURPOSE/SECURITY

The Bonds are being issued pursuant to Minnesota Statutes, Chapter 475 and Sections 373.40 and 400.101,

as amended. Proceeds will be used to crossover refund the County’s General Obligation Crossover

Refunding Bonds, Series 2012A and to pay costs associated with the issuance of the Bonds. The Bonds are

payable from net revenues of the County’s waste management enterprise and ad valorem taxes on all taxable

property within the County. The full faith and credit of the County is pledged to their payment and the

County has validly obligated itself to levy ad valorem taxes in the event of any deficiency in the debt service

account established for this issue.

INTEREST PAYMENTS

Interest is due semiannually on each February 1 and August 1, commencing February 1, 2022, to registered

owners of the Bonds appearing of record in the Bond Register as of the close of business on the fifteenth

day (whether or not a business day) of the calendar month preceding such interest payment date.

MATURITIES

Principal is due annually on February 1, inclusive, in each of the years and amounts as follows:

Year Amount Year Amount Year Amount

2023 $6,180,000 2025 $6,215,000 2027 $6,295,000

2024 6,195,000 2026 6,245,000

Proposals for the Bonds may contain a maturity schedule providing for any combination of serial bonds

and term bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject

to mandatory redemption in each year conforms to the maturity schedule set forth above.

INTEREST RATES

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All rates must be in integral multiples of 1/20th or 1/8th of 1%. The rate for any maturity may not be more

than 2.00% less than the rate for any preceding maturity. All Bonds of the same maturity must bear a single

uniform rate from date of issue to maturity.

ADJUSTMENTS TO PRINCIPAL AMOUNT AFTER PROPOSALS

The County reserves the right to increase or decrease the principal amount of the Bonds. Any such increase

or decrease will be made in multiples of $5,000 and may be made in any maturity. If any maturity is

adjusted, the purchase price will also be adjusted to maintain the same gross spread. Such adjustments shall

be made promptly after the sale and prior to the award of Proposals by the County and shall be at the sole

discretion of the County. The successful bidder may not withdraw or modify its Proposal once submitted

to the County for any reason, including post-sale adjustment. Any adjustment shall be conclusive and shall

be binding upon the successful bidder.

OPTIONAL REDEMPTION

The Bonds are not subject to prepayment or optional redemption prior to maturity.

CUSIP NUMBERS

If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but

neither the failure to print such numbers on any Bond nor any error with respect thereto shall constitute

cause for a failure or refusal by the successful bidder thereof to accept delivery of and pay for the Bonds in

accordance with terms of the purchase contract. The CUSIP Service Bureau charge for the assignment of

CUSIP identification numbers shall be paid by the successful bidder.

DELIVERY

Delivery of the Bonds will be within forty days after award, subject to an approving legal opinion by Dorsey

& Whitney, LLP, Bond Counsel. The legal opinion will be paid by the County and delivery will be

anywhere in the continental United States without cost to the successful bidder at DTC.

TYPE OF PROPOSAL

Proposals of not less than $30,974,350 (99.50%) and accrued interest on the principal sum of $31,130,000

must be filed with the undersigned prior to the time of sale. Proposals must be unconditional except as to

legality. Proposals for the Bonds should be delivered to Northland Securities, Inc. and addressed to:

Wilfredo Roman Catala, Chief Financial Officer

Olmsted County Government Center

151 4th St. SE

Rochester, Minnesota 55904

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A good faith deposit (the “Deposit”) in the amount of $500,000 in the form of a federal wire transfer

(payable to the order of the County) is only required from the apparent winning bidder, and must be received

within two hours after the time stated for the receipt of Proposals. The apparent winning bidder will receive

notification of the wire instructions from the Municipal Advisor promptly after the sale. If the Deposit is

not received from the apparent winning bidder in the time allotted, the County may choose to reject their

Proposal and then proceed to offer the Bonds to the next lowest bidder based on the terms of their original

proposal, so long as said bidder wires funds for the Deposit amount within two hours of said offer.

The County will retain the Deposit of the successful bidder, the amount of which will be deducted at

settlement and no interest will accrue to the successful bidder. In the event the successful bidder fails to

comply with the accepted Proposal, said amount will be retained by the County. No Proposal can be

withdrawn after the time set for receiving Proposals unless the meeting of the County scheduled for award

of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been

made.

AWARD

The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost

(TIC) basis. The County’s computation of the interest rate of each Proposal, in accordance with customary

practice, will be controlling. In the event of a tie, the sale of the Bonds will be awarded by lot. The County

will reserve the right to: (i) waive non-substantive informalities of any Proposal or of matters relating to

the receipt of Proposals and award of the Bonds, (ii) reject all Proposals without cause, and (iii) reject any

Proposal which the County determines to have failed to comply with the terms herein.

INFORMATION FROM SUCCESSFUL BIDDER

The successful bidder will be required to provide, in a timely manner, certain information relating to the

initial offering price of the Bonds necessary to compute the yield on the Bonds pursuant to the provisions

of the Internal Revenue Code of 1986, as amended.

OFFICIAL STATEMENT

By awarding the Bonds to any underwriter or underwriting syndicate submitting a Proposal therefor, the

County agrees that, no more than seven business days after the date of such award, it shall provide to the

senior managing underwriter of the syndicate to which the Bonds are awarded, the Final Official Statement

in an electronic format as prescribed by the Municipal Securities Rulemaking Board (MSRB).

FULL CONTINUING DISCLOSURE UNDERTAKING

The County will covenant in the resolution awarding the sale of the Bonds and in a Continuing Disclosure

Undertaking to provide, or cause to be provided, annual financial information, including audited financial

statements of the County, and notices of certain material events, as required by SEC Rule 15c2-12.

NO BANK QUALIFICATION

The County will not designate the Bonds as qualified tax-exempt obligations for purposes of Section

265(b)(3) of the Internal Revenue Code of 1986, as amended.

BOND INSURANCE AT UNDERWRITER’S OPTION

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If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the

option of the successful bidder, the purchase of any such insurance policy or the issuance of any such

commitment shall be at the sole option and expense of the successful bidder of the Bonds. Any increase in

the costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the successful

bidder, except that, if the County has requested and received a rating on the Bonds from a rating agency,

the County will pay that rating fee. Any other rating agency fees shall be the responsibility of the successful

bidder. Failure of the municipal bond insurer to issue the policy after the Bonds have been awarded to the

successful bidder shall not constitute cause for failure or refusal by the successful bidder to accept delivery

on the Bonds.

The County reserves the right to reject any and all Proposals, to waive informalities and to adjourn the sale.

Dated: February 2, 2021 BY ORDER OF THE OLMSTED COUNTY BOARD

/s/ Wilfredo Roman Catala

Chief Financial Officer

Additional information may be obtained from:

Northland Securities, Inc.

150 South 5th Street, Suite 3300

Minneapolis, Minnesota 55402

Telephone No.: 612-851-5900

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Finance Plan

Olmsted County, Minnesota

$31,130,000

Taxable General Obligation Crossover Refunding Bonds, Series 2021A

February 2, 2021

150 South 5th Street, Suite 3300

Minneapolis, MN 55402

612-851-5900 800-851-2920

www.northlandsecurities.com

Member FINRA and SIPC | Registered with SEC and MSRB

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Contents Executive Summary

Issue Overview

Purpose

Authority

Structure

Security and Source of Repayment

Plan Rationale

Issuing Process

Attachment 1 – Preliminary Debt Service Schedule

Attachment 2 – Preliminary Debt Service Savings Schedule

Attachment 3 – Related Considerations

No Bank Qualification

Arbitrage Compliance

Continuing Disclosure

Rating

Attachment 4 – Calendar of Events

Attachment 5 - Risk Factors

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Northland Securities, Inc. Page 1

Executive Summary

The following is a summary of the recommended terms for the issuance of $31,130,000 Taxable General Obligation Crossover Refunding Bonds, Series 2021A (the “Bonds” or “2021A Bonds”). Additional information on the proposed finance plan and issuing process can be found after the Executive Summary, in the Issue Overview and Attachment 3 – Related Considerations.

Purpose Proceeds from the Bonds will be used to crossover refund the 2023 through 2027 maturities of the County’s General Obligation Crossover Refunding Bonds, Series 2012A on February 1, 2022.

Security The Bonds will be a general obligation of the County. The County will pledge for payment of the Bonds:

• Net Revenues of the County’s waste management enterprise.

• Property tax levies.

Repayment Term The Bonds will mature annually each February 1 in the years 2023 - 2027. Interest on the Bonds will be payable on February 1, 2022 and semiannually thereafter on each August 1 and February 1.

Refunding Summary Estimated Savings: Gross savings $2,370,271 Net Present Value $2,319,350 Net PV Percent 6.96% Other Factors: No change in the debt structure is proposed.

Estimated Interest Rate Average coupon: 0.62% True interest cost (TIC): 0.75%

Prepayment Option The Bonds will be non-callable.

Rating A rating will be requested from Moody’s Investors Service (Moody’s). The County’s general obligation debt is currently rated "Aaa" by Moody’s.

Tax Status The Bonds will be taxable, not bank qualified obligations.

Risk Factors There are certain risks associated with all debt. Risk factors related to the Bonds are discussed in Attachment 5.

Type of Bond Sale Public Sale – Competitive Bids

Proposals Received Monday, March 1, 2021 @ 11:00 A.M.

Board Consideration Monday, March 2, 2021 @ 9:00 A.M.

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Issue Overview

Purpose

Proceeds from the Bonds will be used to crossover refund the callable maturities (2023 through 2027) of the County’s General Obligation Crossover Refunding Bonds, Series 2012A (the “2012A Bonds”) on February 1, 2022. The Bonds have been sized based on the outstanding callable amounts of the 2012A Bonds. The table below contains the sources and uses of funds for the bond issue.

The 2012A Bonds maturing on and after February 1, 2023 are eligible for call and prepayment on February 1, 2022. The proceeds of the 2021A Bonds will be invested in government securities that will be deposited in an escrow account until the call date. Prior to the call date, monies in the escrow account will be used to make the interest payments on the new 2021A Bonds. On the call date, monies in the escrow will be used to prepay all outstanding principal of the 2012A Bonds plus accrued interest. The County will continue to pay principal and interest on the 2012A Bonds until its call date. After the call date, the County will “crossover” and begin paying debt service on the 2021A Bonds. Based on current market conditions, we have estimated total savings of $2,370,271 with a present value of $2,319,350. The preliminary refunding analysis can be found in Attachment 2.

Under current federal regulations, “crossover” advance refundings cannot be issued as tax-exempt bonds. By conducting the refunding as a taxable bond issue, the County will be able to lock in savings during the current period of historically low taxable interest rates.

Authority

The Bonds will be issued pursuant to the authority of Minnesota Statutes, Chapter 475 and Sections 400.101 and 373.40.

Structure

The Bonds have been structured to result in relatively level annual debt service savings over the life of the issue. This preserves the original structure of the 2012A Bonds.

The proposed structure for the bond issue and preliminary debt service projections are illustrated in Attachment 1.

Security and Source of Repayment

The Bonds will be general obligations of the County. The Bonds are payable from net revenues of the County’s waste management enterprise, and ad valorem taxes.

Revenues Taxes

Issue

Summary

Sources Of Funds Par Amount of Bonds $24,225,000.00 $6,905,000.00 $31,130,000.00

Total Sources $24,225,000.00 $6,905,000.00 $31,130,000.00

Uses Of Funds Total Underwriter's Discount (0.500%) 121,125.00 34,525.00 155,650.00

Costs of Issuance 116,144.59 33,105.41 149,250.00

Deposit to Crossover Escrow Fund 23,987,375.21 6,834,958.55 30,822,333.76

Rounding Amount 355.20 2,411.04 2,766.24

Total Uses $24,225,000.00 $6,905,000.00 $31,130,000.00

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Plan Rationale

The Finance Plan recommended in this report is based on a variety of factors and information provided by the County related to the financed projects and County objectives, Northland’s knowledge of the County and our experience in working with similar counties and projects. The issuance of Taxable General Obligation Crossover Refunding Bonds provides the best means of achieving the County’s objectives and cost effective financing. The County has successfully issued and managed this type of debt for previous projects.

Issuing Process

Northland will receive bids to purchase the Bonds on Monday, March 1, 2021 at 11:00 AM. Market conditions and the marketability of the Bonds support issuance through a competitive sale. This process has been chosen as it is intended to produce the lowest combination of interest expense and underwriting expense on the date and time set to receive bids. The calendar of events for the issuing process can be found in Attachment 4.

Municipal Advisor: Northland Securities, Inc., Minneapolis, Minnesota

Bond Counsel: Dorsey & Whitney, LLP, Minneapolis, Minnesota

Paying Agent: Wells Fargo Bank, N.A., Minneapolis, Minnesota

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Attachment 1 – Preliminary Debt Service Schedule

Date Principal Coupon Interest Total P+I Fiscal Total

04/07/2021 - - - - -

02/01/2022 - - 135,133.83 135,133.83 135,133.83

08/01/2022 - - 82,735.00 82,735.00 -

02/01/2023 6,180,000.00 0.250% 82,735.00 6,262,735.00 6,345,470.00

08/01/2023 - - 75,010.00 75,010.00 -

02/01/2024 6,195,000.00 0.300% 75,010.00 6,270,010.00 6,345,020.00

08/01/2024 - - 65,717.50 65,717.50 -

02/01/2025 6,215,000.00 0.500% 65,717.50 6,280,717.50 6,346,435.00

08/01/2025 - - 50,180.00 50,180.00 -

02/01/2026 6,250,000.00 0.700% 50,180.00 6,300,180.00 6,350,360.00

08/01/2026 - - 28,305.00 28,305.00 -

02/01/2027 6,290,000.00 0.900% 28,305.00 6,318,305.00 6,346,610.00

Total $31,130,000.00 - $739,028.83 $31,869,028.83 -

Date And Term Structure Dated 4/07/2021

Delivery Date 4/07/2021

First available call date Non-Callable

Call Price -

Yield Statistics Bond Year Dollars $119,087.83

Average Life 3.826 Years

Average Coupon 0.6205746%

Net Interest Cost (NIC) 0.7512764%

True Interest Cost (TIC) 0.7523792%

All Inclusive Cost (AIC) 0.8805857%

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Attachment 2 – Preliminary Debt Service Savings Schedule

Date Total P+I PCF Existing D/S Net New D/S Old Net D/S Savings

02/01/2022 135,133.83 (30,845,133.83) 37,521,250.00 6,808,483.76 6,811,250.00 2,766.24

02/01/2023 6,345,470.00 - - 6,345,470.00 6,817,850.00 472,380.00

02/01/2024 6,345,020.00 - - 6,345,020.00 6,820,450.00 475,430.00

02/01/2025 6,346,435.00 - - 6,346,435.00 6,818,850.00 472,415.00

02/01/2026 6,350,360.00 - - 6,350,360.00 6,823,600.00 473,240.00

02/01/2027 6,346,610.00 - - 6,346,610.00 6,820,650.00 474,040.00

Total $31,869,028.83 (30,845,133.83) $37,521,250.00 $38,542,378.76 $40,912,650.00 $2,370,271.24

PV Analysis Summary (Net to Net) Gross PV Debt Service Savings..................... 2,316,584.14

Net PV Cashflow Savings @ 0.620%(Bond Yield)..... 2,316,584.14

Contingency or Rounding Amount.................... 2,766.24

Net Present Value Benefit $2,319,350.38

Net PV Benefit / $33,312,131.22 PV Refunded Debt Service 6.962%

Net PV Benefit / $30,710,000 Refunded Principal... 7.552%

Net PV Benefit / $31,130,000 Refunding Principal.. 7.451%

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Attachment 3 – Related Considerations

No Bank Qualification

As taxable obligations, the Bonds will be designated as “not bank qualified” obligations pursuant to Federal Tax Law.

Arbitrage Compliance

Since the Bonds are taxable, rather than tax-exempt, they also will not be subject to arbitrage rebate.

Continuing Disclosure

Type: Full Dissemination Agent: Northland Securities

The requirements for continuing disclosure are governed by SEC Rule 15c2-12. The primary requirements of Rule 15c2-12 actually fall on underwriters. The Rule sets forth due diligence needed prior to the underwriter’s purchase of municipal securities. Part of this requirement is obtaining commitment from the issuer to provide continuing disclosure. The document describing the continuing disclosure commitments (the “Undertaking”) is contained in the Official Statement that will be prepared to offer the Bonds to investors.

The County currently undertakes “full” continuing disclosure. Full disclosure requires annual posting of the audit and a separate continuing disclosure report, as well as the reporting of certain “material events.” Material events set forth in the Rule, including, but not limited to, bond rating changes, call notices, and issuance of “financial obligations” (such as PFA loans, leases, or bank placements) must be reported within ten business days of occurrence. The report contains annual financial information and operating data that “mirrors” material information presented in the Official Statement. The specific contents of the annual report will be described in the Undertaking that appears in the appendix of the Official Statement. Northland currently serves as dissemination agent for the County, assisting with the annual reporting. The information for the Bonds will be incorporated into our reporting.

Rating

A rating will be requested from Moody’s Investors Service (Moody’s). The County’s general obligation debt is currently rated "Aaa" by Moody’s. The rating process will include a conference call with the rating analyst. Northland will assist County staff in preparing for and conducting the rating call.

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Attachment 4 – Calendar of Events

Date Action Responsible Party

January 26 Set Sale Resolution Sent to County for Board Packets Finance Plan Sent to the County

Northland, Bond Counsel

January 27 Preliminary Official Statement Sent to County for Sign Off and to Rating Agency

Northland, County

February 2 Set Sale Resolution Adopted

County Board Action

Week of February 8

Rating Call Northland, County, Rating Agency

February 22 Rating Received Northland, County, Rating Agency

March 1 Bond Sale – 11:00 AM

Northland

March 2 Awarding Resolution Adopted – 9:00 AM County Board Action, Northland, Bond Counsel

April 7 Closing on the Bonds (Proceeds Available) Northland, County, Bond Counsel

January 2021 February 2021

Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat

1 2 1 2 3 4 5 6

3 4 5 6 7 8 9 7 8 9 10 11 12 13

10 11 12 13 14 15 16 14 15 16 17 18 19 20

17 18 19 20 21 22 23 21 22 23 24 25 26 27

24 25 26 27 28 29 30 28

31

March 2021 April 2021

Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat

1 2 3 4 5 6 1 2 3

7 8 9 10 11 12 13 4 5 6 7 8 9 10

14 15 16 17 18 19 20 11 12 13 14 15 16 17

21 22 23 24 25 26 27 18 19 20 21 22 23 24

28 29 30 31 25 26 27 28 29 30

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Attachment 5 - Risk Factors

Property Taxes: Final levies will be set based on the results of sale. Levies should be reviewed annually and adjusted as needed. The debt service levy must be included in the preliminary levy for annual Truth in Taxation hearings. Future Legislative changes in the property tax system, including the imposition of levy limits and changes in calculation of property values, would affect plans for payment of debt service. Delinquent payment of property taxes would reduce revenues available to pay debt service.

Waste Management Revenues: The County pledges the net revenues of the waste management enterprises to the payment of a portion of the principal and interest on the Bonds. The failure to adjust rates and charges as needed and the loss of significant customers will affect available net revenues. If the net revenues are insufficient, the County is required to levy property taxes or use other revenues to cover the deficiency.

General: In addition to the risks described above, there are certain general risks associated with the issuance of bonds. These risks include, but are not limited to:

• Failure to comply with covenants in bond resolution.

• Failure to comply with Undertaking for continuing disclosure.

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DRAFT Olmsted County

Guidelines for Requested Resolutions and Proclamations

The Olmsted County Board is a nonpartisan body that does not advocate for positions or policies that do not have a direct, unambiguous and explicit relationship to the County’s programs, services, policies, or budgets. This policy provides the County Administration with guidelines in responding to requests for Resolutions. It outlines, in general, the reasons for Board proclamations and resolutions.

Ceremonial Proclamations and Resolutions are documents signed by the Board

Chair and issued for: • Public awareness • Arts and cultural celebrations • Special honors

Resolutions: 1. Resolutions for the County Board to take affirmative action on an item of County

business such as:

• Approval of Board minutes, County policies, procedures, and guidelines • Approval of the annual budget, budget amendments, to establish funds, to make large

purchases • Approval to advertise for bids and proposals, to enter into contracts and agreements • Approval of interim or ad hoc committees to analyze issues • Approval of appointments of some employees and appointments to various boards and

committees • Approval of comprehensive plan, rezoning, conditional use permits, findings of facts,

and other zoning issues • Approval of employment bargaining unit and union agreements • Approval of commissioner’s salaries, approval of official newspaper, approval of official

website, and other annual requirements • Establishing or dissolution of Joint Powers Agreements • Enacting a State of Emergency • Other actions required by State or Federal law or policy

2. Statements to Influence State and Federal Policy.

• Resolutions about State policy that are directly and explicitly related to the County budget, programs and services. For example, issues of importance raised by the Association of Minnesota Counties and the Minnesota Inter-County Association, and funding of local projects and initiatives. • Resolutions about Federal policy that are directly and explicitly related to the County budget, programs and services. For example, issues of importance raised by the National Association of Counties and funding of local projects and initiatives.

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Proclamations and Resolutions will not be issued for:

• Issues in which the County Board is not required by Federal law or policy, State law or policy, or local law or policy to act upon unless identified above. For example:

• Expressing an opinion on matters of political or ideological controversy • Expressing an opinion on issues generally identified and known as supported

by one political party and/or opposed by a political party • Expressing an opinion or position on topics that have no direct, unambiguous

and explicit relationship to the County’s programs, services, policies, or budgets

• Events or organizations with no explicit and unambiguous relationship to the County’s programs, services, policies, or budgets

• Campaigns or events contrary to County policies

Administration of the Guidelines:

Requests for County Board action on a resolution or proclamation will be processed by the County Administrator. The County Administrator will apply the guidelines and provide a reply to the requestor. This policy or the administration of this policy does not prevent anyone from being heard. Anyone may be heard by the County Board during Public Comment period which appears on all County Board meetings.

Approved and Adopted by the Olmsted County Board this ___ day of ___, 2021.

__________________________________

Stephanie Podulke, Board Chair

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508C 1/22/21 5093.docx Page 1 of 1

Date: 02/02/2021

To: Department of Housing and Urban Development

From: Olmsted County Board of Commissioners

RE: Disposition of Public Housing property at 1742 1st St. SW,

Rochester, MN 55902

The Olmsted County Housing and Redevelopment Authority has expressed a desire to dispose

of Public Housing single family home located at 1742 1st Street SW, Rochester MN 55902. This

property is not located near any other Public Housing units nor Public Housing offices, thereby

increasing personnel and maintenance costs due to its distant location and it’s lack of similarity

to any other unit owned and maintained by the HRA. The disposition as reviewed is consistent

with the goals of the Olmsted County HRA and their approved PHA Plan.

The HRA has discussed housing options and relocation costs with the current tenant. The

current tenant has chosen to move into different unit in the Public Housing program.

The property will be advertised for sale through an RFP process, which will include a minimum

bid amount at or above fair market rate. The proceeds of the sale will assist with tenant

relocation and other capital needs of other Public Housing property.

The Olmsted County Board of Commissioners recognizes that the ongoing maintenance of

scattered site single family homes may not be the most cost effective way of providing

services. The sale of the property and the relocation of the tenant is supported by the

Olmsted County Board of Commissioners.

Signed,

Signatory, Olmsted County Board of Commissioners DATE

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REQUEST FOR COMMITTEE ACTION (RCA) ADDRESS NEEDS INCARCERATED PARENTS&THEIR CHILDREN GRANT

ACCEPTANCE REQUEST

Application approved by: Erickson Janet

Grant Sponsor: Dawn Beck County Administration

Grant Source: The US Department of Justice, Office of Justice Programs, Office of Juvenile Justice and Delinquency Prevention Funds Direct from the Federal Government

Grant Amount: $750,000.00

Grant Funding Dates: 10/1/2021 through 9/30/2024

Has the County received this grant at any time in the past? No Does this grant create a constituency that will expect services to continue after the grant is done? No Describe the purpose of the grant and how you believe it will fit the mission of the County? Olmsted County's Mission to provide the foundation of a vibrant community will be supported by the work associated with these grant funds. This funding will provide an opportunity to create an integrated county system to serve the needs of children and families impacted by incarceration with a proactive, preventative approach. The application will include the following proposed strategies: -Building a local model of systems that address the needs of children and families from arrest to re-entry -Olmsted County’s Integrated Health, Housing and Human Services Division along with the County Detention Center and various community partners will be key players/stakeholders -The model will include an infrastructure for data sharing across systems -Evident Change (Formerly The National Council on Crime and Delinquency) will partner with Olmsted County in implementing their Data for Equity Model along with the principles of Continuous Quality Improvement in planning and executing this work. Provide information about any intangible benefits that should be considered when evaluating the grant? Other potential benefits to implementation of projects associated with this grant are long-term and significant. A key component of the strategy will be addressing parental incarceration as an Adverse Childhood Experience (ACE) that puts children at high risk for poor social, emotional, educational, and health outcomes. This is especially true because other ACEs tend to be part of these children’s lives, raising their ACE score and increasing how susceptible these children are to undesirable short and long-term outcomes. Development of integrated systems will include programs and services for early intervention and mitigation of the trauma that incarceration creates. Will this grant involve multiple organizations? No

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How much of the County’s indirect or administrative costs will be covered by the grant? 100% Are there any funding match requirements? No Will any additional staff or contracted workers be hired to do this grant work? No

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Documents

February 2, 2021