Based on the context provided and the flow of the meeting, here is the transcribed townhall with speaker names added. [0:00] **Mayor Wayne Boucher:** Pledge of Allegiance of the United States of America and to the Republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Roll call please. [0:15] **City Clerk Alissa McClure:** Counselor Geisler? **Counselor John Geissler:** Here. **City Clerk Alissa McClure:** Hostchild? **Counselor Hostchild:** Here. **City Clerk Alissa McClure:** Nelson? **Counselor Nelson:** Here. **City Clerk Alissa McClure:** Peterson? **Counselor Joe Peterson:** Here. **City Clerk Alissa McClure:** Mayor Boucher? **Mayor Wayne Boucher:** Here. Uh, are there any announcements from counselors? [0:32] **Counselor (Unidentified):** No announcements for me. **Mayor Wayne Boucher:** Uh, just a reminder to anyone online: you still have until midnight to pay your property taxes. I got mine in this afternoon. We have no public hearings. No communications. [0:46] **Mayor Wayne Boucher:** Mr. Mulder, are we going to have a short presentation on the audit? **City Administrator John Mulder:** Mr. Orme is going to give us a brief update on that, or report. Kevin? [0:55] **Finance Director Kevin Orme:** Thank you, Mr. Mayor, members of the Council. Tonight we had CliftonLarsonAllen, City’s auditors, here at pre-agenda and they gave us a PowerPoint presentation. They also presented the audit booklet. This was in your packet in PDF format and is currently on the website for anyone who wants to take a look at it at any point in time. They did a nice little PowerPoint presentation tonight, which I'll just briefly recap. Um, they audit our books again for the second time. They're a large firm out of Minneapolis. They gave us an unmodified, or clean opinion for our 2020 audits. They didn't find any material weaknesses, they didn't find any significant deficiencies, and they had no legal compliance findings. [1:42] **Finance Director Kevin Orme:** They reported on our general fund, which is our largest and main fund. They reported that our revenues were above budget, our expenditures were below our amended budget; therefore, we had a $570,000 increase in our fund balance in the general fund. That's a good thing. It's a good thing in any year, especially the year we just went through. So because of that, we have about 7.7 months of cash that could be used towards expenditures, and they charted that for us. They then went through our water and sewer funds. Both of those funds had an operating surplus. That's—if we saw from the graph—that's not always the case. Sewer fund: this was actually the first year we had an operating surplus in the last five-six years, as you can see on the graph that they presented to us in pre-agenda. [2:34] **Finance Director Kevin Orme:** They talked about our city debt. The City has about 35 million in debt at the end of 2020. And then they just thanked us at the end and they said they were happy to work with us and overall it was a very clean audit. It's very nice to see them in person. You know, it's a lot of work to audit anytime, and even more so remotely. And I'd just like to thank Dana, our City Accountant. She really partners with me and she's a CPA and she's done a wonderful job with us. And so, um, the audit went very well. Any questions on this book or financials or anything the auditor said? I'd be happy to answer any questions. [3:14] **Mayor Wayne Boucher:** Just for me, uh, can we get a copy of that presentation? Maybe put that on the website as well? That was a nice quick little snapshot that might be a little bit more interesting for people to look at rather than that whole great big— **Finance Director Kevin Orme:** Yeah, let me just reach out to them and make sure that they're okay with us putting it on their website. And if so, then um, I'll give that to Joe Wicklund. **Mayor Wayne Boucher:** Thank you. Thank you. Any other questions? **Counselor Joe Peterson:** Oh, just good job, Joe, as always. **Finance Director Kevin Orme:** Thank you. **City Administrator John Mulder:** Yeah, thank you, and to your team and to Kevin, too. [3:50] **Mayor Wayne Boucher:** Joe? Jay? Call you Joe? Are you coming, Joe? **Asst. City Admin Joe Wicklund:** I'll be "Joe" for tonight. It's a large, gracious... [laughter] **Mayor Wayne Boucher:** My gosh, thank you. [4:10] **Mayor Wayne Boucher:** And now we have time for public discussion. If there's any member of the public online or in the council chambers that wishes to address the council, please start with your name and address. Is there any public discussion this evening? If there is none, we will move on to the consent agenda. Do we have a motion for the consent agenda? **Counselor Joe Peterson:** Motion to approve. **Counselor Hostchild:** Second. **Mayor Wayne Boucher:** Motion by Counselor Peterson, second by Counselor Hostchild. Roll call please. [4:47] **City Clerk Alissa McClure:** Counselor Hostchild? **Counselor Hostchild:** Aye. **City Clerk Alissa McClure:** Nelson? **Counselor Nelson:** Hi. **City Clerk Alissa McClure:** Peterson? **Counselor Joe Peterson:** Aye. [4:57] **Mayor Wayne Boucher:** We have no motions or ordinances tonight. Resolutions. **City Clerk Alissa McClure:** Resolution 2021-58: Resolution authorizing and directing the Mayor and City Clerk to execute and deliver a first amendment to the development agreement with KTJS 360 LLC. **Counselor Joe Peterson:** Motion to approve. **Counselor John Geissler:** Second. **Mayor Wayne Boucher:** Motion by Counselor Peterson, second by Counselor Geissler. Mr. Mulder? **City Administrator John Mulder:** We'll have Mr. Johnson explain this one. Eric? [5:21] **Community Development Director Eric Johnson:** Great, thank you very much. Uh, this first amendment, it outlines the responsibilities of the developer regarding the payment of the public water main associated with the Pillars property. It also amends the requirement payment date associated with park dedication, and it identifies letter of credit amounts for both the landscape installation as well as the stormwater improvements associated with the property. Uh, the developer is anticipating to start within the next one to two years; they're still working different site elements and look forward to starting and keep working with the City. [5:58] **Mayor Wayne Boucher:** Thank you. Do you have any questions or comments from Council? Are there any members of the public that wish to have input on this matter? If so, please state your name and address. Is there any public input on Resolution 2021-58? Could we have a roll call please? [6:19] **City Clerk Alissa McClure:** Counselor Nelson? **Counselor Nelson:** Aye. **City Clerk Alissa McClure:** Peterson? **Counselor Joe Peterson:** Aye. **City Clerk Alissa McClure:** Geisler? **Counselor John Geissler:** [Aye]. **City Clerk Alissa McClure:** Hostchild? **Counselor Hostchild:** [Aye]. **City Clerk Alissa McClure:** Mayor Boucher? **Mayor Wayne Boucher:** Aye. [6:28] **City Clerk Alissa McClure:** Resolution 2021-59: Resolution approving a grant contract agreement between the City of Hermantown and Mediacom Minnesota LLC and authorizing and directing the Mayor and City Clerk to execute and deliver such grant agreement on behalf of the City of Hermantown. **Counselor Nelson:** Motion to approve. **Counselor John Geissler:** I’ll second. **Mayor Wayne Boucher:** Motion by Counselor Nelson, second by Counselor Geisler. Mr. Mulder? [7:00] **City Administrator John Mulder:** So this is the grant agreement that we've discussed earlier with Mediacom, and it's a match of about $38,000, give or take, with the money that they'll invest and the money that they receive from the State of Minnesota to expand internet and broadband in the western part of the city. It'll be along Arrowhead and Midway, Jane, Bart, and in that general area, Hagberg—that general area. That work is scheduled for um, sometime between now and December 31st of 2022. It might get done before that. [7:42] **Mayor Wayne Boucher:** Thank you. Any comments or questions from Council? Is there any public input on this resolution? If so, please state your name and address for the record. Is there any public input on the grant contract agreement with Mediacom LLC? Hearing none, roll call please. [8:06] **City Clerk Alissa McClure:** Counselor Peterson? **Counselor Joe Peterson:** Aye. **City Clerk Alissa McClure:** Geisler? **Counselor John Geissler:** Hi. **City Clerk Alissa McClure:** Hostchild? **Counselor Hostchild:** Hi. **City Clerk Alissa McClure:** Nelson? **Counselor Nelson:** Hi. **City Clerk Alissa McClure:** Mayor Boucher? **Mayor Wayne Boucher:** Aye. [8:17] **City Clerk Alissa McClure:** Resolution 2021-60: Resolution approving a request for proposals for design, inspection, and construction engineering services for Highway 53 water tower reconditioning. **Counselor Hostchild:** So moved. **Counselor Joe Peterson:** Second. **Mayor Wayne Boucher:** Motion by Counselor Hostchild, second by Counselor Peterson. Mr. Mulder? [8:35] **City Administrator John Mulder:** So we're scheduled to recondition the um, Highway 53 water tower next year. We want to get an engineer on board now to start preparing those plans and specs so we can put that out to bid early on. **Mayor Wayne Boucher:** Thank you. Any questions or comments from Council? And that was an interior coating and exterior coating for that reconditioning, as opposed to the last time where there was just interior coating and exterior cleaning. Any other comments or questions? [9:11] **Mayor Wayne Boucher:** Is there any public input on the resolution to approve an engineering RFP for Highway 53 water tower reconditioning? Last call for public input on Resolution 2021-60. If you have any input, please state your name and address for the record. Roll call please. [9:36] **City Clerk Alissa McClure:** Counselor Geisler? **Counselor John Geissler:** Hi. **City Clerk Alissa McClure:** Hostchild? **Counselor Hostchild:** [Hi]. **City Clerk Alissa McClure:** Nelson? **Counselor Nelson:** Aye. **City Clerk Alissa McClure:** Peterson? **Counselor Joe Peterson:** Aye. **City Clerk Alissa McClure:** Mayor Boucher? **Mayor Wayne Boucher:** Hi. And do we have a motion for recess? **Counselor Hostchild:** [Motion]. **Counselor Joe Peterson:** Second. **Mayor Wayne Boucher:** Motion by Counselor Hostchild, second by Counselor Peterson. All in favor? **Council:** Aye. **Mayor Wayne Boucher:** Opposed same sign. Ten minutes. You're a good luck.