Special meeting of the Common Council

Agenda Regular Council Meeting Wednesday, January 13, 2021 @ 3:30 PM Council Chambers Join Zoom Meeting https://us02web.zoom.us/j/81271409829?pwd=U29GVDVSbkFESURmcnJITkxUaj N3dz09 Meeting ID: 812 7140 9829 Passcode: 086988 or Dial: 312.626.6799 Page 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2. CLERKS ROLL CALL 3. NEW BUSINESS a. Discussion and possible action on Resolution 1-21; Authorizing the issuance and sale of up to $12,616,740 taxable sewerage system revenue bonds, series 2021A, and providing for other details and covenants with respect thereto Resolution 1-21 - Issuance of taxable sewerage system bonds Sewerage system revenue bonds Series 2021A Bond Sale Certificate Financial Asst Program 2 - 51 4. ADJOURNMENT Rich O’Connor, Mayor Some agenda items may be taken up earlier in the meeting, or in a different order than listed. Upon reasonable notice, an interpreter or other auxiliary aids will be provided at the meeting to accommodate the needs of the public. Please contact the City Clerk at 715-386-4765, ext. 140. Page 1 of 51 RESOLUTIONl-21;AUTHORIZINGTHEISSUANCEANDSALEOFUPTO$12,616,740TAXABLESEWERAGESYSTEMREVENUEBONDS,SERIES2021A,ANDPROVIDINGFOROTHERDETAILSANDCOVENANTSWITHRESPECTTHERETOWHEREAS,theCityofHudson,St.CroixCounty,Wisconsin(the“Municipality")ownsandoperatesaseweragesystem(the“System”)whichisoperatedforapublicpurposeasapublicutilitybytheMunicipality;and WHEREAS,certainimprovementstotheSystemarenecessarytomeettheneedsoftheMunicipalityandtheresidentsthereof,consistingoftheconstructionofaproject(the“Project")assignedCleanWaterFundProgramProjectNo.4112-07bytheStateofWisconsinDepartmentofNaturalResources(the“DepartmentofNaturalResources”),andasde?nedinDepartmentofNaturalResourcesapprovalletterfortheplansandspeci?cations,orportionsthereof,issuedunderWis.Stat.Section281.41;datedMarch11,2020,andassignednumberS-2019-0753;andWHEREAS,undertheprovisionsofChapter66oftheWisconsinStatutesanymunicipalitymay.byactionofitsgoverningbody,provideforpurchasing,acquiring,constructing,extending,addingto.improving,operatingandmanagingapublicutilityfromtheproceedsofbonds.whichbondsaretobepayableonlyfromtherevenuesreceived?'omanysourcebysuchutility.includingallrentalsandfees;andWHEREAS,theMunicipalitydeemsittobenecessary,desirableandinitsbestinteresttoauthorizeandsellseweragesystemrevenuebondsoftheMunicipalitypayablesolelyfromtherevenuesoftheSystem,pursuanttotheprovisionsofSection660621oftheWisconsinStatutes,topaythecostoftheProject;and WHEREAS,otherthan“preliminaryexpenditures”asde?nedintheTreas.Reg.26CFR1.150-2inanamountnotexceeding20%oftheprincipalamountofthebondsauthorizedtobeissuedbythisresolution,orotherthana“deminimus”amountasde?nedinTreas.Reg.26CFR1.150—2inanamountnotexceedingthelesserof$l00,000or5%oftheprincipalamountofthebondsauthorizedtobeissuedbythisresolution,alloftheproceedsloanedtotheMunicipalitywillbeusedforProjectcostspaidbytheMunicipalitysubsequentto(i)thedatewhichis60dayspriortothedateonwhichtheMunicipalityadopteda“declarationofintent”pursuanttoTreas.Reg.26CFRl.l50—2statingitsintenttoreimburseotherfundsoftheMunicipalitypreviouslyusedto?nancetheProject,or(ii)thedateonwhichthebondsauthorizedhereinareissued;and WHEREAS,nobondsorobligationspayablefromtherevenuesoftheSystemarenowoutstanding.NOW,THEREFORE,beitresolvedbytheGoverningBodyoftheMunicipalitythat:Section1.Definitions.ThefollowingtermsshallhavethefollowingmeaningsinthisResolutionunlessthetextexpresslyorbyimplicationrequiresotherwise:(a) “Act”meansSection66.0621oftheWisconsinStatutes;(b)“BondRegistrar”meanstheFinanceDirector/Treasurer,whoshallactasPayingAgentfortheBonds; (c) “Bonds”meanthe$12,616,740TaxableSewerageSystemRevenueBonds,Series2021A,oftheMunicipality,datedtheirdateofissuance,authorizedtobeissuedbythisResolution; Report Attachment #a. Page 2 of 51 (d) “BondYear”meansthetwelve-monthperiodendingoneachMay1;(e) “CWFP”meanstheStateofWisconsinCleanWaterFundProgram;(0 “CurrentExpenses”meansthereasonableandnecessarycostsofoperating,maintaining,administeringandrepairingtheSystem,includingsalaries,wages,costsofmaterialsandsupplies,insurance,andaudits,butshallexcludedepreciation,debtservice,taxequivalentsandcapitalexpenditures; (g)“DebtServiceFund”meanstheDebtServiceFundoftheMunicipality,whichshallbethe“specialredemptionfund”assuchtermisde?nedintheAct;(11)“FinancialAssistanceAgreement”meanstheFinancialAssistanceAgreementbyandbetweentheStateofWisconsinbytheDepartmentofNaturalResourcesandtheDepartmentofAdministrationandtheMunicipalitypursuanttowhichtheBondsaretobeissuedandsoldtotheState,substantiallyintheformpresentedtotheGoverningBodyandincorporatedhereinbyreference; (i) “FiscalYear”meansthetwelve-monthperiodendingoneachDecember31;(j) “GoverningBody”meanstheCommonCouncil,orsuchotherbodyasmayhereafterbethechieflegislativebodyoftheMunicipality;(k) “GrossEarnings”meansthegrossearningsoftheSystem,includingtheearningsoftheSystemderivedfromseweragechargesimposedbytheMunicipality,allpaymentstotheMunicipalityunderanywastewatertreatmentserviceagreementsbetweentheMunicipalityandanycontractusersoftheSystem,andanyothermoniesreceivedfromanysourceincludingallrentalsandfeesandanyspecialassessmentsleviedandcollectedinconnectionwiththeProject;(1) “MunicipalTreasurer”meanstheFinanceDirector/TreasureroftheMunicipality,whoshallactasBondRegistrarandPayingAgent; (in)“Municipality”meanstheCityofHudson,St.CroixCounty,Wisconsin;(n) “NetRevenues”meanstheGrossEarningsoftheSystemafterdeductionofCurrentExpenses; (0) “ParityBonds”meansbondspayablefromtherevenuesoftheSystem,otherthantheBonds,butissuedonaparityandequalitywiththeBondspursuanttotherestrictiveprovisionsofSectionl1ofthisResolution; (p)“Project”meanstheProjectdescribedinthepreambletothisResolution.AllelementsoftheProjectaretobeownedandoperatedbytheMunicipalityaspartoftheSystemasdescribedinthepreamblehereto; (q)“RecordDate”meansthecloseofbusinessonthefifteenthdayofthecalendarmonthnextprecedinganyprincipalorinterestpaymentdate;and(r) “System”meanstheentireseweragesystemoftheMunicipality,speci?callyincludingthatportionoftheProjectownedbytheMunicipalityandincludingallpropertyofeverynaturenoworhereafterownedbytheMunicipalityforthecollection,transmission,treatmentanddisposalofdomesticandindustrialsewerageandwaste,includingallimprovementsandextensions l\J Report Attachment #a. Page 3 of 51 theretomadebytheMunicipalitywhileanyoftheBondsandParityBondsremainoutstanding,includingallrealandpersonalpropertyofeverynatureconstitutingpartoforusedorusefulinconnectionwithsuchseweragesystemandincludingallappurtenances,contracts,leases,franchises,andotherintangibles. Section2.AuthorizationoftheBondsandtheFinancialAssistanceAgreement.ForthepurposeofpayingthecostoftheProject(includinglegal,?scal,engineeringandotherexpenses),thereshallbeborrowedonthecreditoftheincomeandrevenueoftheSystemtiptothesumof$l2,6l6,740;andfullyregisteredrevenuebondsoftheMunicipalityareauthorizedtobeissuedinevidencethereofandsoldtotheStateofWisconsinCleanWaterFundPrograminaccordancewiththetermsandconditionsoftheFinancialAssistanceAgreement,whichisincorporatedhereinbythisreferenceandtheMayorandtheFinanceDirector/TreasureroftheMunicipalityareherebyauthorized,byandonbehalfoftheMunicipality,toexecutetheFinancialAssistanceAgreement. Section3.TermsoftheBonds.(a)TheBondsshallbedesignated“$12,616,740TaxableSewerageSystemRevenueBonds,Series2021A”(the“Bonds”);shallbedatedJanuary27,2021;shallbenumberedoneandupward;shallbearinterestattherateof1.485%perannuin;shallbeissuedindenominationsof$0.01oranyintegralmultiplethereof;andshallmatureonthedatesandintheamountsassetforthinExhibitBoftheFinancialAssistanceAgreement.TheBondsshallnotbesubjecttoredemptionpriortomaturityexceptasprovidedintheFinancialAssistanceAgreement.(b)ThescheduleofmaturitiesoftheBondsisfoundtobesuchthattheamountofannualdebtservicepaymentsisreasonableinaccordancewithprudentmunicipalutilitypractices.Section4.Form,ExecutionRegistrationandPavmentoftheBonds.TheBondsshallbeissuedasregisteredobligationsinsubstantiallytheformattachedheretoasExhibitAandincorporatedhereinbythisreference. TheBondsshallbeexecutedinthenameoftheMunicipalitybythemanualsignaturesoftheMayorandtheCityClerk,andshallbesealedwithitsofficialorcorporateseal,ifany.Theprincipalofandpremium,ifany,ontheBondsshallbepaidbytheMunicipalTreasurer,whoisherebyappointedastheMunicipality’sregistrar(the“BondRegistrar”).PrincipaloftheBondsshallbepayableinlawfulmoneyoftheUnitedStatesofAmericabytheBondRegistrar.Paymentofprincipalofthe?nalmaturityontheBondswillbepayableuponpresentationandsurrenderoftheBondstotheBondRegistrar.PaymentofprincipaloftheBonds(exceptthefinalmaturity)shallbemadetotheregisteredownerofeachBondswhoshallappearontheregistrationboolcsoftheMunicipality,maintainedbytheBondRegistrar,ontheRecordDateandshallbepaidbyelectronictransferorbycheckordraftoftheMunicipalityandmailedtosuchregisteredownerathisoritsaddressasappearsonsuchregistrationbooksoratsuchotheraddressmaybefurnishedinwritingtosuchregisteredownertotheBondRegistrar. Section5.SecuritvfortheBonds.TheBondsshallnotconstituteanindebtednessoftheMunicipalitynorachargeagainstitsgeneralcreditortaxingpower.TheBondsshallbepayableonlyoutoftheDebtServiceFundhereinaftercreatedandestablished,andshallbeavalidclaimofanyholderthereofonlyagainstsuchDebtServiceFundandtherevenuesoftheSystempledgedtosuchfund.SufficientrevenuesareherebypledgedtosaidDebtServiceFund,andshallbeusedfornootherpurposethantopaytheprincipalof,premium,ifany,andinterestontheBondsandanyParityBondsasthesamebecomesdue.Section6.FundsandAccounts.InaccordancewiththeAct,forthepurposeoftheapplicationandproperallocationoftherevenuesoftheSystem,andtosecurethepaymentoftheprincipalofandinterest Report Attachment #a. Page 4 of 51 ontheBondsandParityBonds,certainfundsoftheSystemareherebycreatedandestablishedwhichshallbeusedsolelyforthefollowingrespectivepurposes: (a) SewerageSystemRevenueFund(the“RevenueFund"),intowhichshallbedepositedasreceivedtheentireGrossEarningsoftheSystem,whichmoneyshallthenbedividedamongtheOperationandMaintenanceFund,theSpecialRedemptionFund(the“DebtServiceFund”),theDepreciationFund,andtheSurplusFundintheamountsandinthemannersetforthinSection7hereofandusedforthepurposesdescribedbelow.(b) OperationandMaintenanceFund,whichshallbeusedforthepaymentofCurrentExpenses. (c) DebtServiceFund,whichshallbeusedforthepaymentoftheprincipalof.premium,ifany,andinterestontheBondsandanyParityBondsasthesamebecomesdue.(d) DepreciationFund,whichistheReplacementFundreferredtobySectionNR162,Wis.Adm.Code,andmaybeexpendedforrepairs,replacements,newconstruction,extensionsoradditionstotheSystem.AnymoneyondepositintheDepreciationFundnotrequiredduringthecurrentFiscalYearforpurposesoftheDepreciationFundmaybetransferredtotheSurplusFund.(e) SurplusFund,whichshallfirstbeusedwhenevernecessarytopayprincipalof,premium,ifany,orinterestontheBondsandtheParityBondswhentheDebtServiceFundshallbeinsufficientforsuchpurpose,andthereaftershallbedisbursedasfollows:(i)atanytime.toremedyanyde?ciencyinanyoftheFundsprovidedinthisSection6hereof;and(ii)moneythereafterremainingintheSurplusFundattheendofanyFiscalYearmaybetransferredtoanyoftheFundsoraccountscreatedhereinortoreimbursethegeneralfundoftheMunicipalityforadvancesmadebytheMunicipalitytotheSystemorforanyotherlawfulpurpose.Section7.ApplicationofRevenues.AfterthedeliveryoftheBonds,theentireGrossEarningsoftheSystemshallbedepositedascollectedintheRevenueFundandshallbetransferredmonthlytothefundslistedbelowinthefollowingorderofpriorityandinthemannersetforthbelow:(a) totheOperationandMaintenanceFund,anamountequaltotheestimatedCurrentExpensesforsuchmonthandforthefollowingmonth(aftergivingaffecttoavailableamountsinsaidFundfrompriordeposits); (d) totheDebtServiceFund,anamountequaltoone—sixth(l/6)ofthenextinstallmentofinterestcomingdueontheBondsandanyParityBondsthenoutstandingandanamountequaltoone-twelfth(1/l2)oftheinstallmentofprincipaloftheBondsandanyParityBondscomingdueduringsuchBondYear(aftergivingeffecttoavailableamountsinsaidaccountfromaccruedinterest,anypremiumoranyothersource); (c) totheDepreciationFund,anamountdeterminedbytheGoverningBodytobesufficienttoprovideaproperandadequatedepreciationaccountfortheSystem;and(d) totheSurplusFund,anyamountremainingintheRevenueFundafterthemonthlytransfersrequiredabovehavebeencompleted.TransfersfromtheRevenueFundtotheOperationandMaintenanceFund,theDebtServiceFund,theDepreciationFund,andtheSurplusFundshallbemademonthlynotlaterthanthetenthdayofeachmonth,andsuchtransfershallbeapplicabletomoniesondepositintheRevenueFundasofthelastdayofthemonthpreceding.AnyothertransfersanddepositstoanyFundrequiredorpermittedbysubsection Report Attachment #a. Page 5 of 51 (a)through(cl)ofthisSection,excepttransfersordepositswhicharerequiredtobemadeimmediatelyorannually,shallbemadeonorbeforethetenthdayofthemonth.AnytransferordepositrequiredtobemadeattheendofanyFiscalYearshallbemadewithinsixty(60)daysafterthecloseofsuchFiscalYear.lfthetenthdayofanymonthshallfallonadayotherthanabusinessday,suchtransferordepositshallbemadeonthenextsucceedingbusinessday.ItistheexpressintentanddeterminationoftheGoverningBodythattheamountstransferred?'omtheRevenueFundanddepositedintheDebtServiceFundshallbesufticientinanyeventtopaytheinterestontheBondsandanyParityBondsasthesameaccruesandtheprincipalthereofasthesamematures.Section8.De)ositsandInvestments.TheDebtServiceFundshallbekeptapartfrommoniesintheotherFundsandAccountsandthesameshallbeusedfornopurposeotherthanthepromptpaymentofprincipalofandinterestontheBondsandanyParityBondsasthesamebecomesdueandpayable.AllmoniesthereinshallbedepositedinspecialandsegregatedaccountsinapublicdepositoryselectedunderChapter34oftheWisconsinStatutesandmaybetemporarilyinvesteduntilneededinlegalinvestmentssubjecttotheprovisionsol’Section66.0603(lm)oftheWisconsinStatutes.Theotherfundshereincreated(excepttheSewerageSystemCWFPProjectFund)maybecombinedinasingleaccountinapublicdepositoryselectedinthemannersetforthaboveandmaybetemporarilyinvesteduntilneededinlegalinvestmentssubjecttotheprovisionsofSection66.0603(lm)oftheWisconsinStatutes.Section9.ServicetotheMunicipality.ThereasonablecostandvalueofservicesrenderedtotheMunicipalitybytheSystembyfurnishingsewerageservicesforpublicpurposesshallbechargedagainsttheMunicipalityandshall,totheextentpermittedbylaw,bepaidinmonthlyinstallmentsastheserviceaccrues,outofthecurrentrevenuesoftheMunicipalitycollectedorintheprocessofcollection,exclusiveoftherevenuesderivedfromtheSystem;thatistosay,outofthetaxlevyoftheMunicipalitymadebyittoraisemoneytomeetitsnecessarycurrentexpenses.ThereasonablecostandvalueofsuchservicetotheMunicipalityineachyearshallbeequaltoanamountwhich,togetherwithotherrevenuesoftheSystem,willproduceineachFiscalYearNetRevenuesequivalenttonotlessthantheannualprincipalandinterestrequirementsontheBonds.anyParityBonds,andanyotherdebtobligationspayablefromtherevenuesoftheSystemthenoutstandingtimesthegreaterof(i)110%,or(ii)thehighestdebtservicecoverageratiorequiredwithrespecttoanydebtobligationspayablefromtherevenuesoftheSystemthenoutstanding.l-lowever,suchpaymentoutofthetaxlevyshallbesubjectto(a)approvaloftheWisconsinPublicServiceCommission,orsuccessorstoitsfunction,ifapplicable,(b)yearlyappropriationstherefor,and(c)applicablelevylimitations,ifany;butneitherthisResolutionnorsuchpaymentshallbeconstruedasconstitutinganobligationoftheMunicipalitytomakeanysuchappropriationoverandabovethereasonablecostandvalueoftheservicesrenderedtotheMunicipalityanditsinhabitantsortomakeanysubsequentpaymentoverandabovesuchreasonablecostandvalue.Section10.OperationofSvstem'MunicipalityCovenants.ItiscovenantedandagreedbytheMunicipalitywiththeownerorownersoftheBonds,andeachofthem,thattheMunicipalitywillperformalloftheobligationsassetforthintheFinancialAssistanceAgreement.Sectionll.AdditionalBonds.NobondsorobligationspayableoutoftherevenuesoftheSystemmaybeissuedinsuchmannerastoenjoypriorityovertheBonds.AdditionalobligationsmaybeissuedifthelienandpledgeisjuniorandsubordinatetothatoftheBonds.ParityBondsmaybeissuedonlyunderthefollowingcircumstances: (a) AdditionalParityBondsmaybeissuedforthepurposeofcompletingtheProjectandforthepurposeoffinancingcostsoftheProjectwhichareineligibleforpaymentundertheStateofWisconsinCleanWaterFundProgram.However,suchadditionalParityBondsshallbeinanaggregateamountnottoexceed20%ofthefaceamountoftheBonds;or Report Attachment #a. Page 6 of 51 (b)AdditionalParityBondsmayalsobeissuedifallofthefollowingconditionsaremet: (1)TheNetRevenuesoftheSystemfortheFiscalYearimmediatelyprecedingtheissuanceofsuchadditionalbondsmusthavebeeninanamountatleastequaltothemaximumannualinterestandprincipalrequirementsonallbondsoutstandingpayablefromtherevenuesoftheSystem,andonthebondsthentobeissued,timesthegreaterof(i)1.10,or(ii)thehighestdebtservicecoverageratiotoberequiredwithrespecttotheadditionalParityBondsthentobeissuedoronanydebtobligationspayablefromtherevenuesoftheSystemthenoutstanding.Shouldanincreaseinpermanentratesandcharges,includingthosemadetotheMunicipality,beproperlyorderedandmadeeffectiveduringtheFiscalYearimmediatelypriortotheissuanceofsuchadditionalbondsorduringthatpartoftheFiscalYearofissuancepriortosuchissuance,thenNetRevenuesforpurposesofsuchcomputationshallincludesuchadditionalrevenuesasanindependentcerti?edpublicaccountant,consultingprofessionalengineerortheWisconsinPublicServiceCommissionmaycertifywouldhaveaccruedduringthepriorFiscalYearhadthenewratesbeenineffectduringthatentireimmediatelypriorFiscalYear.(2) ThepaymentsrequiredtobemadeintotheFundsenumeratedinSection6ofthisResolutionmusthavebeenmadeinfull.(3) TheadditionalParityBondsmusthaveprincipalmaturingonMay1ofeachyearandinterestfallingdueonMay1andNovemberIofeachyear.(4)TheproceedsoftheadditionalParityBondsmustbeusedonlyforthepurposeofprovidingextensionsorimprovementstotheSystem,ortorefundobligationsissuedforsuchpurpose. Section12.SaleofBonds.ThesaleoftheBondstotheStateofWisconsinCleanWaterFundProgramforthepurchasepriceofupto$12,616,740,andatpar,isratifiedandcon?rmed;andtheofficersoftheMunicipalityareauthorizedanddirectedtodoanyandallacts,includingexecutingtheFinancialAssistanceAgreementandtheBondsashereinaboveprovided,necessarytoconcludedeliveryoftheBondstosaidpurchaser,assoonafteradoptionofthisResolutionasisconvenient.ThepurchasepricefortheBondsshallbepaiduponrequisitionthereforasprovidedintheFinancialAssistanceAgreement.Section13.A)plicationofBondProceeds.TheproceedsofthesaleoftheBondsshallbedepositedbytheMunicipalityintoaspecialfunddesignatedas“SewerageSystemCWFPProjectFund.”TheSewerageSystemCWFPProjectFundshallbeusedsolelyforthepurposeofpayingthecostsoftheProject(includingcapitalizedinterest,ifany,ontheBonds)asmorefullydescribedinthepreamblehereofandintheFinancialAssistanceAgreement.MoneysintheSewerageSystemCWFPProjectFundshallbedisbursedwithinthree(3)businessdaysoftheirreceiptfromtheStateofWisconsinandshallnotbeinvestedinanyinterest-bearingaccount. Section14.AmendmenttoResolution.AftertheissuanceofanyoftheBonds,nochangeoralterationofanykindintheprovisionsofthisResolutionmaybemadeuntilalloftheBondshavebeenpaidinfullastobothprincipalandinterest,ordischargedashereinprovided,except:(a)theMunicipalitymay,fromtotime,amendthisResolutionwithouttheconsentofanyoftheownersoftheBonds,butonlytocureanyambiguity,administrativecon?ict,formaldefect,oromissionorproceduralinconsistencyofthisResolution;and(b)thisResolutionmaybeamended,inanyrespect,withawrittenconsentoftheownersofnotlessthantwo-thirds(2/3)oftheprincipalamountoftheBondsthenoutstanding.exclusiveofBondsheldbytheMunicipality;provided,however,thatnoamendmentshallpermitanychangeinthepledgeofrevenuesderivedfromtheSystemorthematurityofanyBondissuedhereunder,orareduction Report Attachment #a. Page 7 of 51 intherateofinterestonanyBond,orintheamountoftheprincipalobligationthereof,orintheamountoftheredemptionpremiumpayableinthecaseofredemptionthereof,orchangethetermsuponwhichtheBondsmayberedeemedormakeanyothermodi?cationinthetermsofthepaymentofsuchprincipalorinterestwithoutthewrittenconsentoftheownerofeachsuchBondtowhichthechangeisapplicable.Section15.Defeasance.WhenallBondshavebeendischarged,allpledges,covenantsandotherrightsgrantedtotheownersthereofbythisResolutionshallcease.TheMunicipalitymaydischargeallBondsdueonanydatebyirrevocablydepositinginescrowwithasuitablebankortrustcompanyasumofcashand/orbondsorsecuritiesissuedorguaranteedastoprincipalandinterestbytheU.S.Government,orbyacommission,boardorotherinstrumentalityoftheU.S.Government,maturingonthedatesandbearinginterestattheratesrequiredtoprovidefundssufficienttopaywhenduetheinteresttoaccrueoneachofsaidBondstoitsmaturityor,attheMunicipality’soption,ifsaidBondisprepayabletoanypriordateuponwhichitmaybecalledforredemption,andtopayandredeemtheprincipalamountofeachsuchBondatmaturity,orattheMunicipality’soption,ifsaidBondisprepayable,atitsearliestredemptiondate,withthepremiumrequiredforsuchredemption,ifany,providedthatnoticeoftheredemptionofallprepayableBondsonsuchdatehasbeendulygivenorprovidedfor.Sectionl6.RebateFund.AstheinterestontheBondsisnotexemptfromfederalincometax,norebatefundisrequired. Section17.ResolutionaContract.TheprovisionsofthisResolutionshallconstituteacontractbetweentheMunicipalityandtheownerorownersoftheBonds,andafterissuanceofanyoftheBondsnochangeoralterationofanykindintheprovisionsofthisResolutionmaybemade,exceptasprovidedinSection[4,untilalloftheBondshavebeenpaidinfullastobothprincipalandinterest.TheownerorownersofanyoftheBondsshallhavetherightinadditiontoallotherrights,bymandamusorothersuitoractioninanycourtofcompetentjurisdiction,toenforcesuchowner’sorowners’rightsagainsttheMunicipality,theGoverningBody,andanyandallofficersandagentsthereofincluding,butwithoutlimitation,therighttorequiretheMunicipality,itsGoverningBodyandanyotherauthorizedbody,tofixandcollectratesandchargesfullyadequatetocarryoutalloftheprovisionsandagreementscontainedinthisResolution. Section18.ContinuingDisclosure.TheofficersoftheMunicipalityareherebyauthorizedanddirected,ifrequestedbytheState,toprovidetotheCWFPandtosuchotherpersonsorentitiesasdirectedbytheCWFPsuchongoingdisclosureregardingtheMunicipality’s?nancialconditionandothermatters,atsuchtimesandinsuchmannerastheCWFPmayrequire,inorderthatsecuritiesissuedbytheMunicipalityandtheCWFPsatisfyrulesandregulationspromulgatedbytheSecuritiesandExchangeCommissionundertheSecuritiesExchangeActofl934,asamendedormaybeamendedfromtimetotimeimposedonbrokersanddealersofmunicipalsecuritiesbeforethebrokersanddealersmaybuy,sell.orrecommendthepurchaseofsuchsecurities.Sectionl9.ConflictingResolutions.Allordinances,resolutions,ororders,orpaitsthereofheretoforeenacted,adoptedorentered,inconflictwiththeprovisionsofthisResolution.areherebyrepealed,andthisResolutionshallbeineffectfromandafteritspassage.Section20.MaterialEventNotice.Within10daysoftheclosingoftheBonds,theFinanceDirector/TreasurerorthedesigneeshallsendorcausetobepostedamaterialeventnoticeofincurringaFinancialObligationwiththeElectronicMunicipalMarketAccess(EMMA). (remainderofpageimeniiona//yleftblank) Report Attachment #a. Page 8 of 51 EXHIBITA FORMOFBOND REGISTEREDUNITEDSTATESOF REGISTEREDNO.R-1 AMERICA $12,616,740STATEOFWISCONSINCOUNTYOFST.CROIXCITYOFHUDSON TAXABLESEWERAGESYSTEMREVENUEBOND,SERIES2021AAnnual Final DateofInterestRateMaturigDateOriginalIssue1.485%May1,2040January27,2021REGISTEREDOWNER:STATEOFWISCONSINCLEANW ATERFUNDPROGRAMKNOWALLMENBYTHESEPRESENTSthattheCityofHudson,St.CroixCounty,Wisconsin,(the“Municipality”)herebyacknowledgesitselftooweandforvaluereceivedpromisestopaytotheregisteredownershownabove,orregisteredassigns.solelyfromthefundhereinafterspeci?ed,theprincipalsumofanamountnottoexceedTwelveMillionSixHundredSixteenThousandSevenHundredFortyDollars($12,616,740)(butonlysomuchasshallhavebeendrawnhereunder,asprovidedbelow)onMay1ofeachyearcommencingMay1,2022,untilthe?nalmaturitydatewrittenabove,togetherwithinterestthereon(butonlyonamountsasshallhavebeendrawnhereunder,asprovidedbelow)?omthedatestheamountsaredrawnhereunderorthemostrecentpaymentdatetowhichinteresthasbeenpaid,attherateof1.485%perannum,calculatedonthebasisofa360—dayyearmadeupoftwelve30-daymonths,suchinterestbeingpayableonthe?rstdaysofMayandNovemberofeachyear,withthe?rstinterestbeingpayableonMay1,2021. TheprincipalamountevidencedbythisBondmaybedrawnuponbytheMunicipalityinaccordancewiththeFinancialAssistanceAgreemententeredbyandbetweentheMunicipalityandtheStateofWisconsinbytheDepartmentofNaturalResourcesandtheDepartmentofAdministrationincludingcapitalizedinteresttransferred(ifany).TheprincipalamountssodrawnshallberepaidininstallmentsonMay1ofeachyearcommencingonMay1,2022inanamountequaltoanamountwhichwhenamortizedovertheremainingtermofthisBond,shallresultinequalannualpaymentsofthetotalofprincipal.TheStateofWisconsinDepartmentofAdministrationshallrecordsuchdrawsandcorrespondingprincipalrepaymentscheduleonacumulativebasisintheformatshownontheattachedExhibitA.PrincipalispayabletotheregisteredownerinlawfulmoneyoftheUnitedStatesofAmerica.Onthe?nalmaturitydate,principalofthisBondshallbepayableonlyuponpresentationandsurrenderofthisBondattheof?ceoftheFinanceDirector/Treasurer.Principalhereof(exceptthe?nalmaturity)shallbepayablebyelectronictransferorbycheckordraftdatedonorbeforetheapplicablepaymentdateandmailedfromtheofficeoftheFinanceDirector/TreasurertothepersoninwhosenamethisBondisregisteredatthecloseofbusinessonthe?fteenthdayofthecalendarmonthnextprecedingsuchpaymentdate.TheBondsshallnotberedeemablepriortotheirmaturity,exceptwiththeconsentoftheregisteredowner. Report Attachment #a. Page 9 of 51 ThisBondistransferableonlyuponthebooksoftheMunicipalitykeptforthatpurposeattheofficeoftheMunicipalTreasurer,bytheregisteredownerinpersonoritsdulyauthorizedattorney,uponsurrenderofthisBond,togetherwithawritteninstrumentoftransfer(whichmaybeendorsedhereon)satisfactorytotheFinanceDirector/Treasurer,dulyexecutedbytheregisteredowneroritsdulyauthorizedattorney.ThereuponareplacementBondshallbeissuedtothetransfereeinexchangetherefor.TheMunicipalitymaydeemandtreatthepersoninwhosenamethisBondisregisteredastheabsoluteownerhereofforthepurposeofreceivingpaymentoforonaccountoftheprincipalhereofandforallotherpurposes.ThisBondisissuablesolelyasanegotiable,fnlly—registeredbond,withoutcoupons,andindenominationsof$0.0Ioranyintegralmultiplethereof. ThisBondisissuedforthepurposeofprovidingforthepaymentofthecostofconstructingimprovementstotheSewerageSystemoftheMunicipality,pursuanttoArticleXI,Section3,oftheWisconsinConstitution,Section66.0621,WisconsinStatutes,andaresolutionadoptedbytheGoverningBodyoftheMunicipalityonJanuary13,2021,andentitled:“ResolutionAuthorizingtheIssuanceandSaleofupto$12,616,740TaxableSewerageSystemRevenueBonds,Series2021A,andProvidingforOtherDetailsandCovenantswithRespectThereto,”andispayableonlyfromtheincomeandrevenuesderivedfromtheoperationoftheSewerageSystemoftheMunicipality(the“Utility”),ThisBonddoesnotconstituteanindebtednessofsaidMunicipalitywithinthemeaningofanyconstitutionalorstatutorydebtlimitationorprovision. Itiscertified,recitedanddeclaredthatallacts,conditionsandthingsrequiredtoexist,happen,andbeperformedprecedenttoandintheissuanceofthisBondhaveexisted,havehappenedandhavebeenperformedinduetime,formandmannerasrequiredbylaw;andthatsufficientoftheincomeandrevenuetobereceivedbysaidMunicipalityfromtheoperationofitsUtilityhasbeenpledgedtoandwillbesetasideintoaspecialfundforthepaymentoftheprincipalofandinterestonthisBond.INWITNESSWHEREOF,theMunicipalityhascausedthisBondtobesignedbythesignaturesofitsMayorandtheCityClerk,anditscorporateseal(oratruefacsimilethereof)tobeimpressed(orimprinted)hereon,allasofthedateoforiginalissuespeci?edabove. CITYOFHUDSON,WISCONSIN [SEAL] Byffarm — /10sigmllzrrere:/zlired)RichO’Connor,Mayor Byfform-110si271arurerequired)BeckyEggen,CityClerk Report Attachment #a. Page 10 of 51 (FormofAssignment)FORV ALUERECEIVEDtheundersignedherebysells,assignsandtransfersunto (Pleaseprintortypewritenameandaddress,includingzipcode,ofAssignee). PleaseinsertSocialSecurityorotheridentifyingnumberofAssignee thewithinBond,andallrightsthereunder,herebyirrevocablyconstitutingandappointing AttorneytotransfersaidBondonthebookskeptfortheregistrationthereofwithfullpowerofsubstitutioninthepremises. Dated: NOTICE:ThesignaturetothisassignmentmustcorrespondwiththenameasitappearsuponthefaceofthewithinBondineveryparticular,withoutalterationorenlargementoranychangewhatever. Signature(s)guaranteedby: Report Attachment #a. Page 11 of 51 EXHIBITATOBONDFORM $12,616,740CITYOFHUDSON,WISCONSINTAXABLESEWERAGESYSTEMREVENUEBONDS,SERIES2021A AmountofDisbursementDateofDisbursementSeriesofBondsPrincipalRepaidPrincipalBalance PRINCIPALREPAYMENTSCHEDULE Date PrincipalAmountMay1,2022 579,645.20May1,2023 588,252.93May1,2024 596,988.49May1,2025 605,853.77May1,2026 614,850.70May1,2027 623,981.23May1,2028 633,247.35May1,2029 642,651.07May1,2030 652,194.44May1,2031 661,879.53May1,2032 671,708.44May1,2033 681,683.31May1,2034 691,806.31May1,2035 702,079.64Mall,2036 $712,505.52May1,2037 723,086.22May1,2038 733,824.05Mall,2039 744,721.34May1,2040 755,780.46TOTAL $12,616,740.00 Report Attachment #a. Page 12 of 51 $12,616,740CITYOFHUDSON,WISCONSINTAXABLESEWERAGESYSTEMREVENUEBONDS,SERIES2021A CLOSINGCERTIFICATE RichO’Connor,theMayor,BeckyEggen,theCityClerkandAlisonEgger,theFinanceDirector/TreasureroftheCityofHudson,Wisconsin(the“Municipality”),herebycertifyasfollows: 1. Wearethedulyquali?edandactingMayor,CityClerkandFinanceDirector/TreasureroftheMunicipalityandhavebeensuchatalltimespertinenttotheauthorizationofthe$12,616,740TaxableSewerageSystemRevenueBonds,Series2021A,oftheMunicipality(the“Bonds”). 2. Wehaveexecutedandsealedthenegotiable,fully-registeredBonds.TheBondsareintheaggregateprincipalamountof$12,616,740,aredatedJanuary27,202],andarenumberedfrom1upward.TheBondsmatureininstallmentsofprincipaldueonMay1ofeachoftheyears2022through2040,andbearinterestatarateof1.485%perannum.Wearedulyauthorizedtoexecutethesame. 3. IncludedintheClosingTranscriptisatrueandcompletecopyofaresolutionentitled“ResolutionAuthorizingtheIssuanceandSaleofupto$12,616,740TaxableSewerageSystemRevenueBonds,Series2021A,andProvidingforOtherDetailsandCovenantswithRespectThereto”(the“BondResolution”).TheBondResolutionwasdL1lyadoptedbythegoverningbodyoftheMunicipality(the“GoverningBody”)onJanuary13,2021;saidresolutionhasnotbeenrepealed,amendedormodifiedinanyrespectandremainsinfullforceandeffecttoday. 4. IncludedintheClosingTranscriptisatrueandcompletecopyoftheCerti?cateofCompliancewithOpenMeetingLawPublicNoticeRequirementswithrespecttotheJanuary13,2021meetingoftheGoverningBodyoftheMunicipality,evidencingcompliancewithsubchapterVofChapter19,WisconsinStatutes. 5. IncludedintheClosingTranscriptisatrueandcompletecopyofthepartoftheminutesoftheJanuary13,2021meetingoftheGoverningBodywhereintheGoverningBodyadoptedtheBondResolution. 6. IncludedintheClosingTranscriptisatrueandcompletecopyofaswornaffidavitfromanauthorizedrepresentativeoftheofficialnewspaperoftheMunicipality,inwhichanoticehasbeenpublishedpursuanttoSection893.77,WisconsinStatutes,regardingtheadoptionoftheBondResolution. 7. IncludedintheClosingTranscriptisaSpecimenBond.ThesignaturesofRichO’Connor,theMayor,andBeckyEggen,theCityClerkoftheMunicipality,aretheirrespectivetruesignatures,andthesealoftheMunicipality,ifany,appearingontheBondsisanaccurateimpressionorfacsimileofthesealoftheMunicipality. 8. IncludedintheClosingTranscriptisatrueandcompletecopyoftheFinancialAssistanceAgreementrelatingtotheBonds;saidFinancialAssistanceAgreementhasnotbeenamendedormodifiedinanyrespectandremainsinfullforceandeffecttoday. 9. TheMunicipalityisadulyorganizedandexistingmunicipalcorporationoftheStateofWisconsin. Report Attachment #a. Page 13 of 51 10.TherearenorulesorresolutionsineffectwhichrequireanyofficerorofficialoftheMunicipality,otherthantheMayorandtheCityClerkoftheMunicipality,toexecutebondsoftheMunicipality. ll. EachmeetingoftheGoverningBodyoranycommitteeoftheMunicipalityatwhichtheBondResolutionwastakenupwasheldattheplaceandtimeandcalledandnoti?edinthemannerroutinelyestablishedbysuchcommitteeandproceededinaccordancewithawrittenagenda;wasnotifiedtothepublicandnewsmediaandconductedinfullcompliancewiththe“openmeeting”lawsoftheStateofWisconsin,andparticularlysubchapterV ,Chapter19,WisconsinStatutes;washeldinapublic,accessibleplaceintheMunicipality,withdoorsopenatalltimestothepublic;andnosecretballotwastakenthereat;andnosuchmeetingwascommenced,subsequentlyconvenedinclosedsessionandthereafterreconvenedinopensession,unlesspublicnoticeofsuchsubsequentopensessionwasgivenatthesametimeandinthesamemannerasthepublicnoticeofthemeetingconvenedpriortotheclosedsession.AllsuchmeetingswerefullylawfulandinallrespectsinaccordancewiththerulesoftheMunicipality.Eachsuchmeetingwasaspecialmeeting,heldattheplaceintheMunicipality,onthedateandatthetimeandnoti?edinthemannerroutinelyestablishedbyruleoftheGoverningBody. 12.AspecialmeetingoftheGoverningBodywasheldonJanuary13,2021,atwhichaquorumwaspresentinpersonthroughout.Atsuchmeeting,theBondResolutionwasintroducedbyoneoftheGoverningBodymembersinaccordancewithroutinelyestablishedproceduresoftheGoverningBody(allGoverningBodymembershavingfullcopiesthereofinadvanceandadequatetimetoreadandexaminepriortoadoption,andnomemberobjecting);and,onmotiondulymadeandseconded,dulyadoptedbytheunanimousaffirmativevoteofthememberspresent,uponanayeornovotedulyrecordedintheGoverningBodyminutes. 13.TheCityClerkoftheMunicipalityhasrecordedafullandcorrectstatementofeverysteporproceedinghadortakeninthecourseofauthorizingandissuingtheBondsinaseparaterecordbookasrequiredbylaw.ThisrecordhasbeenavailableforpublicinspectionduringnormalbusinesshoursattheCityClerkoftheMunicipality’sofficeintheMunicipalityandnopersonwasdeniedtherighttoinspectorduplicateit. 14.WehavereviewedtheBondResolutionwhichappearsintheClosingTranscript,andtothebestofourinformationandbelief,allofthestatementsmadeinsuchdocumentaretrueandcorrect. 15.Nolitigationispendingor,toourknowledge,threatened(i)torestrainorenjoinintheissuanceordeliveryofanyoftheBonds,or(ii)inanywaycontestingoraffectingthevalidityoftheBondsortheBondResolution. 16.Thereisnolitigationpendingor,toourknowledge,threatenedagainsttheMunicipalityorinvolvinganyofthepropertyorassetsunderthecontroloftheMunicipalitythatinvolvesthepossibilityofanyjudgmentoruninsuredliabilitywhichmayresultinanymaterialadversechangeinthebusiness,properties,assetsorinthecondition,?nancialorotherwise,oftheMunicipalityortheSewerageSystem. 17.NeitherthecorporateexistencenorboundariesoftheMunicipalitynorthetitleofitspresentorformerofficerstotheirrespectiveofficesisbeingcontested,andnoauthorityorproceedingsfortheissuanceoftheBondshavebeenrepealed,revokedorrescinded.NopetitionhasbeenfiledrequestingthattheBondsnotbeissued. 18.BasedonoLIrinquiry,informationandbelief,nopartofthefundsoftheMunicipalityortheSewerageSystemderivedfromtheissuanceandsaleoftheBondsshallinuretothebene?toforbe Report Attachment #a. Page 14 of 51 distributabletoanyofficialoftheSewerageSystemoroftheMunicipality,exceptforthelawfulpaymentorcompensationforservicesrenderedanditslawfulreimbursementofexpensesincurred,andnoloansshallbemade,andnopropertyorservicesshallbepurchasedorsold,leasedorotherwisedisposedof,toanysuchofficialasaresultoftheuseofsuchfundsbytheMunicipalityorbytheSewerageSystem. 19.Basedonourinquiry,informationandbelief,noofficialoftheSewerageSystemoroftheMunicipalityhasanyprivateinterest,directorindirect,inanyoftheproceedingsrelatingtotheauthorization,issuanceandsaleoftheBonds. 20.TheMunicipalityisabletopayallofitscurrentoperatingexpensesintheusualcourseastheycomeduewithoutneedforspecialorexceptionaltaxlevies. 21.TheBondsarepayableonlyfromandsecuredbyapledgeoftheincomeandrevenuestobederivedfromtheoperationoftheSewerageSystemoftheMunicipality;anddonotconstituteanindebtednessoftheMunicipalitywithinanyconstitutionalorstatutorylimitation. 22.TherearenoobligationsoutstandingpayablefromapledgeoftheincomeandrevenuesoftheSewerageSystemoftheMunicipality,otherthantheBonds. 23.TheMunicipalityhasreceivedaninitialdisbursementofBondproceedsfromtheStateonthedateofthisCerti?cate,representingthepurchasepriceoftheBondsasprovidedintheBondResolution. 24.TheMunicipalityisnotindefaultonanyborrowedmoneyobligation. INWITNESSWHEREOF,wehavehereuntosetourhandsandaffixedtheofficialsealoftheMunicipalityasoflanuary27,2021. CITYOFHUDSON,WISCONSIN SEAL M\DDCS\Z02J6\0O00l0\CER\l9B0799DOCX Report Attachment #a. Page 15 of 51 $12,616,740CityofHudson,WisconsinTaxableSewerageSystemRevenueBond,Series2021A BONDSALECERTIFICATE Theundersignedof?cersoftheCityofHudson,Wisconsin(the“Municipality”)herebycertifyasfollowswithregardtotheMunicipality’sissuanceofupto$12,616,740TaxableSewerageSystemRevenueBond,Series2021A,dated.Ianua1'y27,2021(the“Bonds”). 1.INGENERAL 1.1Authorigg.TheundersignedareofficersoftheMunicipalitychargedbylawandaresolutionadoptedbythegoverningbodyoftheMunicipalityonJanuary13,2021,authorizingtheissuanceoftheBonds(the“BondResolution”)withresponsibilityforissuingtheBondsandareactingforandonbehalfoftheMunicipalityinexecutingthisCerti?cate. 1.2NatureofCerti?cate.ThisCerti?cateaccompaniesthetranscriptofproceedingsfortheissuanceoftheBondsanddescribestheMunicipality’sreasonableexpectationsasofthisdate,regardingtheamountanduseofproceedsoftheBonds. 1.3DateofCertificate.ThisCerti?cateismadeasofthedateofissue,thatis,thedateonwhichthereisaphysicaldeliveryoftheBondCerti?catesinexchangefortheadvancementofanamountexceedingthelesserof$50,000or5%oftheissuepriceoftheBonds II.PURPOSE 2.1GovernmentalPurpose.TheBondsarebeingissuedforthegovernmentalpurposeofconstructingimprovementsandextensionstotheseweragesystem(the“SewerSystem”)oftheMunicipality,consistingofconstructionofaproject(the“Project”)assignedCleanWaterFundLoanProgramProjectNo.4112-07bytheDepartmentofNaturalResources,andasdescribedintheDepartmentofNaturalResourcesapprovalletterfortheplansandspeci?cationsissuedunderWis.Stat.Section281.41andassignednumberS—2019-0753,datedMarch11,2020. 2.2Proceeds.TheproceedsoftheBonds(the“Proceeds”)willbeusedto(i)payissuancecostswithrespecttotheBonds,(ii)makecapitalexpenditureswithrespecttotheProject;and(iii)payotherexpensesoftheProject. 2.3IssuanceCosts.$15,000oftheproceedsoftheBondswillbeusedtopayissuancecostswithrespecttotheBonds. III.PROCEEDSANDFUNDS 3.1DispositionofProceeds.TheBondsareconsideredissuedonJanuary27,2021,thefirstdateBondproceedsareadvancedpursuanttotheFinancialAssistanceAgreementtoeither(i)refundexpendedproceedsofthePriorBonds;(ii)reimbursetheMunicipalityforProjectexpensespreviouslypaidinanticipationofthereceiptofBondproceeds;or(iii)pay,withinthreedaysofthedatehereof,invoicespreviouslyreceivedforProjectcosts.SubsequentadvancesofBondproceedsshallbemade,inanaggregateamountwhich,afteraddingthefirstadvance,doesnotexceedthefaceamountoftheBonds.Suchsubsequentadvanceswillbeappliedeitherto(i)reimbursetheMunicipalityforProjectexpensespreviouslypaidinanticipationofthereceiptofBondproceedsor(ii)payProjectinvoices,asspecifiedearlier,withinthreedaysofthedateofreceiptofsuchFunds.PriortothepaymentofProjectinvoices,theproceedsofthesaleoftheBondsshallbedepositedbytheMunicipalityintoaspecialfunddesignatedas Report Attachment #a. Page 16 of 51 “SewerSystemCWFPProjectFund.”TheSewerSystemCWFPProjectFundshallbeusedsolelyforthepurposeofpayingthecostsoftheProjectasdescribedaboveandintheFinancialAssistanceAgreementrelatingtotheProjectdatedJanuary27,2021.MoneysintheSewerageSystemCWFPProjectFundshallbedisbursedwithinthreebusinessdaysoftheirreceiptfromtheStateofWisconsinandshallnotbeinvestedinanyinterest—bearingaccount. 3.2ProiectExpenditures;NoPaymentstoRelatedParties.AllProceedsshallbeusedsolelytopaycostsoftheProject.TheMunicipalityreasonablyexpectsthat100%oftheProceedswillbeallocatedtoexpendituresontheProjectduringthe3-yearperiodbeginningonthedateofdeliveryoftheBonds.NoProceedswillbeallocatedtoanypaymenttoarelatedpartytothepayor. 3.3SubstantialBindingObligations.TheMunicipalityhasincurredsubstantialbindingobligationstothirdparties(whicharenotsubjecttoacontingencywithinthecontroloftheMunicipalityorofarelatedpartywithrespecttotheMunicipality)toexpendatleast5%oftheProceedsontheProject. 3.4WorkorAcquisitionWillProceedwithDueDiliggice.Basedontheexpectedexpenditures,theMunicipalityreasonablyexpectsthatworkonoracquisitionoftheProjectwillproceedwithduediligencetocompletionandthattheallocationoftheProceedstoexpendituresontheProjectwillproceedwithduediligence. 3.5Pro'ectNottobeSold.TheProjectwillnotbesoldorotherwisedisposedof,inwholeorinpart,priortothelastmaturityoftheBonds,exceptforitemsdisposedofintheordinarycourseofbusinessduetonormalwear,obsolescence,ordepreciation. 36 DebtServiceFund.RevenuesoftheSewerSystemcollectedforpaymentofprincipalofandinterestontheBondswillbedepositedwhenreceivedintoasinkingfund,asrequiredbylaw,andamountsthereinmayonlybeusedtopayprincipalofandinterestontheBondsandotheroutstandingrevenuebondsoftheMunicipality.Thesinkingfund,designatedthe“DebtServiceFund,”fortheBondsisdesignedtoachieveapropermatchingofrevenuesandprincipalandinterestpaymentswithineachyear.BasedonthedebtservicerequirementsoftheBondsandtheexpecteddatesofcollectionofrevenuestopaysuchdebtservice,theMunicipalityexpectsthat(i)theDebtServiceFundwillbedepletedatleastonceeachyearexceptforareasonablecarryoveramountwhichisnotexpectedtoexceedthegreaterof(a)theearningsfromtheinvestmentoftheDebtServiceFundfortheimmediatelyprecedingyear,or(b)1/12oftheprincipalandinterestpaymentsontheBondsfortheimmediatelyprecedingyear;(ii)amountsdepositedintheDebtServiceFundwillonlybeinvestedforaperiodlessthan13months(assuminga?rst—in-?rst—outmethodofaccountingfordepositstotheDebtServiceFund);and(iii)allearningsfromtheinvestmentoftheDebtServiceFundwillbeinvestedforaperiodnottoexceedoneyearbeforebeingexpendedforpaymentofdebtserviceontheBonds.TheMunicipalityhasnotestablishedanddoesnotexpecttoestablishanyothersinkingfundorsimilarfundwithrespecttotheBonds.TherearenootherfundswhicharereasonablyexpectedtobeusedtopayprincipaloforinterestontheBondsorwhicharepledgedtosecuretheBonds. 3.7NoBondInsurance.NopremiumshavebeenpaidorwillbepaidtoinsuretheBonds. 3.8NoReserveFund.NoreserveorreplacementfundhasbeenorwillbeestablishedwithregardtotheBonds. VI.CONCLUSION 4.1ExpectationsareReasonable.Tothebestofourknowledgeandbelief,therearenootherfacts,estimatesorcircumstancesthatwouldmateriallychangeanyoftheMunicipality’sexpectationsastofutureeventsdescribedinthisCerti?cate,andsaidexpectationsarereasonable. Report Attachment #a. Page 17 of 51 StateofVt?scunsin FinancialAssistanceAgreementDepartmentofNaturalResources CleanWaterFundProgramBureauofccmmunityFinancialAssistance Form8700214rev04/20101SouthWebsterStreet.2ndFloorPOBox7921Madison.V\?sconsin53707-7921 STATEOFWISCONSINCLEANW ATERFUNDPROGRAM STATEOFWISCONSINDEPARTMENTOFNATURALRESOURCESDEPARTMENTOFADMINISTRATION and CITYOFHUDSON $12,616,740 FINANCIALASSISTANCEAGREEMENT DatedasofJanuary27,2021 ThisconstitutesaFinancialAssistanceAgreementundertheStateofWisconsin'sCleanWaterFundProgram.Thisagreementisawardedpursuanttoss.281.58and281.59,Wis.Stats.Thepurposeofthisagreementistoaward?nancialassistancefromtheCleanWaterFundProgram.Thisagreementalsodisclosesthetermsandconditionsofthisaward. Thisagreementisonlyeffectivewhensignedbyauthorizedof?cersofthemunicipality,theStateofVt?sconsinDepartmentofNaturalResources,andtheStateofVl?sconsinDepartmentofAdministration.TheDepartmentofNaturalResourcesandtheDepartmentofAdministrationmayrescindorterminatethisagreementifthemunicipalityfailstocomplywiththetermsandconditionscontainedwithin.Anydeterminationorcerti?cationmadeinthisagreementbytheDepartmentofNaturalResourcesortheDepartmentofAdministrationismadesolelyforthepurposeofprovidingfinancialassistanceundertheCleanWaterFundProgram. MunicipalIdenti?cationNo.55236CleanWaterFundProgramProjectNo.4112—O7 Report Attachment #a. Page 18 of 51 Section1.01.Section1.02. Section2.01.Section2.02. Section3.01.Section302.Section3.03.Section3.04.Section3.05.Section3.06.Section3.07.Section3.08.Section3.09. Section4.01.Section402.Section4.03.Section4.04.Section4.05.Section4.06. Section501.Section502.Section5.03.Section5.04.Section505.Section5.06.Section5.07.Section5.08.Section5.09.Section5.10.Section5.11.Section5.12.Section5.13.Section514.Section5.15. TABLEOFCONTENTS ARTICLEIDEFINITIONS;RULESOFINTERPRETATIONDe?nitionsRulesofInterpretation ARTICLEIIREPRESENTATIONSRepresentationsoftheCWFPRepresentationsoftheMunicipality ARTICLEIIILOANPROVISIONSLoanClausesLoanAmortizationTypeofMunicipalObligationandSecurityOtherAmountsPayableSaleandRedemptionofMunicipalObligationsDisbursementofLoanProceedsRemediesSecurityfortheLoanEffectiveDateandTerm ARTICLEIVCONSTRUCTIONOFTHEPROJECTInsuranceConstructionoftheProjectPerformanceBondsCompletionoftheProjectPaymentofAdditionalProjectCostsNoWarrantyRegardingCondition,Suitability,orCostofProjectARTICLEVCOVENANTSApplicationofLoanProceedsOperationandMaintenance;EquipmentReplacementFundCompliancewithLawPublicOwnershipEstablishmentofProjectAccounts;AuditsRecordsProjectAreasEngineeringinspectionReservedUserFeeCovenantNoticeofImpairedSystemHoldHarmlessNondiscriminationCovenantEmployeesAdequateFunds -bk)G30) 101010‘I11111121313 141414141515 161616161617171717171717181818 Report Attachment #a. Page 19 of 51 Section5.16.Section5.17.Section518.Section5.19.Section5.20.Section5.21.Section5.22.Section5.23.Section5.24.Section5.25 Section6.01.Section6.02.Section6.03.Section6.04.Section6.05.Section6.06.Section6.07.Section608.Section6.09.Section6.10.Section6.11.Section6.12. EXHIBITAEXHIBITBEXHIBITCEXHIBITDEXHIBITEEXHIBITFEXHIBITG ManagementReimbursementUnpaidUserFeesSewerUseOrdinanceRebatesMaintenanceofLegalExistenceWageRateRequirementsFiscalSustainabilityPlanUseofAmericanIronandSteelFederalSingleAudit ARTICLEVIMISCELLANEOUSNoticesBindingEffectSeverabilityAmendments,Supplements,andModificationsExecutioninCounterpartsApplicableLawBene?tofFinancialAssistanceAgreementFurtherAssurancesAssignmentofMunicipalObligationsCovenantbyMunicipalityastoCompliancewithProgramResolutionTerminationRescission PROJECTBUDGETSHEETLOANAMORTIZATIONSCHEDULELOANDISBURSEMENTTABLEOPERATINGCONTRACTSDISADV ANTAGEDBUSINESSENTERPRISESCONTRACTUTILIZATIONPROJECTMANAGERSUMMARYPAGEFEDERALREQUIREMENTSCOMPLIANCECERTIFICATION 18181818181919191919 Report Attachment #a. Page 20 of 51 WlTNESSETH:WHEREAS,thisisaFINANCIALASSISTANCEAGREEMENT(the“FAA”),datedJanuary27,2021,betweentheSTATEOFWISCONSINCleanWaterFundProgram(the“CWFP"),bytheDepartmentofNaturalResources(the“DNR")andtheDepartmentofAdministration(the“DOA”),actingunderauthorityofss.281.58and281.59,V\lis.Stats.,asamended(the"Statute"),andtheCityofHudson,amunicipalitywithinthemeaningoftheStatute,dulyorganizedandexistingunderthelawsoftheStateofVl?sconsin(the"Municipality");and WHEREAS,theUnitedStates,pursuanttotheFederalWaterQualityActof1987(the"WaterQualityAct"),requireseachstatetoestablishawaterpollutioncontrolrevolvingfundtobeadministeredbyaninstrumentalityofthestatebeforethestatemayreceivecapitalizationgrantsforeligibleprojectsfromtheUnitedStatesEnvironmentalProtectionAgency(the"EPA"),oranysuccessorwhichmaysucceedtotheadministrationoftheprogramestablishedby‘I'it|eVIoftheWaterQualityAct;andWHEREAS,theStateofV\?sconsin,pursuanttotheStatute,establishedtheCWFPtobeusedinpartforpurposesoftheWaterQualityAct;and WHEREAS,theStateofV\?sconsin,pursuanttos.25.43,V\?s.Stats.,establishedaStateofVl?sconsinEnvironmentalImprovementFundwhichincludestheCWFP;andWHEREAS,DNRandDOAhavethejointresponsibilitytoprovideC\/\/FP?nancialassistancetomunicipalitiesfortheconstructionofeligiblewastewaterpollutionabatementprojects,allassetforthintheStatute;and WHEREAS,theMunicipalitysubmittedtoDNRanapplicationfor?nancialassistance(the"Application")foraproject(the"Project"),andDNRhasapprovedtheApplicationanddeterminedtheApplicationmeetsthecriteriaforProjecteligibilitybasedonwaterqualityandpublichealthrequirementsestablishedinapplicablestatestatutesandregulations;and WHEREAS,DNRdeterminedthattheMunicipalityandtheProjectareeligiblefor?nancialassistancepursuanttos.281.58(7)(b),VVis.Stats;and WHEREAS,DOAdeterminedtheCWFPwillprovide?nancialassistancetotheMunicipalitybymakingaloan(the“Loan”)unders.281.59(9),Vl?sStats,forthepurposesofthatsubsection;andWHEREAS,theMunicipalitypledgedthesecurity,ifany,requiredbyDOA,andtheMunicipalitydemonstratedtothesatisfactionofDOAthe?nancialcapacitytoensuresuf?cientrevenuestooperateandmaintaintheProjectforitsusefullifeandtopaydebtserviceontheobligationsitissuesfortheProject;andWHEREAS,theMunicipalitycerti?estotheC\l\IFPthatithascreatedadedicatedsourceofrevenue,whichmayconstitutetaxesleviedbytheMunicipalityforrepaymentoftheLoan;and WHEREAS,theMunicipalityobtainedDNRapprovaloffacilityplansorengineeringreports,andplansandspeci?cationsfortheProject,subjecttotheprovisionsofapplicableStateenvironmentalstandardssetforthinlaw,rules,andregulations; NOW,THEREFORE,inconsiderationofthepromisesandofthemutualrepresentations,covenants,andagreementshereinsetforth,theCWFPandtheMunicipality,eachbindingitself,itssuccessors,anditsassigns,domutuallypromise,covenant,andagreeasfollows: Report Attachment #a. Page 21 of 51 ARTICLEIDEFINITIONS‘RULESOFINTERPRETATIONSection1.01.De?nitionsThefollowingcapitalizedtermsasusedinthisFAAshallhavethefollowingmeanings: "Act"meanstheFederalWaterPollutionControlAct,33U.S.Code§§125O_e_ts_e2ci.,asamended."Application"meansthewrittenapplicationoftheMunicipalitydatedSeptember30,2019,for?nancialassistanceundertheStatute."Bonds"meansbondsornotesissuedbytheStatepursuanttotheProgramResolution,alloraportionoftheproceedsofwhichshallbeappliedtomaketheLoan."BusinessDay"meansanydayonwhichStateofficesareopentoconductbusiness."Code"meanstheInternalRevenueCodeof1986,asamended,andanysuccessorprovisions."CWFP"meanstheStateofVwsconsinCleanWaterFundProgram,establishedpursuanttotheStatute,andmanagedandadministeredbyDNRandDOA. "DNR"meanstheStateofVt?sconsinDepartmentofNaturalResourcesandanysuccessorentity."DOA"meanstheStateofVl?sconsinDepartmentofAdministrationandanysuccessorentity."EPA"meanstheUnitedStatesEnvironmentalProtectionAgencyoranysuccessorentitythatmaysucceedtotheadministrationoftheprogramestablishedbyTitleVIoftheWaterQualityAct.“FAA”meansthisFinancialAssistanceAgreement."FeesandCharges"meansthecostsandexpensesofDNRandDOAinadministeringtheCWFP."FinalCompletion"meanstheProjectconstructioniscomplete,DNRoragentsthereofhavecerti?edthattheProjectwasconstructedaccordingtoDNRapprovedPlansandSpeci?cationsandthatthefacilitiesareoperatingaccordingtodesign,andDNRhascompletedallnecessaryProjectcloseoutprocedures."FinancialAssistanceAgreement"meansthisFinancialAssistanceAgreementbetweentheCWFPbyDNR,DOA,andtheMunicipality,asthesamemaybeamendedfromtimetotimeinaccordancewithSection6.04hereof. "FiscalSustainabilityPlan"meansaplanmeetingtheminimumrequirementsofsection603(d)(1)(E)oftheAct. "Loan"meanstheloanorloansmadebytheCWFPtotheMunicipalitypursuanttothisFAA."LoanDisbursementTable"meansthetable,theformofwhichisincludedasExhibitChereto,withcolumnsforinsertingthefollowinginformation: (:3)amountofeachdisbursement,(b)dateofeachdisbursement,(c)theseriesofBondsfromwhicheachdisbursementismade,(d)principalamountsrepaid,and(e)outstandingprincipalbalance."MunicipalObligationCounselOpinion"meanstheopinionofcounselsatisfactorytoDOA,issuedinconjunctionwiththeMunicipalObligations,statingthat: Report Attachment #a. Page 22 of 51 (a)theFAAandtheperformancebytheMunicipalityofitsobligationsthereunderhavebeendulyauthorizedbyallnecessaryactionsbythegoverningbodyoftheMunicipality,andtheFAAhasbeendulyexecutedanddeliveredbytheMunicipality;(b)theMunicipalObligationshavebeendulyauthorized,executed,anddeliveredbytheMunicipalityandsoldtotheCWFP;(c)eachoftheFAAandtheMunicipalObligationsconstitutesalegal,valid,andbindingobligationoftheMunicipality,enforceableagainsttheMunicipalityinaccordancewithitsrespectiveterms(providedthatenforceabilitythereofmaybesubjecttobankruptcy,insolvency,reorganization,moratorium,andothersimilarlawsaffectingcreditors’rightsheretoforeorhereafterenactedtotheextentconstitutionallyapplicableandthatitsenforcementmayalsobesubjecttotheexerciseofjudicialdiscretioninappropriatecases); (d)theMunicipalObligationsconstitutespecialobligationsoftheMunicipalitysecuredastopaymentofprincipal,interest,andredemptionpricebythepledgedrevenuesassetforththerein;and (e)interestontheMunicipalObligationsisincludedingrossincomeoftheownersthereofforfederalincometaxationpurposesunderexistinglaws,regulations,rulings,andjudicialdecisions."MunicipalObligationResolution"meansthatactiontakenbythegoverningbodyoftheMunicipalityauthorizingtheissuanceoftheMunicipalObligations."MunicipalObligations"meansthebondsornotesissuedanddeliveredbytheMunicipalitytotheCWFP,aspecimencopyofwhichisincludedintheMunicipalObligationstranscript."Municipality"meanstheCityofHudson,a"municipality"withinthemeaningoftheStatute,dulyorganizedandexistingunderthelawsoftheState,andanysuccessorentity.“ParallelCostPercentage"meanstheproportionofProjectCostseligibleforbelow-market—ratefinancingrelativetothetotalProjectCostseligibleforCWFP?nancing.“PlansandSpecifications"meanstheProjectdesignplansandspeci?cationsassignedNo.S—2019-0753,approvedbyDNRonMarch11,2020,asthesamemaybeamendedormodi?edfromtimetotimeinaccordancewiththisFAA. "ProgramResolution”meanstheAmendedandRestatedProgramResolutionforStateofVi?sconsinEnvironmentalimprovementFundRevenueObligationsadoptedbytheStateofWisconsinBuildingCommission,assuchmayfromtimetotimebefurtheramendedorsupplementedbySupplementalResolutionsinaccordancewiththetermsandprovisionsoftheProgramResolution.“Progresspayments”meanspaymentsforworkinplaceandmaterialsorequipmentthathavebeendeliveredorarestockpiledinthevicinityoftheconstructionsite.Thisincludespaymentsforundelivered,speci?callymanufacturedequipmentif:(1)designatedinthespecifications,(2)couldnotbereadilyutilizedordivertedtoanotherjob,and(3)afabricationperiodofmorethan6monthsisanticipated.“Project”meanstheprojectassignedCWFPProjectNo.4112-07byDNR,describedintheProjectManagerSummaryPage(ExhibitF),andfurtherdescribedintheDNRapprovalletterforthePlansandSpeci?cations,orportionsthereof,issuedunders.281.41,V\fis.Stats."ProjectCosts"meansthecostsoftheProjectthatareeligiblefor?nancialassistancefromtheCWFPundertheStatute,whichareallowablecostsundertheRegulations,whichhavebeenincurredbytheMunicipality,anestimateofwhichissetforthinExhibitAheretoandmadeaparthereof. Report Attachment #a. Page 23 of 51 "Regulations"meanstheAct;chs.NR108,NR110,NR150,NR151,NR162,andNR216,vt?s.Adm.Code,theregulationsofDNR;andch.Adm.35,V\?s.Adm.Code,theregulationsofDOA,adoptedpursuanttoandinfurtheranceoftheAct,assuchmaybeadoptedoramendedfromtimetotime.“SDVVLP”meanstheStateofVl?sconsinSafeDrinkingWaterLoanProgram,establishedpursuanttoss.281.59and281.61,Wis.Stats."ServicingFee"meansanyservicingfeethatmaybeimposedbyDNRandDOApursuanttos.281.58(9)(d),Wis.Stats,whichshallcovertheestimatedcostsofreviewingandactingupontheApplicationandservicingthisFAA,andwhichtheMunicipalityisobligatedtopayassetforthinSection3.04hereof. "SewerUseOrdinance"meanstheordinance(orotherlegislativeenactments)meetingtherequirementsoftheRegulationsandenactedandenforcedineachjurisdictionservedbytheProject."SewerageSystem”meanstheentireseweragesystemoftheMunicipality,speci?callyincludingthatportionoftheProjectownedbytheMunicipalityandincludingallpropertyofeverynaturenoworhereafterownedbytheMunicipalityforthecollection,transmission,treatment,anddisposalofdomesticandindustrialsewerageandwaste. “State"meanstheStateofV\?sconsin.“Statute”meansss.281.58and281.59,Vl?s.Stats.,asamended."SubstantialCompletion"meansthedateonwhichconstructionoftheProjectissuf?cientlycompleteinaccordancewiththecontractdocumentssothattheownercanoccupyandutilizetheProjectforitsintendeduse. “SupplementalResolution”shallhavethemeaningsetforthintheProgramResolution."Trustee"meansthetrusteeappointedbytheStatepursuanttotheGeneralResolutionandanysuccessortrustee. "UseofAmericanIronandSteel”meanstherequirementscontainedinsection608oftheAct."UserChargeSystem"meansasystemofchargesmeetingtherequirementsofs.NR162.08,Vl?s.Adm.Code. "UserFees"meansfeeschargedortobechargedtousersoftheProjectortheSewerageSystemofwhichtheProjectisapartpursuanttoaUserChargeSystemorothenivise."WaterQualityAct"meansthefederalWaterQualityActof1987,asamended."WPDESPermit"meansaVl?sconsinPollutantDischargeEliminationSystempermitissuedunderch.283,Wis.Stats. Section102.RulesofInterpretationUnlessthecontextclearlyindicatestothecontrary,thefollowingrulesshallapplytothecontextofthisFAA: (a)Wordsimportingthesingularnumbershallincludethepluralnumberandviceversa,andonegendershallincludeallgenders. (b)AllreferenceshereintoparticulararticlesorsectionsarereferencestoarticlesorsectionsofthisFAA. Report Attachment #a. Page 24 of 51 (c)ThecaptionsandheadingshereinaresolelyforconvenienceofreferenceandshallnotconstituteapartofthisFAA,norshalltheyaffectitsmeaning,construction,oreffect.(cl)Theterms"hereby","hereof","hereto","herein","hereunder",andanysimilartermsasusedinthisFAArefertotheFAAinitsentiretyandnottheparticulararticleorsectionofthisFAAinwhichtheyappear.Theterm"hereafter"meansafterandtheterm"heretofore"meansbeforethedateofdeliveryofthisFAA. (e)Allaccountingtermsnotothenivisede?nedinthisFAAhavethemeaningsassignedtotheminaccordancewithgenerallyacceptedaccountingprinciples,andallcomputationsprovidedforhereinshallbemadeinaccordancewithgenerallyacceptedaccountingprinciples. Report Attachment #a. Page 25 of 51 ARTICLEIIREPRESENTATIONSSection2.01.RepresentationsoftheCWFPTheCWFPrepresentsandwarrantsasfollows:(a)TheStateisauthorizedtoissuetheBondsinaccordancewiththeStatuteandtheGeneralResolutionandtousetheproceedsthereoftoprovidefundsforthemakingoftheLoantotheMunicipalitytoundertakeandcompletetheProject. (b)TheCV\IFPhascompliedwiththeprovisionsoftheStatuteandhasfullpowerandauthoritytoexecuteanddeliverthisFAA,consummatethetransactionscontemplatedhereby,andperformitsobligationshereunder. (c)TheCWFPisnotinviolationofanyoftheprovisionsoftheConstitutionorlawsoftheStatewhichwouldaffectitspowersreferredtointheprecedingparagraph(b).(d)PursuanttotheStatute,theCWFPisauthorizedtoexecuteanddeliverthisFAA,andtotakeactionsandmakedeterminationsthatarerequiredoftheCWFPunderthetermsandconditionsofthisFAA. (e)TheexecutionanddeliverybytheC\/\lFPofthisFAAandtheconsummationofthetransactionscontemplatedbythisFAAshallnotviolateanyindenture,mortgage,deedoftrust,note,agreement,orothercontractorinstrumenttowhichtheStateisaparty,orbywhichitisbound,or,tothebestoftheCWFP’sknowledge,anyjudgment,decree,order,statute,rule,orregulationapplicabletotheCWFP;allconsents,approvals,authorizations,andordersofgovernmentalorregulatoryauthoritiesthatarerequiredfortheconsummationofthetransactionscontemplatedtherebyhavebeenobtained. (f)TotheknowledgeoftheCl/\IFP,thereisnoaction,suit,proceeding,orinvestigation,atlaworinequity,beforeorbyanycourt,publicboard,orbody,threatenedagainst,pending,oraffectingtheCV\IFP,or,totheknowledgeoftheCWFP,anybasistherefor,whereinanunfavorabledecision,ruling,or?ndingwouldadverselyaffectthetransactionscontemplatedherebyorwhich,inanyway,couldadverselyaffectthevalidityofthisFAAoranyagreementorinstrumenttowhichtheStateisapartyandwhichisusedorcontemplatedforuseinconsummationofthetransactionscontemplatedbyeachoftheforegoing.Section2.02.RepresentationsoftheMunicipalityTheMunicipalityrepresents,covenants,andwarrantsasfollows: (a)TheMunicipalitypossessesthelegalmunicipalformofacityunderch.62,Wis.Stats.TheMunicipalityislocatedwithintheStateandisa"municipality"withinthemeaningoftheStatute,dulyorganizedandexistingunderthelawsoftheState,andhasfulllegalright,power,andauthorityto:(1)conductitsbusinessandownitsproperties,(2)enterintothisFAA,(3)adopttheMunicipalObligationResolution,(4)issueanddelivertheMunicipalObligationstotheCWFPasprovidedherein,and(5)carryoutandconsummatealltransactionscontemplatedbyeachoftheaforesaiddocuments. (b)TheMunicipality'sProjectisaprojectthatisnecessarytopreventtheapplicantfromsigni?cantlyexceedinganeffluentlimitationcontainedinitsWPDESPermit(compliancemaintenance). (c)Vl?threspecttotheissuanceoftheMunicipalObligations,theMunicipalityhascompliedwiththeMunicipalObligationResolutionandwithallapplicablelawsoftheState. Report Attachment #a. Page 26 of 51 (d)ThegoverningbodyoftheMunicipalityhasdulyapprovedtheexecutionanddeliveryofthisFAAandtheissuanceanddeliveryoftheMunicipalObligationsintheaggregateprincipalamountof$12,616,740andauthorizedthetakingofanyandallactionasmayberequiredonthepartoftheMunicipalityanditsauthorizedof?cerstocarryout,giveeffectto,andconsummatethetransactionscontemplatedbyeachoftheforegoing. (e)ThisFAAandtheMunicipalObligationshaveeachbeendulyauthorized,executed,anddelivered,andconstitutelegal,valid,andbindingobligationsoftheMunicipality,enforceableinaccordancewiththeirrespectiveterms. (f)TotheknowledgeoftheMunicipality,thereisnoaction,suit,proceeding,inquiry,orinvestigation,atlaworinequity,beforeorbyanycourt,publicboard,orbody,threatenedagainst,pending,oraffectingtheMunicipality,or,totheknowledgeoftheMunicipality,anybasistherefor:(1)affectingthecreation,organization,orexistenceoftheMunicipalityorthetitleofitsof?cerstotheirrespectiveoffices; (2)seekingtoprohibit,restrain,orenjointheexecutionofthisFAAortheissuanceordeliveryoftheMunicipalObligations, (3)inanywaycontestingoraffectingthevalidityorenforceabilityoftheMunicipalObligationResolution,theMunicipalObligations,thisFAA,oranyagreementorinstrumentrelatingtoanyoftheforegoingorusedorcontemplatedforuseintheconsummationofthetransactionscontemplatedbythisFAA;or (4)whereinanunfavorabledecision,ruling,orfindingcouldadverselyaffectthetransactionscontemplatedherebyorbytheMunicipalObligationResolutionortheMunicipalObligations. (g)TheMunicipalityisnotinanymaterialrespectinbreachoforindefaultunderanyapplicablelaworadministrativeregulationoftheStateortheUnitedStates,anyapplicablejudgmentordecree,oranyagreementorotherinstrumenttowhichtheMunicipalityisaparty,orbywhichitoranyofitspropertiesisbound,andnoeventhasoccurredthat,withthepassageoftime,thegivingofnotice,orboth,couldconstitutesuchabreachordefault.TheexecutionanddeliveryofthisFAA,theissuanceanddeliveryoftheMunicipalObligations,theadoptionoftheMunicipalObligationResolution,andcompliancewiththerespectiveprovisionsthereofshallnotcon?ictwith,orconstituteabreachofordefaultunder,anyapplicablelaworadministrativeregulationoftheStateoroftheUnitedStates,anyapplicablejudgmentordecree,oranyagreementorotherinstrumenttowhichtheMunicipalityisaparty,orbywhichitoranyofitspropertyisbound.(h)TheMunicipalObligationsconstitutevalidly—issued,legally—bindingspecialobligationsoftheMunicipalitysecuredassetforththerein. (i)TheresolutionsoftheMunicipalityacceptingtheLoanandtheMunicipalObligationResolutionhavebeendulyadoptedbytheMunicipalityandremaininfullforceandeffectasofthedatehereof.(j)TheMunicipalityhasfulllegalrightandauthorityandallnecessarypermits,licenses,easements,andapprovals(otherthansuchpermits,licenses,easements,orapprovalsthatarenotbytheirnatureobtainablepriortoSubstantialCompletionoftheProject)requiredasofthedatehereoftoowntheProject,carryonitsactivitiesrelatingthereto,undertakeandcompletetheProject,andcarryoutandconsummatealltransactionscontemplatedbythisFAA.(k)TheMunicipalityrepresentsthatithasnotmadeanycommitmentortakenanyactionthatshallresultinavalidclaimforany?nders’orsimilarfeesorcommitmentsinrespecttotheissuanceandsaleoftheMunicipalObligationsandthemakingoftheLoanunderthisFAA. Report Attachment #a. Page 27 of 51 (I)TheProjectiseligibleunders.281.58(7),V\?s.Stats.,for?nancingfromtheCWFP,andtheProjectCostsareequaltoorinexcessoftheprincipalamountoftheMunicipalObligations.PortionsoftheProjectthatareineligiblefor?nancingfromtheCWFParelistedwithintheProjectManagerSummaryPageattachedheretoasExhibitF.TheMunicipalityintendstheProjecttobeeligibleundertheStatutethroughoutthetermofthisFAA.(m)AllamountsshowninExhibitAofthisFAAarecostsofaProjecteligiblefor?nancialassistancefromtheCWFPundertheStatute.AllproceedsofanyborrowingoftheMunicipalitythathavebeenspentandarebeingre?nancedwiththeproceedsoftheLoanmadehereunderhavebeenspentoneligibleProjectCosts.AllProjectCostsarereasonable,necessary,andallocablebytheMunicipalitytotheProjectundergenerallyacceptedaccountingprinciples.NoneoftheproceedsoftheBondsshallbeuseddirectlyorindirectlybytheMunicipalityasworkingcapitalorto?nanceinventory,asopposedtocapitalimprovements. (n)TheProjectisincompliancewithallapplicablefederal,state,andlocallawsandordinances(includingrulesandregulations)relatingtozoning,building,safety,andenvironmentalquality.TheMunicipalityhascompliedwithandcompletedallrequirementsofDNRnecessarytocommenceconstructionoftheProjectpriortothedatehereof.TheMunicipalityintendstoproceedwithduediligencetocompletetheProjectpursuanttoSection4.04hereof.(o)TheMunicipalitydoesnotintendtoleasetheProjectorenterintoalong-termcontractforoperationoftheProjectexceptassetforthinExhibitD. (p)TheMunicipalityshallnottakeoromittotakeanyactionwhichactionoromissionshallinanywaycausetheproceedsoftheBondstobeappliedinamannercontrarytothatprovidedintheProgramResolution. (q)Reserved— Sectionomittedfortaxablebonds. (r)Resen/ed— Sectionomittedfortaxablebonds.(s)TheMunicipalityrepresentsthatithassatis?edalltheapplicablerequirementsins.281.58,V\?s.Stats,andch.NR162,Vi?s.Adm.Code. (t)TheMunicipalityhasadoptedarate,charge,orassessmentschedulethatwillgenerateannuallysuf?cientrevenuetopaytheprincipalofandinterestontheMunicipalObligations.(u)TheMunicipalityisinsubstantialcompliancewithallconditions,requirements,andtermsofany?nancialassistancepreviouslyawardedthroughthefederalconstructiongrantsprogram,theWisconsinFundconstructiongrantsprogram,theCWFP,ortheSDWLP.(v)TheMunicipalityhasmetalltermsandconditionscontainedwithinandreceivedDNRapprovalfortheMunicipality'sPlansandSpeci?cationsfortheProjectdescribedinthede?nitionshereof.(w)TheMunicipalityrepresentsthatitsubmittedtoDNRabidtabulationfortheProjectwitharecommendationtoDNRforreviewandconcurrence.TheexpectedSubstantialCompletiondateoftheProjectisFebruary18,2022. (x)TheMunicipalityacknowledgesthats.281.59(11)(b),Vi?s.Stats,andtheProgramResolutionprovidethat,iftheMunicipalityfailstorepaytheLoanwhendue,theStateshallrecoveramountsduetheCV\/FPbydeductingthoseamountsfromanyStatepaymentsduetheMunicipality.Stateaidsinformationisavailableon:theV\?sconsinDepartmentofRevenueswebsiteathttps://wvvw.revenue.wi.gov/Pages/Report/shared—revenue—state.aspx,andtheV\/lsconsinDepartmentofTransportation'swebsiteathttps2//wisconsindot.gov/Pages/doing—bus/local-gov/astnce-pgms/highway/gta.aspx. Report Attachment #a. Page 28 of 51 TheMunicipalityacknowledgesthats.70.60,V\ns.Stats,andtheProgramResolutionprovidethat,iftheMunicipalityfailstorepaytheLoanwhendue,theStateshallrecoveramountsduetheCVVFPbyaddingaspecialchargetotheamountoftaxesapportionedtoandlevieduponthecountyinwhichtheMunicipalityislocated. (y)TheMunicipalityacknowledgesthattheStatereservestherightupondefaultbytheMunicipalityhereundertohaveareceiverappointedtocollectUserFeesfromtheoperationoftheMunicipality'sSewerageSystemor,inthecaseofajointutilitysystem,tobilltheusersoftheMunicipality'sSewerageSystemdirectly. (2)TherepresentationsoftheMunicipalityintheApplicationaretrueandcorrectasofthedateofthisFAAandareincorporatedhereinbyreferenceasiffullysetforthinthisplace.(aa)Therehasbeennomaterialadversechangeinthe?nancialconditionoroperationoftheMunicipalityortheProjectsincethesubmissiondateoftheApplication. Report Attachment #a. Page 29 of 51 ARTICLEIIILOANPROVISIONSSection3.01.LoanClauses (a)SubjecttotheconditionsandinaccordancewiththetermsofthisFAA,theCWFPherebyagreestomaketheLoanandtheMunicipalityagreestoaccepttheLoan.AsevidenceoftheLoanmadetotheMunicipality,theMunicipalityherebyagreestoselltotheCWFPMunicipalObligationsintheaggregateprincipalamountof$12,616,740.TheCWFPshallpayfortheMunicipalObligationsinlawfulmoneyoftheUnitedStates,whichshallbedisbursedasprovidedinthisFAA.(b)Priortodisbursement,LoanproceedsshallbeheldbytheCWFPorbytheTrusteefortheaccountoftheCV\/FP.EarningsonundisbursedLoanproceedsshallbefortheaccountoftheCV\/FP.LoanproceedsshallbedisbursedonlyuponsubmissionbytheMunicipalityofdisbursementrequestsandapprovalthereofassetforthinSection3.06hereof.(c)TheLoanshallbearinterestattherateofoneand485/1000thspercent(1.485%)perannum,andinterestshallaccrueandbepayableonlyonLoanproceedsactuallydisbursedfromthedateofdisbursementuntilthedatesuchamountsarerepaid. (d)TheMunicipalObligationshallincludetheLoanDisbursementTable(ExhibitC).TheactualdatesofdisbursementsshallbereflectedaspartoftheMunicipalObligations.DOAshallmakeentriesaseachdisbursementismadeandaseachprincipalamountisrepaid;theCWFPandtheMunicipalityagreethatsuchentriesshallbemutuallybinding.(e)UponFinalCompletionoftheProject,DOAmayrequestthattheMunicipalityissuesubstituteMunicipalObligationsintheaggregateprincipalamountequaltotheoutstandingprincipalbalanceoftheLoan. (f)TheMunicipalityshalldeliver,orcausetobedelivered,aMunicipalObligationCounselOpiniontotheCWFPconcurrentlywiththedeliveryoftheMunicipalObligations.Section3.02.LoanAmortizationPrincipalandinterestpaymentsontheLoan(andontheMunicipalObligationsevidencingtheLoan)shallbedueonthedatessetforthinExhibitBofthisFAA.ThepaymentamountsshownonExhibitBareforinformationalpurposesonlyandassumethefullamountoftheLoanisdisbursedtotheMunicipalityonJanuary27,2021.ItisunderstoodthattheactualamountoftheMunicipa|ity’sLoanpaymentsshallbebasedontheactualdateandamountofLoandisbursementsfortheProject.NotwithstandingtheforegoingoranythingintheMunicipalObligations,theLoanshallbefornolongerthantwenty(20)yearsfromthedateofthisFAAandshallmatureandbefullyamortizednotlaterthantwenty(20)yearsaftertheoriginalissuedateoftheMunicipalObligations.RepaymentofprincipalontheLoanshallbeginnotlaterthantwelve(12)monthsaftertheexpectedoractualSubstantialCompletiondateoftheProject. Section3.03.TypeofMunicipalObligationandSecurityTheMunicipality'sobligationtomeetannualdebtservicerequirementsshallbearevenueobligationevidencedbyissuanceofrevenuebondspursuanttos.66.0621,V\?s.Stats.ThesecurityfortheMunicipality'sobligationshallbeapledgeofrevenuestobederivedfromtheMunicipality'sSewerageSystem,andtheMunicipalityshallagreethat,ifrevenuesfromtheSewerageSystemareinsuf?cienttomeetannualdebtservicerequirements,theMunicipalityshallpurchasesewerageservicesinamountssuf?cienttomeetannualdebtservicerequirementsasprovidedinandsetforthinSection9oftheMunicipalObligationResolution.TheannualrevenuesnetofallcurrentexpensesshallbeequaltonotlessthantheannualprincipalandinterestrequirementsontheMunicipalObligations,anyparityobligations,andanyotherdebtobligationspayablefromtherevenuesoftheSewerageSystemthenoutstanding,timesthegreaterof(i)110percentor(ii)thehighestdebtservicecoverageratiorequiredwithrespecttoanyparityobligations,oranyotherdebtobligationspayablefromtherevenuesoftheSewerageSystemthenoutstanding.AsofthedateofthisFAA,therequireddebtservicecoverageratiois 10 Report Attachment #a. Page 30 of 51 110percent;however,thispercentageissubjecttochangeasoutlinedinthepriorsentence.TheLoanisalsosecuredasprovidedinSection3.08hereof.Section3.04.OtherAmountsPayableTheMunicipalityherebyexpresslyagreestopaytotheCWFP:(a)suchServicingFeeastheCV\lFPmayimposepursuanttos.281.58(9)(d),Vl?s.Stats,whichshallbepayableinsemiannualinstallmentsoneachinterestpaymentdate;suchaSen/icingFeeshallbeimposedupontheMunicipalityafterapprovalofafutureBiennialFinancePlanbytheStateofV\?sconsinBuildingCommissionwhichcontainsaServicingFeerequirement,schedule,andamount;and (b)theMunicipality‘sallocableshareoftheFeesandChargesassuchcostsareincurred.AllocableshareshallmeantheproportionateshareoftheFeesandChargesbasedontheoutstandingprincipaloftheLoan.AmountspaidbytheMunicipalitypursuanttothisSection3.04shallbedepositedintheEquityFundestablishedpursuanttotheProgramResolution.Section Section 3.05.SaleandRedemptionofMunicipalObligations (a)MunicipalObligationsmaynotbeprepaidwithoutthepriorwrittenconsentoftheCWFP.TheCV\lFPhassolediscretiontowithholdsuchconsent. (b)TheMunicipalityshallpayallcostsandexpensesoftheC\A/FPineffectingtheredemptionoftheBondstoberedeemedwiththeproceedsoftheprepaymentoftheMunicipalObligations.SuchcostsandexpensesmayincludeanyprepaymentpremiumapplicabletotheC\/\IFPandanyinvestmentlossesincurredorsustainedbytheCWFPresultingdirectlyorindirectlyfromanysuchprepayment. (c)Subjecttosubsection(a),theMunicipalitymayprepaytheLoanwithanysettlementsreceivedfromanythirdpartyrelatingtothedesignorconstructionoftheProject.(d)PrepaymentsoftheMunicipalObligationsshallbeappliedproratatoallmaturitiesoftheMunicipalObligations. 3.06.DisbursementofLoanProceeds (a)EachdisbursementrequestshallbedeliveredtoDNR.EachrequestmustcontaininvoicesorotherevidenceacceptabletoDNRandDOAthatProjectCostsforwhichdisbursementisrequestedhavebeenincurredbytheMunicipality. (b)TheCWFP,throughitsagentsorTrustee,planstomakedisbursementsofLoanproceedsonasemimonthlybasisuponapprovalofeachdisbursementrequestbyDNRandDOA.SuchapprovalbyDNRandDOAmayrequireadjustmentandcorrectionstothedisbursementrequestsubmittedbytheMunicipality.TheMunicipalityshallbenoti?edwheneversuchanadjustmentorcorrectionismadebyDNRorDOA. (c)DisbursementsmadetotheMunicipalityaresubjecttopre—andpost—paymentadjustmentsbyDNRorDOA. (1)IftheLoanproceedsarenotyetfullydisbursed,andCWFPfundswerepreviouslydisbursedforcostsnoteligibleforCWFPfundingornoteligibleunderthisFAA,theCWFPshallmakenecessaryadjustmentstofuturedisbursements.(2)iftheLoanproceedsarefullydisbursed,includingdisbursementsforanycostsnoteligibleforCV\/FPfundingornoteligibleunderthisFAA,theMunicipalityagreestorepayto 11 Report Attachment #a. Page 31 of 51 theCWFPanamountequaltothenon—eligiblecostswithin60daysofnoti?cationbyDNRorDOA.TheCV\/FPshallthenapplytheamountitreceivesasaLoanprepayment.(d)TheCWFPoritsagentshalldisburseLoanproceedsonlytotheMunicipality'saccountbyelectronictransferoffunds.TheMunicipalityherebycovenantsthatitshalltakeactionsandprovideinformationnecessarytofacilitatethesetransfers. (e)Disbursementbeyondninety—?vepercent(95%)oftheprincipalamountoftheLoan,unlessothenrviseagreedtobyDNRandDOApursuanttoawrittenrequestfromtheMunicipality,maybewithhelduntil: (1)DNRissatis?edthattheProjecthasbeencompletedinaccordancewiththePlansandSpeci?cations,DNRhasapprovedallchangeordersrelatingtotheProject,andDNRhasdeterminedthattheProjectisincompliancewiththeMunicipality'sWPDESPermit;(2)theMunicipalitycerti?estoDNRitsacceptanceoftheProjectfromitscontractors;(3)theMunicipalitycerti?esinwritingtoDNRitscompliancewithapplicablefederalrequirements(certi?cationmustbeasprescribedonExhibitG);and(4)DNRcerti?esinwritingtoDOAtheMunicipality'scompliancewithallapplicablerequirementsofthisFAA.Section3.07.Remedies (a)lftheMunicipality: (1)oranyauthorizedrepresentativeisnotcomplyingwithfederalorstatelaws,regulations,orrequirementsrelatingtotheProject,andfollowingduenoticebyDNRtheProjectisnotbroughtintocompliancewithinareasonableperiodoftime;or(2)isnotcomplyingwithorisinviolationofanyprovisionsetforthinthisFAA;or(3)isnotincompliancewiththeStatuteortheRegulations;thenDNRmay,untiltheProjectisbroughtintocomplianceortheFAAnon-complianceiscuredtothesatisfactionofDNRorDOA,imposeone(1)ormoreofthefollowingsanctions:(i)ProgresspaymentsordisbursementsotherwiseduetheMunicipalityofupto20%maybewithheld. (ii)Projectworkmaybesuspended. (iii)DNRmayrequestacourtofappropriatejurisdictiontoenteraninjunctionoraffordotherequitableorjudicialreliefasthecourt?ndsappropriate.(iv)Otheradministrativeremediesmaybepursued.(b)IftheMunicipalityfailstomakeanypaymentwhendueontheMunicipalObligationsorfailstoobserveorperformanyothercovenant,condition,oragreementonitspartunderthisFAAforaperiodofthirty(30)daysafterwrittennoticeisgiventotheMunicipalitybyDNR,specifyingthedefaultandrequestingthatitberemedied,theCWFPisprovidedremediesbylawandthisFAA.Theseremediesinclude,butarenotlimitedto,thefollowingrights:(1)Pursuanttos.281.59(11)(b),Vl?s.Stats.,DOAshallplaceonfileacerti?edstatementofallamountsduetheCWFPunderthisFAA.DOAmaycollectallamountsduetheCWFP 12 Report Attachment #a. Page 32 of 51 bydeductingthoseamountsfromanyStatepaymentsduetheMunicipalityoraddingaspecialchargetotheamountoftaxesapportionedtoandlevieduponthecountyinwhichtheMunicipalityislocatedunders.70.50,V\?s.Stats.(2)Pursuanttos.NR162.18(1),V\?s.Adm.Code,DNRmay:declaretheunpaidLoanbalancedueandimmediatelypayable;increasetheinterestrateontheunpaidbalanceoftheLoantothemarketinterestrateineffectonthedatethisFAAwasexecuted;orimmediatelyterminatethisFAAanddisbursenoadditionalfunds,iftheLoanhasnotbeenfullydisbursed. (3)TheC\/\IFPmay,withoutgivingbondtotheMunicipalityoranyoneclaimingunderit,haveareceiverappointedfortheCWFP‘sbene?toftheProjectandtheMunicipality'sSewerageSystemandoftheearnings,income,rents,issues,andpro?tsthereof,withsuchpowersasthecourtmakingsuchappointmentshallconfer.TheMunicipalityherebyirrevocablyconsentstosuchappointment. (4)Inthecaseofajointutilitysystem,theCV\IFPmaybilltheusersoftheMunicipality'ssystemdirectly. (5)TheC\l\IFPmayenforceanyrightorobligationunderthisFAA,includingtherighttoseekspeci?cperformanceormandamus,whethersuchactionisatlaworinequity.Section3.08.SecurityfortheLoanInaccordancewiththetermsoftheMunicipalObligationResolution:(a)assecurityfortheLoanhereunder,theMunicipalityherebypledgestherevenuetobederivedfromtheMunicipality'sSewerageSystem(whichisadedicatedsourceofrevenue);and(b)theMunicipalityshallnotpledgetherevenues,exceptasprovidedinSection11oftheMunicipalObligationResolution,tobederivedfromtheMunicipality'sUserChargeSystemorotherrevenuespledgedunderSection3.08(a)above,toanypersonotherthantheCV\IFP,unlesstherevenuespledgedtosuchotherpersonmeetthehighestdebtcoverageratiothenapplicabletotheMunicipality.Section3.09.EffectiveDateandTermThisFAAshallbecomeeffectiveuponitsexecutionanddeliverybythepartieshereto,shallremaininfullforceandeffectfromsuchdate,andshallexpireonsuchdateastheMunicipalObligationsshallbedischargedandsatis?edinaccordancewiththeprovisionsthereof. 13 Report Attachment #a. Page 33 of 51 ARTICLEIVCONSTRUCTIONOFTHEPROJECTSection4.01.InsuranceTheMunicipalityagreestomaintainpropertyandliabilityinsurancefortheSewerageSystemandProjectthatisreasonableinamountandcoverageandthatisconsistentwithprudentmunicipalinsurancepracticesforthetermoftheLoan.TheMunicipalityagreestoprovidewrittenevidenceofinsurancecoveragetotheCWFPuponrequestatanytimeduringthetermoftheLoan.IntheeventtheSewerageSystemorProjectisdamagedordestroyed,theMunicipalityagreestousetheproceedsfromitsinsurancecoverageeithertorepaytheLoanortorepairorreplacetheSewerageSystem.Section4.02.ConstructionofthePro'ectTheMunicipalityshallconstructtheProject,orcauseittobeconstructed,toFinalCompletioninaccordancewiththeApplicationandthePlansandSpeci?cations.TheMunicipalityshallproceedwiththeacquisitionandconstructionoftheProjectinconformitywithlawandwithallapplicablerequirementsofgovernmentalauthoritieshavingjurisdictionwithrespectthereto,subjecttosuchmodi?cationsofPlansandSpeci?cationsthatalterthecostoftheProject,useofspace,Projectscope,orfunctionallayout,asmaybepreviouslyapprovedbyDNR.Section4.03.PerformanceBondsTheMunicipalityshallprovide,orcausetobeprovided,performancebondsassuringtheperformanceoftheworktobeperformedunderallconstructioncontractsenteredintowithrespecttotheProject.AllperformancebondsrequiredhereundershallbeissuedbyindependentsuretycompaniesauthorizedtotransactbusinessintheState. Section4.04.CompletionofthePro'ect (a)TheMunicipalityagreesthatitshallundertakeandcompletetheProjectforthepurposesandinthemannersetforthinthisFAAandinaccordancewithallfederal,state,andlocallaws,ordinances,andregulationsapplicablethereto.TheMunicipalityshall,withallpracticaldispatchandinasoundandeconomicalmanner,completeorcausetobecompletedtheacquisitionandconstructionoftheProjectanddoallotheractsnecessaryandpossibletoentitleittoreceiveUserFeeswithrespecttotheProjectattheearliestpracticabletime.TheMunicipalityshallobtainallnecessaryapprovalsfromanyandallgovernmentalagenciespriortoconstructionwhicharerequisitetotheFinalCompletionoftheProject. (b)TheMunicipalityshallnotifyDNRoftheSubstantialCompletionoftheProject.TheMunicipalityshallcausetobepreparedas—builtplansfortheProjectatorpriortocompletionthereof.(c)TheMunicipalityshalltakeandinstitutesuchproceedingsasshallbenecessarytocauseandrequireallcontractorsandmaterialsupplierstocompletetheircontractsdiligentlyandinaccordancewiththetermsofthecontractsincluding,withoutlimitation,thecorrectingofdefectivework. (d)UponFinalCompletionoftheProjectinaccordancewiththePlansandSpeci?cations,theMunicipalityshall: (1)certifytoDNRitsacceptanceoftheProjectfromitscontractors,subjecttoclaimsagainstcontractorsandthirdparties; (2)completeanddelivertoDNRthecompletedContractUtilizationofDisadvantagedBusinessEnterprises(DBE)formattachedheretoasExhibitEofthisFAA; (3)prepareanddelivertoDNRthecompletedFederalRequirementsComplianceCerti?cationattachedheretoasExhibitGofthisFAA; (4)obtainallrequiredpermitsandauthorizationsfromappropriateauthoritiesforoperationanduseoftheProject;and 14 Report Attachment #a. Page 34 of 51 (5)submittoDNRacompletedOperationandMaintenanceManualCerti?cationChecklisttobeprovidedbyDNRorobtainedfromDNR’swebsite.Section4.05.PaymentofAdditionalPro‘ectCosts (a)intheeventofrevisedeligibilitydeterminations,costoverruns,andamendmentsexceedingtheLoanamount,theCWFPmayallocateadditional?nancialassistancetotheProject.Theallocationofadditionalfinancialassistancemaybeintheformofaloanatlessthanthemarketinterestrate,whichisestablishedpursuanttotheStatuteandRegulations.Theallocationofadditional?nancialassistanceshalldependuponavailabilityoffunds,pursuanttotheStatuteandtheRegulations.(b)intheeventtheLoanproceedsarenotsufficienttopaythecostsoftheProjectinfull,theMunicipalityshallnonethelesscompletetheProjectandpaythatportionoftheProjectCostsasmaybeinexcessofavailableLoanproceeds,andshallnotbeentitledtoanyreimbursementthereforfromtheCWFP,ortheownersofanyBonds,exceptfromtheproceedsofadditional?nancingwhichmaybeprovidedbytheCV\/FPpursuanttoanamendmentofthisFAAorthroughaseparate?nancialassistanceagreement. Section4.06.NoWarrantyReoardinqConditionSuitabilityorCostofProjectNeithertheC\l\IFP,DOA,DNR,northeTrusteemakesanywarranty,eitherexpressorimplied,astotheProjectoritscondition,orthatitshallbesuitablefortheMunicipality'spurposesorneeds,orthattheproceedsoftheLoanshallbesuf?cienttopaythecostsoftheProject.Revieworapprovalofengineeringrepons,facilitiesplans,PlansandSpeci?cations,orotherdocuments,ortheinspectionofProjectconstructionbyDNR,doesnotrelievetheMunicipalityofitsresponsibilitytoproperlyplan,design,build,andeffectivelyoperateandmaintaintheProjectasrequiredbylaws,regulations,permits,andgoodmanagementpractices.DNRoritsrepresentativesarenotresponsibleforincreasedcostsresultingfromdefectsinthePlansandSpeci?cationsorotherProjectdocuments.NothinginthissectionprohibitsaMunicipalityfromrequiringmoreassurances,guarantees,orindemnityorothercontractualrequirementsfromanypartyperformingProjectwork. 15 Report Attachment #a. Page 35 of 51 ARTICLEVCOVENANTSSection5.01.ApplicationofLoanProceedsTheMunicipalityshallapplytheproceedsoftheLoansolelytoProjectCosts. Section5.02.OperationandMaintenance;EquipmentReplacementFund(a)AftercompletionoftheProject,theMunicipalityshall:(1)atalltimesoperatetheProjectorotherwisecausetheProjecttobeoperatedproperlyandinasoundandeconomicalmanner,includingpropertrainingofpersonnel;(2)maintain,preserve,andkeeptheProjectorcausetheProjecttobemaintained,preserved,andkeptingoodrepair,workingorder,andcondition;and(3)periodicallymake,orcausetobemade,allnecessaryandproperrepairs,replacements,andrenewalssothatatalltimestheoperationoftheProjectmaybeproperlyconductedinamannerthatisconsistentwiththerequirementsoftheWPDESPermit. (4)Solongastheloanisoutstanding,theMunicipalityshallnot,withouttheapprovalofDNR,discontinueoperationof,sell,orotherwisedisposeoftheSewerageSystem,exceptforportionsoftheSewerageSystemsoldorothenrvisedisposedofinthecourseofordinaryrepairandreplacementofparts. (b)TheMunicipalityshallestablishanequipmentreplacementfundaccordingto5.NR162.08,Vl?s.Adm.Code,andmaintaintheequipmentreplacementfundasaseparatefundoftheMunicipality.AllUserFeesorotherrevenuesspeci?callycollectedfortheequipmentreplacementfundshallbedepositedintotheequipmentreplacementfundandusedforreplacementandmajorrepairofequipmentnecessaryfortheoperationoftheSewerageSystem,orforunexpected,unbudgetedcostsincurredforcontinuingeffectiveoperationsoftheSewerageSystem.AnnualdepositsshallbemadetotheequipmentreplacementfundinamountssufficienttomeettheequipmentreplacementitemizedscheduledevelopedbytheMunicipalityorthepercentagescheduleoption.TheProjectManagerSummaryPage(ExhibitF)shallspecifytherequiredannualdepositorrequiredminimumbalance/percentage.Section5.03.CompliancewithLawAtalltimesduringconstructionoftheProjectandoperationoftheSewerageSystem,theMunicipalityshallcomplywithallapplicablefederal,state,andlocallaws,ordinances,rules,regulations,permits,andapprovals,andwiththisFAA,including,withoutlimitation,theStatute,theRegulations,andtheWPDESPermit.Section5.04.PublicOwnershipTheMunicipalityshallatalltimesretainownershipoftheProjectandtheSewerageSystemofwhichitisapart. Section5.05.EstablishmentofPro’ectAccounts'Audits (a)TheMunicipalityshallmaintainProjectaccountsinaccordancewithgenerallyacceptedaccountingprinciples(GAAP),includingstandardsrelatingtothereportingofinfrastructureassetsanddirectionsissuedbytheC\/\IFP.Vt?thoutanyrequesttheMunicipalityshallfurnishtoDOAassoonasavailable,andinanyeventwithinonehundredeighty(180)daysafterthecloseofeach?scalyear,acopyoftheauditreportforsuchyearandaccompanyingGAAP-based?nancialstatementsforsuchperiod,asexaminedandreportedbysuchindependentcerti?edpublicaccountantsofrecognizedstandingselectedbytheMunicipalityandreasonablysatisfactorytoDOA,whosereportsshallindicatethattheaccompanying?nancialstatementshavebeenpreparedinconformitywithGAAPandincludestandardsrelatingtothereportingofinfrastructureassets. 16 Report Attachment #a. Page 36 of 51 (b)TheMunicipalityshallmaintainaseparateaccountthatre?ectsthereceiptandexpenditureofallCWFPfundsfortheProject,AllLoanproceedsshallbecreditedpromptlyuponreceiptthereofandshallbereimbursementfororexpendedonlyforProjectCosts.TheMunicipalityshall:permitanyauthorizedrepresentativeofDNRorDOA,oragentsthereof,therighttorevieworauditallrecordsrelatingtotheProjectortheLoan;produce,orcausetobeproduced,allrecordsrelatingtoanyworkperformedunderthetermsofthisFAAforexaminationatsuchtimesasmaybedesignatedbyanyofthem;permitextractsandcopiesoftheProjectrecordstobemadebyanyofthem;andful?llinformationrequestsbyanyofthem.Section5.06.RecordsTheMunicipalityshallretainall?les,books,documents,andrecordsrelatingtoconstructionoftheProjectforatleastthreeyearsfollowingthedateofFinalCompletionoftheProject,orforlongerperiodsifnecessaryduetoanyappeal,dispute,orlitigation.Allother?lesandrecordsrelatingtotheProjectshallberetainedsolongasthisFAAremainsineffect.As-builtplansfortheProjectshallberetainedfortheusefullifeoftheProject.Section5.07.Pro‘ectAreasTheMunicipalityshallpermitrepresentativesofDNRaccesstotheProjectandrelatedrecordsatallreasonabletimes,includeprovisionsinallcontractspermittingsuchaccessduringconstructionandoperationoftheSewerageSystem,andallowextractsandcopiesofProjectrecordstobemadebyDNRrepresentatives. Section5.08.EngineeringinspectionTheMunicipalityshallprovidecompetentandadequateinspectionofallProjectconstructionunderthedirectionofaprofessionalengineerlicensedbytheState.TheMunicipalityshalldirectsuchengineertoinspectworknecessaryfortheconstructionoftheProjectandtodeterminewhethersuchworkhasbeenperformedinaccordancewiththePlansandSpeci?cations.AnysuchworknotinaccordancewiththePlansandSpeci?cationsshallberemedied,unlesssuchnoncomplianceiswaivedbyDNR.Section5.09.Reserved— Sectionomittedfortaxablebonds.Section5.10.UserFeeCovenant (a)TheMunicipalityherebycerti?esthatithasadoptedandshallchargeUserFeeswithrespecttotheProjectinaccordancewithapplicablelaws,theStatute,andtheRegulationsinamountssuchthatrevenuesoftheMunicipalitywithrespecttotheProjectshallbesuf?cient,togetherwithotherfundsavailabletotheMunicipalityforsuchpurposes,topayallcostsofoperatingandmaintainingtheProjectinaccordancewiththisFAA,andtopayallamountsdueunderthisFAAandtheMunicipalObligations. (b)TheMunicipalitycovenantsthatitshalladoptandshalladequatelymaintainforthedesignlifeoftheProjectasystemofUserFeeswithrespecttotheProjectinaccordancewiths.NR162.08,Vl?s.Adm.Code.TheMunicipalitycovenantsthatitshallreviewtheUserChargeSystematleasteverytwoyearsandshallreviseandchargeUserFeeswithrespecttotheProjectsuchthattherevenuesandfundsdescribedinparagraph(a)shallbesuf?cienttopaythecostsdescribedinparagraph(a).Section511.NoticeofimpairedSystemTheMunicipalityshallpromptlynotifyDNRandDOAinthecaseof:anymaterialdamagetoordestructionoftheProjectoranypartthereof;anyactualorthreatenedproceedingsforthepurposeoftakingorotherwiseaffectingbycondemnation,eminentdomain,orotherwise,allorapartoftheSewerageSystem;oranyaction,suit,orproceedingatlaworinequity,orbyorbeforeanygovernmentalinstrumentalityoragency,oranyothereventwhichmayimpairtheabilityoftheMunicipalitytoconstructtheProject,operatetheSewerageSystem,orsetandcollectUserFeesassetforthinSection5.10.Section512.HoldHarmlessTheMunicipalityshallsave,keepharmless,anddefendDNR,DOA,andalltheirof?cers,employees,andagents,againstanyandallliability,claims,andcostsofwhateverkindandnatureforinjurytoordeathofanypersonorpersons,andforlossordamagetoanypropertyoccurringin 17 Report Attachment #a. Page 37 of 51 connectionwithorinanywayincidenttoorarisingoutoftheconstruction,occupancy,use,service,operation,orperformanceofworkinconnectionwiththeProject,theSewerageSystem,oractsoromissionsoftheMunicipality'semployees,agents,orrepresentatives.Section5.13.NondiscriminationCovenant (a)InconnectionwiththeProject,theMunicipalityagreestocomplywithfairemploymentpracticespursuanttosubchapterllofch.111,V\?s.Stats.Thisprovisionshallinclude,butisnotlimitedto,thefollowing:employment,upgrading,demotion,ortransfer;recruitmentorrecruitmentadvertising;layoffortermination;ratesofpayorotherformsofcompensation;andselectionfortraining,includingapprenticeship.TheMunicipalityagreestopostinconspicuousplaces,availableforemployeesandapplicantsforemployment,noticessettingforththeprovisionofthenondiscriminationclause. (b)TheMunicipalityshallincorporatethefollowingprovisionintoallProjectcontractswhichhaveyettobeexecuted:"Inconnectionwiththeperformanceofworkunderthiscontract,thecontractoragreesnottodiscriminateagainstanyemployeeorapplicantbecauseofage,race,religion,color,handicap,sex,physicalcondition,developmentaldisability,ornationalorigin.Thecontractorfurtheragreestocomplywithfairemploymentpracticespursuanttosubchapterllofch.111,Vt?s.Stats.Thisprovisionshallinclude,butnotbelimitedto,thefollowing:employment,upgrading,demotion,ortransfer;recruitmentorrecruitmentadvertising;layoffortermination;ratesofpayorotherformsofcompensation;andselectionfortraining,includingapprenticeship.Thecontractorfurtheragreestotakeaf?rmativeactiontoensureequalemploymentopportunitiesforpersonswithdisabilities.Thecontractoragreestopostinconspicuousplaces,availableforemployeesandapplicantsforemployment,noticessettingforththeprovisionsofthenondiscriminationclause."Section5.14.EmployeesTheMunicipalityoritsemployeesoragentsarenotemployeesoragentsoftheDNRorDOAforanypurpose,includingworker'scompensation.Section5.15.AdeguateFundsTheMunicipalityshallhavesufficientfundsavailabletorepaytheLoan.TheMunicipalityshallhavesuf?cientfundsavailablewhenconstructionoftheProjectiscompletedtoensureeffectiveoperationandmaintenanceoftheProjectforpurposesconstructed.Section5.16.ManagementTheMunicipalityshallprovideandmaintaincompetentandadequatemanagement,supervision,andinspectionattheconstructionsitetoensurethatthecompletedworkconformswiththePlansandSpeci?cations.TheMunicipalityshallfurnishprogressreportsandsuchotherinformationasDNRmayrequire.Section5.17.ReimbursementAnydisbursementmadeundertheLoantotheMunicipalityinexcessoftheamountdeterminedbyfinalaudittobeduetheMunicipalityshallbereimbursedtoDOAwithin60daysafterDNRorDOAprovidesanoticestatingtheamountoftheexcessfundsdisbursed.Section5.18.UngaidUserFeesTheMunicipalityshall,tothefullestextentpermittedbylaw,takeallactionsnecessarytocertifyanyunpaidUserFeestothecountytreasurerinorderthatsuchunpaidUserFeeswillbeaddedasaspecialchargetothepropertytaxbilloftheuser.Section5.19.SewerUseOrdinanceTheMunicipalityshallcomplywiththeprovisionsoftheSewerUseOrdinance,ascerti?edintheApplication.TheMunicipalitycovenantsthatitshallcomplywithandenforceallprovisionsoftheSewerUseOrdinance,asestablishedpursuanttotheStatuteandRegulations.Section5.20.RebatesTheMunicipalityagreestopaytotheCWFPanyrefunds,rebates,credits,orotheramountsreceivedforProjectCostsforwhichdisbursementoffundshasalreadybeenmadebytheCWFP.TheCWFPshallthenapplytheamountitreceivesasaLoanprepayment. 18 Report Attachment #a. Page 38 of 51 Section5.21.MaintenanceofLegalExistence (a)Exceptasprovidedinpar.(b),theMunicipalityshallmaintainitslegalexistenceandshallnotdissolveorothenivisedisposeofallorsubstantiallyallofitsassetsandshallnotconsolidatewithormergeintoanotherlegalentity. (b)AMunicipalitymayconsolidatewithormergeintoanyotherlegalentity,dissolveorotherwisedisposeofallofitsassetsorsubstantiallyallofitsassets,transferallorsubstantiallyallofitsassetstoanotherlegalentity(andthereafterbereleasedofallfurtherobligationunderthisFAAandtheMunicipalObligations)if: (1)theresulting,surviving,ortransfereelegalentityisalegalentityestablishedanddulyexistingunderthelawsofVlnsconsin; (2)suchresulting,surviving,ortransfereelegalentityiseligibletoreceive?nancialassistanceundertheStatute; (3)suchresulting,surviving,ortransfereelegalentityexpresslyassumesinwritingalloftheobligationsoftheMunicipalitycontainedinthisFAAandtheMunicipalObligationsandanyotherdocumentstheCWFPdeemsreasonablynecessarytoprotectitsenvironmentalandcreditinterests;and (4)theCV\IFPshallhaveconsentedinwritingtosuchtransaction,whichconsentmaybewithheldintheabsolutediscretionoftheCWFP.Section5.22.WageRateRequirementsTheMunicipalityrepresentsthatitshallcomplywithSection513oftheFederalWaterPollutionControlAct(33USC1372),whichrequiresthatalllaborersandmechanicsemployedbycontractorsandsubcontractorsfundeddirectlybyorassistedinwholeorinpartwithfundingundertheLoanshallbepaidwagesatratesnotlessthanthoseprevailingonprojectsofacharactersimilarinthelocalityasdeterminedbytheSecretaryofLabor(DOL)inaccordancewithsubchapterIVofchapter31oftitle40,UnitedStatesCode.Section5.23.FiscalSustainabilityPlanTheMunicipalityhascompletedallrequiredcomponentsofaFiscalSustainabilityPlanandshallmaintaintheplanatleastforthelifeoftheLoan.Section5.24.UseofAmericanIronandSteelTheMunicipalityagreestocomplywithrequirementsforUseofAmericanironandSteelcontainedinsection608oftheActforproductsusedintheProjectwhicharemadeprimarilyofironand/orsteel. Section5.25FederalSingleAuditAtthetimeofsigningofthisFAA,thefundsawardedtotheMunicipalityforthisProjectarenotconsideredtobesubjecttofederalsingleauditrequirements,butsuchconsiderationmaychangesubsequenttothisFAAifanychangesaremadetofederalsingleauditrequirementsapplicabletomunicipalities. 19 Report Attachment #a. Page 39 of 51 ARTICLEVIMISCELLANEOUSSection601.NoticesAllnotices,certi?cates,orothercommunicationshereundershallbesufficientlygiven,andshallbedeemedgiven,whenhanddeliveredormailedbyregisteredorcerti?edmail,postageprepaid,returnreceiptrequestedtotheaddressessetforthbelow:(a)DEPARTMENTOFADMINISTRATIONOFFICEOFCAPITALFINANCECLEANW ATERFUNDPROGRAM101EASTWILSONSTREET10THFLOORMADISONWI53702-0004ORPOBOX7864MADISONWI53707-7864 (b)DEPARTMENTOFNATURALRESOURCESBUREAUOFCOMMUNITYFINANCIALASSISTANCE101SOUTHWEBSTERSTREETCF/2MADISONWI53702-0005ORPOBOX7921MADISONWI53707-7921 (c)USBANKCORPTRUSTMATTHEWHAMILTONEP—MN—WS3TsoLIVINGSTONA VENUESTPAULMN55101-229 (a)CITYoI=HUDSON505THIRDSTREETHUDSONWI54016-1694 Anyoftheforegoingpartiesmaydesignateanyfurtherordifferentaddressestowhichsubsequentnotices,certi?cates,orothercommunicationsshallbesent,bynoticeinwritinggiventotheothers.AnynoticehereinshallbedeliveredsimultaneouslytoDNRandDOA.Section6.02.BindingEffectThisFAAshallbeforthebene?tof,andshallbebindingupon,theCWFPandtheMunicipalityandtheirrespectivesuccessorsandassigns.Section6.03.SeverabilityIntheeventanyprovisionofthisFAAshallbeheldillegal,invalid,orunenforceablebyanycourtofcompetentjurisdiction,suchholdingshallnotinvalidate,renderunenforceable,orotheniviseaffectanyotherprovisionhereof.Section6.04.AmendmentsSupplements,andModi?cationsThisFAAmaybeamended,supplemented,ormodi?edtoprovideforadditionalloansfortheProjectbytheCWFPtotheMunicipalityorforotherpurposes.Allamendments,supplements,andmodi?cationsshallbeinwritingbetweentheCWFP(byDNRandDOAactingunderauthorityoftheStatute)andtheMunicipality.Section6.05.ExecutioninCountergartsThisFAAmaybeexecutedinseveralcounterparts,eachofwhichshallbeanoriginal,andallofwhichshallconstitutebutoneandthesameinstrument.Section6.06.AgglicableLawThisFAAshallbegovernedbyandconstruedinaccordancewiththelawsoftheState,includingtheStatute. 20 Report Attachment #a. Page 40 of 51 Section6.07,Bene?tofFinancialAssistanceAgreementThisFAAisexecuted,amongotherreasons,toinducethepurchaseoftheMunicipalObligations.Accordingly,allduties,covenants,obligations,andagreementsoftheMunicipalityhereincontainedareherebydeclaredtobeforthebene?tof,andareenforceableby,theCWFP,theTrustee,ortheirauthorizedagents.Section6.08.FurtherAssurancesTheMunicipalityshall,attherequestofDNRandDOA,authorize,execute,acknowledge,anddeliversuchfurtherresolutions,conveyances,transfers,assurances,?nancingstatements,andotherinstrumentsasmaybenecessaryordesirableforbetterassuring,conveying,granting,assigning,andconfirmingtherights,securityinterests,andagreementsgrantedorintendedtobegrantedbythisFAAandtheMunicipalObligations.Section6.09.AssignmentofMunicipalObligationsTheMunicipalityherebyagreesthattheMunicipalObligationsmaybesold,transferred,pledged,orhypothecatedtoanythirdpartywithouttheconsentoftheMunicipality. Section6.10.CovenantbyMunicipalityastoCompliancewithProgramResolutionTheMunicipalitycovenantsandagreesthatitshallcomplywiththeprovisionsoftheProgramResolutionwithrespecttotheMunicipalityandthattheTrusteeandtheownersoftheBondsshallhavethepowerandauthorityprovidedintheProgramResolution.TheMunicipalityfurtheragreestoaidinthefurnishingtoDNR.DOA,ortheTrusteeofopinionsthatmayberequiredundertheProgramResolution.Section6.11.TerminationThisFAAmaybeterminatedinwholeorinpartpursuanttooneormoreofthefollowing: (a)TheCV\/FPandtheMunicipalitymayenterintoanagreementtoterminatethisFAAatanytime.TheterminationagreementshallestablishtheeffectivedateofterminationofthisFAA,thebasisforsettlementofterminationcosts,andtheamountanddateofpaymentofanysumsdueeitherparty.(b)iftheMunicipalitywishestounilaterallyterminatealloranypartoftheProjectworkforwhichFinancialAssistancehasbeenawarded,theMunicipalityshallpromptlygivewrittennoticetoDNR.lftheCWFPdeterminesthatthereisareasonablebasisfortherequestedtermination,theCV\lFPmayenterintoaterminationagreement,includingprovisionsforFAAterminationcosts,effectivewiththedateofcessationoftheProjectworkbytheMunicipality.IftheCWFPdeterminesthattheMunicipalityhasceasedworkontheProjectwithoutreasonablebasis,theCWFPmayunilaterallyterminatefinancialassistanceorrescindthisFAA.Section6.12.RescissionTheCWFPmayrescindthisFAApriortothe?rstdisbursementofanyfundshereunderifitdeterminesthat: (a)therehasbeensubstantialnon—pen‘ormanceoftheProjectworkbytherecipientwithoutjusti?cationunderthecircumstances; (b)thereissubstantialevidencethisFAAwasobtainedbyfraud;(c)thereissubstantialevidenceofgrossabuseorcorruptpracticesintheadministrationoftheProject; (oi)theMunicipalityhasfailedtocomplywiththecovenantscontainedinthisFAA;or(e)anyoftherepresentationsoftheMunicipalitycontainedinthisFAAwerefalseinanymaterialrespect. Report Attachment #a. Page 41 of 51 EXHIBITAPROJECTBUDGETSHEET CITYOFHUDSONCWFPProjectNo.4112-07 A-1 CWFPLoanAmount ForceAccount $ 0InterimFinancingCosts 0PreliminaryEngineering 890,720LandorEasementAcquisition OEngineering/ConstructionMgmt 828,425Construction/Equipment 10,055,600Contingency 826,995MiscellaneousCosts 0CV\IFPClosingCosts 15,000Total $12,616,740 Report Attachment #a. Page 42 of 51 CityofHudson,WisconsinProject4112-07CleanWaterFundProgramLoanClosingDate: PaymentPrincipalInterestinterestDate PavmentRate Pavment1—May-210.001.485%48,921.411—Nov—210.001.485%93,679.291~May—22579,645.201.485%93,679.291~Nov-220.001.485%89,375.431—May—23588,252.931.485%89,375.431-Nov-230.001.485%85,007.651—May—24596,988.491.485%85,007.651-Nov-240.001.485%80,575.011—May-25605,853.771.485%80,575.011—Nov—250.001.485%76,076.551»May—26614,850.701.485%76,076.551—Nov—260.001.485%71,511.281-May~27623,981.231.485%71,511.281—Nov—270.001.485%66,876.221—May—28633,247.351.485%66,878.221—Nov—280.001.485%62,176.361—May-29642,651071.485%62,176.361-Nov—290.001.485%57,404.671—May-30652,194.441.485%57,404.671-Nov—300.001.485%52,562.131—May»31661,879.531.485%52,562.131—Nov-310.001.485%47,647.681-May—32671,708.441.485%47,647.681—Nov-320.001.485%42,660.241-May-33681,683.311.485%42,660.241—Nov-330.001.485%37,598.741~May—34691,806.311.485%37,598.741-Nov—340.001.485%32,462.081-May-35702,079.641.485%32,462.081—Nov—350.001.485%27,249.141—May—36712,505.521.485%27,249.141-Nov-360.001.485%21,958.781—May-37723,086.221.485%21,958.781—Nov-370.001.485%16,589.871-May-38733,824.051.485%16,589.871—Nov—380.001.485%11,141.231—May-39744,721.341.485%11,141.231-Nov-390.001.485%5,611.671—May—40755,780.461.485%5,611.671-Nov-400.001.485% — Totals12,616,740.002,005,253.45 NetInterestRateBondYearsAverageLife January27,2021 Principal8 BondYearInterestDebtService48,921.4148,921.4193,679.290.00673,324.49767,003.7889,375.430.00677,628.36767,003.7985,007.650.00681,996.14767,003.7980,575.010.00686,428.78767,003.7976,076.550.00690,927.25767,003.8071,511.280.00695,492.51767,003.7966,878.220.00700,125.57767,003.7962,176.36 0.00704,827.43767,003.7957,404.670.00709,599.11767,003.7852,562.13 0.00714,441.66767,003.7947,647.68 0.00719,356.12767,003.8042,660.240.00724,343.55767,003.7937,598.74 0.00729,405.05767,003.7932,462.080.00734,541.72767,003.8027,249.140.00739,754.66767,003.8021,958.780.00745,045.00767,003.7816,589.870.00750,413.92767,003.7911,141.230.00755,862.57767,003.805,611.67 0.00761,392.13767,003.80 - 0.00 14,621,993.4514,621,993.45 1.4850%135,033.900910.7028 Theabovescheduleassumesfulldisbursementoftheloanontheloanclosingdate.20-Nov-20WisconsinDepartmentofAdministration B-2 ExhibitB CalendarYearDebtService0.00142,600.700.00762,699.920.00762,636.010.00762,571.150.00762,505.330.00762,438.530.00762,370.730.00762,301.930.00762,232.100.00762,161.240.00762,089.340.00762,016.360.00761,942.290.00761,667.130.00761,790.860.00761,713.440.00761,634.870.00761,555.150.00761,474.24761,392.130.00 14,621,993.45 Report Attachment #a. Page 43 of 51 LoanPaymentScheduleCommentsPleasereviewtheprecedingloanpaymentschedule.Itshowsthedatesofyourflrstinterestandprincipalpayments.Theprecedingloanpaymentscheduleassumesyoudrawalltheloanfundsontheloanclosingdate.However,borrowersoftendrawloanfundsovertime.Interestonlyaccruesonthefundsdisbursedandonlyafterthedateofeachdisbursement.Youcanviewyouractualpaymentschedulebasedondisbursementsto-dateathttp://eif.doa.wi.gov/byselectingLoanPaymentScheduleonthelowerhalfofthepage.Youcanalsorequestloanpaymentinformationfromdoaeif@wisconsin.gov.Youcangenerateadditionalreportsathttp://eif.doa.wi.gov/.AvailableReport InformationProvidedAuditorVeri?cationReportProvidesinformationcommonlyrequestedbymunicipalauditors.Availableforcompletedcalendaryears.LoanAccountHistoryLoandisbursements,principalpayments,andloanbalanceasoftheselecteddate.LoanPaymentScheduleFutureprincipalandinterestpaymentsfordisbursementsthroughtheselecteddate. PaymentHistory Pastprincipalandinterestpaymentsthroughtheselecteddate.DisbursementHistoryPastloanandgrantdisbursementsthroughtheselecteddate. UsetheOutputtoExcelbuttonatthebottomofthepagetocreateyourreportinMicrosoftExcel.Finddetailsongeneratingreportsathttp://eif.doa.wi.gov/siteDescr.htm.Afteryourlastdisbursementofloanfundsandprojectclose-out,wewillemailthefinalloanpaymentscheduletoyou.TheEnvironmentalImprovementFundsendsinvoicessemi-annually.PrincipalandinterestpaymentsareduebyMay1eachyear.lnterest—onlypaymentsareduebyNovember1.Youwillreceiveaninvoiceapproximately45dayspriortotheduedate.Ifyouhavemultipleloans,wewillsendasingleinvoiceshowingthepaymentamountforeachloan.PleasecallKatherineMillerat608-266-2305oremaildoaeif@wisconsin.govformoreinformationonyourpaymentschedule. PageB-2 Report Attachment #a. Page 44 of 51 AmountofDisbursement EXHIBITCFORMOFLOANDISBURSEMENTTABLE DateofDisbursementSeriesofBondsPrincigalRegaidPrincipalBalance £?%U)%$%$enenme?mmm99699999996999 Report Attachment #a. Page 45 of 51 EXHIBITD OPERATINGCONTRACTSAsofthedateofthisFAA,theMunicipalitydoesnothaveanycontractswithprivateentitiesorothergovernmentalunitstooperateitsSewerageSystem. Report Attachment #a. Page 46 of 51 _..m_ wm_m>>_m:: wmm__>:m.o._. E50Um_m2Em_m__>.D saw550Um_m_>>Dmm:D ham._m_.=OUm_m>>:mm:3 hawSE03mm_>>3mm:3 ham550Dm_m>>amas.D ham32E550Em_m_>>Emas.F ”m:.En_E50m_m=<Em_m__>_F hamEEOmm>>:mm:: haw._m£Om_m_>>jmm:j haw$50 mm>>:mm:Q bumEEO:mmz?was.3 ham(2 DEED:mm>>:m_ms_U umE_._n_EEOm_m>>:m_m__>__\, ham5:5 m_m>>5mm:: bum._m_.=Omm>>gmm: Him550mainmm: hammR_mm anmm__m~m_.__EEOm_m_>>:mm: eeoemgmmmcamhamo8.mmo.E9aaE_n_._.>\<S$2xaeo:mmz:mas. S_§Em:oo>m:mm_>_HmE_.n_«:Dm..W.U_U«UD.—P_QHmmw~w_aEoQ2__m%_.s_2E.__n_m_m>>m_m__>_mm£mE_«mm_«om._Eoo.wutcmw.5 25mmm maumbcoomm__.E=m::eEm_:cm=:o=u:.=w:ouOw_u_mn_«EDGE/.\_mDHQ< 6:_oo._n_B33 émmmmEmEE:m_mmm:m_>_6m.m:n_i«_aExm_oCm,.m.d:.5oz: o§.m$_N5a::oE<EE0>._mo._ 8&2...935:2Uwaimm>XmmEmEm__:Um_m_m>>\m_m_2Mr:bmzmm>t_mQ_0_r__._C._m£EDmEmEm>oEE_n:.>>>>o_E:ommQSm._9n_zomnzxEE6MVEMZa__ma_u__._:_>_ 2m_nm__m>mmumEma«mar:ucm:o:m:m_:_E_umEm_mo._n_.8uwm:mp .A.m?.w.m_>>.mm.9. I 3.3.mV33m_Eoommcmuo:_m:8mS>E_um::_u2mmm._m?m:w9EB.mi.coum?m__ou,._ozmE._oE__mcomEm..:ommo_upmE5»m__.:.5um?mc?ma~m:Ecozuzzmcoum£m:_._:um_o_om..Eoun:mmmoucmm.9um_EoumE_a.0E__E:2mumEm:o_._unmBmmmcmzu>:<.<vmm.oonmE5“..mmzmEo>>?u?coomm>>m.m_2ucmvmméonmF_._Du_zozmuc?mu£_mu_U000um.m_nEou9.:E0::95m_E5.mi.coumE_a:o:mE._&c_ms».EmEmw._:am_n_m:=mm:_>_mom.25.5>._Qmu:mEm_Emicwawoms.3E._8um.m_n_Eouw_.._CoE?ummduao.Eu<.ms>,v3x$v_..mmrzz.m3nmN_._o£.._mm.EB.m_;._.UB2 ._.Zm=>__.._UODSommo._upowwow;>~_o»<oz<s_ Ammo.mmm_~_n_mm.rzmmmm_z_w.._mnmw<._.z<>o<w_n_LOzO_._.<N_:=._._.._._.U<¢._.zOUD23;»zms_m>oz...__2_._<»zms_2om_>zm m_._._m=._Xm_ Report Attachment #a. Page 47 of 51 umcgmwas 922% _m_oEO_ma_u_:=_>_hom=_CwEmZ .Gm:ouucm3m_aEoom_F:E_m_£coumu_>o.:_:o:mEBE_9:.E__mnucmmmum_>>o5_E:EEmam_.=E..m.:Erma_ =o_:8:=._wo $nE:zm.._o;n_ mmm:Uu<__mEm_ _.Eon_m_c.rm:_.m_n_EnU_._om._mn_BmEmz Em....mmu.mc=m£.m:__m>muxm__moEum_m,m:5E:_a.m.m_o:ou.m33.EmEa_:co.mqam.a_V_u:=.m:_amumu:m_m_aEmxmmu_Emm5.u:_uP_n_he95. wmm>>_£o+ 6mms__m.o» $503m_m>>n_mm: ham5:5Em_m>>umm: bumSim mmsam__om$2_‘:m£oEmm>>m_m_m_2n_ _wn_HmE_._n_550umm_,s:mm:2 saw550m_m2Emm:5 bumm?sm mé$tm__m.m_>_$2x$_.=oDmm>>amm:m _wn_”mE__n_$505mm_>>mmm:C .96.9202m_m>>amm:: ham8m.§$ $2xa£oam_m>>3mm:a 0:._._oe_u%$:wum_.tEm”m.E_.n_Somwo_os%_n_Emw«mEEoo3wE35.$2mEzwm_~QN._«r_DQ4wo_Emm._O maowbzooWOU_>._¢W_mu_::omt_m:o_mmm»5._n_Owu_mn_uC:OC._<_m3o< .u:_...o_n_ho£5 Report Attachment #a. Page 48 of 51 EXHIBITFPROJECTMANAGERSUMMARYPAGECITYOFHUDSONCV\/FPProjectNo.4112-07 1.ProjectDescription:Themajorequipmentreplacementitemsincluderawandsecondarysewagepumps,1981RASpumps,screeningandgritremoval,effluentwatersystem,brokenyardpipingvalves,odorcontrolsystems,sludgethickeningsystem,andinteriorandexteriorlightingwithmoreefficientLEDlighting.OthernewmajorequipmentandadditionsincludeanewUVdisinfectionsystemandbuilding,pretreatmentbuilding,singlestageblower,andelectricalequipmentandinstrumentationupdatesorreplacementsinmultiplebuildings.ThenewUVbuildingandnewpretreatmentbuildingwillbereplacingandrelocatingexistinginfrastructurethatdatesbacktothe1950s.Thesludgethickeningmodificationswillreplaceequipmentfrom1980.Miscellaneousarchitecturalandstructuralrepairsandreplacementsmaybeincluded. 2.IneligibleCosts:Noineligiblecostswereidenti?edinthereviewofthisProject.lftheDepartmentidenti?esineligiblecostsastheProjectprogresses,theDepartmentwillnotifytheMunicipality.3.OtherFundingSources:None. 4.MiscellaneousCosts:AsshownintheProjectBudgetSheet(ExhibitA),CWFPfundingintheamountof$0isincludedintheMiscellaneouscategory.Eachconstruction—relateditemrequiresreviewandapprovalbytheDNRconstructionmanagementengineer(CME)priortoreimbursementfromtheCWFP.TheMunicipalitymustprovidetheCMEacopyofthevendor’sinvoice,procurementmethodused,andapplicablebiddingandcontractingdocumentation.AftertheCMEdetermineseligibilityandgivesapproval,theMunicipalitymaythenrequestreimbursementfromtheCV\/FP.5.ContingencyAllowance:TheContingencyallowanceof$826,995is?vepercentoftheamountofuncompletedconstructionworkadjustedforCMEreviewedchangeorders.TheMunicipalitymustobtainCMEapprovalofchangeorderspriortorequestingreimbursement.Basecontingency $502,780(Uncompletedconstructionworkx5%) MagneyConstructionContractNo.1 CONo.1 324,215TotalContingencyAllowance $826,9956.EquipmentReplacementFund:TheMunicipalityshallestablishanequipmentreplacementfundaccordingtos.NR162.08,Vl?s.Adm.Code,andmaintaintheequipmentreplacementfundasaseparatefundoftheMunicipality.Annualdepositsshallbemadetotheequipmentreplacementfundinamountssuf?cienttomeettheequipmentreplacementscheduledevelopedbytheMunicipality.BasedonreviewoftheequipmentreplacementfundinformationintheCWFPApplication,theannualdepositisestimatedat$72,000. 7.DBEGoodFaithEffort:TheMunicipalityincludedtheDBElanguageinthebidadvertisementandMagneyConstructionsolicitedDBE‘s.OneMBEisbeingutilizedfortheProject:BaldEagleErectors,LinoLakes,MNfor$38,775. 8.GreenProjectReserve:None. Report Attachment #a. Page 49 of 51 9.UseofAmericanIronandSteel:ThisProjectissubjecttotheUseofAmericanironandSteel(UAIS)requirementsofsection608oftheAct. 10.FiscalSustainabilityPlan:TheMunicipalitycerti?edtoDNRthataFiscalSustainabilityPlan(FSP)thatmeetstherequirementsofsection603(d)(1)(E)oftheActhasbeendevelopedandthattheplanwillbemaintainedatleastforthelifeoftheLoan. Report Attachment #a. Page 50 of 51 EXHIBITGFEDERALREQUIREMENTSCOMPLIANCECERTIFICATION [PrepareonMunicipalLetterheadatProjectCompletionandCloseout] Theundersignedof?cialsoftheCityofHudson(the“Municipality")herebycertifythat,forallexpendituresmadeforconstructionofDNRProjectNo.4112-07(the“Project"),theMunicipalityhasmettheprevailingwageraterequirementsoftheDavis—BaconAct. TheMunicipalityfurthercerti?esthat,aftertakingintoaccountanynationalorproject—specificwaiversapprovedbytheUS.EnvironmentalProtectionAgency,DNRProjectNo.4112-07hasmettherequirementsfortheUseofAmericanIronandSteelcontainedinsection608oftheFederalWaterPollutionControlAct,asamended. TheMunicipalityfurthercertifiesthataFiscalSustainabilityPlanmeetingtherequirementsofsection603(d)(1)(E)oftheFederalWaterPollutionControlAct,asamended,hasbeencompletedforthetreatmentworksandthattheplanwillbemaintainedatleastforthelifeoftheCV\IFPLoanfortheProject. Theabovecerti?cationisdetermined,afterdueanddiligentinvestigation,tobetrueandaccuratetothebestofmyknowledge. By: Datedasof:[NameofMunicipalOf?cialorAuthorizedRepresentative]fl'itle] Attest: Datedasof:[NameofClerkorSecretan/][Title Report Attachment #a. Page 51 of 51