IV.6. Approve Resolution 2015-090 Declaring the Official Intent of the City of Hopkins to Reimburse Certain Expenditures from the Proceeds of Bonds to be Issued by the City; Stadler (CR2015-141)RTover��ber 10, 2015
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CouncillZeport 2015-141
APPROVE RESOLUTION 2015-090
DECLARING THE OFFICIAL INTENT OF THE CITY OF
HOPKINS TO REIMBURSE CERTAIN EXPENDITURES
FROM THE PROCEEDS OF BONDS TO BE ISSUED
BY THE CITY
Prouosed Action
Staff recommends adoption of the following motion: Move to adopt Resolution 2015-090 Declari n�
the Official Intent ofthe City to Reimburse Certain Expenditures fi•om the Proceeds ofBonds to be
Issued by the City.
Approval ofthismotion will allowthe cityto move forward with certain 2016 and 2017 park
system improvements while maintaining a reasonable cash flow and working capital fund
balance in the park capital improvement fund to allow for continued parlc improvements beyond
2017.
Overview
The park system capital improvement pla�i calls for major park improvements in the years 2016 and 2017.
The Park Capital Improvement Fund (Fund 301) does not have the working capital available to fiind these
improvements outright. Therefore, staff is intending to sell bonds to cover the cost of maj or improvements
over the neat two years at Cottageville Paric, Oakes Park, Valley Parlc, Burnes Park and Hilltop Park. The
estimated total cost of these improvements is: $2,505,000. The Park Board has approved the capital
improvement plan and the sale of bonds to cover a large share of these upcoming costs. It is estimated that
flie bonds would be sold in the May 2016 timeframe — this would allow qualifying project expense in both
flie 2016 and 2017 construction years. Not all ofthe 2016 and 2017 park improvements will
necessarily need to be funded with bonds; however we have identified all upcoming 2016 and
2017 park iinprovements to give us the flexibility in the bond amount. As we get closer to the
date to sell bonds we will identify the exact proj ects to be included and that information will be
presented to the council for approval before moving forward with the bonds.
Supuortin� Information
• Resolution 2015-090
• Park apital Improvements Fund Report
Steven J. Stadler
Public Works Director
Financial fmpact: $ 2.1M -$2.SM Budgeted: Y Source: Bond Proceeds
Related Docs: Park Svstem Reinvestment Plan
@.,AT % �Y' lIl�rl�$lY�y 1dAl1V1V1Li��TL-i
ItESOLUTION NO. 2015-090
DECLARING THE OFFICIAL 1NTENT OF THE
CITY OF HOPKINS TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEEDS
OF BONDS TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the "Reimbursement
Regulations'� providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be
deemed spent uriless certain requirements are met; and
WHEREAS, the City of Hopkins, Minnesota (the "City'� expects to incur certain expendih�res that
may be fmanced temporarily from sources other than bonds, and reimbursed from the proceeds of a tax
exempt bond;
WHEREAS, the City has determined to make this declaration of official intent ("Declaration") to
reimburse certain costs from proceeds of bonds in accordance with the Reunbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HOPKINS AS FOLLOWS:
1. The City propos es to fund ceiiain 2016 and 2017 park system improve�nerrts, as shown in the Paiic System
ReinveshnentPlan.
2. The City reasonably expects to reimburse the expenditures made for certain park
i m p r o v e m e n t s from the proceeds of bonds. All reimbursed expenditures will be capital expenditures,
costs of issuance of the bonds, or other expenditures eligible for reimbursement under Section I 150-2(d)(3)
ofthe Reimbursement Regulations.
3. This Declaration has been made not later than 60 days after payment of any original
expenditure to be subject to a reimbursement allocation with respect to the proceeds of bonds, except for
the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of $100,000
ar 5 percent of the proceeds of an issue; or (c) 'preliminary expenditures" up to an ainount not in excess of 20
percent of the aggregate issue price of the issue or issues that finance or are reasonably expected by the City
to fmance the project for which the preliminary expenditures were incuired. The term "preliminary
expenditures" includes architectural, engineering, surveying, bond issuance, and similar costs that are
incurred prior to commencement of acquisition, construction or rehabilitation of a project, other than land
acquisition, site preparation, and similar costs incident to commencement of construction.
4. This Declaration is an expression of the reasonable expectations of the City based on the
facts and circumstances known to the City as ofthe date hereof.
5. This Declaration is intended to constitute a declaration of official intent for purposes of
the Reimbursement Regulations.
Approved this 17`h day of November 2015, by the City Council of the City of Hopkins, Minnesota.
CITY OF HOPKINS, 1VIINNESOTA
Eugene Maxwell, Mayor
Attest:
Kristine Luedke, City Clerk
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