IV.8. Declaring the Official Intent of the City of Hopkins to Reimburse Certain Expenditures from General Obligation Improvement Bond Proceeds to be Issued by the City of Hopkins; Stanley (CR2017-059)
April 4, 2017 Council Report 2017-059
DECLARING THE OFFICIAL INTENT OF THE CITY OF HOPKINS
TO REIMBURSE CERTAIN EXPENDITURES FROM
GENERAL OBLIGATION IMPROVEMENT BOND PROCEEDS
TO BE ISSUED BY THE CITY OF HOPKINS
Proposed Action
Staff recommends the following motion: “Adopt Resolution 2017-033,Declaring the City’s
intent to reimburse itself for certain project expenditures using bonds.”
Overview
In order to be able to claim reimbursement for bonds issued for public improvement projects,
a resolution stating the intent to do so must be adopted by the City Council. Typically, this is
done at the time of the project design authorization or contract award. This year staff waited
for this action on some projects to get a better idea of the anticipated costs. The costs in the
resolution are consistent with the costs shared with the City Council for the respective
projects.
Supporting Documents
Resolution 2017-033
_______________________________________
Nate Stanley, P.E.
City Engineer
Financial Impact: Budgeted Y/N Source: Related Documents
(CIP, ERP, etc.):
Notes: __________________________________________________________________
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2017-033
DECLARING THE OFFICIAL INTENT OF THE CITY OF HOPKINS
TO REIMBURSE CERTAIN EXPENDITURES FROM
GENERAL OBLIGATION IMPROVEMENT BOND PROCEEDS
TO BE ISSUED BY THE CITY OF HOPKINS
WHEREAS
, the Internal Revenue Service has issued Treas. Reg. #1.150-2 providing that
proceeds of tax-exempt bonds used to reimburse prior expenditures shall not be deemed
spent unless certain requirements are met; and
WHEREAS
, the City expects to incur certain expenditures, which may be financed
temporarily from sources other than bonds, and reimbursed from the bond proceeds;
NOW, THEREFORE, BE IT RESOLVED,
by the City Council of the City of Hopkins,
Minnesota:
1.The City intends to incur expenditures and intends to reimburse itself for such
expenditures from the bond proceeds to be issued by the City in the maximum
principal amount described in the projects for the following projects:
a.City Project 2016-10 described in Council Report 2017-046, estimated
project expenditures are $8,524,300.
b.City Project 2014-09 described in Council Report 2017-036, estimated
project expenditures are $5,698,100.
c.City SCADA water/sewer monitoring and control system upgrade and
installation of a flow-paced chlorine feed system at the water treatment
plant, estimated project expenditures are $510,000.
d.City Project 2013-06, Blake Road improvements for engineering, right-of-
way, and utility burial costs, estimated project expenditures are $3,057,000.
2. The City Manager is authorized to designate additions to the aforementioned
projects in circumstances where time is of the essence, and any such designation
shall be reported to the Council at the earliest practicable date and shall be filed
with the official books and records of the City.
3. This resolution is intended to constitute a declaration of official intent for the
purpose of Treas. Reg. #1.150-2 and any successor law, regulation, ruling or
amendment pertaining thereto.
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Adopted by the City Council of the City of Hopkins, Minnesota, this 4 day of April,
2017.
By_______________________________
Molly Cummings, Mayor
ATTEST:
_______________________________
Amy Domeier, City Clerk