IV.6. Approve Resolution 2018-062 Declaring the Official Intent of the City of Hopkins to Reimburse Certain Expenditures from the Proceeds of Bonds to be Issued by the City; LenzJuly 17, 2018 Council Report 2018-085
APPROVE RESOLUTION 2018-062
DECLARING THE OFFICIAL INTENT OF THE CITY OF
HOPKINS TO REIMBURSE CERTAIN EXPENDITURES FROM
THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY
Proposed Action.
Staff recommends that the Council approve the following motion: Approve Resolution 2018-062
Declaring the Official Intent of the City to Reimburse Certain Expenditures from Proceeds of
Bonds to be Issued by the City.
Overview:
The City is working on a City Hall Renovation project in 2019. The project is currently in design
development phase. The City intends to issue bonds for the project. Due to the timing of the
project the City will incur some costs before the bonds are issued. Approving this resolution will
allow any capital expenditures that are incurred before bond issuance to be reimbursed from
bond proceeds and comply with I.R.S. Regulations.
Supporting Information:
Resolution 2018-062
________________________________________
Ari Lenz
Assistant City Manager
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2018-062
DECLARING THE OFFICIAL INTENT 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 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 of $4,500,000 for the City Hall Project described in Council Report
2018-085.
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.
Adopted by the City Council of the City of Hopkins this 11th day of July, 2018.
By:___________________________
Molly Cummings, Mayor
ATTEST:
_______________________________
Amy Domeier, City Clerk