V.1. Five-Year Street Reconstruction Plan and Resolution Adopting a Street Reconstruction Plan and Authorizing the Issuance of Street Reconstruction Bonds Thereunder; Bishop
March 1, 2022 Council Report 2022-020
PUBLIC HEARING ON FIVE-YEAR STREET RECONSTRUCTION PLAN & RESOLUTION
ADOPTING A STREET RECONSTRUCTION PLAN AND AUTHORIZING THE
ISSUANCE OF STREET RECONSTRUCTION BONDS THEREUNDER
Proposed Action
Approve Resolution 2022-015 adopting a street reconstruction plan and authorizing the issuance of street reconstruction
bonds thereunder.
Overview
Annually the City issues 429 General Obligation assessment bonds to complete the planned street reconstruction projects.
Under the 429 process the City must assess a minimum of 20% of the project costs to benefitting property owners. The City
does not assess for mill and overlay projects and is proposing to finance the projects through the Street Reconstruction Bond
process instead.
In order to utilize this type of financing, the City has to prepare a Five-Year Street Reconstruction and Bituminous Overlay
Plan (SROP) which is presented at a public hearing to solicit comment and feedback from the community. Mill and overlay
projects scheduled for 2022-2026 are included in the SROP. The debt service would be paid for with a general tax levy.
Adoption of this plan does not require the issuance of bonds. City Council would need to take further action to authorize
bond sales.
Although a referendum is not required, a reverse referendum is allowable. If a petition bearing the signatures of at least 5
percent of the votes cast in the last general election requesting a vote on the issuance of the bonds is received by the
municipal clerk within 30 days after the public hearing, a referendum vote on the issuance of the bonds shall be called (if a
vote is taken and the referendum passes, the taxes would be levied on market value rather than tax capacity).
Primary Issues to Consider
• Funding for 2022-2026 Mill & Overlay Projects
Supporting Information
• Resolution No. 2022-015
• Five-Year Street Reconstruction and Bituminous Overlay Plan
______________________________________
Nick Bishop
Finance Director
Financial Impact: Maximum of $4 million from 2022-2026
Budgeted: Y/N Yes, Scheduled in CIP
Source: Bond Proceeds __________
Related Documents (CIP, ERP, etc.): CIP __________
Notes: ___________
CITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 2022-015
RESOLUTION ADOPTING A STREET RECONSTRUCTION
PLAN AND AUTHORIZING ISSUANCE OF STREET
RECONSTRUCTION BONDS THEREUNDER
BE IT RESOLVED by the City Council of the City of Hopkins, Minnesota (the “City”), as
follows:
Section 1. Background.
1.01. The City is authorized under Minnesota Statutes, Section 475.58, subdivision 3b, as
amended (the “Act”), to prepare a plan for street reconstruction in the City over the next five years that
will be financed under the Act, including a description of the proposed work and estimated costs, and to
issue general obligation bonds to finance the cost of street reconstruction activities described in the plan.
1.02. Before the issuance of any bonds under the Act, the City is required to hold a public
hearing on the plan and issuance of the bonds.
1.03. Pursuant to the Act, the City, in consultation with its City engineer, has caused
preparation of a five-year street reconstruction and bituminous overlay plan for the City (the “Plan”),
which describes certain street reconstruction and bituminous overlay activities in the City for the years
2022 through 2026. The reconstruction activities described in the Plan include, but are not limited to,
improvements and reconstruction to 10th Avenue North and 1st Street North; 1st Street South and the South
Central Business District; 1st Street North and Lot 700; Robinwood Lane, Highway 7 Service Drive, and
5th Street North; and Washington Avenue North, Jackson Avenue North, and St. Louis Street (collectively,
the “Project”).
1.04. The City has determined that it is in the best interests of the City to authorize the issuance
and sale of general obligation street reconstruction bonds pursuant to the Act in the maximum principal
amount of $4,000,000 (the “Bonds”), and any premium received by the City. The purpose of the Bonds is
to finance the costs of the Project as described in the Plan.
1.05. On this date, the City Council held a public hearing on the Plan and the issuance of the
Bonds, after publication in the City’s official newspaper of a notice of public hearing at least 10 days but
no more than 28 days before the date of the hearing.
Section 2. Plan Approved.
2.01. The City Council finds that the Plan will improve the City’s street and utility systems,
which serves the interests of the City as a whole.
2.02. The Plan is approved in the form on file in City Hall.
Section 3. Bonds Authorized.
3.01. The City is authorized to issue the Bonds in a maximum principal amount of $4,000,000,
and any premium received by the City, in order to finance the Project described in the Plan. City staff, its
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municipal advisor, and its legal counsel are authorized to take all actions needed to call for the sale of the
Bonds, subject to the contingency described in Section 3.02 hereof.
3.02. If a petition requesting a vote on the issuance of the Bonds signed by voters equal to five
percent (5%) of the votes cast in the last municipal general election is filed with the City Clerk within 30
days after the date of the public hearing, the City may issue the Bonds only after obtaining approval of a
majority of voters voting on the question at an election. The authorization to issue the Bonds is subject to
expiration of the 30-day period without the City’s receipt of a qualified petition under the Act, or if a
qualified petition is filed, upon the approving vote of a majority of the voters voting on the question of
issuance of the Bonds.
3.03. City staff are authorized and directed to take all other actions necessary to carry out the
intent of this resolution.
Adopted by the City Council of the City of Hopkins, Minnesota this 1st day of March, 2022.
Patrick Hanlon, Mayor
ATTEST:
Amy Domeier, City Clerk