CR 2000-038 Authorize Sale Of Bonds-G.O. Water Revenue Bods
March 6, :WOO
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Council Report 2000-38
. AUTHORIZE SALE OF BONDS - G.O. WATER REVENUE BONDS, SERIES 2000A
Proposed Action
Staff recommends approval of the following motion: Adopt Resolution No. lUOO-1 7 authorizing the
sale of General Obligation Revenue Bonds for Water Fund projects.
Adoption of this Illotion will result in the bonds being offered for sale on March 2 L 2000, dated April
1, 2000.
Overview
The City of Hopkins has the authority to issue revenue bonds to pay for any utility or other public
convenience from which a revenue is or may be derived. The CUITent and future projects in the water fund
qualify for bond issuance. In order to pay for the bonds the water rate was increased in 2000 to generate an
additional S70,000 in revenues each year. The bonds being issued will pay for projects approved in 2000
and those listed in the preliminary capital improvement plan for the year 2001 and 2002, for a total of
approximately $1,995,000. The current Water rate will probably need to be increased hy $. I 0 pcr LOOO
gallons in 2004, 200f.: and 2012 in order to maintain operating expenses and pay for principal and interest
on the bonds. This is the first time the Water fund has found a need to issue bonds. The infrastructure for
the cities water distribution is aging and is at the root of the bonding needs. The anticipated amount of the
ncw bond issue is $2,060,000.
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Primary Issues to Consider
The projects these bonds wi 11 pay for include repainting of the Moline water tower, reconstruction and
repair of the water treatment facility at Elmo Park, repainting oC Blake water to\ver and purchasing ofradio
read water meters over the next three years. The Water Revenue bond issuance is necessary to pay for the
projects in the water fund as approved and planned in the capital improvement plan. This bond is
structured to mature \vithin 15 years.
Staff Recommendation
Finance recommends, along with the City's financial advisor, that we ask for a rating from Moody's and
Standard and Poors for the issue. The cost of the ratings will be paid for with project revenue.
Supporting Information
. Resolution No. 2000-17
. Bond Sale Repoti
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Lori Yager
Finance Director
Financial Impact: SI,l)()5,OOO in bond proceeds Budgeted: No Source: Water Fund Revenues
Related Documents: Capital Improvement Plan Notes: The Water fund will probably see rate
increases of $.1 () in each year 2004. ")008 and ")01") to pay for the principal and interest of this bond.
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CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOT A
RESOLUTION 2000-17
RESOLUTION PROVIDING FOR THE SALE OF
$2,060,000 GI~NERAL OBLIGATION WATER REVENUE BONDS, SERIES 2000A
WHEREAS, the City Council of the City of Hopkins, Minnesota has clctcl1nined that it is
necessary and desirable to issue the City's $2,060,000 General Obligation Water Revenue Bonds,
Series 2000A (the "Bonds"), to finance improvements to water towers, treatment facilities and
other components of the municipal water system; and
WHEREAS, the City has designated Ehlers & Associates, Inc., in Roseville, Minnesota
("Ehlers") as its independent financial advisor and is therefore authorized to solicit proposals in
accordance \vith Minnesota Statutes, Section 475.60, Suddivision 2(9);
NOW, THEREFORE, BE IT RESOLVED by the City Council of Hopkins, Minnesota, as
follows:
1.
Authorization; Fil1llin~s. The City Council hereby authorizes Ehlers to solicit proposals
for the sale of the Bonds.
') Meetin~; Proposal Opening. The City Council shall meet at the time and place specified
in the T el111S of Proposal [or the purpose of considering sealed proposals for, and
awarding the sale of the Bonds. The City Clerk, or designee, shall open proposals at the
time and place specified in sLIch Terms o[Proposal.
3. TCllllS of Proposal. The tenllS and conditions of the Bonds and the sale thereof are fully
set forth in the Bond Sale Report and are hereby approved and made a part hereof.
4. Official Statement. In connection with said sale, the officers or employees o[the City arc
hereby authorized to cooperate wi th Ehlers and partie i pate in the preparation 0 fan 0 tneial
statement for the Bonds amI to execute and deliver it on behalf of the City upon its
completion.
Adopted by the City Council ofthe City of Hopkins held this 6th day of March, 2000.
Eugene Maxwell, Mayor
ATTEST:
Tell)' Obell11aier, City Clerk