CR 97-116 Reimbursement Resolution - Hopkins Center
.ne 11,1997
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Council Report 97-116
Reimbursement Resolution. Hopkins Center for the Arts
Proposed Action
Staff recommends approval of the following motion: Motion to approve Resolution No. 97.65
declarina the intent of the City of Hopkins to reimburse certain expenditures from the
proceeds of bonds to be issued bv the City.
Approval of the resolution would allow the City to keep open the option of reimbursing itself for
capital expenses for the Hopkins Center for the Arts by means of a bond issue.
Overview
Financial advisor Rusty Fifield and bond counsel Steve Bubul have reviewed the capital plan for the
Hopkins Center for the Arts. One financing option in the plan is the issuance of bonds to reimburse
the City for expenditures; this would implement the original plan to borrow $615,000 for the project.
While the Council has not made its final determination in regard to the financing options, it is
zcessary at this time to approve a reimbursement resolution. The recommendation to approve the
wsolution and the form of the resolution come from Steve Bubul of Kennedy & Graven. The amount
shown in the resolution, $650,000, is greater than the amount in the original plan only as a means of
giving the City latitude in future decisions; it is not an authorization of that amount. Nor is the
resolution an authorization to issue bonds; that decision would be considered by the City in the
future.
Primarv Issues to Consider
. How are the timing of this resolution and of project expenditures related?
Supportina Documents
esolution No. 97-65
im Parsons, Assistant to the City Manager
.marv Issues to Consider
. How are the timing of this resolution and of project expenditures related?
As work on the Hopkins Center for the Arts proceeds, costs are incurrBd and PDY spplica!ions
presented to the HRA for payment. In order to use the reimbursement option, the Council must
approve a reimbursement resolution no more than 60 days after payments are made. So, it is
appropriate to consider approval of the reimbursement resolution at this time.
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CITY OF HOPKINS, r..-mlNESOTA
RESOUJTION NO. 9'1-t.ot;
DECLARING THE OFFICIAL INTENT OF THE
CITY OF HOPKINS TO REIMBURSE
CERTAJN EXPENDITURES FROM THE PROCEEDS
OF BONDS TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. S 1-150-2 providing that
proceeds of tax-exempt bonds used to reimburse prior expenditures will 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 tIwl bonds, and reimbursed from the proceeds of a bond;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HOPKINS (THE "CITY") AS FOLLOWS:
1. The City reasonably intends to make expenditures for the project described in
Exhibit A (the "Project"), and reasonably intends to reimburse itself for such expenditures from
the proceeds of debt to be issued by the City in the maximum principal amount described in
Exhibit A.
? The City Manager is authorized to designate appropriate additions to Exhibit A in
circumstances where time is of the essence, and any such designation shall be reported to the
Council at the earliest p=ticable date and shall be filed with the official books and records of
the City as provided in Section 3.
3. This resolution is intended to constitute a declaration of official intent for purposes
of Treas. Reg. S 1.150-2 and any successor law, regulation, or ruling.
Approved by the City Council of the City of Hopkins this 17th day of June, 1991.
CITY OF HOPKINS, MINNESOTA
Attest:
Mayor
City Manager
SJBl.2.12'S
HPllO-57
Date of
Declaration
June 17, 1997
s...""B.1.24265.
YP'llo-S7
E."ffilBIT A
TO OFFICIAL INTENT RESOLUTION
ADOPTED JUNE 17, 1997
Description of Proiect
Maximum Principal
Amount of Debt
for Proiect
Performing Arts Center
$650,000
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