CR 95-146 Award Sale Of Bonds - Meadow Creek CondominiumsAugust 9, 1995
Proposed Action
AWARD SALE OF BONDS - MEADOW CREEK CONDOMINIUMS
Staff recommends approval of the following motion : Approve resolution 95 -70 awarding the
sale of bonds for the Meadow Creek Housing Improvement Area.
With this motion, the sale of the bonds will be awarded based on the recommendation of Ehlers
and Associates, Inc., financial advisor for this project.
Overview
The City of Hopkins has the authority to establish housing improvement areas under the Housing
Improvement Act (1994 Minnesota Laws, Chapter 587, Article 9, Section 22 through 31).
Within a housing improvement area, the City can sell bonds to pay for various improvements to
individual housing units and common areas. Those bonds are then repaid through fees imposed
on the owners of the units.
In March of this year, the City Council held the required public hearings and approved the
establishment of the housing improvement area and fees for Meadow Creek Condominiums. A
development agreement was executed, obligating the City to sell General Obligation Housing
Improvement Area Bonds.
At the July 5, 1995 City Council Meeting, the Council authorized the sale of bonds for the
Meadow Creek Housing Improvement Area project. The bids will be accepted until 12:00 noon
on August 15, 1995 at which time they will be reviewed and the recommendation incorporated
into Resolution 95 -70.
Primary Issues to Consider
At this time, there do not appear to be any primary issues relating to the award of the bond sale.
Any significant issues affecting the sale will not be known until after the closing of the bids on
August 15, 1995.
Supporting Information
o Official Statement
&esolutipn 9_5-70
Ker en Elverum
H • sing Coordinator
Council Rpt #95 -146
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CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 95 -70
A RESOLUTION AWARDING THE SALE OF $815,000
TAXABLE GENERAL OBLIGATION HOUSING IMPROVEMENT AREA BONDS
SERIES 1995; FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council of the City of Hopkins, Hennepin County, Minnesota (City)
as follows:
Section I. Sale of Bonds.
1.01. The proposal of (Purchaser) to purchase $815,000 Taxable General
Obligation Housing Improvement Area Bonds, Series 1995 (Bonds) of the City described in the Terms of
Proposal thereof is found and determined to be a reasonable offer and is accepted, the proposal being to
purchase the Bonds at a price of $ plus accrued interest to date of
delivery, for Bonds bearing interest as follows:
Year of Interest Year of Interest
Maturity Rate Maturity Rate
1998 2006
1999 2007
2000 2008
2001 2009
2002 2010
2003 2011
2004 2012
2005
True interest cost:
1.02. The sum of $ being the amount proposed by the Purchaser in excess of $802,545 will be
credited to the Debt Service Account in the Housing Fund hereinafter created. The Finance Director is
directed to retain the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to
return the good faith checks of the unsuccessful proposers forthwith. The Mayor and City Manager are
directed to execute a contract with the Purchaser on behalf of the City.
1.03. The City shall forthwith issue and sell the Bonds in the total principal amount of $815,000.
originally dated September 1, 1995, in the denomination of $5,000 each or any integral multiple thereof,
numbered No. RI, upward, bearing interest as above sct forth, and which mature serially on February 1 in
the years and amounts as follows:
Year Amount Year Amount
1998 $25,000 2006 $55,000
1999 30,000 2007 60,000
2000 35,000 2008 65,000
2001 35,000 2009 70,000
2002 40,000 2010 80,000
2003 45,000 2011 85,000
2004 45,000 2012 95,000
2005 50,000
1.04, Optional Redemption . The City may elect on February 1, 2004, and on any date thereafter to
prepay Bonds due on or after February 1, 2005. Redemption may be in whole or in part and if in part, at
the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC (as defined in Section 6 hereof) of the particular amount of
such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such
maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. All prepayments will be at a price of par plus accrued interest.
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds shall be issued only in fully registered form. The interest thereon
and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the
Registrar described herein.
2.02 Dates • Interest Payment Dates . Each Bond will be dated as of the last interest payment date
preceding the date of authentication to which interest on the Bond has been paid or made available for
payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or
made available for payment, in which case such Bond shall be dated as of the date of authentication, or (ii)
the date of authentication is prior to the first interest payment date, in which case such Bond will be dated
as of the date of original issue. The interest on the Bonds will be payable on February 1 and August 1 of
each year, commencing August 1, 1996, to the owner of record thereof as of the close of business on the
fifteenth day of the immediately preceding month, whether or not such day is a business day.
2.03. Registration . The City will appoint, and shall maintain, a bond registrar, transfer agent,
authenticating agent and paving agent (Registrar). The effect of registration and the rights and duties of the
City and the Registrar with respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the
Registrar provides for the registration of ownership of Bonds and the registration of transfers and
exchanges of Bonds entitled to be registered, transferred or exchanged.
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(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner
thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly
executed by the registered owner thereof or by an attorney duly authorized by the registered owner in
writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees,
one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor.
The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the
month preceding each interest payment date and until such interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the
Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and
maturity, as requested by the registered owner or the owner's attorney in writing.
(d) Cancellation. Bonds surrendered upon any transfer or exchange will be promptly canceled by the
Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the
Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond
or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized.
The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its
judgment, deems improper or unauthorized .
(f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is
registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for
the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all
other purposes, and payments so made to a registered owner or upon the owner's order will be valid and
effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. For a transfer or exchange of Bonds, the Registrar may impose a charge
upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge
required to be paid with respect to the transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or
lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and
substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond
destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in
connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of
evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and
upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount
satisfactory to it and as provided by law, in which both the City and the Registrar must be named as
obligees. Bonds so surrendered to the Registrar will be canceled by the Registrar and evidence of such
cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured
or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to
payment.
(i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying
the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first
class mail (postage prepaid) not more than 60 and not less than 30 days prior to the date fixed for
redemption to the registered owner of each Bond to be redeemed at the address shown on the registration
books kept by the Registrar and by publishing the notice in the manner required by law. Failure to give
notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of
any proceeding for the redemption of Bonds, Bonds so called for redemption will cease to bear interest after
the specified redemption date, provided that the funds for the redemption are on deposit with the place of
payment at that time.
2.04. Appointment of Initial Registrar. The City appoints , Minnesota,
as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf
of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another
corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such
business, such corporation is authorized to act as successor Registrar. The City agrees to pay the
reasonable and customary charges of the Registrar for the services performed. The City reserves the right
to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which
event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar
and must deliver the bond register to the successor Registrar. On or before each principal or interest duc
date, without further order of this Council, the Finance Director must transmit to the Registrar moneys
sufficient for the payment of all principal and interest then due .
2.05. Execution, Authentication. The Bonds will be prepared under the direction of the City
Clerk/.Assistant Administrator and executed on behalf of the City by the signatures of the Mayor and the
City Manager provided that all signatures may be printed, engraved or lithographed facsimiles of the
originals . In case any officer whose signature or a facsimile of whose signature appears on the Bonds
ceases to be such officer before the delivery of any Bond, such signature or facsimile will nevertheless be
valid and sufficient for all purposes, the same as if the officer had remained in office until delivery
Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any
security or benefit under this Resolution unless and until a certificate of authentication on the Bond has
been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of
authentication on different Bonds need not be signed by the same representative. The executed certificate of
authentication on each Bond is conclusive evidence that it has been authenticated and delivered under this
Resolution. When the Bonds have been so prepared, executed and authenticated, the Finance Director shall
deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of
sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the
purchase price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more
typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be
necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of
definitive Bonds the temporary Bonds will be exchanged therefor and canceled.
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Section 3. Form of Bond.
3.01. The Bonds will be printed in substantially the following form:
Face of the Bond
Rate
September 1, 1995
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF HOPKINS
TAXABLE GENERAL OBLIGATION HOUSING IMPROVEMENT AREA BONDS
SERIES 1995
Date of
Maturity Original Issue
No. $
CUSIP
The City of Hopkins, Minnesota, a duly organized and existing municipal corporation in Hennepin
County , Minnesota ( City), acknowledges itself to be indebted and for value received hereby promises to
pay to
or registered assigns, the principal sum of $ on the maturity date specified above, with interest thereon
from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year,
commencing August 1, 1996, to the person in whose name this Bond is registered at the close of business
on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest
hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the
United States of America by check or draft by , Minnesota, as Bond Registrar,
Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution
described herein. For the prompt and full payment of such principal and interest as the same respectively
become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably
pledged.
Additional provisions of this Bond contained on the reverse hereof have the same effect as though fully
set forth in this place.
This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the
Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by
manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Hopkins, Hennepin County, Minnesota, by its City Council,
has caused this Bond to be executed on its behalf by the facsimile manual signatures of the Mayor and City
Manager and has caused this Bond to be dated as of the date set forth below.
Dated:
(Facsimile)
City Manager
CITY OF HOPKINS. MINNESOTA
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within .
Authorized Representative
By
Mayor
Reverse of the Bond
( Facsimile)
This Bond is one of an issue in the aggregate principal amount of $815,000 all of like original issue
date and tenor, except as to number, maturity date, and interest rate, all issued pursuant to a resolution
adopted by the City Council on August 15, 1995 (the Resolution), for the purpose of providing money to
aid in financing various housing improvements within a housing improvement area in the City, pursuant to
and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota
Statutes, Chapter 475, 1994 Minnesota Laws, Chapter 587, Article 9, Sections 22 through 31, and the
City's home rule charter and the principal hereof and interest hereon are payable primarily from certain
housing improvement fees levied or to be levied on property within the housing improvement area in which
the housing improvements are located, as set forth in the Resolution to which reference is made for a full
statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably
pledged for payment of this Bond and the Cit} Council has obligated itself to levy ad valorem taxes on all
taxable property in the City in the event of any deficiency in revenues pledged, which taxes may be levied
without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in
denominations of $5,000 or any integral multiple thereof of single maturities.
As provided in the Resolution and subject to certain limitations set forth therein, this Bond is
transferable upon the books of the City at the principal office of the Bond Registrar, by the registered
owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together
with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered
owner or the owner's attorney: and may also be surrendered in exchange for Bonds of other authorized
denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the
name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the
same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge
required to be paid with respect to such transfer or exchange .
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The City and the Bond Registrar may deem and treat the person in whose name this Bond is
registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving
payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any
notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions
and things required by the Constitution and laws of the State of Minnesota and the City's home rule charter
to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order
to make it a valid and binding general obligation of the City in accordance with its terms, have been done,
do exist, have happened and have been performed as so required, and that the issuance of this Bond does
not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of
indebtedness.
(Form of certificate to be printed on the reverse side of each Bond, following a full copy of the legal
opinion. )
I certify that the above is a full, true and correct copy of the legal opinion rendered by bond counsel on
the issue of Bonds of the City of Hopkins, Minnesota, which includes the within Bond, dated as of the date
of delivery of and payment for the Bonds.
ID (Facsimile Signature)
The following abbreviations, when used in the inscription on the face of this Bond, shall be construed
as though they were written out in full according to applicable laws or regulations:
TEN COM as tenants UNIF GIFT MIN ACT Custodian
in common (Cust) (Minor)
TEN ENT as tenants under Uniform Gifts or
by entireties Transfers to Minors
JT TEN as joint tenants with
right of survivorship and
not as tenants in common
City Clerk/Assistant Administrator
Act .
Additional abbreviations may also be used though not in the above list.
(State)
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto the within
Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney
to transfer the said Bond on the books kept for registration of the within Bond, with full power of
substitution in the premises.
Dated:
Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the
face of the within Bond in every particular, without alteration or any change whatever.
Signature Guaranteed:
Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a
membership in one of the major stock exchanges.
The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee
requested below is provided.
Name and Address:
(Include information for all joint owners if this Bond is held by joint account. )
Please insert social security or other identifying number of assignee
3.02. The City Clerk/Assistant Administrator shall obtain a copy of the proposed approving legal
opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which shall be complete except as to
dating thereof and shall cause the opinion to be printed on each Bond, together with a certificate to be
signed by the facsimile signature of the City Clerk/Assistant Administrator in substantially the form set
forth in the form of Bond. The City_ Clerk/Assistant Administrator is hereby authorized and directed to
execute such certificate in the name of the City upon receipt of such opinion and to file the opinion in the
City offices.
Section 4. Payment: Security: Pledges and Covenants.
4.01. For the convenience and proper administration of the moneys to be borrowed and repaid on the
Bonds, and to make adequate and specific security to the purchasers and holders of the Bonds from time to
time, there is hereby created a separate special fund of the City to be known as the Housing Improvement
Area No. 1 Fund ( Housing Fund ), which fund will be continued and maintained as a permanent fund of
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the City until all the Bonds are paid. Within the Housing Fund there will be established and maintained
separate accounts as follows:
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(a) Project Account, into which Account will be paid proceeds of the Bonds net of proceeds
deposited into the Administrative Account and Debt Service Account established hereunder. Upon issuance
of the Bonds, the City shall also deposit into the Project Account prepaid housing improvement fees
(Housing Fees) in the amount of $341,526, which Housing Fees are levied on property within Housing
Improvement Area No. 1 pursuant to City Council Resolution No. 9518, adopted March 21, 1995 (the Fee
Resolution), and were prepaid pursuant to the Fee Resolution. Subject to the pledge described in paragraph
(c) below, Housing Fees received by the City after August 1, 1996 shall be deposited into the Project
Account on or before February 1, 1997 in the amount necessary to bring the total amount deposited into the
Project Fund to $1,100,000 (without regard to any disbursements from the Project Fund). Moneys in the
Project Account shall be disbursed to pay the cost of housing improvements in Housing Improvement Area
No . 1, in accordance with the terms of the Development Agreement between the City and Westbrooke
Condominium Association, d.b.a. Meadow Creek Condominiums, dated as of May 8, 1995 (the
Development Agreement).
(b) Administrative Account, into which Account will be paid proceeds of the Bonds in the amount of $
, which amount will be used solely for the purpose of paying administrative costs in connection
with Housing Improvement Area No. 1 and costs of issuance of the Bonds. Amounts in the Administrative
Account shall be disbursed upon issuance of the Bonds, including $7,500 credited to the City as
reimbursement for City administrative activities, and the balance payable upon presentation to the City of
proper invoices for such administrative costs and costs of issuance.
(c) Debt Service Account, into which account will be deposited from Bond proceeds capitalized interest
through August 1, 1996 (net of Housing Fees anticipated to be received as of such date), any amount over
the minimum purchase price of the Bonds paid by the Purchaser, and all accrued interest paid by the
Purchaser upon delivery of the Bonds, together with Housing Fees in the amount necessary to pay when
due the principal, interest and redemption premium, if any, on the Bonds.
(d) Surplus Account, into which account will be deposited all Housing Fees in excess of the amounts
required to be deposited into the Debt Service Account and the Project Account under this Section
Amounts in the Surplus Account shall be applied and disbursed in accordance with the Development
Agreement .
4.02. Money in the funds and accounts created by this Resolution will be kept separate from other
municipal funds and deposited only in a bank or banks which are members of the Federal Deposit
Insurance Corporation (FDIC). Deposits which cause the aggregate deposits of the City in any one bank to
be in excess of the amount insured by FDIC must be continuously secured in the manner provided by law
for the investment of municipal funds. Income derived from investments in the funds and accounts may at
any time be liquidated and the proceeds thereof applied for the purpose or purposes for which the respective
Account was created.
4.03. The City hereby covenants with the holders from time to time of the Bonds as follows:
(a) The City has caused or will cause the Housing Fees for the housing improvements
in Housing Improvement Area No. 1 to be promptly levied against housing units in such area so that the
first installment will be collectible not later than 1996 and will take all steps necessary to assure prompt
collection. The City Council will cause to be taken with due diligence all further actions that are required
under the Development Agreement for the construction of the housing improvements financed wholly or
partly from the proceeds of the Bonds, and will take all further actions necessary for the final and valid levy
of the Housing Fees and the appropriation of any other funds needed to pay the Bonds and interest thereon
when due.
(b) In the event of any current or anticipated deficiency in Housing Fees (after taking into account any
revenues collected or anticipated to be collected under the Development Agreement), the City Council will
levy ad valorem taxes in the amount of the current or anticipated deficiency.
(c) The City will keep complete and accurate books and records showing: receipts and disbursements in
connection with the housing improvements, Housing Fees levied therefor and other funds appropriated for
their payment, collections thereof and disbursements therefrom, and monies on hand.
4.04. It is hereby determined that the estimated collections of Fee Revenues for the payment of
principal and interest on the Bonds will produce at least five percent in excess of the amount needed to meet
when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time.
4.05. The City Clerk/Assistant Administrator is authorized and directed to file a certified copy of this
resolution with the County Auditor and to obtain the certificate required by Minnesota Statutes, Section
475.63.
Section 5. Authentication of Transcript.
5.01. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and
to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the
Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and
transcripts as may be required to show the facts within their knowledge or as shown by the books and
records in their custody and under their control, relating to the validity and marketability of the Bonds and
such instruments, including any heretofore furnished, shall be deemed representations of the City as to the
facts stated therein.
5.02. The Mayor, City Manager and Finance Director are authorized and directed to certify that they
have examined the Official Statement prepared and circulated in connection with the issuance and sale of
the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and
accurate representation of the facts and representations made therein as of the date of the Official
Statement
Section 6. Book -Entry System; Limited Obligation of City.
6.01. The Bonds will be initially issued in the form of a separate single typewritten or printed fully
registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance, the
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ownership of each such Bond will be registered in the registration books kept by the Bond Registrar in the
name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its
successors and assigns (DTC). Except as provided m this section, all of the outstanding Bonds will be
registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of
DTC.
6.02. With respect to Bonds registered in the registration books kept by the Bond Registrar in the name
of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent wilI have no
responsibility or obligation to any broker dealers, banks and other financial institutions from time to time
for which DTC holds Bonds as securities depository (the Participants) or to any other person on behalf of
which a Participant holds an interest in the Bonds, including but not limited to any responsibility or
obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with
respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person other
than a registered owner of Bonds, as shown by the registration books kept by the Bond Registrar, of any
notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant
or any other person, other than a registered owner of Bonds, or any amount with respect to principal of,
premium, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may treat
and consider the person in whose name each Bond is registered in the registration books kept by the Bond
Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium
and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds,
and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the
Bonds only to or on the order of the respective registered owners, as shown in the registration books kept
by the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the
City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the
extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the
registration books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of
this resolution. Upon delivery by DTC to the Finance Manager of a written notice to the effect that DTC
has determined to substitute a new nominee in place of Cede & Co., and the words "Cede & Co. ," will
refer to such new nominee of DTC; and upon receipt of such a notice, the Treasurer will promptly deliver a
copy of the same to the Bond Registrar and Paying Agent, if the Bond Registrar or Paying Agent is other
than the Treasurer.
6.03. Representation Letter. The form of representation letter proposed to be submitted to DTC, which
is on file with the Finance Director and presented to this meeting (Representation Letter), is hereby
approved, and the Finance Director is authorized to execute and deliver the Representation Letter in
substantially the form on file, with such changes therein not inconsistent with law as the Finance Director
and the City Attorney may approve, which approval will be conclusively evidenced by the execution
thereof. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds
will agree to take all action necessary for all representations of the City in the Representation letter with
respect to the Bond Registrar and Paying Agent, respectively, to at all times be complied with.
6.04. Transfers Outside Book -Entry System. In the event the City, by resolution of the City Council,
determines that it is in the best interests of the persons having beneficial interest in the Bonds that they be
able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of
the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange
Bond certificates as requested by DTC and any other registered owners in accordance with the provisions
of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at
any time by giving notice to the City and discharging its responsibilities with respect thereto under
applicable law, In such event, if no successor securities depository is appointed, the City will issue and the
Bond Registrar will authenticate Bond certificates in accordance with this resolution and the provisions
hereof will apply to the transfer, exchange and method of payment thereof.
6.05, Payments to Cede & Co. Notwithstanding any other provision of this resolution to the contrary,
so long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with
respect to principal of premium, if any, and interest on such Bond and all notices with respect to such
Bond will be made and given, respectively in the manner provided in the Representation Letter.
Adopted this
ATTEST:
James A. Genellie, Ctv Clerk,
day of , 1995.
Charles D. Redepenning, Mayor
•
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Interest on the Bonds is includable in gross income for federal income tax purposes and is an item of tax preference for federal inconre tax purposes. The
interest on the Bonds is not exempt from present Minnesota income and franchise tax.
New Issue Rating: Moody's Application Made
PURPOSE /AUTHORITY /SECURITY: The Bonds are issued pursuant to 1994 Minnesota Laws, Chapter 587, Article 9, Sections 22 - 31 and Minnesota
Statutes, Chapter 475 to finance improvements in a housing improvement area and will be paid from fees levied against each housing unit in the housing
improvement area. The Bonds are general obligations of the City of Hopkins, backed by its full faith, credit and taxing powers to repayment. The Bonds
will be in fully registered form as to both principal and interest and will be in integral multiples of $5,000 each. Delivery is subject to receipt of an approving
legal opinion of Kennedy and Graven Chartered, of Minneapolis, Minnesota.
DATE OF BONDS:
MATURITY:
I998 $25,000 2003 $45,000 2008 $65,000
1999 30,000 2004 45,000 2009 70,000
2000 35,000 2005 50,000 2010 80,000
2001 35,000 2006 55,000 2011 85,000
2002 40,000 2007 60,000 2012 95,000
REDEMPTION: Bonds maturing February 1, 2005 and thereafter are subject to call for prior redemption on February 1, 2004 and any
date thereafter, at par.
INTEREST: August 1, 1996 and semiannually thereafter.
MINIMUM PROPOSAL: $802,545.
GOOD FAITH DEPOSIT: $16,300, payable to the City.
PAYING AGENT: To be named by the City.
REGISTRATION/BOOK ENTRY: This offering will be issued as fully registered Bonds and, when issued, will be registered in the name of Cede & Co.,
as nominee of The Depository Trust Company, New York, New York, to which principal and interest payments on the Bonds will be made. Individual
purchases will be made in book -entry form only, in the principal amount of $5,000 or any whole multiple thereof. Purchasers of Bonds will not receive
physical delivery of bond certificates.
This Official Statement will be further supplemented by an addendum specifying the offering prices, interest rates, aggregate principal amount, principal
amount per maturity, anticipated delivery date, and underwriter, together with any other information required by Iaw, and, as supplemented, shall constitute
a "Final Official Statement" of the Issuer with respect to the Bonds, as defined in S.E.C. Rule 15c2 -12.
Prepared For the Issuer By:
OFFICIAL STATEMENT DATED AUGUST 2, 1995
CITY OF HOPKINS, MINNESOTA
$815,000
TAXABLE GENERAL OBLIGATION
HOUSING IMPROVEMENT AREA BONDS, SERIES 1995
September 1, 1995.
ill Ehlers and Associates, Inc.
L E A D E R S I N P U B L I C F I N A N C E
PROPOSAL OPENING: August 15, 1995, 12 :00 o'clock noon., C.T.
CONSIDERATION: August 15, 1995, 7:30 o'clock P.M., C.T.
February 1 as follows:
Year Amount
Year Amount Year Amount
2950 Norwest Center • 90 South Seventh Street
Minneapolis, MN 55402 -4100
612 - 339 -8291 . FAX 612 - 339 -0854
OFFICES IN MINNEAPOLIS, MN . BROOKFIELD, WI
COMPLIANCE WITH S.LC. RULE 15c2 -12
Municipal obligations (issued in an aggregate amount over $1,000,000) are subject to General Rules and Regulations, Securities Exchange Act
of 1934, Rule 15c2-12 Municipal Securities Disclosure.
Official Statement: This Official Statement was prepared for the Issuer for dissemination to potential customers. Its prirnary purpose is to
disclose information regarding the Obligations to prospective underwriters in the interest of receiving competitive proposals in accordance with
the sale notice contained herein. Unless an addendum is received prior to the sale, this document shall be deemed the "Near Final Official
Statement "
Review Period: This Official Statement has been distributed to members of the legislative body and other public officials of the Issuer as well
as to prospective bidders for an objective review of its disclosure. Comments or omissions or inaccuracies must be submitted to Ehlers and
Associates at least two business days prior to the sale. Requests for additional information or corrections in the Official Statement received
on or before this date will not be considered a qualification of a proposal received from an underwriter. If there are any changes, corrections
or additions to the Official Statement, interested bidders will be informed by an addendum at least one business day prior to the sale.
Final Official Statement: Upon award of sale of the Obligations, the legislative body will authorize the preparation of an addendum to the
Official Statement that includes the offering prices, interest rates, aggregate principal amount, principal amount per maturity, anticipated delivery
date and other information required by law and the identity of the Syndicate Manager and Syndicate Members. This addendum, together with
any previous addendum of corrections or additions to the Official Statement, shall be deemed the complete Final Official Statement. Copies
of the Final Official Statement will be delivered to the underwriter (Syndicate Manager) within seven business days following the proposal
acceptance
Continuing Disclosure: Subject to certain exemptions, issues in an aggregate amount over $1,000,000 may be required to comply with
provisions of the Securities and Exchange Commission Exchange Act of 1934 which require that issuers of municipal securities enter into
agreements for the benefit of the owners of the securities to provide continuing disclosure with respect to the securities. Described in the
Official Statement are the conditions under which the issuer of these obligations is exempt or will comply with the Rule.
REPRESENTATIONS
No dealer, broker, salesperson or other person has been authorized by the Issuer to give any information or to make any representation other
than those contained in the Official Statement and, if given or made, such other information or representations must not be retied upon as having
been authorized by the Issuer.
This Official Statement is not to be construed as a contract with the underwriter. Statements contained herein which involve estimates or matters
of opinion are intended solely as such and are not to be construed as representations of fact.
This Official Statement and any addenda thereto were prepared relying on information of the issuer and other sources and, while believed to
be reliable, are not guaranteed as to completeness or accuracy.
Bond Counsel has not participated in the preparation of this Official Statement and is not expressing any opinion as to the completeness or
accuracy of the information contained therein.
Compensation of Ehlers and Associates, Inc., payable entirely by the Issuer, is contingent upon the sale of the issue.
CLOSING CERTIFICATES
Upon delivery of the Obligations, the purchaser (underwriter) will be furnished with the following items: (1) a certificate of the appropriate
official to the effect that at the time of the sale of the Obligations and all times subsequent thereto up to and including the time of the delivery
of the Obligations, this Official Statement did not and does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (2) a receipt signed
by the appropriate officer evidencing payment for the Obligations; (3) a certificate evidencing the due execution of the Obligations, including
statements that (a) no litigation of any nature is pending, or to the knowledge of signers, threatened, restraining or enjoining the issuance and
delivery of the Obligations, (b) neither the corporate existence or boundaries of the Issuer nor the title of the signers to their respective offices
is being contested, and (c) no authority or proceedings for the issuance of the Obligations have been repealed, revoked or rescinded.
•
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TABLE OF CONTENTS
• TERMS OF PROPOSAL 1
•
INTRODUCTION 6
AUTHORITY; PURPOSE 6
SOURCES AND USES 6
SECURITY 7
RATING 7
TAXABILITY 7
EXEMPTION FROM CONTINUING DISCLOSURE 7
RISK FACTORS 8
VALUATIONS 9
MINNESOTA VALUATIONS; PROPERTY TAXES 9
1994/95 VALUATIONS 10
TREND OF VALUATIONS 11
LARGER TAXPAYERS 11
DEBT 12
DIRECT DEBT 12
DEBT LIMIT 12
SCHEDULE OF BONDED INDEBTEDNESS 13
OVERLAPPING DEBT 18
DEBT RATIOS 18
FUTURE FINANCING 19
LEVY LIMITS 19
TAX LEVIES AND COLLECTIONS 20
TAX COLLECTIONS 20
• NET TAX CAPACITY RATES 20
THE ISSUER 21
CITY GOVERNMENT AND SERVICES 21
EMPLOYEES; PENSIONS 21
FUNDS ON HAND 22
ENTERPRISE FUNDS 23
INSURANCE 25
LITIGATION 25
DEBT PAYMENT HISTORY 25
GENERAL INFORMATION 26
LOCATION 26
LARGER EMPLOYERS 26
U.S. CENSUS DATA 27
UNEMPLOYMENT RATES 27
BUILDING PERMITS 28
FINANCIAL SERVICES 28
EDUCATION 29
MEDICAL FACILITIES 29
BOND YEARS 30
EXCERPTS FROM FINANCIAL STATEMENTS A -1
FORM OF LEGAL OPINION B -
BOOK -ENTRY -ONLY SYSTEM C -
OFFICERS
Charles Redepenning Mayor
Robert Anderson Council Member
Frances Heseh Council Member
Chuck Kritzlei Council Member
Eugene Maxwell Council Member
Steve Mielke, City Manager
James Genellie, City ClerklAssistant Administrator
Terry Obermaier, Deputy Clerk
John Schedler, Finance Director
,lames Kerrigan, Economic Development Director
Kersten Elverum, Housing Coordinator
PROFESSIONAL SERVICES
Vesley, Miller, & Steiner, P.A., City Attorney, Hopkins
Kennedy and Graven Chartered, Bond Counsel, Minneapolis
Ehlers and Associates, Inc,, Financial Advisors, Minneapolis
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TERMS OF PROPOSAL
$815,000
TAXABLE GENERAL OBLIGATION
HOUSING IMPROVEMENT AREA BONDS, SERIES 1995
CITY OF HOPKINS, MINNESOTA
Sealed proposals for the purchase of $815,000 Taxable General Obligation Housing Improvement Area
Bonds, Series 1995 (the "Bonds ") of the City of Hopkins, Minnesota (the "City ") will be received at the offices of
Ehlers and Associates, Inc., 2950 Norwest Center, 90 South Seventh Street, Minneapolis, Minnesota, until 12:00
o'clock noon, Central Time, on August 15, 1995, when they will be opened, read and tabulated for presentation to
the City Council. The proposals will be presented to the City Council for consideration for award at a meeting to be
held in the City at 7:30 o'clock P.M., Central Time, on the same date. The Bonds will be general obligations of the
City for which the City will pledge its full faith, credit and taxing powers. The proposal offering to purchase the
Bonds upon the terms specified herein and most favorable to the City will be accepted unless all proposals are
rejected.
Purpose
The Bonds are being issued pursuant to the provisions of 1994 Minnesota Laws, Chapter 587, Article 9,
Sections 22 through 31 and Minnesota Statutes, Chapter 475, to finance improvements in the City's Housing
Improvement Area No. 1.
Dates and Maturities
The Bonds will be dated September 1, 1995 as the date of original issue, will be issued as fully registered
Bonds in the denomination of $5,000 each, or any integral multiple thereof, and will mature on February 1 in the
following years and amounts:
Year Amount Year Amount
1998 $25,000 2006 $55,000
1999 30,000 2007 60,000
2000 35,000 2008 65,000
2001 35,000 2009 70,000
2002 40,000 2010 80,000
2003 45,000 2011 85,000
2004 45,000 2012 95,000
2005 50,000
Redemption
At the option of the City, Bonds maturing on or after February 1, 2005 shall be subject to prior payment on
February 1, 2004 or any date thereafter, at a price of par and accrued interest. Redemption may be in whole or in part
of the Bonds subject to prepayment. If redemption is in part, the selection of the Bonds remaining unpaid to be
prepaid shall be at the discretion of the City. If only part of the Bonds having a common maturity date are called for
prepayment, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine
by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select
by lot the beneficial ownership interest in such maturity to be redeemed.
1
Notice of such call shall be given by mailing a notice thereof by certified mail at Least thirty (30) days prior
to the date fixed for redemption to the registered owner of each Borid to be redeemed at the address shown on the
registration books.
Interest Payment Dates and Rates
Interest will be payable on February 1 and August 1 of each year, commencing August 1, 1996, to the
registered owners of the Bonds appearing of record in the bond register as of the close of business on the 1 5th day
(whether or not a business day) of the immediately preceding month. Interest will be computed upon the basis of a
360 -day year of twelve 30 -day months and will be rounded pursuant to rules of the MSRB. All Bonds of the same
maturity rust bear interest from date of issue until paid at a single, uniform rate, not exceeding the rate specified for
Bonds of any subsequent maturity. Each rate must be expressed in an integral multiple of 5/100 or 1/8 of 1 %.
Paying Agent
The Issuer will select a Paying Agent (the "Paying Agent "). The City will pay the customary and
reasonable charges of the Paying Agent for such services.. The City reserves the right to remove the Paying Agent
and appoint a successor.
Book Entry Format
The Bonds will be designated in the name of Cede & Co., as nominee for The Depository Trust Company
( "DTC "), New York, New York. DTC will act as securities depository for the Bonds, and will be responsible for
maintaining a book -entry system for recording the interest of its participants and the transfers of interests between
its participants. The participants will be responsible for maintaining records regarding the beneficial interests of the
individual purchasers of the Bonds. So long as Cede & Co. is the registered owner of the Bonds, all payments of
principal and interest will be made to the depository which, in turn, will be obligated to remit such payments to its
Participants for subsequent disbursement to the beneficial owners of the Bonds.
Delivery
Within 40 days after the sale, the Bonds will be delivered without cost to the original purchaser at DTC. On
the day of closing, the City will furnish to the purchaser the opinion of bond counsel hereinafter described,
appropriate arbitrage certifications and a certificate verifying that no litigation in any manner questioning the validity
of the Bonds is then pending or, to the best knowledge of officers of the City, threatened. Payment for the Bonds
must be received by the City at its designated depository on the date of closing in immediately available funds
Legal Opinion
An opinion as to the validity of the Bonds will be furnished by Kennedy & Graven Chartered of Minneapolis,
Minnesota, bond counsel to the City, and will accompany the Bonds. The interest to be paid on the Bonds is
includable in gross income of the recipient for United States and State of Minnesota income tax purposes, and is
subject to Minnesota corporate and bank excise taxes measured by net income. The legal opinion will state that the
Bonds are valid and binding general obligations of the City enforceable in accordance with their terms, except to the
extent to which enforceability may be limited by Minnesota or United States laws relating to bankruptcy,
reorganization, moratorium or creditors' rights generally.
2
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Type of Proposal
Proposals for not less than $802,545 plus accrued interest on the principal sum of $815,000 from date of
original issue of the Bonds to date of delivery must be filed with the undersigned prior to the time of sale. Proposals
must be submitted to Ehlers and Associates, Inc. either:
1) In a sealed envelope to Ehlers and Associates, Inc. as described herein;
2) A facsimile submission to Ehlers and Associates, Inc., Financial Advisors, Facsimile Number: (612)
339 -0854; or
3) Electronically via PARITY, in accordance with PARITY Rules of Participation and this notice of sale, within
a one -hour period prior to the time of sale, but no proposals will be received after the time established above
for receiving proposals. If any provisions in this notice are conflicting with those PARITY Rules of
Participation, this sale notice shall control. The normal fee for use of PARITY may be obtained from
PARITY, and such fee shall be the responsibility of the bidder. For further information about PARITY,
potential bidders may contact the financial advisor to the issuer, Ehlers and Associates, Inc., 2950 Norwest
Center, 90 South Seventh Street, Minneapolis, Minnesota 55402, Telephone (612) 339 -829I, or PARITY
at 100 - 116th Avenue SE, Suite 100, Bellevue, Washington 98004, Telephone (206) 635 -3545. The Issuer
and Ehlers and Associates, Inc. assume no Iiability if there is a malfunction of PARITY.
Proposals must be submitted to Ehlers and Associates, Inc. as described above and must be received prior
to the time established above for the opening of proposals. Each proposal must be unconditional except as to legality.
A good faith deposit (the "Deposit ") in the amount of $16,300, or a financial surety bond complying with the
provisions below, must be submitted with each proposal. The Deposit must be in the form of a certified or cashiers
check or bank draft or a wire transfer of funds to Resource Bank & Trust Company, of Minneapolis, Minnesota, ABA
#09 -10- 0550 -6 for further credit to Ehlers and Associates, Inc., Bond Issue Escrow Account #850 -788 -1, Attn: Dawn
Oberle, or a financial surety bond. The Deposit will be retained by the City as liquidated damages if the proposal is
accepted and the bidder fails to comply therewith. The Deposit will be returned to the Purchaser at the closing for
the Bonds. Proposals for the Bonds should be addressed to:
James Genellie, City Clerk/Assistant Administrator
City Hall
1010 First Street
Hopkins, MN 55343 -7573
If a financial surety bond is used, it must be from an insurance company licensed to issue such a bond in the
State of Minnesota, and preapproved by the City. Such bond must be submitted to Ehlers and Associates, Inc. prior
to the opening of the proposals. Such bond must identify each bidder whose deposit is guaranteed by such financial
surety bond. If the Bonds are awarded to a bidder using a financial surety bond, then that purchaser is required to
submit its Deposit to Ehlers and Associates, Inc. in the form of a certified or cashier's check or wire transfer as
instructed by Ehlers and Associates, Inc. not later than 3:00 P.M., Central Time, on the next business day following
the award. If such deposit is not received by that time, the financial surety bond may be drawn by the City to satisfy
the deposit requirement. In the event the purchaser fails to comply with the accepted proposal, said amount will be
retained by the City. No proposal can be withdrawn after the time set for receiving proposals unless the meeting of
the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the
Bonds having been made.
3
Award
The Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a true interest
cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice,
will be controlling. In the event of a tie, the sale of the Bonds will be awarded by lot. No oral proposal will be
considered, and. the City reserves the right to reject any and all proposals and to waive any informality in any
proposal.
CUSIP Numbers
The City will assume no obligation for the assignment or printing of CUSIP numbers on the Bonds or for the
correctness of any numbers printed thereon, but will permit such numbers to be printed at the expense of the
purchaser, if the purchaser waives any delay in delivery occasioned thereby.
Information From Purchaser
The successful purchaser will be required to provide, in a timely manner, certain information relating to the
initial offering prices of the Bonds necessary to compute the yield on the Bonds pursuant to the provisions of the
Internal Revenue Code of 1986, as amended.
Taxability
Interest on the Bonds is included in gross income of the recipient for the United States income tax purposes and is
included, to the same extent in both gross income and taxable net income, for State of Minnesota income tax purposes.
Official Statement
Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to
the proposal opening. The Syndicate Manager will be provided with 50 copies of the Final Official Statement within
seven business days of the proposal. acceptance. Additional copies of the Final Official Statement will be available
at a cost of $10.00 per copy.
Information for bidders and proposal forms may be obtained from the undersigned or from the City's
Financial Advisor, Ehlers and Associates, Inc., 2950 Norwest Center, 90 South Seventh Street, Minneapolis,
Minnesota 55402, telephone (612) 339 -8291.
The City reserves the right to reject any and all proposals, and to waive informalities and to adjourn the sale.
BY ORDER OF THE CITY COUNCIL
James Genellie, City ClerklAssistant Administrator
City Hall
1010 First Street
Hopkins, MN 55343 -7573
4
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If proposals are delivered to Ehlers and Associates, Inc., the good faith deposit, payable to the City, shall be retained
in the offices of Ehlers and Associates, Inc. with the same effect as if delivered to the City. Alternatively, bidders
may wire the good faith deposit to Resource Bank & Trust Company, Minneapolis, Minnesota, A.B.A. #09- 10- 0550 -6
Attention: Dawn Oberle for credit to Ehlers and Associates, Inc. Bond Issue Escrow Account, #850 - 788 -1. The City
and any bidder who chooses to so wire the good faith deposit hereby agree irrevocably that Ehlers and Associates,
Inc. shall be the escrow holder of the good faith deposit wired to such account subject only to these conditions and
duties: 1) All income earned thereon shall be retained by the escrow holder as payment for its expenses; 2) If the
proposal is not accepted, Ehlers and Associates, Inc. shall, at its expense, promptly return the good faith deposit
amount to the losing bidder; 3) If the proposal is accepted, the good faith deposit shall be returned to the purchaser
at the closing; 4) Ehlers and Associates, Inc. shall bear all costs of maintaining the escrow account and returning the
funds to the bidder; 5) Ehlers and Associates, Inc. shall not be an insurer of the good faith deposit amount and shall
have no liability hereunder except if it willfully fails to perform, or recklessly disregards, its duties specified herein;
and 6) FDIC insurance on deposits within the escrow account shall be limited to $100,000 per bidder.
5
AUTHORITY; PURPOSE
The $815,000 Taxable General Obligation Housing Improvement Area Bonds, Series 1995 (the `Bonds ") are being
issued pursuant to the provisions of 1994 Minnesota Laws, Chapter 587, Article 9, Sections 22 through 31 (the
"Housing Improvement Act ") and Minnesota Statutes, Chapter 475. On June 7, 1994, the City Council adopted
Resolution #94 -55 approving the special legislation and making it effective.
Pursuant to the Housing Improvement Act, the City initiated the process for the housing improvement area (the
"Area ") after receiving a petition representing over 35% of the housing unit owners in the Area. The City created
Housing Improvement Area No. 1 by ordinance pursuant to the procedures in the Housing Improvement Act,
Following the establishment of the Area, the City adopted a resolution imposing fees needed to pay for the
improvements proposed in the Area. Property owners did not exercise their right under the Housing Improvement
Act to veto either the ordinance or the resolution_
The improvements are being made to the housing units, garage units and common property of the Meadow Creek
Condominiums. The City has entered into an agreement with the Westbrooke Condominium Association to provide
$1,100,000 to make the following improvements:
SOURCES AND USES
Sources
Uses
• Rehabilitation of garages.
• Rebuild trash and recycling areas.
• Upgrade building exteriors.
• Replacement of lighting fixtures.
• Installation of new signage
• Parking lot repairs.
• Site improvements,
Total Sources
INTROIDUCTION
Par Amount of Bonds $815,000
Prepaid Fees 341,526
Project Costs $1,107,500
Discount Allowance 12,455
Issuance Related Expenses 33,000
Capitalized Interest 3,571
Total Uses $1,156,526
6
$1,156,526
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SECURITY
The Bonds are general obligations of the City, backed by its full faith, credit and taxing powers to repayment.
Revenue to pay debt service will come from the fees levied and collected on properties in the Area. The fee is
imposed by the City under the Housing Improvement Act to finance improvements in housing improvement areas.
The City has adopted a resolution imposing fees against each housing unit in the Area. Prior to the issuance of the
Bonds, owners of 161 units prepaid their fee. The fees on the remaining units will be paid in equal annual
installments over a 16 -year period at an interest rate sufficient to 105% of the average annual debt service payment
on the Bonds. Following the sale of the Bonds, the annual fee for each unit will be certified to the County for
collection in the years 1996 through 2011. The fees will be collected in the same manner as general ad valorem taxes.
The County will include the fees on the property tax statements under special taxing districts.
In addition, the City has entered into an agreement with the Westbrooke Condominium Association. The agreement
requires the Association to make payments to the City in the event of deficiencies in fee revenues.
RATING
General obligation debt of the City of Hopkins is currently rated "Al" by Moody's Investors Service, Inc. The City
has requested a rating on this issue from Moody's Investors Service, Inc., and bidders will be notified as to the
assigned rating prior to the sale. Such a rating, if and when received, will reflect only the view of the rating agency
and any explanation of the significance of such rating may only be obtained from Moody's Investors Service, Inc.
There is no assurance that such rating, if and when received, will continue for any period of time or that it will not
be revised or withdrawn. Any revision or withdrawal of the rating may have an effect on the market price of the
Bonds.
TAXABILITY
Interest on the Bonds is included in gross income of the recipient for the United States income tax purposes and is
included, to the same extent in both gross income and taxable net income, for State of Minnesota income tax purposes.
EXEMPTION FROM CONTINUING DISCLOSURE
The Bonds of this issue are Tess than $1,000,000 in aggregate principal and are, therefore, exempt from continuing
disclosure provisions of Rule 15c2 -12 of the Securities Exchange Act of 1934, as amended.
7
RISK FACTORS
Following is a description of possible risks to holders of these Bonds without weighing as to probability. This
description of risks is not intended to be all - inclusive and there may be other risks not now perceived or listed here.
Taxes: The Bonds of this offering are general obligations of the City, the ultimate payment of which rests in the
City's ability to levy and collect sufficient taxes to pay debt service should other revenue (housing improvement fees)
be insufficient.
Ratings; Interest Rates: In the future, the City's credit rating may be reduced or withdrawn, or interest rates for this
type of obligation may rise generally, both possibilities resulting in a reduction in the value of the obligations for
resale prior to maturity.
State Economy; Local Government Aids: State cash flow problems could affect local governments and possibly
increase property taxes.
Book -Entry-Only System: The timely credit of payments for principal and interest on the Bonds to the accounts
of the Beneficial Owners of the Bonds may be delayed due to the customary practices, standing instructions or for
other unknown reasons by DTC participants or indirect participants. Since the notice of redemption or other notices
to holders of these obligations will be delivered by the City to DTC only, there may be a delay or failure by DTC,
DTC participants or indirect participants to notify the Beneficial Owners of the Bonds.
Economy: The economy of the City consists ()flight industry and commerce, and agriculturally related businesses.
A combination of economic, climatic, political or civil disruptions could affect the local economy and result in
reduced tax collections and/or increased demands upon local government
8
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4
MINNESOTA VALUATIONS; PROPERTY TAXES
All non - exempt property is subject to taxation by local taxing districts. The total tax rate is determined by dividing each taxing
district's dollar levy (budget less aids and revenues) by its total tax capacity.
Exempt real property includes Indian lands, public property, and educational, religious and charitable institutions. Most personal
property is exempt from taxation (except investor -owned utility mains, generating plants, etc.).
At least one -fourth of all real properties are appraised yearly by local or county assessors who are directed by statute to appraise
each parcel according to its estimated market value (EMV).
The assessors classify all property subject to the general property tax and apply statutory percentages to the EMV to determine
the tax capacity upon which tax capacity rates are computed. Significant major classifications and the percentages by which tax
capacity is determined are:
2
3
Type of Property
Residential homestead'
Agricultural homestead'
Agricultural non - homestead
Seasonal recreational
Residential non - homestead:
1 -3 units
4 or more
Selected small cities with 4 or
more units'
Industrial /commercial/
House /garage /one acre.
1993/94
First $72,000 - 1.0%
Over $72,000 - 2.0%
First $72,000 HGA - 1.0 %
Over $72,000 HGA - 2.0%
Land to 320A - .45% - 1.0%
Land excess 1.5%
HGA - 2.25%
Land - 1.5%
First $72,000 - 2.0%
Over $72,000 - 2.5%
2.3%
3.4%
VALUATIONS
1994/95
First $72,000 - 1.0%
Over $72,000 - 2.0%
First $72,000 HGA - 1.0 %
Over $72,000 HGA - 2.0%
Land to 320A - .45% - I.0%
Land excess - 1.5%
HGA - 2.25%
Land - 1.5%
First $72,000 - 2.0%
Over $72,000 - 2.5%
2.3%
3.4%
1995/96
First $72,000 - 1.0%
Over $72,000 - 2.0%
First $72,000 HGA -1.0 %
Over $72,000 HGA - 2.0%
Land to 320A - .45% - 1.0%
Land excess - 1.5%
HGA - 2.25%
Land - 1.5%
First $72,000 - 2.0%
Over $72,000 - 2.5%
2.3%
3.4%
2.3%
First $100,000 - 3.0% First $100,000 - 3.0% First $ I00,000 - 3.0%
utility Excess - 4.60% Excess - 4.60% Excess - 4.60%
A residential property qualifies as "homestead" if it is occupied by the owner or a relative of the owner on the
assessment date.
Cities of 5,000 population or less and located entirely outside the seven - county metropolitan area and the adjacent
nine - county area and whose boundaries are 15 miles or more from the boundaries of a Minnesota city with a
population over 5,000.
The estimated market value of utility property is determined by the Minnesota Department of Revenue.
9
2
1994/95 VALUATIONS
Market value of taxable property, 1994/95
Real Estate
Personal Property
Total Valuation $ 596,895,300 $ 15,510,773
Less: Captured Tax Increment Tax Capacity' - 1,021,176
Fiscal Disparities Contribution' - 1,579,101
Taxable Net Tax Capacity
Plus Fiscal Disparities Distribution'
Adjusted Taxable Net Tax Capacity
Mobile Home Valuation (1993/94)
According to the Hennepin County Auditor, about 52.06% of the City's total net tax capacity is residential, .03% is
agricultural and 47.91% is personal property, utility, industrial and commercial property.
According to the Minnesota Department of Revenue, the "assessor's estimated market value" for the City of
Hopkins is about 90.5% of true market value. The ratio was calculated by comparing the selling prices of
property sold (most recent available) with the assessor's market value. Dividing the assessor's estimated market
value of real estate by .905 and adding personal property and mobile home EMV, if any, results in a market value
of taxable property for the City of $659,094,827_
The $1,021,176 tax increment value shown above represents the captured net tax capacity of a tax increment
financing district(s) in the City of Hopkins. Taxes collected on property in the tax increment district(s) accrue
to the City to pay debt service on outstanding tax increment bonds.
Each community in the seven - county metropolitan area contributes 40% of its new industrial and commercial
valuation to an area pool which is then distributed among the municipalities on the basis of population, special
needs, etc. Each governmental unit makes a contribution and receives a distribution -- sometimes gaining and
sometimes losing net tax capacity for tax purposes. Taxes are spread on the basis of taxable net tax capacity.
d Mobile home valuations are not included in the net tax capacity for purposes of determining tax capacity rates.
However, valuations of mobile homes are determined at the beginning of the collection year, and the same tax
capacity rates are applied to mobile home net tax capacity valuations as to real estate and personal property.
10
$659
1994/95
Assessor's 1994/95
Estimated Net Tax
Market Value Capacity
$ 591,054,800 $ 15,242,111
5,840,500 268 662
$ 12,910,496
1,692,508
:$ 14,603004.
$155,100 $2,598
•
•
TREND OF VALUATIONS
LARGER TAXPAYERS
Taxpayer
Super Valu Stores Inc.
GIaser Financial
Ramsgate Apartments
Alliant Techsystems, Inc.
Gateway Hopkins Warehouse
Century North Construction Co. Inc.
Christian Salvesen Inc.
Auburn Limited Partnership
Westside Village
A & J Partnership
Source: Valuations, Trend of Valuations and Larger Taxpayers have been furnished by Hennepin County.
a
Levy
Year
1990/91
1991/92
1992/93
1993/94
1994/95
Assessor's
Estimated
Market Value
$620,446,600
614,357,100
598,335,200
584,73 5,900
596,895,300
Type of Property
Wholesale grocery distributor
Apartments
Apartments
Industrial
Industrial
Apartments
Industrial
Apartments
Apartments /commercial
Industrial
Net Tax
Capacity'
$18,672,204
17,583,286
16,277,144
15,341,893
15,510,773
1994/95
Estimated
Market Value
$25,291,000
15,325,500
7,847,300
5,798,600
5,096,000
5,022,000
4,800,000
4,798,000
4,628,900
3,105,800
Adjusted
Taxable
Net Tax
Capacity
$17,038,546
16,186,742
15,158,442
14,539,490
14,603,004
1994/95
Net Tax
Capacity
$ 1,163,386
443,245
266,808
266,736
232,816
170,748
220,800
163,132
158,491
142,867
Net tax capacity is before fiscal disparities adjustments and includes tax increment values.
Adjusted taxable net tax capacity is after fiscal disparities adjustments and does not include tax increment values.
11
DIRECT DEBT
Long - `Terra General Obligation Debt (See schedules following)
Total G. 0. debt being paid from taxes
Total G.O. debt being paid from tax increment revenues and taxes
Total G.O. debt being paid from special assessments and taxes
Total G. 0. debt being paid from housing improvement area fees (the $815,000
Taxable General Obligation Housing Improvement Area Bonds of this offering)
Total G.O. debt being paid from storm sewer utility revenues
Total Long -Term General Obligation Debt
Less; Funds on hand for debt redemption as of June 30, 1995'
Net Long -Term General Obligation Debt
DEBT LIMIT
DEBT
The statutory limit on debt of Minnesota municipalities other than school districts or cities of the first class
(Minnesota Statutes, Section 475.53, subd. 1) is 2% of the assessor's estimated market value of all taxable property
within its boundaries. "Net debt" (Minnesota Statutes, Section 475.51, subd. 4) is the amount remaining after
deducting from gross debt: (1) obligations payable wholly or partly from special assessments levied against benefitted
property; (2) warrants or orders having no definite or fixed maturity; (3) obligations issued to finance any public
revenue producing convenience; (4) obligations issued to create or maintain a permanent improvement revolving
fund; (5) funds held as sinking funds for payment of principal and interest on debt other than those deductible under
1-4 above; (6) other obligations which are not to be included in computing the net debt of a municipality under the
provisions of the law authorizing their issuance (i,e. the $815,000 Taxable General Obligation Housing Improvement
Area Bonds of this offering).
Assessor's Estimated Market Value of Taxable Property
Multiply by 2%
Statutory Bonded Debt Limit
Less. Long -Term Debt Outstanding Being Paid Solely from Taxes
Unused Debt Limit
Funds on hand for debt redemption (available for payment of principal and interest) have been deducted from
total g.o. debt to determine net g.o. debt.
12
$ 2,440,000
6,730,143
2,025,000
815,000
95.000
$ 14,605,143
- 479,555
$ 14,125,588
$ 596,895,300
0.02
$ 11,937,906
- 2,440,000
$ 9,497,906
CA)
•
CITY OF HOPKINS, MN
Schedule of Bonded Indebtedness
G.O. Debt Being Paid From Taxes
(as of 811195)
Dated 3/1/90 10/15/93
Amount $2,805,000 82,065,000
Maturity 2/01
Rate
Rate
Rate
YEAR
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Park & Rec. Bonds Park & Rec. Bonds
6.25%
6.30%
6.40%
1996
1997
1998
Principal Interest
140,000 22,155
140,000 13,370
140,000 4,480
4.40%
4.50%
4.60%
2/01
1996 -98
1999 -00
2001 -11
Principal Interest
25,000 91,890
25,000 90,790
25,000 89,690
165,000 85,428
165,000 78,003
160,000 70,610
155,000 63,365
155,000 56,235
150,000 49,220
150,000 42,320
150,000 35,420
145,000 28,635
145,000 21,965
140,000 15,410
135,000 9,085
130,000 2,990
420,000 40,005 2,020,000 831,056 2,440,000 871,061 3,311,061
TOTAL TOTAL TOTAL PRINCIPAL
PRINCIPAL INTEREST P & I OUTSTANDING % PAID YEAR
165,000 114,045 279,045 2,275,000 6.76% 1996
165,000 104,160 269,160 2,110,000 13.52% 1997
165,000 94,170 259,170 1,945,000 20.29% 1998
165,000 85,428 250,428 1,780,000 27.05% 1999
165,000 78,003 243,003 1,615,000 33.81% 2000
160,000 70,610 230,610 1,455,000 40.37% 2001
155,000 63,365 218,365 1,300,000 46.72% 2002
155,000 56,235 211,235 1,145,000 53.07% 2003
150,000 49,220 199,220 995,000 59.22% 2004
150,000 42,320 192,320 845,000 65.37% 2005
150,000 35,420 185,420 695,000 71.52% 2006
145,000 28,635 173,635 550,000 77.46% 2007
145,000 21,965 166,965 405,000 83.40% 2008
140,000 15,410 155,410 265,000 89.14% 2009
135,000 9,085 144,085 130,000 94.67% 2010
130,000 2,990 132,990 0 100.00% 2011
Prepared by Ehlers & Associates, Inc. 08/03/95 GOTAX.WK4
CITY OF HOPKINS, MN
Schedule of Bonded Indebtedness
G.O. Debt Being Paid From Tax Increment Revenues and Taxes
(as of 8/1/95)
Redevelopment Bonds Taxable TIF Bonds Taxable Redev. Bonds Redevelopment Bonds Redevelopment Bonds
Dated 5/1/88 5/22/91 2/1/92 10/15/93 10/15193
Amount $2,145,000 $411,000 $2,888,543 $3,075,000 $ 1,135,000
Maturity 6/01 2/01 2/01 2101 6/01
Rat 6.15% 1996 7.00% 1996-01 6.75% 1996 4.40% 1996 -98 3.00% 1996
Rat 7.00% 1997 4.50% 1999 -00 5.15% 1997
Rat 7.15% 1998 4.60% 2001 -09 3.30% 1998
Rat - 7.30% 1999 3.45% 1999
Rat 7.50% 2000 3.60% 2000
Rate 7.60% 2001 3.80% 2001
Rat 7.70% 2002 4.05% 2002
Rate 7.80% 2003 4.20% 2003
Rate 7.90% 2004
Rate 8.00% 2005
Rate 8.10% 2006
TOTAL TOTAL TOTAL PRINCIPAL
YEAR Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest PRINCIPAL INTEREST P 81 OUTSTANDING % PAID YEAR
1995 0 4,459 0 0 0 0 0 0 0 19,771 0 24,230 24,230 6,730,143 0.00% 1995
1996 145,000 4,459 41,100 15,824 255,000 155,369 20,000 138.540 15,000 39,317 476,100 353,509 829,609 6,254,043 7.07% 1996
1997 0 0 41,100 12,947 275,000 137,137 20,000 137,660 160,000 36572 496,100 324,316 820,416 5,757,943 14.45% 1997
1998 0 0 41,100 10,070 295,000 116,966 20,000 136,780 - 160,000 31,412 516,100 295,228 811,328 5,241,843 22.11% 1998
1999 0 0 41,100 7,193 315,000 94,922 20,000 135,890 155,000 26,099 531.100 264,104 795,204 4,710,743 30.01% 1999
I-.
-- 2000 0 0 41,100 4,316 330,000 71,049 30,000 134,765 155,000 20,636 556,100 230,766 786,866 4,154,643 38.27% 2000
2001 0 0 41,100 1,439 : 180,847 51,802 50,000 132,940 155,000 14,901 426,947 201,082 628,029 3,727,696 44.61% 2001
2002 0 0 0 0 161,502 38,712 60,000 130,410 150,000 8,918 371,502 178,040 549,542 3,356,194 50.13% 2002
2003 0 0 0 0 148,138 26,717 75,000 127,305 140,000 2,940 363,138 156,962 520,100 2,993,056 55.53% 2003
2004 0 0 - 0 0 135,620 15,583 90,000 123,510 0 0 225,620 139,093 364,713 2,767,436 58.88% 2004
2005 0 0. 0 0. 96,152 6,380 240,000 115,920 0 0 336.152 122,300 458,452 2,431,284 63.87% 2005
2006 0 0 - 0 0 " 31,284 1,267 425,000 100,625 0 0 456,284 101,892 558,176 1,975,000 70.65% 2006
2007 0 0 0 0 0 0 630,000 76,360 0 0 630,000 76,360 706,360 1,345,000 80.02% 2007
2008 0 0 0 0 0 0 650,000 46,920 0 0 650,000 46,920 696,920 695,000 89.67% 2008
2009 0 0 0 0 0 0 695,000 15,985 0 0 695,000 15,985 710,985 0 100.00% 2009
145,000 8,918 246,600 51,789 2,223543 715,904 3,025,000 1,553,610 • 1,090,000 ° 200,566
6,730,143 2,530.787 9,260,930
Prepared by Ehlers & Associates, Inc. 08/03/95 GOTIF.WK4
all 0
•
CITY OF HOPKINS, MN
Schedule of Bonded Indebtedness
G.O. Debt Being Paid From Special Assessments and Taxes
(as of 811195)
imp. Revolt'. Bonds Imp. Revoly. Bonds
Dated 311190 8!1192
Amount $485,000 $2,000,000
Maturity 2101 2101
Rate 6.25% 1996 3.90% 1996
Rate 6.30% 1997 4.15% 1997
Rate 6.40% 1998 4.35% 1998
Rate 6.50% 1999 4.55% 1999
Rate 6.60% 2000 4.75% 2000
Rate 6.70% 2001 4.90% 2001
Rate 5.00% 2002
Rate 510% 2003
Rate 5.20% 2004
Rate 5.30% 2005
Rate 5.40% 2006
Rate 5.50% 2007
tri Rate 5.60% 2008
TOTAL TOTAL TOTAL PRINCIPAL
YEAR Principal Interest Principal Interest PRINCIPAL INTEREST P & t OUTSTANDING % PAID YEAR
1995 0 0 0 0 0 0 0 2,025,000 0.00% 1995
1996 50,000 16,823 130,000 82,840. 180,000 99,663 279,663 1,845,000 8.89% 1996
1997 50,000 13,685 130.000 77,608 180,000 91,293 271,293 1,665,000 17.78% 1997
1998 50,000 10,510 130,000 72,083. 180,000 82,593 262.593 1,485,000 26.67% 1998
1999 45,000 7,448 135,000 66.184 180,000 73,632 253,632 1,305,000 35.56% 1999
2000 45,000 4,500. 135,000 59,906 180,000 64,406 244,406 1.125,000 44.44% 2000
2001 45,000 1,508;; 135,000 53,393 180,000 54,901 234,901 945,000 53.33% 2001
2002 0 0 135,000 46,711 ; 135,000 46.711 181,711 810,000 60.00% 2002
2003 0 0 135,000 39,893 135,000 39,893 974,893 675,000 66,67% 2003
2004 0 0 135,000 32,940 135,000 32,940 167,940 540,000 73.33% 2004
2005 0 0 135,000 25,853 135,000 25,853 160,853 405.000 80.00% 2005
2006 0 0 135.000 18,630 135,000 18,630 153,630 270.000 86.67% 2006
2007 0 0 135.000 11,273 135,000 11,273 146,273 135,000 93.33% 2007
2008 0 0 135,000 1780 135,000 3,780 138,780 0 100,00% 2008
285,000 54,474 1,740,000
591,094
2,025,000 645,568 2,670,568
Prepared by Ehlers & Associates, Inc. 08/03/95 GOSA.WK4
CITY OF HOPKINS, MN
Schedule of Bonded Indebtedness
G.O. Debt Being Paid From Housing Improvement Area Fees
(as of 811195)
This Issue(1)
Dated 9/1!95
Amount 8815,000
Maturity 2101
Rate 6.60% 1998
Rate 6.70% 1999
Rate 6.80% 2000
Rate 6_90% 2001
Rate 7.00% 2002
Rate 7.10% 2003
Rate 7.20% 2004
Rate 7 30% 2005
Rate 7.40% 2006
Rate 7.50% 2007
Rate 7.60% 2005
Rate 770% 2009
Rate 7.80% 2010
Rate 7.90% 2011
Rate 8.00% 2012
TOTAL TOTAL TOTAL PRINCIPAL.
YEAR Principal Interest PRINCIPAL INTEREST P & I OUTSTANDING % PAID YEAR
1996 0 55,729 0 55,729 55,729 815,000 0.00% 1996
1997 0 60,795 0 60,795 60,795 815,000 0.0031 1997
1998 25,000 59,970 25,000 59,970 84,970 790,000 3.0731 1998
1999 30,000 58,140 30,000 58,140 68,140 760,000 6.7531 1999
2000 35,000 55,945 35,000 55,945 90,945 725,000 11.04% 2000
2001 35,000 53,548 35,000 53,548 88,548 690,000 15.34% 2001
2002 40,000 50,940 40,000 50,940 90,940 650,000 20.25% 2002
2003 45,000 47,943 45,000 47,943 92,943 605,000 25.77% 2003
2004 45,000 44,725 45,000 44,725 89,725 560,000 31.29% 2004
2005 50,000 41,280 50,000 41,280 91,280 510,000 37.42% 2005
2006 55,000 37,420 55,000 37,420 92,420 455,000 44,17% 2006
2007 60,000 33,135 60,000 33,135 93,135 395,000 51.53% 2007
2008 65,000 28,415 65,000 28,415 93,415 330,000 59.51% 2008
2009 70,000 23,250 ' 70,000 23,250 93,250 260,000 68.1031 2009
2010 80,000 17,435 80,000 17,435 97,435 180,000 77.91% 2010
2011 85,000 10.958 85,000 10,958 95,958 95,000 88.34% 2011
2012 95,000 3,800 95,000 3,800 98 800 0 100.00% 2012
815,000 683,428
(1) Interest on This Issue has been estimated.
815,000 683,428 1,498,428 8,635 000
Prepared by Ehlers & Associates, Inc, 08/02/95 GOIMFEES WK4
• • •
•
CITY OF HOPKINS, MN
Schedule of Bonded Indebtedness
G.O. Debt Being Paid From Revenues of the Storm Sewer Utility
(as of 811195)
Storm Sewer Rev. Storm Sewer Ref. Rev.
Dated 12/1/89 10/15/93
Amount $2,790.000 $2,445,000
Maturity 2/01 2/01
Rate 6.10% 1996 4.40% 1996 -98
Rate 6.15% 1997 4.50% 1999 -00
Rate 4.60% 2001 -10
YEAR
TOTAL TOTAL TOTAL PRINCIPAL
Principal Interest Principal Interest PRINCIPAL INTEREST P & I OUTSTANDING % PAID YEAR
1995 0 0 0 0 0 0 0 2,595,000 0.00% 1995
1996 95,000 9,048. 25,000 109,190 120,000 118,238 238,238 2.475,000 4.62% 1996
v 1997 100,000 3,075 25,000 108,090 125.000 111,165 236,165 2,350.000 9.44% 1997
1998 135,000 104,570 135,000 104,570 239,570 2,215,000 14.64% 1998
1999 140.000 98,450 140,000 98,450 238,450 2,075,000 20.04% 1999
2000 150,000 91,925 150,000 91,925 241,925 1,925,000 25.82% 2000
2001 160,000 84,870 160,000 84,870 244,870 1,765,000 31.98% 2001
2002 160,000 77,510 160,000 77,510 237,510 1,605,000 38.15% 2002
2003 165,000 70,035 165,000 70,035 235,035 1,440,000 44.51% 2003
2004 180,000 62,100 180,000 62,100 242,100 1,260,000 51.45% 2004
2005 185,000 53,705 185,000 53,705 238,705 1,075,000 58.57% 2005
2006 190,000 45,080 190,000 45,080 235,080 885,000 65.90% 2006
2007 205,000 35,995 205,000 35,995 240,995 680,000 73.80% 2007
2008 215,000 26,335 215,000 26,335 241,335 465,000 82.08% 2008
2009 225,000 16,215 225,000 16,215 241,215 240,000 90.75% 2009
2010 240,000 5,520 240,000 5,520 245,520 0 100.00% 2010
195,000 12,123 2,400,000 989,590 ' 2,595,000 1,001,713 3,596,713
Prepared by Ehlers & Associates, Inc. 08/01/95 GOREV.WK4
OVERLAPPING DEBT
Taxing District
Hennepin County
1.S.D. No. 270 (Hopkins)
I.S.D. No. 283 (St. Louis Park)
Met. CounciURegional Transit District
Suburban Hennepin County Park District
City's Share of Overlapping Debt
DEBT RATIOS
Director G.O, debt being paid from:
Taxes
Tax increment revenues and taxes
Special assessments and taxes
Housing improvement area fees (This Issue)
Taxes and storm sewer utility revenues
1994/95
Taxable Net
Tax Capacity
$ 966,907,816
75,703,256
38,205,604
1,910,385,749
682,858,515
Total Long -Term General Obligation Debt
Less: Funds on hand for debt redemption as of 6/1/95'
Net Long -Term General Obligation Debt
City's Share of Total Overlapping Debt
18
In Cl
1.5103%
19.0535%
0.4681%
0.7644%
2.1385%
G.O. Debt
$2,440,000
6,730,143
2,025,000
815,000
2 595,000
$ 14,605,143
-479 555
Total
G.O. Debt
$ 77,190,000'
55,810,000
14,975,000
80,540,000
19,130,000
Debt/
Market Value
($659094 827)
City's
Proportionate
S hare
$ 1,165,801
10,633,758
70,098
615,648
409,095
$12,894,400
Debt/
16,406
Population
$ 14,125,588 2.14% $861.00
$ 1.2,894,400 1.96% $785,96
Hennepin County also has outstanding $10,000,000 G. 0. Capital Notes that are payable entirely from revenues
of the Hennepin County Medical Center and $129,000,000 Solid Waste Resource Recovery G. 0. Revenue Bonds
payable entirely from the Solid Waste enterprise. None of these Bonds nor any of the County's lease revenue
bonds have been included in the overlapping debt or debt ratios.
I.S.D. 270 (Hopkins) also has outstanding $4,240,000 G.O. Tax Anticipation Certificates outstanding which have
not been included in the overlapping debt or debt ratio sections,
This consists of all outstanding debt supported by taxes of the Metropolitan Council and the Regional Transit
Board/Metropolitan Transit Commission. The Metropolitan Council also has outstanding $536,385,000 general
obligation sewer revenue bonds and Loans supported entirely by sewer revenues and $39,810,000 revenue bonds
supported solely by revenues of sports facilities owned by the Metropolitan Sports Facilities Commission.
Funds on hand for debt redemption (available for payment of principal and interest) have been deducted from
total g.o. debt to determine net g.o. debt.
•
•
FUTURE FINANCING
• The City reports no plans for additional financing in the next three months.
LEVY LIMITS
Property taxes levied by cities in Minnesota historically have been Limited by Minnesota Statutes, Chapter 475. Cities
operating under a home rule charter may also be limited by the city charter.
Effective as of levy year 1992 and thereafter, the Minnesota Legislature repealed Overall Levy Limits which applied
to all cities and counties with populations over 2,500 (but exempted taconite towns). The Overall Levy Limits did
not apply to certain "special" levies, including property tax Ievies made on bond principal and interest. There is no
assurance that the City will operate without levy limitations in the future.
The Legislature also repealed Per Capita Levy Limits for levy years beginning 1992 and thereafter. There is no
assurance that the City will operate without Per Capital Levy Limitations in the future. The per capita levy limitation
is applied to property taxes levied for all purposes, including levies to pay bond principal and interest.
19
TAX COLLECTIONS
Tax Year
1990/91
1991/92
1992/93
1993/94
1994/95
Certified Levy'
$4,509,290
4,659,524
4,867,972
4,953,600
4,953.600
NET TAX CAPACITY RATES
Hennepin County
City of Hopkins
I.S.D. No. 270 (Hopkins)
I.S.D. No. 287
Metropolitan Council
Regional Transit District
Park Museum
Metropolitan Mosquito Control
Hennepin County RRA
Suburban Hennepin County Park District
Total
TAX LEVIES AND COLLECTIONS
Total Collected Collected
Following Year to Date
$4,334,421 $4,503,152
4,473,263 4,639,590
4,798,824 4,848,817
4,909,453 4,909,453
L.
In process of collection
Property taxes are collected in two installments in Minnesota - -the first by May 15 and the second by October 15
Mobile home taxes are collectible in full by August 31. Minnesota Statutes require that levies (taxes and special
assessments) for debt service be at least 105% of the actual debt service requirements to allow for delinquencies.
1990/91
1991/92 1992/93
30.114% 34.327% 35.839%
22.725% 23.639% 26.356%
53.659% 6L303% 65.183%
1.046% 0.513% 1.095%
0.446% 0.606% 0.465%
3.225% 3.458% 3.571%
0.333% 0.363% 0.368%
0.440% 0.418% 0.364%
1.963% 0.000% 0.000%
0.958% 1.151% 1.274%
114.90994 125.778% 134.515% 139.327% 146.078%
The above total net tax capacity rates are for taxpayers living within ISD 270 (Hopkins).
for ISD 283 which lies in a portion of the City of Hopkins.
I.S.D. No. 283 (St, Louis Park) 52.881% 56.347% 67.340%
37.441%
27.502%
67.341%
0.809%
0.421 %
3.636%
0.376%
0.359%
0.000%
1.442%
Source- Tax Collections and Net Tax Capacity Rates have been furnished by Hennepin County.
20
Collected
99.86%
99.57%
99.61%
99.11%
J
1993/94 1994/95
37.454%
27.191%
75.076%
0%
0.480%
3.626%
0.373%
0.347%
0.001%
1.530%
Following are the tax rates
68.281% 71.212%
The Certified Levy includes the property tax levy actually spread upon taxable property and state credits and aids,
i.e. HACA, disparity reduction aid, equalization aid, etc.
Collections are through December 31, 1994 and include abatements, cancellations, mobile home collections and
credits, i.e. HACA aid, disparity reduction, and equalization aid. In 1993/94, $966,384 (19.51% of the certified
levy) was paid by sources other than a tax levy, reducing the obligation of homestead taxpayers.
•
CITY GOVERNMENT AND SERVICES
THE ISSUER
The City of Hopkins was organized as a municipality in 1893 and comprises four square miles. The City operates
under a home rule charter form of government consisting of a five - member City Council of which the Mayor is a
voting member. The City Manager, City Clerk/Assistant Administrator, Deputy Clerk, and Finance Director are
responsible for administrative duties and financial records.
The Director of Planning and Economic Development oversees City activities in the areas of planning, development
and housing. The Housing Coordinator is responsible for all City housing programs.
The public safety is provided by 40 volunteer firemen working out of the City's fire station and 35 police department
employees work at the City's police station.
Located within the City are 12 city parks, one playground, and 18 skating rinks.
EMPLOYEES; PENSIONS
The City has 97 full -time and five part -time employees including 16 police officers. All full -time and certain
part -time employees of the City are covered by defined benefit pension plans administered by the Public Employee
Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF)
and the Public Employees Police and Fire Fund (PEPFF) which are cost - sharing multiple- employer retirement plans.
PERA members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social
Security. See the Notes to Financial Statements in Appendix A for a detailed description of the Plans.
The City's contribution to PERA during the last three years has been as follows:
1992 $236,225
1993 $243,975
1994 $248,714
21
FUNDS ON HAND (INCLUDING INVESTMENTS, AS OF .TUNE 30, 1995)
Fund
Investments
General Fund
Equipment Replacement Fund
Economic Development
Real Estate Purchases and Sales
Hennepin County CDBG
Tax Increment 1.1
Paratransit
Housing Rehabilitation
Parking
Cable TV
Tax Increment 2.1, Project 158
Tax Increment 2.4, Project 161
Tax Increment 2.6, Project 163
Park Improvements
State Aid Construction
Debt Service Funds
1990 Improvement Revolving Fund
1992 Improvement Revolving Fund
1992 Taxable Redevelopment Refunding Bonds
1993 Redevelopment Refunding Bonds, Series C
1993 Redevelopment Refunding Bonds, Series A
1988 Redevelopment Bonds
1990 Park & Recreation Bonds
1993 Park & Recreation Bonds, Series D
1991 HRA Revenue Bonds
PIR Construction
Water Utility Fund
Sewer Utility Fund
Refuse Utility Fund
Storm Sewer Utility Fund
Pavillion/Ice Arena Fund
Total
Investment Trust Cash (accounting adjustments for cash
transfers from funds into investment fund)
Net Cash and Investments
NOTE: Negative fund balances are remedied at the end of the year by interfund transfers.
22
Amount
$9,507,538
2,318,062
344,599
2,032,335
21,703
- 20,323
1,597,845
3,398
918,100
320,553
214,692
577,739
1,409
- 11,001
4,000
649,295
15,820
64,656
178,831
69,193
42,112
54,593
10,063
13,165
31,122
- 1,819,564
719,804
937,100
460,000
- 643,320
5,614
$ 19,256,839
- 8,949,823
$ 10,307,016
•
ENTERPRISE FUNDS
0 Cash flows for the City's enterprise funds have been as follows as of December 31 each year:
•
•
Water Utility Fund
The City's Water Utility serves 100% of the City of Hopkins. The System has storage capacity of 3,200,000 gallons.
Date of last water rate increase of January 1, 1993.
Total Operating Revenues
Less: Operating Expenses
Operating Income $ - 26,047 $ 81,873 $ 137,187
Plus: Depreciation 145,023 152,859 120,225
Interest Income 39,091 6,000 35,300
Net Revenues $ 158,067
Sewer Utility Fund
The City's Sewer Utility serves 100% of the City of Hopkins. Date of last sewer rate increase of Jannnry 1, 1992.
Total Operating Revenues
Less: Operating Expenses
Operating Income $ 350,291 $ 410,748 $ 242,540
Plus: Depreciation 91,377 83,791 89,310
Interest Income 0 13,400 5,200
Net Revenues $ 441,668
Refuse Utility Fund
The Refuse Utility serves 100% of the City's residential properties. Last rate increase was 3% on January 1, 1995.
Total Operating Revenues
Less: Operating Expenses
1992
$ 662,271
- 688,318
$1,482,417
- 1,132,126
Operating Income $ 135,135 $ 77,233 $ 82,309
Plus: Depreciation 2,415 2,415 2,415
Interest Income 13,193 1 6 ,400 2,600
Net Revenues $ 150,743
$ 752,849 $ 730,382
- 617,714 - 653,149
23
1993 1994
$ 796,208
- 714,335
$ 240,732 $ 292,712
$1,588,928
- 1,178,180
$ 820,913
- 683726
$1,558,204
- 1,315,664
$ 507,939 $ 337,050
$ 659,202
- 576,893
$ 96,048 $ 87,324
Storm Sewer Utility Fund
100% of'tne City is served by the storm sewer system, The last rate increase was 17% effective January 1, 1993 and
another increase is anticipated for January 1, 1996
Total Operating Revenues
Less: Operating Expenses
Operating Income
Plus: Depreciation
Net Revenues $ 311,275
Pavillion/lcc Arena Fund
Total Operating Revenues
Less. Operating Expenses
Operating Income
Plus: Depreciation
Net Revenues
1992
$ 433,475
- 198,932
$ 234,543
76.732
$ 149,497 $ 171,609 $ 191,600
- 149082 169053 - 189179
$ 415 $ 2,556 $ 2,421
4 112 4 4112
$ 4,527 $ 6,668 $ 6,533
24
1993 1994
$ 560,295
- 177,982
$ 382,313
90,089
$ 517,325
169
$ 347,904
102 414
$ 472,402 $ 450,318
•
•
•
INSURANCE
LITIGATION
Type of Insurance
Workers' compensation
Amount of Coverage
Statutory coverage
All Real and Personal Property $12,770,440
General Liability
Bodily Injury $600,000
Property Damage $600,000
Personal Injury $600,000
Automobile
Liability $600,000
Personal Injury Protection Statutory
Uninsured/Underinsured Motorist $50,000
Comprehensive /Collision ACV /ACV
Volunteer Firemen's Accident and Indemnity $12,670
Boilers and Pressure Vessels $500,000
Public Officials Bond
Finance Director $40,000
Manager/Treasurer $10,000
Clerk/Assistant Treasurer $10,000
Cashier $5,000
Blanket Bond (Other City Employees) $2,500 each
Public Officials Liability $600,000
There is no litigation threatened or pending questioning the organization or boundaries of the City or the right of any
of its officers to their respective offices or in any manner questioning their rights and power to execute and deliver
these Bonds or otherwise questioning the validity of these Bonds.
The City Attorney reports that any litigation and claims currently pending against the City are being handled by the
City's insurance carrier or outside counsel and will not affect the issuance of these Bonds.
DEBT PAYMENT HISTORY
The City has never defaulted on the payment of principal and interest on its debt.
25
LOCATION
The City of Hopkins, with a 1990 U.S. Census of 16,534 and a current Metropolitan Council population estimate of
16,406 and comprising an area of four square miles, is located within Hennepin County in the Minneapolis -St. Paul
metropolitan area. It is eight miles southwest of downtown Minneapolis.
LARGER EMPLOYERS
Larger employers in the City include the following:
Firm
Alliant Tech Systems
Super Valu Inc.
Thermotech
Advance Circuits
Sathers, Inc.
Rainbow Foods
Innovex, Inc.
Sungard Financial Systems
Chapel View Care Center
Quality Assured Label, Inc.
Hopkins Care Center
Reuter Manufacturing, Inc
City of Hopkins
EDCO Products Inc.
NAPCO International Inc.
Includes full -time, part -time and seasonal.
GENERAL INFORMATION
Type of Business/Product
Military Ordinance
Distributor of wholesale foods
Manufacturer of plastic injection moldings
Manufacturer of printed circuit boards
Candy producers
General offices arid grocery store
Manufacturer of lead wires for diskdrive heads
Data processing
Nursing home
Manufacturer of packaging labels
Nursing home
High precision machining
Municipal government & services
Manufacturer of metal building products
Defense related sales
Source; Written survey, July, 1995, and "Community Profile" (City of Hopkins), Department of Trade and
Economic Development, 1.993.
26
No. of
Employees`
1,221
1,061
413
293
280
235
200
185
180
150
138
118
102
100
92
s
•
•
U.S. CENSUS DATA
Population Trend: City of Hopkins
1980 U.S. Census 15,336
1990 U.S. Census 16,534
Current Metropolitan Council Estimate 16,406
Percent of Change 1980 - 1990 + 7.81%
Income /Age/Education Statistics (1990)
Hennepin State of
County Minnesota
1989 per capita income $18,496 $14,389
1989 median household income $35,659 $30,909
1989 median family income $44,189 $36,916
Median age (City of Hopkins) 31.3 yrs. 32.5 yrs.
Median gross rent (City of Hopkins) $493 $384
Median value specified owner - occupied housing units $86,700 $74,000
Housing Statistics
Housing Units
Source: Census of Population and Housing.
UNEMPLOYMENT RATES
Rates are not compiled for individual communities within counties.
Annual Averages:
Monthly Average, June
Source: Minnesota Department of Economic Security.
City of Hopkins City of Hopkins Percent of
1980 1990 Change
7,257 8,572 + 18.12%
Hennepin State of
County Minnesota
1991 4.3% 5.1%
1992 4.4% 5.1%
1993 4.2% 5.1%
1994 2.7% 4.0%
1995 3.5% 4.1%
27
BUILDING PERMITS
Single Family Homes:
No. of new homes: 1 3 4 3
Valuation. $285,000 $172,000 $338,500 $348,200
Additions, remodelings: 284 234 376 112
Valuation: $2,216,415 $2,077,546 $2,981,074 $9,209,172
Multiple Family Dwellings:
No. of new buildings: 0 1
Valuation: $0 $1,328,920
Commercial/Industrial/Other:
No. of new buildings: 5 2
Valuation: $736 $115,000
Additions, remodelings: 85 64
Valuation: $4 016 942 $5,285,752
Total Valuations: $ 7,254,525 $ 8,979,218
FINANCIAL SERVICES
Financial institutions located in the City include the following:
First Bank National Association
Hopkins Schools Credit Union
Norwest Bank Minnesota, N.A.
Red Owl /Snyder's Employees Credit Union
Retail Employees Credit Union
Super Valu Employees Credit. Union
Annual deposits for these local facilities are not available,
Source- Northwestern Financial Review.
As of July 16, 1995.
1992 1993 1994 1995'
28
0
$0
0
$0
5 1
$498,817 $450,000
72 55
$7,468,423 $1585,488
$ 11,286,814 $ 11,592,860
EDUCATION
I.S.D. No. 270 (Hopkins) operates ten schools, of which two elementary schools are located in the City of Hopkins.
The District serves 7,804 students in grades K through 12. The District employs 1,198 people, 573 of whom are
certified personnel. Teachers in the District are currently under contract. In addition to I.S.D. No. 270, a small
portion of the City is served by I.S.D. 283 (St. Louis Park).
Four year college programs and vocational - technical training are available throughout the Minneapolis -St. Paul
metropolitan area.
MEDICAL FACILITIES
Located within the City of Hopkins are the Chapel View Care Center, a 128 -bed nursing home, and the Hopkins Care
Center, a 157 -bed nursing home. Dozens of hospitals, specialized medical facilities, and nursing homes are located
throughout the Minneapolis -St. Paul Metropolitan area.
N:\WPDATA\HOPKINS\ANALYST\OS
RF /nad
29
City of Hopkins, MN
Taxable G.O. Housing Improvement Area Bonds, Series 1995
Bond Years Report
Maturity
Value
Maturity
09/01/95
02/01/98 25,000.00
02/01/99 30,000.00
02/01/2000 35,000.00
02/01/2001 35,000.00
02/01/2002 40,000.00
02/01/2003 45,000.00
02/01/2004 45,000.00
02/01/2005 50,000.00
02/01/2006 55,000.00
02/01/2007 60,000.00
02/01/2008 65,000.00
02/01/2009 70,000.00
02/01/2010 80,000.00
02/01/2011 85,000.00
02/01/2012 95,000.00
Bond
Years
0.00
60.42
102.50
154.58
189.58
256.67
333.75
378.75
470.83
572.92
685.00
807.08
939.17
1,153.33
1,310.42
1,559.58
Cumulative
Bond
Years
0.00
60.42
162.92
317.50
507.08
763.75
1,097.50
1,476.25
1,947.08
2,520.00
3,205.00
4,012.08
4,951.25
6,104.58
7,415.00
8,974.58
Prepared by Ehlers and Associates 30 (P &!- LEVY.WK4)
•
EXCERPTS FROM FINANCIAL STATEMENTS
A -1
APPENDIX A
Combined Balance Sheets for the years 1992 and 1993 and Combined Statements of Revenues, Expenditures and
Changes in Fund Balances for the years ending December 31, 1991, 1992, and 1993 reproduced on the following
pages have been extracted from audit reports of the City of Hopkins prepared by a Certified Public Accountant. Notes
(included here for 1993) are an integral part of the audits and any judgment of the financial statement should be based
on the statement as a whole.
Copies of the audits and the current budget are available upon request from Ehlers and Associates, Inc. The 1994
audit is in process of completion.
Equity and Other Credits:
Contributed capital (Note 8)
Investment in general fixed assets
Retained earnings:
Reserved for debt service (Note 6)
Unreserved
Fund balances (deficit):
Reserved (Note 6)
Unrcserved/undesignated
Total Equity and Other Credits
CITY OF HOPKINS, MINNESOTA
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
December 31,1994
With Comparative Totals for December 31, 1993
Proprietary Fiduciary
Governmental Fund Types Fund Type Fund Type Account Groups
General General Totals
Special Debt Capital Fixed Long -Term (Memorandum Only)
Enterprise Agency Assets Debt 1994 1993
General Revenue Service
ASSETS AND OTHER DEBITS
A S 186,763 S - S S S 967,724 5 1,358,105
Cash (Note 2) S 111.534 S 519,336 S 103,541 S 46,550 1,085,000 1,237,701 11,778.646 13.618,699
Investments, at cost (Note 2) 3,236,245 4,897,700 916,000 406,000 `
Receivables: 147,459 252 571
Taxes ctrrrent/delinqurnt 89,375 27 30,749 509,507 1,139,508 1,274,358
Accounts and other 73,674 170,850 385,477 93,648 1,061,897
Rehabilitation loans (Note 13) 893,648 3, 88 93.648 1 ,061,897
Special assessments 3,160,866 60,866 81,095
Accrued interest on investments 47,476 695,000 2 847, 2,831,232
Due from other funds (Note 11) 40,400 2,137,799 23,694 73, 832,232
Due from other governmental units 13,840 10,038 23,694 104,222 72,
Inventory, at cost 88,644 3,024 3,024 5,891
Prepaid expenses 144,956 144,956 167 295
Deferred receivables (Note 14) 10,419,634 26,060,393 36,480,027 34,463,721
Other assets !Note 3 j 150,000 250,000 250,000
An nt 1,019,541 1,019,541 1,302,870
Amount available in Debt Service Funds
Amount to be provided for retirement 10,976,702 10,9: 4.702 11504,473
of general long -term debt
TOTAL ASSETS AND OTHER DEBITS S 3 701.188 $ 8,656.706 $ 1.0K1,2_2 is $ 3.998.893 S 13.333.156 $ 1.237.701 3 26.060,393 S 11.996.243 S 70.034 570 S 71.705.219
N LIABILITIES. EQUITY AND OTHER CREDITS
Liabilities: 84 52,927 551,762 4
233 S S S S 311,941 S 516,09
Accounts payable S 72,327 $ 26,700 S $ 128,681 S 942 5
Compensated absences payable 492,040 6,795 729,400 2,551, 2,481,
Due to other funds (Note 11) 582,600 1 ,561,199 29 ,406 73,197
Due to other governmental units 51,519 3,772
Deferred revenue: 252,571
47,459 252
Property taxes - delinquent 89,375 27,335 30,749 3 1 1 47,459 2 25
Special assessments 3,230,008 87,822 81,535
Fees 82,428 5,394 7,350 23,765
Bondsits 7,350 2,705,000 11,996,243 14,701,243 15,622,343
Deferred r re d payable crdit ((Note 4) e l4) 143,937 143,937 164,799
rd redit (Not
Deferred compensation funds 1.237,701 1,237,701 1.197,569
held Total for Liabilities participants 795,039 652,596 30,749 4,919,888
Total (Note 5) 3,737,783 1,237.701 11,996,243 23,369,999 24,051.124
l
88,6 1,064,348 1,019,541 2,172,533 2,622,694
2,817,505 6,939,762 (920,995) 8,836,272 10,800,359
2,906,149 8,004,110 1,019,541 (920,995) 9,595,373 26,060,393 46,664,571 47,654,095
TOTAL LIABRITIES, EQUITY AND OTHER CREDITS S 3 701 I $ 8 656 706 $ 1,050.290 S 3,998,893 3 13.333 156 $ 1.237.701 S 26.060.393 S 11 ,996 243 $ 70.034 570 S 71 705 219
The Accompanying Notes Are An Integral Part Of This Statement
472,684 - 472,684 472,684
26,060,393 26,060,393 25,705,053
1,158,375 1,158,375 666,404
7,964,314 7,964,314 7,386,401
4
CITY OF HOPKINS, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES - ALL GOVERNMENTAL FUND TYPES
REVENUES:
General property taxes
Special assessments
Licenses and permits
Intergovernmental
Fines and forfeitures
Use of money and property
Charges for services
Other
Total Revenues
Year Ended December 31, 1994
With Comparative Totals for Year Ended December 31, 1993
EXPENDITURES
Current:
General government
Public safety
Community development
Public works
Recreation
Other
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
OTHER FINANCING SOURCES (USES):
Proceeds of bond issued
Operating transfers in
Operating transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER FINANCING SOURCES OVER
EXPENDITURES AND OTHER FINANCING USES
FUND BALANCE (DEFICIT) AT BEGINNING OF YEAR
The Accompanying Notes Are An Integral Part Of This Statement
General
$ 3,266,413 $
263,735
1,827,758
93,070
230,836
55,774
589,171
6,326,757
1,139,899
2,481,400
596,227
1,573,756
112,477
92,474 .
5,996,233
(296,133)
3,202,282
FUND BALANCE (DEFICIT) AT END OF YEAR $ 2 906,149 $
Governmental
Special
Revenue
1,660,916
283,727
20,649
149,973
52,571
278,745
2,446,581
469,004
359,307
2,324,033
3,152,344
5,677
(626,657) (1,113,346)
(626,657) (1,107,669)
(1,813,432)
9,817,542
8,004,110
Fund Types
Debt
Service
Capital
Prot
347,138
64,554 807,965
231,296
15,699
326,960 1,402,098
$ 262,406 $
811,100
563,189
1,374,289
764,000
764,000
1,200,678
(230,352)
970,326
(283,329) (21,854)
1,302,870 (899,141)
$ 1,019,541 $ (920,995) $
Totals
(Memorandum Only)
1994 1993
5,189,735 $ 5,214,131
347,138 492,889
263,735 226,233
2,984,004 2,480,308
113,719 128,976
612,105 937,130
108,345 160,341
883,615 824,571
10,502,396 10,464,579
1,500 1,610,403 1,517,773
2,481,400 2,324,571
955,534 741,361
1,573,756 1,535,957
112,477 131,868
92,474 42,837
2,392,778 4,716,811 2,598,759
811,100 526,100
563,189 708,375
2,394,278 12,917,144 10,127,601
27,753
1,970,355 3,433,875
(1,970,355) (3,433,875)
27,753
(2,414,748) 364,731
13,423,553 13,058,822
11,008,805 $ 13,423,553
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS
December 31, 1994
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Hopkins Charter was approved December 2, 1947. The City operates under a Council
- Manager form of government.
The accounting policies of the City of Hopkins conform to generally accepted accounting
principles as applicable to governments. The following is a summary of the more significant
policies:
A. Financial Reporting Entity
The City has included in these financial statements all funds, account groups, agencies, boards,
commissions and authorities which meet the entity definition criteria of GASB Statement No.
14, the Reporting Entity, for control or dependency upon the City's Mayor or City Council.
Control or dependency was determined primarily on the basis of exercise of oversight
responsibility as manifested by financial inter- dependency. Factors considered in making this
determination included responsibility for financing deficits, entitlement to surpluses, guarantees
or moral responsibility for debt, scope of public service, special financing arrangements,
selection of governing authority, ability to significantly influence operations, and management
and fiscal accountability, including budget adoption and taxing authority.
As a result of applying the entity definition criteria, certain organizations have been included or
excluded from the City's financial statements, as follows:
Included:
Housing and Redevelopment Authority in and for the City of Hopkins (HRA).
The HRA was created by the City to carry out certain redevelopment projects and low income
rental housing. The governing board is the City Council. The housing activity is self - sustaining
for current operating expenses, however, HUD retains ownership of the housing units and
funds the debt issued for their purchase. The City provides development financing through tax
increment.
Excluded:
Hopkins Firemen's Relief Association.
This association is organized as a nonprofit organization by its members to provide pension and
other benefits to such members in accordance with Minnesota Statutes. Its board of directors is
appointed by the membership of the organization. All funding is conducted in accordance with
Minnesota Statutes, whereby state aids flow to the association, tax levies are determined by the
association and reviewed by the City, and the association pays benefits directly to its members.
(See Note 5 for disclosures relating to the pension plan operated by the association.)
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Hopkins Independent School District No. 270.
This district is a separate and independent governmental unit which has its own elected Board.
They have specific statutory taxing authority and are responsible for their own debt. The City
provides no operating subsidies to the school district.
B. Fund Accounting
The accounts of the City are organized on the basis of funds and account groups, each of which
is considered a separate accounting entity. The operations of each fund are accounted for with
a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity,
revenues and expenditures, or expenses, as appropriate. Government resources are allocated to
and accounted for in individual funds based upon the purposes for which they are to be spent
and the means by which spending activities are controlled. The various funds are grouped, in
the financial statements of this report, into six generic fund types and three broad fund
categories as follows:
GOVERNMENTAL FUNDS
General Fund - The General Fund is the general operating fund of the City. It is used to
account for all financial resources except those required to be accounted for in another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of
specific revenue sources that are legally restricted to expenditures for specified purposes.
Debt Service Funds - Debt Service Funds are used to account for the accumulation of
resources for, and the payment of, general long -term debt principal, interest, and related
costs.
Capital Projects Funds - Capital Projects Funds are used to account for financial resources to
be used for the acquisition or construction of major capital facilities, other than those
financed by Proprietary Funds or the Special Revenue Funds.
PROPRIETARY FUNDS
Enterprise Funds - Enterprise funds are used to account for operations that are financed and
operated in a manner similar to private business enterprises where the intent of the governing
body is that the costs (expenses, including depreciation) of providing goods or services to
the general public on a continuing basis be financed or recovered primarily through user
charges. Hopkins' enterprises include public utilities engaged in the provision of water,
sewer, refuse and storm sewer services, the pavilion/ice arena and subsidized rental units
under the housing authority.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
FIDUCIARY FUND
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
Agency Fund - The Agency Fund is used to account for assets held in an agency capacity on
behalf of City employees.
C. Fixed Assets and Long -Term Liabilities
The accounting and reporting treatment applied to the fixed assets and long -term liabilities
associated with a fund are determined by its measurement focus. All governmental funds are
accounted for on a spending or "financial flow" measurement focus. This means that only
current assets and current liabilities are generally included on their balance sheets. Their
reported fund balance (net current assets) is considered a measure of "available spendable
resources ". Governmental fund operating statements present increases (revenues and other
financing sources) and decreases (expenditures and other financing uses) in net current assets.
Accordingly, they are said to present a summary of sources and uses of "available spendable
resources" during a period.
Fixed assets used in governmental fund type operations (general fixed assets) are accounted for
in the General Fixed Assets Account Group, rather than in governmental funds. Public domain
( "infrastructure ") building., including roads, bridges, curbs and gutters, streets and sidewalks,
drainage systems, and lighting systems, are capitalized along with other general fixed assets.
No depreciation Iras been provided on general fixed assets.
All fixed assets are valued at historical cost or estimated historical cost if actual historical cost
is not available. Donated fixed assets are valued at estimated fair market value when received.
Long -term liabilities expected to be financed from governmental funds are accounted for in the
General Long -Term Debt Account Group, not in the governmental funds.
These two account groups are not "funds ". They are concerned only with the measurement of
financial position. They are not involved with measurement of results of operations.
All proprietary funds are accounted for on a cost of service or "capital maintenance"
measurement focus. This means that all assets and all liabilities (whether current or noncurrent)
associated with their activity are included on their balance sheets. Their reported fund equity
(net total assets) is segregated into contributed capital and retained earnings components.
Donated fixed assets are valued at their estimated fair market value on the date received.
Proprietary fund type operating statements present increases (revenues) and decreases
(expenses) in net total assets.
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense
against their operations. Accumulated depreciation is reported on proprietary fund balance
sheets. Depreciation has been provided over the estimated useful lives using the straight line
method. The estimated useful lives are as follows:
Buildings
Mains and Lines
Improvements
Equipment
25 - 50 years
50 - 100 years
10 - 20 years
3 - 20 years
D. Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the
accounts and reported in the financial statements. Basis of accounting relates to the timing of
the measurements made, regardless of the measurement focus applied.
All governmental funds and the agency fund are accounted for using the modified accrual basis
of accounting. Their revenues are recognized when they become measurable and available as
net current assets. Major revenues that are determined to be susceptible of accrual include
grants -in -aid earned, intergovernmental revenues, interest, and rent. Major revenues that are
determined to not be susceptible of accrual because they are either not available soon enough to
pay liabilities of the current period or are not objectively measurable include delinquent
property taxes, assessments, licenses, permits, fines, and forfeitures.
Expenditures are generally recognized under the modified accrual basis of accounting when the
related fund liability is incurred. An exception to this general rule is principal and interest on
general long -term debt which is recognized when due.
All proprietary funds are accounted for using the accrual basis of accounting. Their revenues
are recognized when they are eamed, and their expenses are recognized when they are incurred.
Unbilled utility service receivables are recorded at year end.
E. Budgets and Budgetary Accounting
The City follows these procedures in establishing the budgetary data reflected in the financial
statements and set forth in Section 7.04 of the City Charter.
1. The City Manager shall, at the first regular council meeting in September, submit to the
Council a budget and an explanatory budget message in a form and manner as prescribed by the
City Charter.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
2. The Council shall determine the plan and time of the public hearings on the budget.
3. The Council shall adopt the tax levy by resolution no later than a December date which is
annually established by law for the county auditor to levy taxes. The budget shall set forth the
total for each budgeted fund with such segregation as to objects and purposes of expenditures
as the Council deems necessary for purposes of budget control for the General and Special
Revenue Funds.
4. The City Manager is authorized to transfer budgeted amounts between departments within
any fund; however, any revisions that alter the total expenditures of any fund must be approved
by the City Council and are limited to the amount revenues exceed the budgets or authorize the
transfer of sums from unexpended balances to other purposes. Supplemental appropriations
were not required in 1994. Budgeted expenditure appropriations lapse at year end. The level
of legal control is at the fund level.
5. The budgets for the General and Special Revenue Funds are prepared on a modified accrual
basis of accounting, which is consistent with generally accepted accounting principles (GAAP).
O)
6. A capital improvement program is reviewed annually by the City Council for the Capital
Projects Funds, certain Special Revenue Funds and Utility Funds. However, appropriations for
major projects are not adopted until the actual bid award of the improvement. The
appropriations are not reflected in the financial statements.
F. Encumbrances
G. Inventory
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
Encumbrances outstanding at year end expire, except in the Municipal State Aid- Construction
Fund, and are not reported in the financial statements as current year expenditures.
Inventory is valued at cost (FIFO basis) based on physical counts for the General, Water and
Sewer Funds. The cost of inventory is recorded as an expenditure at the time of consumption.
H. Compensated Absences
The City compensates all employees upon termination for unused vacation up to 150% of the
annual earning rate. Vacation pay is expensed as earned.
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
City employees are entitled to sick leave at the rate of 8 hours for each calendar month of
full -time service. Sick pay is expensed as paid.
Employees shall be entitled to severance pay, after completion of five or ten years continuous
City employment, calculated by multiplying the total number of continuous years in the City
employ and/or accumulated sick leave by the daily wage rate prevailing at date of severance, at
one day per year of such employment, to a maximum of 20 days. Such severance money shall
be paid in case of separation caused by death, eligible retirements, medically attested disability
preventing an employee from performing the major duties of the position or separation for
non - disciplinary reasons. Severance pay is expensed as earned.
An employee who has been with the City for at least ten years and is (1) age 60 years or older,
or (2) eligible for full PERA retirement benefits, may retire and receive full single health and
life insurance coverage until age 65. •
I. Statement of Cash Flows
For purposes of the statement of cash flows, the City's enterprise funds consider all highly liquid
investments with a maturity of three months or less when purchased to be cash equivalents.
J. Total Columns on Combined Statements
Total columns on the combined statements are captioned "Memorandum Only" to indicate that
they are presented only to facilitate financial analysis. Data in these columns do not present
financial position, results of operations, or cash flows on a consolidated basis. Interfund
eliminations have not been made in the aggregations of this data.
K. Property Taxes
Property tax levies are set by the City Council in October each year, and are certified to the
County for collection in the following year. In Mtnnesota, counties act as collection agents for
all property taxes. Such taxes become a lien on January 1 and are recorded as receivables by
the City at that date. The County spreads all levies over assessable property.
Real property taxes are payable by taxpayers in two equal installments, on May 15 and October
15. Personal property taxes are also payable by taxpayers in two equal installments, on
February 28 and June 30. The County provides tax settlements to cities and other local
governments three times a year, on or before January 25, July 6 and November 30.
•
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Property tax revenue is recorded as amounts are collected, including amounts collected by the
County before December 31, remitted to the City within 60 days of year end. Taxes which
remain unpaid at the County on December 31 are classified as delinquent taxes receivable, and
are fully offset by deferred revenue because they are not available to finance current
expenditures. No allowance for uncollectible taxes has been provided because such amounts
are not expected to be material.
NOTE 2 - CASH AND INVESTMENTS
Cash balances from all funds are pooled together in official depositories and invested to the
maximum extent possible. All investment transactions are accounted for in the Pooled Investment
Account through a cash overdraft account. On December 31 of each year the investments and
accrued interest receivable balances are allocated from the Pooled Investment Account to all funds
based upon their relative average monthly cash balances. On January 1 of each year this allocation
is reversed to recreate an investment pool for maximization of interest earnings. Periodically
during the year certain funds have a temporary cash deficit. These funds with cash deficits are
charged interest (at the same rate as funds with a positive balance earn interest) when investment
interest earnings are allocated.
Deposits
In accordance with Minnesota Statutes, the City maintains deposits at financial institutions
designated as official depositories by the City Council, all of which are members of the Federal
Reserve System. Minnesota Statutes require that all City deposits be protected by insurance,
surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits
not covered by insurance or bonds (140% in the case of mortgage notes pledged).
Authorized collateral includes the legal investments described below, as well as certain first
mortgage notes, and certain other state or local government obligations. Minnesota Statutes
require that securities pledged as collateral be held in safekeeping by the City treasurer or in a
financial institution other than that furnishing the collateral.
•
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 2 - CASH AND INVESTMENTS - CONTINUED
Deposits at December 31, 1994, were as follows:
Checking account at:
Norwest Bank Minnesota
Imprest cash and change funds
Totals
Carrying Bank
Amount Balance
$ 966,774 $ 1,395,919
950
$ 967,724 $ 1,395,919
All bank balances were covered by federal depository insurance or by collateral held by the City's
agent in the City's name except for imprest funds which are held at the City.
Investments
The City is authorized by Minnesota Statutes to invest in the following:
(a) Direct obligations or obligations guaranteed by the United States or its agencies;
(b) Shares of investment companies registered under the Federal Investment Company Act of
1940 and whose only investments are in securities described in (a) above;
(c) General obligations in the State of Minnesota or any of its municipalities;
(d) Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve
System;
(e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of
the highest quality, and maturity in 270 days or less; and
(f) Repurchase or reverse repurchase agreements with banks that are members of the Federal
Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S.
Government securities to the Federal Reserve Bank of New York, or certain Minnesota
securities broker - dealers.
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 2 - CASH AND INVESTMENTS - CONTINUED
The City's investments are categorized below to give an indication of the level of risk assumed at
year end. Category 1 includes investments that are insured or registered or for which the securities
are held by the City or its agent in the City's name. Category 2 includes uninsured and
unregistered investments for which the securities are held by the counterparty's trust department or
agent in the City's name.
Investment balances at December 31, 1994, were as follows:
Securities Type
U.S. Government
Agency Securities
Commercial Paper
Internal Notes and Bonds
Deferred Compensation
Credit Risk Category Carrying Market
1 2 Amount Value
$ 5,013,715 $ - $ 5,013,715 $ 4,764,145
5,239,530 5,239,530 5,237,619
287,700 287,700
1,237,701 1,237,701
Total Investments $ 5,013,715 $ 5,239,530 $ 11,778,646 $ 11,527,165
The City's investments also include $287,700 of notes and bonds issued by the City and its related
tax increment district activity. These investments are backed by the full faith, credit and taxing
power of the City.
NOTE 3 - FIXED ASSETS
Changes in the General Fixed Assets Account Group during 1994 were as follows:
Land
Buildings
Other Improvements
Vehicles
Machinery and Equipment
Construction in Progress
Balance Balance
Jan 1. 1994 AcicUons Deletions Dec 31.1994
$ 2,554,186
4,783,340
10,786,038
1,777,092
2,565,646
3,238,751
$ 1,411,799 $
4,887
3,426,291
314,902
75,647
3,453,767
17,414
3,831
1,403,174
S 3,965,985
4,788,227
10,758,562
2,074,580
2,637,462
1,835,577
Total $ 25,705,053 $ 5,233,526 $ 4,878,186 $ 26,060,393
The construction in progress amount consists of several projects for street reconstruction.
•
Land
Buildings
Other Improvements
Machinery and Equipment
Construction in Progress
General Obligation Bonds
Special Assessment Bonds
Revenue Bonds
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 3 - FIXED ASSETS - CONTINUED
Changes in Enterprise Funds fixed assets during 1994 were as follows:
Total $ 13.987.499
Less: Accumulated depreciation
General Obligation Bonds
Special Assessment Bonds
Total General Long -Term Debt
Account Group
Enterprise Fund Debt
Total
Balance
Jan 1. 1994 Additions
$ 21,597
11,397
12,815,579
786,626
352,300
Net Fixed Assets
NOTE 4 - LONG -TERM DEBT
Changes in long -tcrm debt during 1994 were as follows:
Balance
Ian 1.1994
Balance
Deletions Dec 31. 1994
$ - $ $ 21,597
33,089 44,486
1,832,277 488,598 14,159,258
137,700 79,517 844,809
295,731 286,043 361,988
$ 2.298.797 $ 854,158 $ 15,432,138
5,012,504
$ 10,422,343
2,385,000
12,807,343
$ 10,419,634
Balance
Deductions Dec 31. 1994
$ 631,100 $ 9,791,243
180,000 2,205,000
811,100 11,996,243
2,815,000 110,000 2,705,000
$ 15,622,343 $ 921,100 $ 14,701,243
The long -term debt obligations outstanding at year -end are summarized as follows:
i Bonds Maturities Interest Rate Dec 31. 1994
1995 -2011 2.80 -8.10% $ 9,791,243
1995 -2008 3.70 -6.70 2,205,000
1995 -2010 4.40 -6.15 2,705,000
NOTE 4 - LONG -TERM DEBT - CONTINUED
Year Ending
December 31
Less: Interest
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
Annual Requirements to Amortize Long -Term Debt Bonds
December 31, 1994
Special
General Revenue Assessment Total
1995 $ 1,072,540 $ 234,825 $ 287,715 $ 1,595,080
1996 1,054,366 238,237 279,662 1,572,265
1997 1,035,802 236,165 271,292 1,543,259
1998 1,017,186 239,570 262,592 1,519,348
1999 992,796 238,450 253,631 1,484,877
2000 977,380 241,925 244,406 1,463,711
2001 985,988 244,870 234,901 1,465,759
2002 917,693 237,510 181,710 1,336,913
y 2003 906,480 235,035 174,893 1,316,408
C Thereafter 5,274,365 1,684,950 767,474 7,726,789
4,443 353 1,126,537 753276 6,323,166
$ 9,791,243 $ 2,705,000 $ 2,205,000 $ 14,701,243
There is $1,019,541 available in the Debt Service Funds to service the general obligation and tax
increment bonds. There are a number of limitations and restrictions contained in the various bond
indentures. The City is in compliance with all significant limitations and restrictions.
General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are
serviced entirely by the General and Tax Increment levies.
Revenue Bonds are backed by the full faith, credit and taxing power of the City, and are serviced
entirely by the Storm Sewer Utility Fund from current revenues.
City Special Assessment Bonds are backed by the full faith, credit and taxing power of the City,
and repayment monies are generated by the collection of Special Assessments.
The City is subject to a statutory limit of bonded indebtedness equaling 2.0 percent of market
value. At December 31, 1994, the debt Limit for the City was $11,948,714 but only $1,580,459 of
general obligation and revenue bonds were applicable to the limit. The legal debt margin was
$10,368,255.
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 4 - LONG -TERM DEBT - CONTINUED
The City of Hopkins is the administering authority for the following tax increment finance districts:
Tax Increment 1.1
(Redevelopment District)
Current Net Tax Capacity
Original Net Tax Capacity
Captured Net Tax Capacity
Retained by Authority
Outstanding Bonds at 12/31/93
Total Redevelopment Bonds issued
Amounts redeemed
Outstanding bonds at 12/31/94
Tax Increment 2.1 -2.6
(Redevelopment District)
Current Net Tax Capacity
Original Net Tax Capacity
Captured Net Tax Capacity
Retained by Authority
Outstanding Bonds at 12/31/93
Total Redevelopment Bonds issued
Amounts redeemed
Outstanding bonds at 12/31/94
$ 1,255,964
$ 392,461
$ 863,503
$ 7,328,543
$ 425,000
$ 6,903,543
$ 406,975
$ 397,720
$ 9,255
$ 328,800
$
$ 41,100
$ 287,700
NOTE 5 - PENSION PLANS
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
A. Defined Benefit Pension Plans - Statewide
1. Plan Description
All full -time and certain part-time employees of the City of Hopkins are covered by defined
benefit pension plans administered by the Public Employees Retirement Association of
Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the
Public Employees Police and Fire Fund (PEPFF) which are cost- sharing multiple- employer
retirement plans. PERF members belong to either the Coordinated Plan or the Basic Plan.
Coordinated members are covered by Social Security and Basic members are not. All new
members must participate in the Coordinated Plan. All police officers, fire fighters and peace
officers who qualify for membership by statute are covered by the PEPFF. The payroll for
employees covered by PERF and PEPFF for the year ended December 31, 1994, was
$2,594,335 and $1,160,731, respectively; the City's total payroll was $4,152,584.
PERA provides retirement benefits as well as disability benefits to members,and benefits to
survivors upon death of eligible members. Benefits are established by State Statute, and vest
after three years of credited service. The defined retirement benefits are based on member's
average salary for any five successive years of allowable service, age, and years of credit at
termination of service. Two methods are used to compute benefits for Coordinated and Basic
members. The retiring member receives the higher of step -rate benefit accrual formula (Method
1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic
member is 2 percent of average salary for each of the first 10 years of service and 2.5 percent
for each remaining year. For a Coordinated member, the annuity accrual rate is 1 percent of
average salary for each of the first 10 years and 1.5 percent for each remaining year. Using
Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic members and 1.5
percent for Coordinated members. For PEPFF members, the annuity accrual rate is 2.5 percent
for each of the first 25 years and 2 percent for each remaining year. For PERF members whose
annuity is calculated using Method 1, and for all PEPFF members, a full annuity is available
when age plus years of service equal 90. During 1994 no employee qualified for the Basic Plan.
There are different types of annuities available to members upon retirement. A normal annuity
is a lifetime annuity that ceases upon the death of the retiree. No survivor annuity is payable.
There are also various types of joint and survivor annuity options available which will reduce
the monthly normal annuity amount, because the annuity is payable over joint lives. Members
may also leave their contributions in the fund upon termination of public service, in order to
qualify for a deferred annuity at retirement age. Refunds of contributions are available at any
time to members who leave public service, but before retirement benefits begin.
•
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 5 - PENSION PLANS - CONTINUED
2. Contributions Required and Made
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. The
City makes annual contributions to the pension plans equal to the amount required by statutes.
According to Minnesota Statutes Chapter 356.215, Subd. 4(g) the date of full funding required
for the PERF and PEPFF is the year 2020. As part of the annual actuarial valuation, PERA's
actuary determines the sufficiency of the statutory contribution rates towards meeting the
required full funding deadline. The actuary compares the actual contribution rate to a
"required" contribution rate. Current combined statutory contribution rates and actuarially
required contribution rates for the plans are as follows:
Statutory Rates: Required
Employees Employer Rates
PERF:
Basic Fund and
Coordinated Fund
PEPFF
Total contributions made by the City during fiscal year 1994 were:
PERF:
Coordinated Plan
PEPFF
Totals
Amounts
Employees Employer
S 109,740
38,390
5 193,130
4.30% 4.60% 9.58%
7.90% 11.70% 17.45%
5 116,128
132,586
S 248.714
Percentage of
Covered Payroll
Employees Employer
4.23% 4.48%
7.60 11.40
The City's contribution for the year ended June 30, 1994 to the PERF represented 0.10 percent
of total contributions required of all participating entities. For the PEPFF, contributions for the
year ended June 30, 1994, represented 0.41 percent of total contributions required of all
participating entities.
3. Funding Status and Progress
Pension Benefit Obligation
The "pension benefit obligation" is a standardized disclosure measure of the present value of
pension benefits, adjusted for the effects of projected salary increases and step -rate benefits,
estimated to be payable in the future as a result of employee service to date. The measure,
which is the actuarial present value of credited projected benefits, is intended to help users
assess the PERA's funding status on a going- concern basis, assess progress made in
Total pension
benefit obligation
Net assets available
for benefits, at cost
(Market values for
PERF = $4,515;
PEPFF = $1,173)
Unfunded (assets in
excess of ( pension
benefit obligation)
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 5 - PENSION PLANS - CONTINUED
accumulating sufficient assets to pay benefits when due, and make comparisons among Public
Employees Retirement Systems and among employers. PERA does not make separate
measurements of assets and pension benefit obligation for individual employers.
The pension benefit obligations of the PERA as of June 30, 1994, were as follows:
PERF PEPFF
(in millions)
S 5,626 $ 1,021
4,734 1,230
$ 892 S (209)
The measurement of the pension benefit obligation is based on an actuarial valuation as of June
30, 1994. Net assets available to pay pension benefits were valued as of June 30, 1994.
4. Changes in Actuarial Methods and Benefit Provisions
Prior to the fiscal year 1994, the salary increase assumption and the mortality tables used in the
calculation of pension benefit obligation for the PERF were the same as those specified for the
PEPFF. For the July 1, 1994 actuarial valuation, PERA's board of trustees approved new
mortality rates updated to the 1983 Group Annuity Mortality Table, salary increases which
were changed to a select and ultimate table and a new payroll growth assumption which was
changed from 6.5 percent to 6 percent. These changes were made to reflect actual experience
of the plan.
With the adoption of the actuarial assumption changes and the new mortality tables for the
PERF, the pension benefit obligation increased $56,596,000. The actuarial assumption changes
also necessitated a $81,201,000 transfer from the PERF Benefit Reserve to the PERF
Minnesota Post Retirement Investment Fund (MPRIF) Reserve to finance the increased
obligation for future retirement benefits. The change in the mortality rate assumption increased
the PERAs costs because pensioners are living longer than assumed previously. The change in
the salary increase assumption, however, offset some of the additional costs because lower
salary increases generally translate into lower benefit liabilities in the future.
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 5 - PENSION PLANS - CONTINUED
Potential changes in the assumptions used for the PEPFF may be made in the future after
completion of a special experience study for that fund. Completion of the PEPFF experience
study is expected by February 1, 1995.
The 1994 legislative session did not include any benefit improvements which would impact
funding costs for the PERF and the PEPFF.
5. Ten -Year Historical Trend Information
Ten -year historical trend information is presented in PERA's Comprehensive Annual Financial
Report for the year ended June 30, 1994. This information is useful in assessing the pension
plan's accumulation of sufficient assets to pay pension benefits as they become due.
B. Social Security
Approximately 75 percent of the City employees are covered by the Federal Insurance
Contribution Act (Social Security). The contribution rate for 1994 was 6 2% and was based on
the first $60,600 paid. In 1994, the City also contributed 1.45% of regular and temporary
employees' wages for mandatory Medicare. The cost of Social Security and mandatory
Medicare in 1994 and 1993 was 5226,066 and 5218,595, respectively.
C. Hopkins Fire Department Relief Association
The City contributes to the Hopkins Fire Department Relief Association, a single employer
public employee retirement system (PERS) that acts as a common investment and administrator
for the City's firefighters. The association operates under the provisions of Minnesota Statute
Chapter 424 and Chapter 1088 as amended. The contribution consists of funding provided by
state aid and by a local tax levy if required.
A separate audit report is issued by the association as it does not meet entity requirements to
allow inclusion as a City of Hopkins fund. Firefighters are volunteers to the association and are
not employees of the City. There is no covered payroll for the firefighters.
Volunteer firefighters of the City are members of the association. Any regular member who has
reached the age of 18 shall be eligible to apply for membership in the association. The plan
provides for sick and disability benefits, death benefits and pensions with a set value for the
annual withdrawal amount. Full vesting in the plan requires a member to have served for at
least 5 years, to have reached the age of 50 years and to have been a member of the association
for at least 5 years. These benefit provisions and all other requirements are consistent with
enabling statutes.
Benefits for retirees are paid out in lump sums for regular retirees. Sick, disability and death
benefits are determined for each case.
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 5 - PENSION PLANS - CONTINUED
If an employee terminates employment with the association and is not eligible for any other
benefits under the PERS, the employee is entitled to no other benefits.
1. Funding Status and Progress
The amount shown below as the "pension benefit obligation" is a standardized disclosure
measure of the present value of pension benefits, adjusted for the effects of projected salary
increases (if any) and step -rate benefits, estimated to be payable in the future as a result of
service to date. The measure is intended to help users assess the funding status of the
Association on a going - concern basis, assess progress made in accumulating sufficient assets to
pay benefits when due, and make comparisons among employers. The measure is the actuarial
present value of credited projected benefits and is independent of the funding method used to
determine contributions to the Association.
A variety of significant actuarial assumptions are used to determine the standardized measure of
the pension benefit obligation and these assumptions are sumrnaried below:
o The present value of future pcnsion payments was computed by using a discount rate of
five percent. The discount rate is equal to the estimated Tong -term rate of return on
current and future investments of the pension plan.
o Future pension payments reflect no post - retirement benefit increases, which is consistent
with the terms of the pension agreement.
The standardized measure* of the unfunded pension benefit obligation as of December 31, 1994
is as follows:
Pension benefit obligation:
Retirees and beneficiaries currently
receiving benefits and terminated
members not yet receiving benefits
Current members:
Vested benefits
Nonvested benefits
Total pension benefit obligation
Net assets available for benefits
Under funded pension benefit obligation
'Assumes future rate of return on plan assets of 5 %.
$ 123,466
1,448,326
11,160
1,459,486
1,225,658
$ 233,828
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 5 - PENSION PLANS - CONTINUED
2. Contributions Required and Contributions Made
Financial requirements of the Association are determined on an actuarial basis using the entry
age normal actuarial cost method. Normal cost is funded on a current basis. The unfunded
actuarial accrued liability is to be funded by December 31, 2010. The City's minimum
obligation is the financial requirement for the year less anticipated member contributions and
state aids. Any additional payments by the City shall be used to amortize the unfunded liability
of the Association. The funding strategy for normal cost and the unfunded actuarial accrued
liability should provide sufficient resources to pay Association benefits on a timely basis.
Total contributions from the State of Minnesota to the Association in 1994 amounted to
539,050. The contributed amounts were actuarially determined as described above and were
based on an actuarial valuation as of December 31, 1994. The contributions represent funding
for the normal cost of $121,679 in 1994.
Significant actuarial assumptions used to compute pension contribution requirements are
substantially the same as those used to determine the standardized measure of the pension
obligation.
The computation of the pension contribution requirements for 1993 was based on the same
actuarial assumptions, benefit provision, actuarial funding method and other significant factors
used to determine pension contribution requirements in previous years.
3. Related -Party Investments
During 1994 and as of December 31, 1994, the MFRA held no securities issued by the City or
other related parties.
4. Trend Information
Trend information gives an indication of the progress made in accumulating sufficient assets to
pay benefits when due. Ten -year trend information may be found in the HFRA annual financial
report for the year ended December 31, 1994. Three -year trend information for the Association
is as follows:
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 5 - PENSION PLANS - CONTINUED
Available assets as a percentage of
pension benefit obligation
Unfunded pension benefit obligation
as a percentage of covered payroll
City's contribution** as a percentage
of covered payroll
1994 1993
1992
84% 94% 96%
Not* Not* Not*
Applicable Applicable Applicable
Not* Not* Not*
Applicable Applicable Applicable
The Hopkins Fire Department is a volunteer organization; thus, no covered payroll exists.
•'The City's contribution was made in accordance with actuarially determined requirements.
D. Deferred Compensation
The City offers its employees two deferred compensation plans created in accordance with
Internal Revenue Code Section 457. These plans, available to all City employees, permit them
to defer a portion of their current salary until future years. The deferred compensation is not
available to the employees until termination, retirement, death or unforseeable emergency.
All amounts of compensation deferred under the plans, all property and rights purchased with
such amounts, and all income attributable to such amounts, property or rights are (until made
available to the employee or other beneficiary) solely the property and rights of the City
(without being restricted to the provisions of benefits under the plans) subject only to the claims
of the City's general creditors.
Participants' rights created under the plans are equivalent to those of general creditors of the
City and only in an amount equal to the fair market value of the deferred account maintained
with respect to each participant.
In the past, the plan's assets, which are reported at fair market value, have been used only to
pay benefits. In addition, the City believes that it is unlikely that it will use the assets to satisfy
the claims of general creditors in the future. Assets of the plans are administered by third
parties and total $1,237,701 at December 31, 1994.
The City makes a monthly flat rate payment into a deferred compensation plan for each sworn
police officer. The cost to the City in 1994 for this plan was $6,900.
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 6 - DESIGNATIONS AND RESERVES OF FUND EQUITY
Fund equity in the various funds has been reserved for the following purposes:
General Fund:
Reserved for inventories $ 88,644
Special Revenue Funds:
Economic Development Fund:
Reserved for loans receivable $ 545,161
Hennepin County CDBG Fund:
Reserved for loans receivable $ 55,155
Housing Rehab Fund:
Reserved for loans receivable $ 464,032 $ 1,064,348
Debt Service Funds:
Reserved for debt service $ 1,019,541
Storm Sewer Utility Fund:
Reserved for debt service S 1,158,375
NOTE 7 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City maintains six Enterprise funds which account for water, sewer, refuse, storm sewer utility
operations, pavilion/ice arena operations, and low income housing rentals. Segment information
for the year ended December 31, 1994 is as follows:
Operating Revenues $
Depreciation Expense
Operating Income (Loss)
Net Income (Loss)
Property and Equipment:
Additions
Deletions
Net Working Capital
Total Assets
Bonds Payable
Total Equity
Water Sewer Refuse
Utility Utility Utility
Fund Fund Fund
820,913 S 1,558,204 S
120,225 89,310
137,187 242,540
164,747 335,009
659,202 S
31,447
82,309
90,696
Storm
Sewer
Utility
Fund
517,325 S
102,414
347,904
491,971
Pavilion/ Total
Ice Arena Housing Enterprise
Fund Authority Funds
191,600 S 178,713 S 3,925,957
4,112 347,508
2,421 (16,441) 795,920
2,421 (14,960) 1,069,884
847,691 461,483 416,066 573,557 2,298,797
561,826 212,815 79,517 854,158
713,055 377,176 565,729 (718,267) (10,791) 92,818 1,519,720
3,937,580 3.646,964 1,008,373 4,558,375 72,603 109,261 13,333,156
2,705,000 2,705,000
3,884,530 3.443,517 990,146 1,158,375 25,987 92,813 9,595,373
NOTE 8 - CONTRIBUTED CAPITAL
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
During the year there were no changes to contributed capital.
NOTE 9 - FUND DEFICIENCIES
For the year ended December 31, 1994, actual expenditures exceeded the budgeted amount in the
following funds:
•
Fund Budgeted Actual Variance
Equipment Replacement S 173,600 S 338,471 S 164,871
Economic Development 209,400 533,166 323,766
Hennepin County CDBG 120,000 126,172 6,172
Tax Increment 1.1 705,000 954,821 249,821
Tax Increment 2.1 14,500 38,074 23,574
Tax Increment 2.6 300 1,419 1,119
Housing Rehab 90,100 105,622 15,522
Expenditures and other financing uses exceeded revenues and other financing sources in certain
individual funds for the year ended December 31, 1994 as follows:
General Fund
Special Revenue:
Economic Development
Hennepin County CDBG
Tax Increment 1.1
Tax Increment 2.6
Housing Rehab
Parking
Debt Service:
Improvement Revolving Bonds of 1992
Taxable Redevelopment Refunding Bonds of 1992
Redevelopment Bonds of 1988
Redevelopment Refunding C Bonds of 1993
Redevelopment Refunding A Bonds of 1993
Park/Recreation Facilities Bonds of 1990
Park/Recreation Refunding D Bonds of 1993
Capital Projects:
Municipal State Aid
$ 296,133
326,493
5,362
1,615,216
245
36,291
25,485
67,039
20,675
47,977
52,324
29,865
23,856
43,549
115,352
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 10 - FUND BALANCE DEFICITS
At December 31, 1994, the following funds had deficit fund balances. These deficits will be
corrected through future tax levies or special assessments:
Tax Increment 2.6 Fund $ 577,501
Permanent Improvement Revolving Fund 1,381,817
NOTE 11 - INTERFUND RECEIVABLES AND PAYABLES
The following funds had amounts receivable from other funds, and the respective funds had equal
amounts payable to other funds at December 31, 1994:
General Fund:
-Due from Paratransit Fund
-Due from Park Improvements Fund
-Due from Pavilion/Ice Arena Fund
Tax Increment 1.1 Fund:
-Due from Permanent Improvement Revolving Fund
-Due from Tax Increment 2.6 Fund
Tax Increment 2.1 Fund:
-Due from Tax Increment 2.6 Fund
Parking Fund:
-Due from Permanent Improvement Revolving Fund
Sewer Utility Fund:
-Due from Storm Sewer Utility Fund
NOTE 12 - FUND CHANGES
There were no fund changes in 1994.
S 5,000
$ 1,000
S 34,400
$ 1,325,000
$ 566,500
S 11,100
$ 235,199
$ 695,000
$ 2,873,199
1
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1994
NOTE 13 - REHABILITATION LOANS RECEIVABLE
NOTE 14 - METROPOLITAN WASTE CONTROL COMMISSION
NOTE 15 - CLAIMS AND LITIGATION
•
The City makes rehabilitation loans to residential and commercial entities within the City.
Residential loans are made for 20 year periods at 3% interest. A mortgage against the property
improved is required and City staff is responsible to follow -up any delinquent accounts. Loan
repayments are made to Remvest Escrow Corp., a loan service bureau, which charges a fee of
$5.95 per month per loan. Principal and interest are forwarded to the City monthly with loan
collection and loan status reports. Rehabilitation loan activity is a function of the Economic
Development, the Hennepin County CDBG and the Housing Rehab Funds. Loans become due in
full upon sale of property. Rehabilitation loans receivable amounted to $893,648 at December 31,
1994.
A. Interceptor Acquisition Contract
As of January I, 1971, the Metropolitan Waste Control Conunibsion (MWCC) assumed
Y ownership of all existing interceptors and treatment works. Under the Terms of the agreement
with the MWCC, the City is to be reimbursed for the value at the time of transfer of such
(it facilities.
The current value receivable represents the value cf the facilities acquired by the MWCC, and
was determined to be $493,732 at the date of takeover by the MWCC. This amount is being
amortized through credits received against annual sewer service billings from the MWCC over
a thirty -year period with interest at 4 %.
Prior to 1994 the City received credits against MWCC billings totaling $631,442 of which
$328,933 was treated as a reduction of principal. During 1994 the City received a credit of
$27,454, of which $20,862 was a reduction of principal. As of December 31, 1994, a balance
of $143,937 remained to be collected over the next six years.
B. Reserve Capacity
The City was required to advance funds to the MWCC for deferments of reserve capacity costs
granted to other communities. The balance of this receivable from the MWCC at December 31,
1994, was $1,019 and is collectible over the next year. During 1994, the City received $1,522
related to this receivable, of which $46 represented a reduction of principal.
The City had the usual and customary types of miscellaneous claims pending at year -end, which
are of a minor nature and usually all covered by insurance carried for that purpose. The City
carries a 5600,000 Public Official Liability Insurance policy with public entity and employee
endorsement.
ASSETS AND OTHER DEBITS
Assets:
Cash (Note 2)
Investments, at cost (Note 2)
Receivables:
Taxes-current/delinquent
Accounts and other
Rehabilitation loans (Note 13)
Special assessments
Accrued interest on investments
Due from other funds (Note 11)
Due from other governmental units
Inventory, at cost
Prepaid expenses
Deferred receivables (Note 14)
Fixed assets (Note 3)
Other assets
Amount available in Debt Sm:ce Ft::tds
Amount to be provided for retirement
of general long -team debt
TOTAL ASSETS AND OTHER DEBITS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
LIABILITIES. EOUTTY AND OTHER CREDITS
Liabilities:
Accounts payable
Compensated absences payable
Due to other funds (Note 11)
Due to other governmental units
Deferred revenue:
Property taxes - delinquent
Special assessments
Fees
Deposits
Bonds payable (Note 4)
Deferred credit (Note 14)
Deferred compensation funds
held for participants (Note 5)
Total Liabilities
CITY OF HOPKINS, MINNESOTA
December 31, 1993
With Comparative Totals for December 31, 1992
General
TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $ 3.993.562
The Accompanying Notes Are An Integral Part Of This Statement
Governmental Fund Types
Special
Revenue
S 525,544 S 283,405 S
2,737,330 7,065,800
203,116 23,500
138,555 239,055
1,061,897
61,500
30,800 1,701,932
209,490 119,654
87,227
$ 62,078 $ 18,505 5
427,087 6,495
622,900
203,116 23,500
75,234 6,301
23,765
Debt
Service
365,870 $ 468 $ 182,818 $
937,000 8,000 1,673,000
25,955
25,955
387,143
2,881,095
497,500
159,821
Capital
Protects Enterprise Agency
$ 372,241 S
1,579,832
2,881,095
Proprietary Fiduciary
Fund Type Fund Type
509,605
601,000
83,443
11,877
5,891
167,295
8,758,668
250,000 1,197,569
11,504,473
$ 3.993 562 10.495.243 5 1.328,825 $ 3,934,027 $. 12.243 597 $ 1.197.569 $ 25.705,053 $ 12.807,343
63,270 $
46,539
628,500
2,815,000
164,799
1,197,569
5
$
472,684 -
25,705,053
Account Groups
General General
Fixed Long -Term
Assets Debt
25,705,053
1,302,870
12,807,343
791,280 677,701 25,955 4,833,168 3,718,108 1,197,569 12,807,343
Equity and Other Credits:
Contributed capital (Note 8)
Investment in general fixed assets
Retained earnings:
Reserved for debt service (Note 6) 666,404
Unreserved 7,386,401
Fund balances (deficit):
Reserved (Note 6) 87,227 1,232,597 1,302,870
Unreserved/undesignated 3,115,055 8,584,945 (899,141)
Total Equity and (Other Credits 3,202,282 9,817,542 1,302,870 (899,141) 8,525,489 25,705,053
Totals
(Memorandum Only)
1993 1992
S 1,358,105 $ 402,154
12,421,130 13,221,540
252,571
1,274,358
1,061,897
2,881,095
61,500
2,831,232
572,408
99,104
5,891
167,295
34,463,721
1,447,569
1,302,870
11,504,473 11,434,748
$ 71 705 219 $ 70.932.463
$ 516,094 S
480,121
2,831,232
252,571
2,881,095
81,535
23,765
15,622,343
164,799
1,197,569
24,051,124
472,684
25,705,053 29,207,895
666,404
2,622,694
10,800,859
47,654,095
444,164
1,102,573
1,179,977
2,385,751
58,555
715,765
469,656
105,542
2,775
188,440
37,036,460
1,005,668
1,178,695
476,181
439,662
715,765
25,362
444,164
2,385,751
79,371
11,978
15,258,443
184,859
1,005,668
21.027,204
•
472,684
446,422
7,386,401 6,719,436
2,689,431
10,369,391
49,905,259
$ 10,495.243 $ 1.328.825 $ 3.934,027 $ 12.243.597 $ 1.197.569 $ 25.705.053 $ 12 807 343 $ 71.705.219 5 70.932.463
REVENUES:
General property taxes
Special assessments
Licenses and permits
Intergovernmental
Fines and forfeitures
Use of money and property
Charges for services
Other
Total Revenues
CITY OF HOPKINS, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES - ALL GOVERNMENTAL FUND TYPES
Year Ended December 31, 1993
With Comparative Totals for Year Ended December 31, 1992
EXPENDITURES
Current:
General govemment
Public safety
Community development
Public works
Recreation
Other
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Issuance costs
Total Expenditures
OTHER FINANCING SOURCES (USES):
Proceeds of bond issued
Operating transfers in
Operating transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER FINANCING SOURCES OVER
EXPENDITURES AND OTHER FINANCING USES
FUND BALANCE AT BEGINNING OF YEAR
FUND BALANCE (DEFICIT) AT END OF YEAR
The Accompanying Notes Are An Integral Part Of This Statement
Governmental
Special
General Revenue
$ 3,169,174 $ 1,691,098 $
226,233
1,755,695
100,505
459,508
113,896
414,217
6,239,228
1,093,465
2,324,571
583,646
1,535,957
131,868
42,837
5,712,344
1,500,000
(857,136)
642,864
1,169,748
2,032,534
$ 3,202,282 $
218,160
28,471
312,214
46,445
405,348
2,701,736
422,508
157,715
1,118,410
1,698,633
2,385
(872,618)
(870,233)
132,870
9,684,672
9,817,542
Fund Types
Debt
Service
353,859 $
85,820
439,679
526,100
708,375
1,234,475
Capital
Projects
27,753 -
972,618 958,872
(81,400) (1,622,721)
918,971 (663,849)
124,175 (1,062,062)
1,178,695 162,921
$ 1,302,870 $ (899,141) $
$ 5,214,131
492,889 492,889
226,233
420,633 2,480,308
128,976
165,408 937,130
160,341
5,006 824,571
1,083,936 10,464,579
Totals
(Memorandum Only)
1993 1992
•
$ 5,038,456
345,435
225,968
2,756,170
153,790
864,795
136,879
567,640
10,089,133
1,800 1,517,773 1,439,320
2,324,571 2,220,963
741,361 629,322
1,535,957 1,454,205
131,868 98,699
42,837 25,961
1,480,349 2,598,759 3,954,051
526,100 1,301,100
708,375 772,393
22,982
1,482,149 10,127,601 11,918,996
27,753 1,980,993
3,433,875 795,089
(3,433,875) (795,089)
27,753 1,980,993
364,731 151,130
13,058,822 12,907,692
13,423,553 $ 13,058,822
CITY OF HOPKINS, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES - ALL GOVERNMENTAL FUND TYPES
REVENUES:
General property taxes
Special assessments
Licenses and permits
Intergovernmental
Fines and forfeitures
Use of money and property
Charges for services
Other
Total Revenues
Year Ended December 31, 1992
With Comparative Totals for Year Ended December 31, 1991
EXPENDITURES
Current:
General government
Public safety
Community development
Public works
Recreation
Other
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Issuance costs
Total Expenditures
OTHER FINANCING SOURCES (USES):
Proceeds of bond issued
Operating transfers in
Operating transfers out
Total Other Financing Sources (Uses)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER FINANCING SOURCES OVER
EXPENDITURES AND OTHER FINANCING USES
FUND BALANCE AT BEGINNING OF YEAR
FUND BALANCE AT END OF YEAR
The Accompanying Notes Are An Integral Part Of This Statement
General
$ 2,960,192
225,968
1,704,651
104,779
449,281
89,071
289,814
5,823,756
1,003,601
2,220,963
560,248
1,454,205
98,699
25,961
(8,289)
(8,289)
451,790
1,580,744
$ 2,032,534 $
Governmental
Special
Revenue
$ 1,752,525
195,051
49,011
277,667
47,808
125,121
2,447,183
433,919
69,074
669,065
780,000
39,660
5,363,677 1,991,718
8,289
(705,400)
(697,111)
(241,646)
9,926,318
9,684,672
Fund Types
Debt •
Service
$ 325,739 $
73,734
399,473
521,100
732,733
22,982
1,276,815
194,993
786,800
981,793
104,451
1,074,244
$ 1,178,695 $
Capital
Proiects
Totals
(Memorandum Only)
1992 1991
$ 5,038,456 $ 4,951,096
345,435 345,435 407,011
225,968 184,387
782,734 2,756,170 3,425,648
153,790 137,360
137,847 864,795 1,104,772
136,879 129,801
152,705 567,640 591,385
1,418,721 10,089,133 10,931,460
1,800 1,439,320 1,369, 833
2,220,963 2,241,856
629,322 750,196
1,454,205 1,533,977
98,699 143,846
25,961 388,169
3,284,986 3,954,051 6,451,665
1,301,100 695,000
772,393 821,220
22,982 3,281
3,286,786 11,918,996 14,399,043
1,786,000 1,980,993 811,000
795,089 1,297,803
(81,400) (795,089) (1,093,441)
1,704,600 1,980,993 1,015,362
(163,465) 151,130 (2,452,221)
326,386 12,907,692 15,359,913
162,921 $ 13,058,822 $ 12,907,692
•
•
We have acted as bond counsel in connection with the issuance by the City of
Hopkins, Hennepin County, Minnesota, of its Taxable General Obligation Housing
Improvement Area Bonds, Series 1995, originally dated as of September 1, 1995, in
the total principal amount of $815,000. For the purpose of rendering this opinion we
have examined certified copies of certain proceedings taken by the City in the
authorization, sale and issuance of the Bonds, including the form of the Bonds, and
certain other proceedings and documents furnished by the City. From our
examination of such proceedings and other documents, assuming the genuineness of
the signatures thereon and based upon laws, regulations, rulings and decisions in
effect on the date hereof, it is our opinion as of the date hereof that
1. The Bonds are in due form, have been duly executed and delivered, and
are valid and binding general obligations of the City, enforceable in accordance with
their terms, except as such enforcement may be limited by Minnesota or United
States laws relating to bankruptcy, reorganization, moratorium or creditors' rights.
2. The principal of and interest on the Bonds are payable primarily from
housing improvement fees levied or to be levied on property within a housing
improvement area in the City, but if necessary for the payment thereof ad valorem
taxes are required by law to be levied on all taxable property in the City, which
taxes are not subject to any limitation as to rate or amount .
3. We express no opinion as to the status of the interest on the Bonds for
federal or state income tax purposes.
We have not been asked and have not undertaken to review the accuracy,
completeness or sufficiency of the Official Statement or other offering material
relating to the Bonds, and accordingly we express no opinion with respect thereto.
3.7292653
HP110 -40
Dated at Minneapolis, Minnesota,
CHARTERED
470 Pillsbury Center, Minneapolis, Minnesota 55402
FORM OF LEGAL OPINION
$815,000
Taxable General Obligation Housing
Improvement Area Bonds, Series 1995
City of Hopkins
Hennepin County, Minnesota
B -1
KENNEDY & GRAVEN
Telephone (612) 337 -9300
Facsimile (612) 337 -9310
APPENDIX B
BOOK -ENTRY -ONLY SYSTEM
C -1
APPENDIX C
1. The Depository Trust Company ( "DTC "), New York, NY, will act as securities depository for the securities
(the "Securities "). The Securities will be issued as fully- registered securities registered in the name of Cede
& Co. (DTC's partnership nominee). One fully- registered Security certificate will be issued for [each issue
of] the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC.
[If, however, the aggregate principal amount of [any] issue exceeds $200 million, one certificate will be
issued with respect to each $200 million of principal amount and an additional certificate will be issued with
respect to any remaining principal amount of such issue.]
2. DTC is a limited - purpose trust company organized under the New York Banking Law, a "banking
organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System,
a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing
agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC
holds securities that its participants ( "Participants ") deposit with DTC. DTC also facilitates the settlement
among Participants of securities transactions, such as transfers and pledges, in deposited securities through
electronic computerized book -entry changes in Participants' accounts, thereby eliminating the need for
physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks,
trust companies, clearing corporations, and certain other organizations. DTC is owned by a number of its
Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc., and the
National .Association of Securities Dealers, Inc. Access to the DTC system is also available to others such
as securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly ( "Indirect Participants "). The Rules
applicable to DTC and its Participants are on file with the Securities and Exchange Commission.
3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Securities on DTC's records. The ownership interest of each actual purchase of each
Security ( "Beneficial Owner ") is in turn to be recorded on the Direct and Indirect Participants' records,
Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners
are expected to receive written confirmations providing details of the transaction, as well as periodic
statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner
entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by
entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not
receive certificates representing their ownership interests in Securities, except in the event that use of the
book -entry system for the Securities is discontinued.
4, To facilitate subsequent transfers, all Securities deposited by Participants with DTC are registered in the
name of DTC's partnership nominee, Cede & Co. The deposit of Securities with DTC and their registration
in the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the Securities: DTC's records reflect only the identity of the Direct Participants to
whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The
Participants will remain responsible for keeping account of their holdings on behalf of their customers.
5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be
governed by arrangements among them, subject to any statutory or regulatory requirements as may be in
effect from time to time.
•
6. Redemption notices shall be sent to Cede & Co. If less than all of the Securities within an issue are being
redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such
issue to be redeemed.
7. Neither DTC nor Cede & Co. will consent or vote with respect to Securities. Under its usual procedures,
DTC mails an Omnibus Proxy to the Issuer as soon as possible after the record date. The Omnibus Proxy
assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Securities
are credited on the record date (identified in a listing attached to the Omnibus Proxy).
•
•
8. Principal and interest payments on the Securities will be made to DTC. DTC's practice is to credit Direct
Participants' accounts on payable date in accordance with their respective holdings shown on DTC's records
unless DTC has reason to believe that it will not receive payment on payable date. Payments by Participants
to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with
securities held for the accounts of customers in bearer form or registered in "street name," and will be the
responsibility of such Participant and not of DTC, the Agent, or the Issuer, subject to any statutory or
regulatory requirements as may be in effect from time to time. Payment of principal and interest to DTC is
the responsibility of the Issuer or the Agent, disbursement of such payments to Direct Participants shall be
the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the
responsibility of Direct and Indirect Participants.
9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its
Participant, to the [Tender/Remarketing] Agent, and shall effect delivery of such Securities by causing the
Direct Participant to transfer the Participant's interest in the Securities, on DTC's records, to the
[Tender/Remarketing] Agent. The requirement for physical delivery of Securities in connection with a
demand for purchase or a mandatory purchase will be deemed satisfied when the ownership rights in the
Securities are transferred by Direct Participation on DTC's records.
10. DTC may discontinue providing its services as securities depository with respect to the Securities at any time
by giving reasonable notice to the Issuer or the Agent. Under such circumstances, in the event that a
successor securities depository is not obtained, Security certificates are required to be printed and delivered.
11. The Issuer may decide to discontinue use of the system of book -entry transfers through DTC (or a successor
securities depository). In that event, Security certificates will be printed and delivered.
12. The information in this section concerning DTC and DTC's book -entry system has been obtained from
sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof.
C -2
•
•
PROPOSAL FORM
The City Council August 15, 1995
City of Hopkins, Minnesota
RE: $815,000 Taxable General Obligation Housing Improvement Area Bonds, Series 1995
DATED: September 1, 1995
For all or none of the above Bonds, in accordance with the Terms of Proposal and terms of the Global Book Entry System as
stated in this Official Statement, we will pay you $ (not less than $802,545) plus accrued interest to
date of delivery for fully registered Bonds bearing interest rates and maturing in the stated years as follows:
We enclose our good faith deposit in the amount of $16,300, to be held by you pending delivery and payment. Alternatively,
we have provided a financial surety bond or have wired our good faith deposit to the Ehlers and Associates, Inc. Bond Issue
Escrow Account #850 -788 -1 at Resource Bank & Trust Co., Minneapolis, Minnesota. If our proposal is not accepted, said
deposit shall be promptly returned to us. If the good faith deposit is wired to such escrow account, we agree to the conditions
and duties of Ehlers and Associates, Inc., as escrow holder of the good faith deposit, pursuant to this Official Statement dated
August 2, 1995. This proposal is for prompt acceptance and is conditional upon deposit of said Bonds to The Depository Trust
Company, New York, New York in accordance with the Terms of Proposal.
We have received and reviewed the Official Statement and have submitted our requests for additional information or corrections
to the Official Statement. As Syndicate Manager, we agree to provide the Issuer with the reoffering price of the Bonds within
24 hours of the proposal acceptance.
Account Manager: By:
Account Members:
% due 1998 % due 2003 % due 200$
% due 1999 % due 2004 % due 2009
% due 2000 % due 2005 % due 2010
% due 2001 % due 2006 % due 2011
% due 2002 % due 2007 % due 2012
The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Hopkins, Minnesota this
day of , 1995.
Attest: By:
Title: Title:
According to our computations (the correct computation being controlling in the award), the total dollar interest cost (including
any discount or less any premium) of the above proposal is $ and the true interest cost (TIC) is
%.
•
•
•
The City Council August 15, 1995
City of Hopkins, Minnesota
RE: $815,000 Taxable General Obligation Housing Improvement Area Bonds, Series 1995
DATED: September 1, I995
For all or none of the above Bonds, in accordance with the Terms of Proposal and terms of the Global Book Entry System as
stated in this Official Statement, we will pay you $ (not less than $802,545) plus accrued interest to
date of delivery for fully registered Bonds bearing interest rates and maturing in the stated years as follows:
We enclose our good faith deposit in the amount of $16,300, to be held by you pending delivery and payment. Alternatively,
we have provided a financial surety bond or have wired our good faith deposit to the Ehlers and Associates, Inc. Bond Issue
Escrow Account #850 -788 -1 at Resource Bank & Trust Co., Minneapolis, Minnesota. If our proposal is not accepted, said
deposit shall be promptly returned to us. If the good faith deposit is wired to such escrow account, we agree to the conditions
and duties of Ehlers and Associates, Inc., as escrow holder of the good faith deposit, pursuant to this Official Statement dated
August 2, 1995. This proposal is for prompt acceptance and is conditional upon deposit of said Bonds to The Depository Trust
Company, New York, New York in accordance with the Terms of Proposal.
We have received and reviewed the Official Statement and have submitted our requests for additional information or corrections
to the Official Statement. As Syndicate Manager, we agree to provide the Issuer with the reoffering price of the Bonds within
24 hours of the proposal acceptance.
Account Manager: By:
Account Members:
PROPOSAL FORM
% due 1998 % due 2003 % due 2008
% due 1999 % due 2004 % due 2009
% due 2000 % due 2005 % due 2010
% due 2001 % due 2006 % due 2011
% due 2002 % due 2007 % due 2012
The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Hopkins, Minnesota this
day of , 1995.
Attest: By:
Title: Title:
According to our computations (the correct computation being controlling in the award), the total dollar interest cost (including
any discount or less any premium) of the above proposal is $ and the true interest cost (TIC) is
%.
•
•
Account Members:
PROPOSAL FORM
The City Council August 15, 1995
City of Hopkins, Minnesota
RE: $815,000 Taxable General Obligation Housing Improvement Area Bonds, Series 1995
DATED: September 1, 1995
For all or none of the above Bonds, in accordance with the Terms of Proposal and terms of the Global Book Entry System as
stated in this Official Statement, we will pay you $ (not less than $802,545) plus accrued interest to
date of delivery for fully registered Bonds bearing interest rates and maturing in the stated years as follows:
% due 1998 % due 2003 % due 2008
% due 1999 % due 2004 % due 2009
% due 2000 % due 2005 % due 2010
% due 2001 % due 2006 % due 2011
% due 2002 % due 2007 % due 2012
We enclose our good faith deposit in the amount of $16,300, to be held by you pending delivery and payment. Alternatively,
we have provided a financial surety bond or have wired our good faith deposit to the Ehlers and Associates, Inc. Bond Issue
Escrow Account #850 -788 -1 at Resource Bank & Trust Co., Minneapolis, Minnesota. If our proposal is not accepted, said
deposit shall be promptly returned to us. If the good faith deposit is wired to such escrow account, we agree to the conditions
and duties of Ehlers and Associates, Inc., as escrow holder of the good faith deposit, pursuant to this Official Statement dated
August 2, 1995. This proposal is for prompt acceptance and is conditional upon deposit of said Bonds to The Depository Trust
Company, New York, New York in accordance with the Terms of Proposal.
We have received and reviewed the Official Statement and have submitted our requests for additional information or corrections
to the Official Statement. As Syndicate Manager, we agree to provide the Issuer with the reoffering price of the Bonds within
24 hours of the proposal acceptance.
Account Manager: By:
The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Hopkins, Minnesota this
day of , 1995.
Attest: By:
Title: Title:
According to our computations (the correct computation being controlling in the award), the total dollar interest cost (including
any discount or less any premium) of the above proposal is $ and the true interest cost (TIC) is
%.