CR 97-121 Multiple Year Funding Hopkins Center for the ArtsJune 17, 1997
Proposed Action
Staff recommends approval of the following motion: Motion to approve Resolution
No. 97 -66 declaring the intent of the City of Hopkins to fund any operating deficits at
the Hopkins Center for the Arts.
Approval of the resolution would state the City's intention to provide multi -year funding if
needed for the Hopkins Center for the Arts. The resolution is needed for the program
funding review to be conducted by the Minnesota Department of Finance.
Overview
Primary Issues to Consider
Supporting Documents
Resolution No. 97 -66
Jim Parsons, Assistant to the City Manager
Multiple Year Funding, Hopkins Center for the Arts
Council Report 97 -121
The State of Minnesota is to invest $500,000 with the City of Hopkins for construction of the
Hopkins Center for the Arts (HCA). The state Department of Finance reviews all investments
to ensure that the construction and operation of projects receiving state funds are financially
viable. One of the requirements of the state's program funding review is that the local
agency adopt a resolution establishing multi -year funding for the facility, that is, that the local
agency commit to cover any operating deficits for the functional life of the facility. The
proposed resolution would meet this particular requirement of the state's program funding
review.
Does the proposed resolution obligate the City to cover any operating deficits at the
HCA?
What would follow if a future Council chose not to cover an operating deficit at the HCA?
Primary Issues to Consider
• Does the proposed resolution obligate the City to cover any operating deficits at
the HCA?
The proposed resolution is not binding on future Councils, but it does create an
expectation that the City of Hopkins would in fact cover any operating deficits at the
HCA.
What would follow if a future Council chose not to cover an operating deficit at the
HCA?
The $500,000 investment from the State of Minnesota is for a facility in which the City
will operate a "governmental program" of artistic and cultural programs and education. If
a future Hopkins City Council chose not to cover an operating deficit at the HCA and if
the "governmental program" were terminated, then the state could require re- payment of
the investment amount. Depending on financing arrangements, other consequences of
a decision not to cover an operating deficit could include an end to City ownership of the
facility.
WHEREAS, the City of Hopkins shall become the owner of the Hopkins Center for the
Arts upon completion of same; and
WHEREAS, the City of Hopkins desires to ensure the successful operation of the
Hopkins Center for the Arts;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hopkins,
Minnesota, that the City of Hopkins shall allocate funds to cover any operating deficits at the
Hopkins Center for the Arts for the functional life of the facility, estimated to be twenty (20)
years.
Adopted this - day of July, 1997, by the City Council of the City of Hopkins,
Minnesota.
Attest:
City Clerk
CITY OF HOPKINS, MINNESOTA
COUNCIL RESOLUTION NO. 97-66
DECLARING THE INTENT OF THE CITY OF HOPKINS
TO FUND ANY OPERATING DEFICITS AT THE
HOPKINS CENTER FOR THE ARTS
Mayor