VII.1. Resolution Awarding the Sale of General Obligation Bonds, Series 2025A, in the original aggregate principal amount of $7,645,000; Bishop
CITY OF HOPKINS
City Council Report 2025-095
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Nick Bishop, Finance Director
Date: May 20, 2025
Subject: Award the Sale of $7,645,000 General Obligation Bonds, Series 2025A
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO Adopt Resolution No. 2025-039: Awarding the Sale of General Obligation
Bonds, Series 2025A, in the original aggregate principal amount of $7,645,000; fixing
their form and specification; directing their execution and delivery; and providing for their
payment.
OVERVIEW
The City of Hopkins has the authority to issue General Obligation bonds to pay for street
and utility improvements. The 2025A bond issue is being sold to finance two purposes:
• The first phase of the 2025/2026 street and utility reconstruction project in
Central Avenues. The bonds for this purpose will be issued with a 16 year
term to come from general tax levy, special assessments and utility revenues.
Principal payments will be made over 12 years from 2030 to 2041.
• 2025 Water & Sewer SCADA Fiber Project. The bonds for this purpose will be
issued with a 16 year term to come from utility revenues. Principal payments
will be made over 12 years from 2030 to 2041.
The bond payments will come from a tax levy, utility revenues and special assessments.
The interest rate for special assessments will be set at 2% over the True Interest cost
(TIC) of the bonds. On May 15, 2025, Standard & Poor’s reaffirmed the City’s AA+
bond rating with a stable outlook. The rating report is being finalized and will be sent to
City Council by email and included in City Council Agenda archives.
At the April 15, 2025 Council Meeting the City Council authorized the sale of $7,645,000
General Obligation bonds. The bond bids will be accepted until 10:00 AM on May 20,
2025 at which time they will be reviewed and the recommendation incorporated into
Resolution 2024-039.
SUPPORTING INFORMATION
• Resolution 2024-040 (preliminary version, will be updated on May 21st)
Finance Department
EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Hopkins,
Minnesota, was duly held in the City Hall in said City on May 20, 2025, commencing at 7:00 o’clock p.m.
The following members were present:
and the following were absent:
Member _____________________ introduced the following resolution and moved its adoption:
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RESOLUTION AWARDING THE SALE OF GENERAL
OBLIGATION BONDS, SERIES 2025A, IN THE ORIGINAL
AGGREGATE PRINCIPAL AMOUNT OF $[7,645,000]; FIXING
THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR
EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR
PAYMENT
BE IT RESOLVED by the City Council (the “City Council”) of the City of Hopkins, Hennepin
County, Minnesota (the “City”) as follows:
Section 1. Findings, Determinations; Sale of Bonds.
1.01. Background. It is hereby determined that:
(a) Improvement Bonds.
(i) The City is authorized by Minnesota Statutes, Chapter 475, as amended
(the “Act”) and Minnesota Statutes, Chapter 429, as amended (“Chapter 429”), to issue
obligations in such amount as it deems necessary to defray in whole or in part the expense
incurred and estimated to be incurred in making improvements authorized by Chapter 429
(ii) On April 15, 2025, the Council adopted a resolution (the “Intent
Resolution”) stating the intention of the City, in part, to issue and sell its general obligation
bonds in the proposed principal amount of $3,420,000 (the “Improvements Portion”),
pursuant to the Act and Chapter 429, to provide financing for certain assessable public
street improvements (the “ Improvements”), and related financing costs.
(b) Utility Revenue Bonds.
(i) The City is authorized by the Act and Minnesota Statutes, Chapter 444, as
amended (“Chapter 444”), to issue general obligation revenue bonds to finance the costs
of improvements to the City’s water utility systems.
(ii) Within the Intent Resolution, the Council also stated the intention of the
City to issue and sell its general obligation bonds in the proposed principal amount of
$4,225,000 (the “Utility Portion”), pursuant to the Act and Chapter 444, to provide
financing for the construction of various improvements to the City’s sewer, water and
storm sewer systems (the “Utility Improvements”), and related financing costs. The Street
Improvements and the Utility Improvements are hereinafter collectively referred to as the
“Project”).
(c) Pursuant to the Intent Resolution, the Council determined that the Improvements
Portion and the Utility Portion shall be issued together in a single series in the original aggregate
principal of $7,645,000 (the “Bonds”). The Council designated the bonds as the “General
Obligation Bonds, Series 2025A.”
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1.02. Award to the Purchaser and Interest Rates. The proposal of [Purchaser][, as syndicate
manager] (the “Purchaser”), to purchase the Bonds of the City is hereby found and determined to be a
reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $____________
(par amount of $[7,645,000], plus original issue premium of $_______________, less original issue discount
of the $______________, less an underwriter’s discount of $____________), plus accrued interest, if any, as
set forth in the Purchase Agreement (defined below), to date of delivery for Bonds bearing interest as follows:
Year Interest Rate Year Interest Rate
2030 0.000% 2036 0.000%
2031 0.000% 2037 0.000%
2032 0.000% 2038 0.000%
2033 0.000% 2039 0.000%
2034 0.000% 2040 0.000%
2035 0.000% 2041 0.000%
True interest cost: ______________%
1.03. Purchase Agreement. The execution and delivery of a proposal form, dated as of
May 20, 2025 (the “Purchase Agreement”), between the City and the Purchaser, is hereby ratified and
confirmed in the form set forth in EXHIBIT A to this resolution (the “Resolution”). The Bonds shall be issued
and delivered in accordance with the terms and conditions of the Purchase Agreement and this Resolution. The
amount proposed by the Purchaser in excess of the minimum bid, if any, shall be credited to the Debt Service
Fund hereinafter created or deposited in the Construction Fund hereinafter created, as determined by the
Finance Director in consultation with the Municipal Advisor. The Municipal Advisor is directed to receive and
retain the good faith payment of the Purchaser in accordance with the terms of the Purchase Agreement,
pending completion of the sale of the Bonds. The Mayor and City Manager are authorized and directed to
execute a contract with the Purchaser on behalf of the City.
1.04. Terms and Principal Amounts of the Bonds. The City will forthwith issue and sell the Bonds
pursuant to the Act, Chapter 444 and Chapter 429 in the original aggregate principal amount of $[7,645,000],
originally dated June 10, 2025, in fully registered form and in denominations of $5,000 each or any integral
multiple thereof, numbered No. R-1 upward, bearing interest as above set forth, and maturing serially on
February 1 in the years and amounts as follows:
Year Amount Year Amount
2030 $0.00 2036 $0.00
2031 $0.00 2037 $0.00
2032 $0.00 2038 $0.00
2033 $0.00 2039 $0.00
2034 $0.00 2040 $0.00
2035 $0.00 2041 $0.00
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(a) $____________ of the Bonds, constituting the Improvements Portion, maturing on
February 1 of the years and in the amounts set forth below, will be used to finance the Improvements:
Year Amount Year Amount
2030 $0.00 2036 $0.00
2031 $0.00 2037 $0.00
2032 $0.00 2038 $0.00
2033 $0.00 2039 $0.00
2034 $0.00 2040 $0.00
2035 $0.00 2041 $0.00
(b) $_____________ of the Bonds, constituting the Utility Portion, maturing on
February 1 of the years and in the amounts set forth below, will be used to finance the Utility
Improvements:
Year Amount Year Amount
2030 $0.00 2036 $0.00
2031 $0.00 2037 $0.00
2032 $0.00 2038 $0.00
2033 $0.00 2039 $0.00
2034 $0.00 2040 $0.00
2035 $0.00 2041 $0.00
1.05. Schedule of Maturities. The schedule of maturities satisfies the requirements of
Section 475.54, subdivision 1 of the Act.
1.06. Optional Redemption. The City may elect on February 1, 2035, and on any day thereafter to
prepay Bonds due on or after February 1, 2036. 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 shall determine. If less than all Bonds of a maturity are called
for optional redemption, the City shall notify DTC (as defined in Section 7 hereof) of the particular amount of
such maturity to be prepaid. DTC shall 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. Prepayments shall be at a price of par plus accrued interest to the date of optional
redemption.
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 shall 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 the 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 the Bond shall be dated as of the date of
original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing
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February 1, 2026, to the registered owners of record thereof as of the close of business on the fifteenth day
immediately preceding each interest payment date, whether or not such day is a business day.
2.03. Registration. The City shall appoint a bond registrar (the “Registrar”), authenticating agent
(the “Authenticating Agent”), and paying agent (the “Paying Agent”). Except as specifically provided
otherwise in Section 7 hereof, 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
(the “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.
(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 shall 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 that interest payment
date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered owner for
exchange the Registrar shall 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 transfer or exchange shall be promptly
cancelled 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 shall 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 shall be valid and effectual to satisfy and discharge the liability upon the Bond to the
extent of the sum or sums so paid.
(g) Taxes, Fees, and Charges. The Registrar may impose a charge upon the owner thereof
for a transfer or exchange of Bonds 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 shall 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 any 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 evidence satisfactory to it that the Bond was destroyed, stolen, or
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lost, and of the ownership thereof, and upon furnishing to the Registrar 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 shall be
cancelled 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 whole 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 shall be given by the Registrar by mailing a copy of the
redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be
redeemed at the address shown on the Bond Register and, if publication of the notice of redemption is
required by law, by publishing the notice of redemption as required by law. Failure to give notice by
publication or by mail to any registered owner, or any defect therein, shall not affect the validity of the
proceedings for the redemption of Bonds. Bonds so called for redemption shall 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, Paying Agent, and Authenticating Agent. The City appoints
Bond Trust Services Corporation, Roseville, Minnesota, as the initial Registrar, Paying Agent, and
Authenticating Agent with respect to the Bonds. The Mayor and the City Manager are authorized to execute
and deliver, on behalf of the City, a contract with Bond Trust Services Corporation, as the initial Registrar,
Paying Agent, and Authenticating Agent with respect to the Bonds. Upon merger or consolidation of the
Registrar, Paying Agent, and Authenticating Agent with another corporation, if the resulting corporation is a
bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to
act as successor Registrar, Paying Agent, and Authenticating Agent. The City agrees to pay the reasonable and
customary charges of the Registrar, Paying Agent, and Authenticating Agent for the services performed. The
City reserves the right to remove the Registrar, Paying Agent, or Authenticating Agent upon thirty (30) days’
notice and upon the appointment of a successor Registrar, Paying Agent, or Authenticating Agent, in which
event the predecessor Registrar, Paying Agent, or Authenticating Agent must deliver all cash and Bonds in its
possession to the successor Registrar, Paying Agent, or Authenticating Agent and the Registrar must deliver the
Bond Register to the successor Registrar. On or before three (3) business days prior to each principal or interest
due date, without further order of the Council, the Finance Director must transmit to the Paying Agent money
sufficient for the payment of all principal and interest then due.
2.05. Execution, Authentication, and Delivery. The Bonds shall be prepared under the direction of
the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager,
provided that those signatures may be printed, engraved, or lithographed facsimiles of the originals. If an
officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before
the delivery of a Bond, that signature or facsimile shall 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 shall 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 Authenticating Agent. Certificates of authentication on different Bonds need not be signed
by the same representative of t he Authenticating Agent. The executed certificate of authentication on a 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 City Manager 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.
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Section 3. Form of Bond.
3.01. Execution of the Bonds. The Bonds will be printed or typewritten in substantially the form
set forth in EXHIBIT B.
3.02. Approving Legal Opinion. The City Manager is authorized and directed to obtain a copy
of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, and
cause the opinion to be printed on or accompany each Bond.
Section 4. Payment; Security; Funds; Pledges and Covenants.
4.01. Debt Service Fund. The Bonds shall be payable from the General Obligation Bonds,
Series 2025B Debt Service Fund (the “Debt Service Fund”) hereby created. The City will maintain the
following accounts in the Debt Service Fund: the “Improvements Account” and the “Utility Account”
(collectively, the “Accounts”). Amounts in the Improvements Account are irrevocably pledged to the
Improvements Portion of the Bonds and amounts in the Utilities Account are irrevocably pledged to the Utility
Portion of the Bonds.
(a) Improvements Account. Proceeds of ad valorem taxes hereinafter levied (the
“Improvement Taxes”) and special assessments levied or to be levied against the property specially
benefited by the Improvements (the “Assessments”) for the payment of debt service on the
Improvements Portion of the Bonds are hereby pledged to the Improvements Account of the Debt
Service Fund. The amounts to be applied to pay the principal of and interest on the Improvements
Portion of the Bonds shall be deposited in the Improvements Account of the Debt Service Fund at least
three (3) business days prior to each respective interest payment date and principal payment date.
There is appropriated to the Improvements Account of the Debt Service Fund a pro rata portion of
amounts over the minimum purchase price of the Bonds paid by the Purchaser to the extent designated
for deposit in the Debt Service Fund in accordance with Section 1.03 hereof.
(b) Utility Account. The City will continue to maintain and operate its Utility Fund to
which will be credited all gross revenues from the City’s sewer, water and storm sewer utility systems
(the “Utility Systems”) and out of which will be paid all normal and reasonable expenses of current
operations of such systems. Any balances remaining after payment of all normal and reasonable
expenses of current operations of the Utility Systems are deemed net revenues (the “Net Revenues”).
Net Revenues from the Utility Systems are hereby pledged to the Utility Account of the Debt Service
Fund. The amounts to be applied to pay the principal and interest on the Utility Portion of the Bonds
shall be deposited in the Utility Account of the Debt Service Fund at least three (3) business days prior
to each respective interest payment date and principal payment date. There will always be retained
in the Utility Account of the Debt Service Fund a sufficient amount of Net Revenues to pay
principal of and interest on the Utility Portion of the Bonds, and the Finance Director must report
any current or anticipated deficiency in the Utility Account of the Debt Service Fund to the Council.
There is appropriated to the Utility Account of the Debt Service Fund a pro rata portion of amounts
over the minimum purchase price of the Bonds paid by the Purchaser, to the extent designated for
deposit in the Debt Service Fund in accordance with Section 1.03 hereof.
4.02. Construction Fund. The City hereby creates the General Obligation Bonds, Series 2025A
Construction Fund (the “Construction Fund”). The City will maintain the following accounts in the
Construction Fund: the “Improvements Account” and the “Utility Account.”
(a) Improvements Account. Proceeds of the Improvements Portion of the Bonds
(reduced by the appropriation made in accordance with Section 5.04 to pay costs of issuance and the
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appropriation, if any, of any portion of the Improvements Portion of the Bonds made in accordance
with Section 4.01 hereof) shall be deposited in the Improvements Account of the Construction Fund
and used solely to pay costs of the Improvements. Any balance remaining in the Improvements
Account of the Construction Fund after completion of the Improvements may be used for any other
public use authorized by law and approved by resolution adopted or vote taken in the manner required
to authorize the application of the proceeds of the Improvements Portion of the Bonds for such new
use and purpose, or credited to the Improvements Account of the Debt Service Fund or other City debt
service fund, all in accordance with Section 475.65 of the Act.
(b) Utility Account. Proceeds of the Utility Portion of the Bonds (reduced by the
appropriation made in accordance with Section 5.04 to pay costs of issuance and the appropriation, if
any, of any portion of the Utility Portion of the Bonds made in accordance with Section 4.01 hereof),
shall be deposited in the Utility Account of the Construction Fund to be used solely to pay costs of the
Utility Improvements. Any balance remaining in the Utility Account of the Construction Fund after
completion of the Utility Improvements may be used for any other public use authorized by law and
approved by resolution adopted or vote taken in the manner required to authorize the application of the
proceeds of the Utility Portion of the Bonds for such new use and purpose, or credited to the Utility
Account of the Debt Service Fund or other City debt service fund, all in accordance with
Section 475.65 of the Act.
4.03. General Obligation Pledge. For the prompt and full payment of the principal of and interest
on the Bonds, as the same respectively become due, the full faith and credit and taxing powers of the City
are hereby irrevocably pledged. If a payment of principal of or interest on the Bonds becomes due when
there is not sufficient money in the Debt Service Fund to pay the same, the Finance Director must pay such
principal or interest from the general fund of the City, and the general fund shall be reimbursed for those
advances out of the proceeds of the taxes levied herein, when collected.
4.04. Pledge of Taxes.
(a) Improvements Portion. For the purpose of paying a portion of the principal of and
interest on the Improvements Portion of the Bonds, there are levied direct annual irrepealable
ad valorem taxes (the “Improvement Taxes”) upon all of the taxable property in the City, to be
spread upon the tax rolls and collected with and as part of other general taxes of the City. The
Improvement Taxes shall be credited to the Improvements Account of the Debt Service Fund above
provided and shall be levied in the years and amounts attached hereto as EXHIBIT C to this
Resolution, and, in the event the Improvement Taxes so levied are ever insufficient to pay the
principal of and interest on the Improvements Portion, additional taxes are hereby authorized to be
levied without limitation as to rate or amount. Said tax levies shall be irrevocable as long as any
of these Bonds are outstanding and unpaid, provided that the City reserves the right and power to
reduce the levies in the manner and to the extent permitted by the Act (specifically, Section 475.61
of the Act).
(b) Utility Portion. It is determined that the Net Revenues from the Utility Systems
shall produce at least five percent (5%) in excess of the amount needed to meet when due the
principal and interest on the Utility Portion of the Bonds and that no ad valorem tax levy is needed
at this time. In the event of any deficiency of Net Revenues pledged, additional taxes shall be
levied on all taxable property in the District, which taxes may be levied without limitation as to rate
or amount. Said tax levies shall be irrevocable as long as any of the Utility Portion of the Bonds
are outstanding and unpaid, provided that the District reserves the right and power to reduce the
levies in the manner and to the extent permitted by the Act (specifically, Section 475.61 of the Act).
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4.05. City Covenants with Respect to the Improvement Portion of the Bonds. It is hereby
determined that the Improvements will directly and indirectly benefit certain abutting and other benefited
property in the City, and the City hereby covenants with the holders from time to time of the Improvement
Portion of the Bonds as follows:
(a) The City has caused or will cause the Assessments for the Improvements to be
promptly levied so that the first installment will be collectible not later than 2025 and will take all steps
necessary to assure prompt collection, and the levy of the Assessments is hereby authorized. The
Council will cause to be taken with due diligence all further actions that are required for the
constr uction of each Improvement financed wholly or partly from the proceeds of the Improvement
Portion of the Bonds, and will take all further actions necessary for the final and valid levy of the
Assessments and the appropriation of any other funds needed to p ay the Improvement Portion of the
Bonds and interest thereon when due.
(b) In the event of any current or anticipated deficiency in the Assessments or the
Improvement Taxes, the Council will levy additional 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 Improvements, Assessments and the ad valorem taxes levied
therefor and other funds appropriated for their payment, collections thereof and disbursements
therefrom, monies on hand and, the balance of unpaid Assessments.
(d) The City will cause its books and records to be audited at least annually and will
furnish copies of such audit reports to any interested person upon request.
(e) At least 20% of the cost to the City of the Improvements described herein has been
or will be specially assessed against benefited properties.
4.06. City Covenants with Respect to the Utility Portion of the Bonds. The Council covenants
and agrees with the holders of the Bonds that so long as any of the Bonds remain outstanding and unpaid,
it will keep and enforce the following covenants and agreements:
(a) The City will continue to maintain and efficiently operate the Utility Systems as
public utilities and conveniences free from competition of other like municipal utilities and will
cause all revenues therefrom to be deposited in bank accounts and credited to the Utility Fund, as
hereinabove provided, and will make no expenditures from those accounts except for a duly
authorized purpose and in accordance with this Resolution.
(b) The City will also maintain the Utility Account of the Debt Service Fund as a
separate account and will cause money to be credited thereto from time to time, out of Net Revenues
from the Utility Systems in sums sufficient to pay principal of and interest on the Utility Portion of
the Bonds when due.
(c) The City will keep and maintain proper and adequate books of records and
accounts separate from all other records of the City in which will be complete and correct entries
as to all transactions relating to the Utility Systems and which will be open to inspection and copying
by any Bondholder, or the Bondholder’s agent or attorney, at any reasonable time, and it will
furnish certified transcripts therefrom upon request and upon payment of a reasonable fee therefor,
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and said account will be audited at least annually by a qualified public accountant and statements
of such audit and report will be furnished to all Bondholders upon request.
(d) The Council will cause persons handling revenues of the Utility System s to be
bonded in reasonable amounts for the protection of the City and the Bondholders and will cause
the funds collected on account of the operations of such systems to be deposited in a bank whose
deposits are guaranteed under the Federal Deposit Insurance Law.
(e) The Council will keep the Utility Systems insured at all times against loss by fire,
tornado and other risks customarily insured against with an insurer or insurers in good standing, in
such amounts as are customary for like plants, to protect the holders, from time to time, of the
Bonds and the City from any loss due to any such casualty and will apply the proceeds of such
insurance to make good any such loss.
(f) The City and each and all of its officers will punctually perform all duties with
reference to the Utility Systems as required by law.
(g) The City will impose and collect charges of the nature authorized by Chapter 444,
specifically Minnesota Statutes, Section 444.075, at the times and in the amounts required to
produce Net Revenues adequate to pay all principal and interest when due on the Utility Portion of
the Bonds and to create and maintain such reserves securing said payments as may be provided
herein.
(h) The Council will levy general ad valorem taxes on all taxable property in the City
when required to meet any deficiency in Net Revenues.
4.07. Debt Service Coverage. It is determined that the estimated collection of Improvement Taxes,
Assessments and Net Revenues herein pledged shall produce at least five percent (5%) in excess of the amount
needed to meet when due the principal and interest payments on the Bonds. The tax levies herein provided
shall be irrepealable until all of the Bonds are paid, provided that at the time the City makes its annual tax levies
the Finance Director may certify to the County Auditor-Treasurer of Hennepin County, Minnesota (the
“County Auditor”) that the City made an irrevocable appropriation of a specified amount to the Debt Service
Fund of money actually on hand or if there is on hand any excess amount in the Debt Service Fund and the
County Auditor shall thereupon reduce the levy collectible during such year by the amount so certified.
4.07. Registration of Resolution. The Finance Director is authorized and directed to file a certified
copy of this Resolution with the County Auditor and to obtain the certificate required by Section 475.63 of the
Act.
Section 5. Authentication of Transcript.
5.01. City Proceedings and Records. 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. Certification as to Official Statement. The Mayor, the City Manager and the Finance Director,
or any of their authorized designees, are authorized and directed to certify that they have examined the final
11
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 final Official Statement is a complete and accurate representation of
the facts and representations made therein as of the date of the final Official Statement and further that said
final Official Statement did not (as of the date of the final Official Statement) and does not contain any untrue
statement of a material fact or omit to state a material fact which should be included therein for the purpose for
which the final Official Statement is to be used, or which is necessary in order to make the statements made
therein, in light of the circumstances under which they are made, not misleading.
5.03. Other Certificates. The Mayor, the City Manager and the Finance Director, or any of their
authorized designees, are hereby authorized and directed to furnish to the Purchaser at the closing such
certificates as are required as a condition of sale. Unless litigation shall have been commenced and be
pending questioning the Bonds or the organization of the City or incumbency of its officers, at the closing
the Mayor, the City Manager and the Finance Director shall also execute and deliver to the Purchaser a
suitable certificate as to absence of material litigation, and the Finance Director shall also execute and
deliver a certificate as to payment for and delivery of the Bonds.
5.04. Payment of Costs of Issuance. The City authorizes the Purchaser to forward the amount of
Bond proceeds allocable to the payment of issuance expenses to Wells Fargo Bank, National Association on
the closing date for further distribution as directed by the Municipal Advisor.
5.05. Electronic Signatures. The electronic signatures of the Mayor, the City Manager and the
Finance Director, or any of their authorized designees, to this Resolution and any document or certificate
authorized to be executed hereunder shall be as valid as an original signature of such party and shall be effective
to bind the City thereto. For purposes hereof, (i) “electronic signature” means: (a) a manually signed original
signature that is then transmitted by electronic means or (b) a signature obtained through DocuSign or
Adobe or a similarly digitally auditable signature gathering process; and (ii) “transmitted by electronic
means” means sent in the form of a facsimile or sent via the internet as a portable document format (“pdf”) or
other replicating image attached to an electronic mail or internet message.
Section 6. Tax Covenants.
6.01. Tax -Exempt Bonds. The City shall comply with all the necessary requirements and take all
necessary actions (or decline to take prohibited actions) to ensure that interest on the Bonds shall not be
includable in gross income for federal income tax purposes under Section 103 and Sections 141 through 150
of the Internal Revenue Code of 1986, as amended (the “Code”), and applicable Treasury Regulations
promulgated thereunder (the “Regulations”). The City covenants and agrees with the holders from time to time
of the Bonds that it shall not take or permit to be taken by any of its officers, employees, or agents any action
which would cause the interest on the Bonds to become subject to federal income taxation under the Code and
the Regulations, in effect at the time of such actions, and that it shall take or cause its officers, employees, or
agents to take all affirmative action within their powers that may be necessary to ensure that such interest shall
not become includable in gross income for federal income tax purposes under t he Code and applicable
Regulations, as presently existing or as hereafter amended and made applicable to the Bonds.
6.02. Continuing Requirements. The City shall comply with all requirements necessary under
the Code and Regulations to establish and maintain the exclusion from gross income of the interest on the
Bonds under Sections 103 and 141-150 of the Code and applicable Regulations including, without
limitation, requirements relating to temporary periods for investments, limitations on amounts invested at
a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United
States. The Mayor and the City Manager, being officers of the City charged with the responsibility for
issuing the Bonds pursuant to this Resolution, are authorized and directed to execute and deliver to the
Purchaser a certificate in accordance with the provisions of Section 148 of the Code and applicable
12
Regulations stating the facts, estimates, and circumstances in existence on the date of issue and delivery of
the Bonds which make it reasonable to expect that the “gross proceeds” of the Bonds will not be used in a
manner that would cause the Bonds to be “arbitrage bonds” within the meaning of the Code and the
Regulations. The City covenants and agrees to retain such records, make such determinations, file such
reports and documents, and pay such amounts at such times as are required under Section 148(f) and
applicable Regulations to preserve the exclusion of interest on the Bonds from gross income for federal
income tax purposes, unless the Bonds qualify for an exception from the rebate requirement in accordance
with one of the spending exceptions set forth in Section 1.148-7 or Section 1.148-8 of the Regulations.
The City shall use its best efforts to comply with any federal procedural requirements which may apply in
order to effectuate the designations and covenants made by this section.
6.03. Rebate. The City will comply with requirements necessary under the Code to establish and
maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including
without limitation requirements relating to temporary periods for investments, limitations on amounts invested
at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States
unless the Bonds qualify for an exception to the rebate requirement under the Co de and Regulations.
6.04. Not Private Activity Bonds. The City further covenants not to use the proceeds of the Bonds
or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be determined
to constitute “private activity bonds,” within the meaning of Sections 103 and 141 through 150 of the Code and
the applicable Regulations promulgated thereunder.
6.05. Qualified Tax-Exempt Obligations. In order to qualify the Bonds as “qualified tax-exempt
obligations” within the meaning of Section 265(b)(3) of the Code, the City makes the following factual
statements and representations:
(a) the Bonds are not “private activity bonds” as defined in Section 141 of the Code;
(b) the City designates the Bonds as “qualified tax-exempt obligations” for purposes of
Section 265(b)(3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations (other than private
activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all
subordinate entities of the City) during calendar year 2025 will not exceed $10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City during calendar year
2025 have been designated for purposes of Section 265(b)(3) of the Code.
Section 7. Book-Entry System; Limited Obligation of City.
7.01. DTC. The Bonds shall 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 1.04 hereof. Upon initial issuance, the
ownership of each Bond shall be registered in the registration books kept by the 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 in this section, all of the outstanding Bonds shall be registered in the Bond
Register in the name of Cede & Co., as nominee of DTC.
7.02. Participants. With respect to Bonds registered in the Bond Register in the name of Cede &
Co., as nominee of DTC, the City, the Registrar, and the Paying Agent shall 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
13
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 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,
of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Registrar,
and the Paying Agent may treat and consider the person in whose name each Bond is registered in the Bond
Register 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 shall 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 Registrar,
and all such payments shall 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 Bond Register, shall receive a
certificated Bond evidencing the obligation of this Resolution. Upon delivery by DTC to the City Manager of
a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the
words “Cede & Co.” shall refer to such new nominee of DTC; and upon receipt of such a notice, the City
Manager shall promptly deliver a copy of the same to the Registrar and Paying Agent.
7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket
Issuer Letter of Representations (the “Representation Letter”) which shall govern payment of principal of,
premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or
Registrar subsequently appointed by the City with respect to the Bonds shall agree to take all action necessary
for all representations of the City in the Representation Letter with respect to the Registrar and Paying Agent,
respectively, to be complied with at all times.
7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the Council,
determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able
to obtain Bond certificates, the City shall notify DTC, whereupon DTC shall notify the Participants, of the
availability through DTC of Bond certificates. In such event the City shall 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 shall issue and the Registrar shall authenticate
Bond certificates in accordance with this resolution and the provisions hereof shall apply to the transfer,
exchange, and method of payment thereof.
7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the
contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect
to principal of, premium, if any, and interest on the Bond and all notices with respect to the Bond shall be made
and given, respectively in the manner provided in DTC’s Operational Arrangements, as set forth in the
Representation Letter.
Section 8. Continuing Disclosure.
8.01. Execution of Continuing Disclosure Certificate. For purposes of this Section, “Continuing
Disclosure Certificate” means that certain Continuing Disclosure Certificate executed by the Mayor and City
Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be
amended from time to time in accordance with the terms thereof.
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8.02. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby
covenants and agrees to comply with and carry out all of the provisions of the Continuing Disclosure
Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the
Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however,
any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or
specific performance by court order, to cause the City to comply with its obligations under this section.
Section 9. Defeasance. When all of the Bonds and all interest thereon have been discharged as
provided in this section, all pledges, covenants, and other rights granted by this resolution to the holders of the
Bonds shall cease, except that the pledge of the full faith and credit of the City for the prompt and full payment
of the principal of and interest on the Bonds shall remain in full force and effect. The City may discharge all
Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for
the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by
depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date
of such deposit.
(The remainder of this page is intentionally left blank).
15
The motion for the adoption of the foregoing resolution was duly seconded by Member
___________________________, and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
A-1
EXHIBIT A
PURCHASE AGREEMENT
B-1
EXHIBIT B
FORM OF BOND
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF HOPKINS
GENERAL OBLIGATION BONDS
SERIES 2025A
No. R-___ $_______
Interest Rate Maturity Date Date of Original Issue CUSIP
0.000% February 1, 20__ June ___, 2025
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT: _____________ THOUSAND DOLLARS
The City of Hopkins, a duly organized and existing municipal corporation in Hennepin County,
Minnesota (the “City”), acknowledges itself to be indebted and for value received hereby promises to pay
to the Registered Owner specified above or registered assigns, the Principal Amount specified above, on
the Maturity Date specified above, with interest thereon from the date hereof at the annual rate specified
above (calculated on the basis of a 360 day year of twelve 30 day months), payable February 1 and August 1
in each year, commencing February 1, 2026, 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 Bond Trust Services Corporation, Roseville,
Minnesota, as Bond Registrar, Paying 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.
The City may elect on February 1, 2035, and on any day thereafter to prepay Bonds due on or after
February 1, 2036. 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 shall determine. If less than all Bonds of a maturity are called for redemption, the
City shall notify The Depository Trust Company (“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 shall then select by lot the beneficial ownership interests in such maturity to
be redeemed. Prepayments shall be at a price of par plus accrued interest to the date of optional redemption.
B-2
This Bond is one of an issue in the aggregate principal amount of $[7,645,000] all of like original
issue date and tenor, except as to number, maturity date, interest rate, redemption privilege and
denomination, all issued pursuant to a resolution adopted by the City Council on May 20, 2025 (the
“Resolution”), for the purpose of providing money to aid in financing street improvements and
improvements to the water and sewer systems, pursuant to and in full conformity with the home rule charter
of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes,
Chapters 475, 444 and 429, as amended. The principal hereof and interest hereon are payable in part from
special assessments levied against property specially benefited by local improvements, from net revenues
of the sewer and water systems of the City, and from ad valorem taxes, 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 City Council has obligated itself
to levy additional ad valorem taxes on all taxable property in the City in the event of any deficiency in
special assessments, net revenues, and ad valorem taxes pledged, which additional 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.
The City has designated the issue of Bonds of which this Bond forms a part as “qualified tax-exempt
obligations” within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended
(the “Code”), relating to the disallowance of interest expense for financial institutions and within the
$10 million limit allowed by the Code for the calendar year of issue.
IT IS HEREBY CERTIFIED AND RECITED that in and by the Resolution, the City has
covenanted and agreed that it will continue to own and operate the sewer system, water system, and storm
sewer system free from competition by other like municipal utilities; that adequate insurance on said
systems and suitable fidelity bonds on employees will be carried; that proper and adequate books of account
will be kept showing all receipts and disbursements relating to the Sewer Fund, the Water Fund, and the
Storm Sewer Fund, into which it will pay all of the gross revenues from the sewer system, water system,
and storm sewer system, respectively; that it will also create and maintain a Utility Improvements Account
within the General Obligation Bonds, Series 2025A Debt Service Fund, into which it will pay, out of the
net revenues from the sewer system, water system, and storm sewer system, a sum sufficient to pay principal
of the Utility Revenue Bonds (as defined in the Resolution) and interest on the Utility Revenue Bonds when
due; and that it will provide, by ad valorem tax levies, for any deficiency in required net revenues of the
sewer system, water system, and storm sewer system.
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.
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 will be affected by any
notice to the contrary.
B-3
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions
and things required by the home rule charter of the City and the Constitution and laws of the State of
Minnesota 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, charter, or statutory
limitation of indebtedness.
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.
B-4
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 or manual signatures of the Mayor and
City Manager and has caused this Bond to be dated as of the date set forth below.
Dated: June 10, 2025
CITY OF HOPKINS, MINNESOTA
(Facsimile) (Facsimile)
Mayor City Manager
________________________
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
BOND TRUST SERVICES CORPORATION
By
Authorized Representative
________________________
B-5
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:
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer
Agent Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”), the New York
Stock Exchange, Inc. Medallion Signatures Program (“MSP”) or other such “signature guarantee program” as
may be determined by the Registrar in addition to, or in substitution for, STEMP, SEMP or MSP, all in
accordance with the Securities Exchange Act of 1934, as amended.
The Registrar will not transfer 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 federal identification or other
identifying number of assignee
B-6
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on the books of
the Registrar in the name of the person last noted below.
Date of Registration Registered Owner Signature of Officer of Registrar
June ___, 2025
Cede & Co.
Federal ID #13-2555119
C-1
EXHIBIT C
TAX LEVY SCHEDULES
STATE OF MINNESOTA )
)
COUNTY OF HENNEPIN ) ss.
)
CITY OF HOPKINS )
I, the undersigned, being the duly qualified and acting City Clerk of the City of Hopkins, Hennepin
County, Minnesota (the “City”), do hereby certify that I have carefully compared the attached and foregoing
extract of minutes of a regular meeting of the City Council of the City held on May 20, 2025 with the
original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar
as they relate to the issuance and sale of the City’s General Obligation Bonds, Series 2025A, in the original
aggregate principal amount of $[7,645,000].
WITNESS My hand officially as such Clerk this ______ day of May, 2025.
Clerk of the City Counsel
City of Hopkins, Hennepin County, Minnesota