CR 10-116 Award Sale of BondsAWARD SALE OF BONDS — G.O. Permanent Improvement Bonds, Series 2010A
Proposed Action
Staff recommends approval of the following motion:
Approve resolution No 2010-068 awarding the sale of $2,710,000 General Obligation Permanent Improvement
Revolving Fund Bonds, Series 2010A.
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
Permanent Improvement Revolving Funds (PIR) Bonds: The City of Hopkins has the authority to issue PIR Bonds
pursuant to MN Statutes 429 and 475 for the purpose of funding various public improvements within the city. The
Series 2010A bonds will be general obligations of the city for which its full faith, credit and taxing authority powers
are pledged. The bonds are being sold to finance 2008, 2009-10 and 5"' St S street improvements and will be paid
through special assessments and a tax levy.
At the September 7, 2010 Council Meeting, the Council authorized the sale of $2,710,000 bonds for financing 2008,
2009-10 and the 5th St S street improvements within the city. The bids will be accepted until 10:00 am on October 19,
2010 at which time they will be reviewed and the recommendation incorporated into Resolution 2010-068.
Primary Issues to Consider
At this time, there do not appear to be any primary issues relating to the award of the bond sales. Any significant issues
affecting the sale will not be known until after the closing of the bids on October 19, 2010.
Supporting Information
• Resolution No. 2010-068
• Official Statement (previously mailed to each council member) — included as part of the permanent minute files
Christine M. Harkess, CPA, CGFM
Finance Director
Financial Impact: $ $2,710,000 Budgeted: Y/N X N Source: Bond Proceeds
Related Documents (CIP, ERP, etc.): CIP Notes:
1
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF HOPKINS, MINNESOTA
HELD: October 19, 2010
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of
Hopkins, Minnesota, was called and held at the City Hall in Hopkins, Minnesota on Tuesday, the 19th
day of October, 2010 at 7:30 p.m. for the purpose, in part, of awarding the sale of the City's general
obligation permanent improvement revolving fund bonds and directing their execution and delivery.
The following members were present:
and the following were absent:
The Mayor announced that the next order of business was consideration of the proposals which
had been received for the purchase of the City's General Obligation Permanent Improvement Revolving
Fund Bonds, Series 2010A, in the aggregate principal amount of $2,710,000.
The City Manager presented a tabulation of the proposals that had been received in the manner
specified in the Terms of Proposal for the Bonds. The proposals are attached hereto as EXHIBIT A.
After due consideration of the proposals, Member then introduced the following written
resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption:
follows:
RESOLUTION NO. 2010-068
A RESOLUTION AWARDING THE SALE OF GENERAL
OBLIGATION PERMANENT IMPROVEMENT REVOLVING
FUND BONDS, SERIES 2010A, IN THE ORIGINAL
AGGREGATE PRINCIPAL AMOUNT OF $2,710,000; 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, Minnesota (the "City") as
Section 1. Sale of Bonds.
1.01. Findings. It is hereby determined that:
(a) The following assessable public improvements, including the 2008 and
2009/2010 street and utility improvement projects and the 5t' Street South reconstruction projects
(collectively, the "Improvements") of the City, have been made, duly ordered or contracts let for
the construction thereof by the City and the costs of the Improvements will be financed through
the City's Permanent Improvement Revolving Fund.
(b) It is necessary and expedient to the sound financial management of the affairs of
the City to issue its General Obligation Permanent Improvement Revolving Fund Bonds, Series
2010A (the "Bonds"), in the original aggregate principal amount of $2,710,000, pursuant to
Minnesota Statutes, Chapter 475, as amended (the "Act"), and Section 7.14, subdivision 2, of the
City Charter (the "Charter"), to provide financing for the Improvements.
(c) Proceeds of the Bonds are expected to be expended as follows:
Project Designation & Description: Total Project Cost
Deposit to Project Construction Fund $2,643,663
Costs of Issuance 32,000
Underwriter's Compensation 33,875
Rounding Amount 462
Total $2,710.000
(d) The City is authorized by Section 475.60, subdivision 2(9), of the Act to
negotiate the sale of the Bonds, it being determined that the City has retained an independent
financial advisor in connection with such sale. The actions of the City staff and the City's
financial advisor in negotiating the sale of the Bonds are ratified and confirmed in all aspects.
1.02. Award to the Purchaser and Interest Rates. The proposal of
(the "Purchaser") to purchase the Bonds 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
$2,710,000, [plus original issue premium of $ J [less original issue discount of $ J less
2
(f) Persons Deemed Owners. The City and the Registrar may treat the person in
W,ose name a Bond is registered in the bond register as the absolute owner of the Bond, whether
the 13 -and 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
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 government 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 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 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 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 Bankers Trust Company, Des
Moines, Iowa, 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 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 due 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 and Delivery. The Bonds will 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 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 unt" delivery.
Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or, c.ititled to any
such 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 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.
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 EXHIBIT B 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 cancelled.
Section 3. Form of Bond.
3.01. Execution of the Bonds. The Bonds will be printed or typewritten in substantially the
form as attached hereto as EXHIBIT B.
3.02. Approving Legal Opinion. The City Manager is directed to obtain a copy of the proposed
approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be
complete except as to dating thereof and to cause the opinion to be printed on or accompany each Bond.
Section 4. Payment; Security; Pledges and Covenants.
4.01. Debt Service Fund. (a) The Bonds are payable from the General Obligation Permanent
Improvement Revolving Fund Bonds, Series 2010A, Debt Service Fund (the "Debt Service Fund")
hereby created within the Permanent Improvement Revolving Fund. The proceeds of ad valorem taxes
hereinafter levied (the "Taxes") and special assessments (the "Assessments") levied or to be levied for the
Improvements financed by the Bonds are hereby pledged to the Debt Service Fund.
(b) If any payment of principal of or interest on the Bonds shall become due when there is
not sufficient money in the Debt Service Fund to pay the same, the Finance Director is directed to pay
such principal or interest from the general fund of the City, and the general fund will be reimbursed for
such advances out of the proceeds of Assessments and Taxes when collected.
(c) There is appropriated to the Debt Service Fund (i) capitalized interest funded from Bond
proceeds, if any; (ii) any amount over the minimum purchase price paid by the Purchaser, to the extent
designated for deposit in the Debt Service Fund in accordance with Section 1.03; and (iii) the accrued
interest paid by the Purchaser upon closing and delivery of the Bonds, if any.
4.02. Construction Fund. The proceeds of the Bonds, less the appropriations made in Section
4.01(c) above, together with any other funds appropriated for the Improvements and Assessments and
Taxes collected during the construction of the Improvements, will be deposited in a separate construction
fund, which may contain separate accounts for'each Improvement (the "Construction Fund") to be used
solely to defray expenses of the Improvements and the payment of principal of an interest on the Bonds
prior to the completion and payment of all costs of the Improvements. Any balance remaining in the
Construction Fund after completion of the Improvements may be used to pay the cost in whole or in part
i
of any "'other improvement instituted under Chapter 429 of the Act or the Charter under the direction of the
City Courcil. When the Improvements are completed and the cost thereof paid, the Construction Fund is
to be closed and subsequent collections of Assessments and Taxes for the Improvements are to be
deposited in the Debt Service Fund.
4.03. City Covenants. It is hereby determined that the Improvements will directly and
indirectly benefit abutting property, and 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 Assessments for the Improvements to be
promptly levied so that the first installment will be collectible not later than 2011 and will take all
steps necessary to assure prompt collection, and the levy of the Assessments is hereby authorized.
The City Council will cause to be taken with due diligence all further actions that are required for
the construction of each Improvement 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 Assessments 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 Assessments and Taxes,
the City 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 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.
4.04. Pledge of Tax Levy. For the purpose of paying the principal of and interest on the
Bonds, there is levied a direct annual irrepealable ad valorem tax upon all of the taxable property in the
City, which shall be spread upon the tax rolls and collected with and as part of other general taxes of the
City. Such tax will be credited to the Debt Service Fund above provided and will be in the years and
amounts as attached hereto as EXHIBIT C.
4.05. Certificate of Taxpayer Services Division Manager as to Debt Service Fund Amount. It
is hereby determined that the estimated collections of Assessments and the foregoing Taxes will produce
at least five percent in excess of the amount needed to meet when due the principal and interest payments
on the Bonds. The tax levy herein provided is irrepealable until all of the Bonds are paid, provided that
the City Manager may annually, at the time the City makes its tax levies, may certify to the Taxpayer
Services Division Manager of Hennepin County the amount available in the Debt Service Fund to pay
principal and interest due during the ensuing year, and the Taxpayer Services Division Manager of
Hennepin County will thereupon reduce the levy collectible during such year by the amount so certified.
4.06. Certificate of Taxpayer Services Division Manager as to Registration. The City Clerk is
authorized and directed to file a certified copy of this resolution with the Taxpayer Services. Division
Manager of Hennepin County 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 ava 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, may
be deemed representations of the City as to the facts stated therein.
5.02. Certification as to Official Statement. 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.
5.03. Payment of Costs of Issuance. The City authorizes the Purchaser to forward the amount
of Bond proceeds allocable to the payment of issuance expenses (other than amounts payable to Kennedy
& Graven, Chartered as Bond Counsel) to K1einBank, Chaska, Minnesota on the closing date for further
distribution as directed by the City's financial advisor, Ehlers & Associates, Inc.
Section 6. Tax Covenants.
6.01. Tax -Exempt Bonds. The City covenants and agrees with the holders from time to time of
the Bonds that it will 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 taxation under the Internal Revenue
Code of 1986, as amended (the "Code"), and the Treasury Regulations promulgated thereunder, in effect
at the time of such actions, and that it will take or cause its officers, employees or agents to take, all
affirmative action within its power that may be necessary to ensure that such interest will not become
subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as
hereafter amended and made applicable to the Bonds.
6.02. No Rebate Required. (a) 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 if the Bonds (together with other obligations reasonably expected to be issued in
calendar year 2010) exceed the small -issuer exception amount of $5,000,000.
(b) For purposes of qualifying for the small issuer exception to the federal arbitrage rebate
requirements, the City hereby finds, determines, and declares that the aggregate face amount of all
tax-exempt bonds (other than private activity bonds) issued by the City, (and all subordinate entities of the
City) during the calendar year in which the Bonds are issued and outstanding at one time is not reasonably
expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(D) of the Code.
6.03. Not Private Activi , 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
"private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code.
6.04. Procedural Requirements. The City will use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate the designations made, by this section.
i
{
'Section 7. Book -Entry System.
7.01. DTC. 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 1.04 hereof. Upon initial
issuance, the ownership of each Bond will 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 will be
registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC.
7.02. Participants. With respect to Bonds registered in the registration books kept by the
Registrar in the name of Cede & Co., as nominee of DTC, the City and the Registrar will 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 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 and the Registrar may treat and consider
the person in whose name each Bond is registered in the registration books kept by the 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 Registrar, acting as 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 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 Registrar, will 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."
will refer to such new nominee of DTC; and upon receipt of such a notice, the City Manager will
promptly deliver a copy of the same to the Registrar.
7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket
Issuer Letter of Representations (the "Representation Letter") which will 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 will 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 City
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 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 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.
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 notices with respect to the Bond will
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. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby
covenants and agrees that it will 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 will not 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.
8.02. Execution of Continuing Disclosure Certificate. "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.
Section 9. Defeasance. When all 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 will 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 will 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.
Z:
10
[1.06. Term Bonds. To be completed if Term Bonds are requested by the Purchaser.]
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 is payable on
February 1 and August 1 of each year, commencing August 1, 2011, 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,
authentication agent and paying agent (the "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.
(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
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 will incur no liability for the refusal, in
good faith, to make transfers which it, in its judgment, deems improper or unauthorized.
4
A
underwriter's discount of $_�, plus accrued interest to date of delivery, if any, for Bonds bearing
interest aNP)llows:
Year of Interest
Year of Interest
Maturity Rate
Maturity Rate
2012 %
2020 %
2013
2021
2014
2022
2015
2023
2016
2024
2017
2025
2018
2026
2019
True interest cost: %
1.03. Purchase Contract. The sum of $ , being the amount proposed by the Purchaser
in excess of $2,676,125, will be credited to the Debt Service Fund hereinafter created or deposited in the
Construction Fund hereinafter created, as directed by the Finance Director in consultation with the City's
financial advisor. 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 the City Manager are 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 and Section 7.14, Subdivision 2, of the Charter in the total principal amount of
$2,710,000, originally dated November 17, 2010, in the denomination of $5,000 each or any integral
multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and which mature
serially on February 1 in the years and amounts as follows:
Year
2012
2013
2014
2015
2016
2017
2018
2019
Amount
Year Amount
$ 2020 $
2021
2022
2023
2024
2025
2026
1.05. Optional Redemption. The City may elect on February 1, 2018 and on any date
thereafter to prepay Bonds maturing on or after February 1, 2019. 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 7 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. Prepayments will be at a price of par plus
accrued interest.
3
Passed and adopted this 19th day of October, 2010.
Attest:
City Clerk
11
CITY OF HOPKINS MINNESOTA
Mayor
LIM
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.
12
EXHIBIT A
PROPOSALS
A-1
EXHIBIT B
FORM OF BOND
No. R- UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF HOPKINS
GENERAL OBLIGATION PERMANENT
IMPROVEMENT REVOLVING FUND BOND
SERIES 2010A
Date of
Rate Maturily Original Issue CUSIP
February 1, 20_ November 17, 2010
Registered Owner: Cede & Co.
The City of Hopkins, Minnesota, 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 sum
of $ on the maturity date specified above with interest thereon from the date hereof at the ,r
annual rate specified above, payable February 1 and August 1 in each year, commencing August 1, 2011,
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 Bankers Trust Company, Des Moines, Iowa, as 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.
The City may elect on February 1, 2018, and on any date thereafter, to prepay Bonds of this issue
maturing on or after February 1, 2019. 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 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 will then select by lot the beneficial ownership interests in
such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest.
This Bond is one of an issue in the aggregate principal amount of $2,710,000 all of like original
issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued
pursuant to a resolution adopted by the City Council on October 19, 2010 (the "Resolution"), for the
purpose of providing money to finance various improvement projects within the City, pursuant to and in
full conformity with the home rule charter of the City, including Section 7.14, Subdivision 2 of the home
rule charter, and the Constitution and laws of the State of Minnesota, including Minnesota Statutes,
Chapter 475, as amended, and the principal hereof and interest hereon are payable from special
assessments levied against property specially benefited by local improvements 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 and 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.
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 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 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 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 Registrar will 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 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, statutory
or charter limitation of indebtedness.
This Bond is not valid or obligatory for any purpose 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, 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: November 17, 2010
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.
BANKERS TRUST COMPANY
Authorized Representative
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Bond, will be
construed as though they were written out in full according to applicable laws or regulations:
TEN COM -- as tenants in common UNIF GIFT MIN ACT
Custodian
(Cust) (Minor)
TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to Minors
Act, State of
JT TEN -- as joint tenants with right of
survivorship and not as tenants in common
Additional abbreviations may also be used though not in the above list.
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, STAMP,
SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended.
The 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
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.
Signature of
Date of Registration Registered Owner Officer of Re ig stray
Cede & Co.
Federal ID #13-2555119
EXHIBIT C
TAX LEVY SCHEDULE
YEAR * TAX LEVY
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
* Year tax levy collected.
C-1
STATE OF MINNESOTA )
COUNTY OF HENNEPIN )
CITY OF HOPKINS )
I, the undersigned, being the duly qualified and acting City Clerk of the City of Hopkins,
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 October 19, 2010, 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 Permanent Improvement
Revolving Fund Bonds, Series 2010A, in the original aggregate principal amount of $2,710,000.
WITNESS My hand officially as such City Clerk and the corporate seal of the City this _ day
of 2010.
City Clerk
City of Hopkins, Minnesota
(SEAL)
STATE OF MINNESOTA CERTIFICATE OF TAXPAYER SERVICES
DIVISION MANAGER AS TO REGISTRATION
COUNTY OF HENNEPIN WHERE NO AD VALOREM TAX LEVY
I, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby
certify that a certified copy of a resolution adopted by the governing body of the City of Hopkins,
Minnesota (the "City"), on October 19, 2010, levying taxes for the payment of the City's General
Obligation Permanent Improvement Revolving Fund Bonds, Series 2010A, in the original aggregate
principal amount of $2,710,000, dated November 17, 2010, has been filed in my office and said Bonds
have been entered on the register of obligations in my office and.that such tax has been levied as required
by law.
WITNESS My hand and official seal this day of , 2010.
Taxpayer Services Division Manager
Hennepin County, Minnesota
Deputy
(SEAL)
E? 110-80 (JAE)
376107v1
In the opinion of Bond Counsel, according to present federal and Minnesota laws, regulations, rulings and decisions, the interest on the Series 2010A Bonds is excludable from gross income
of the recipient for federal income tax purposes and, to the same extent, is excludable from taxable net income of individuals, trusts, and estates for Minnesota income tax purposes, and
is not a preference item nor includable in adjusted current earnings for purposes of the computation of the federal alternative minimum tax, or the computation of the Minnesota alternative
mmum tax imposed on individuals, trusts and estates. However, interest on the Series 2010A Bonds is subject to Minnesota franchise taxes on corporations (including financial
titutions) measured by income. (See "Tax Exemption" herein)
In the opinion of Bond Counsel, the interest on the Series 201OB Bonds is excludable from gross income of the recipient for United States income tax purposes, and, to the same
extent, from taxable net income of individuals, trusts and estates for Minnesota income tax purposes and is not a specific preference item for purposes of the federal alternative
minimum tax (but is included in adjusted current earnings) in calculating federal alternative minimum taxes on corporations and Minnesota franchise taxes imposed on
corporations, including financial institutions, as measured by net income and the alternative minimum tax base) according to present federal and Minnesota laws, regulations,
rulings and decisions. (See "Tax Exemption" herein.)
The City will designate the Series 2010A Bonds and the Series 2010B Bonds as "qualified tax-exempt obligations"for purposes of Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended, relating to the ability offinancial institutions to deduct from income forfederal income tax purposes, interest expense that is allocable to carrying
and acquiring tax-exempt obligations.
New Issues Rating Application Made: Standard & Poor's
PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 7, 2010
CITY OF HOPKINS, MINNESOTA
$2,710,000* GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND BONDS, SERIES 2010A
$2,680,000** GENERAL OBLIGATION REFUNDING BONDS, SERIES 2010B
PROPOSAL OPENING: October 19,2010, 11:00 A.M., C.T.
CONSIDERATION: October 19, 2010, 7:30 P.M., C.T.
PURPOSEIAUTHORITY/SECURITY: The $2,710,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series 2010A (the "Series
2010A Bonds") are being issued pursuant to Minnesota Statutes, Chapters 429 and 475, by the City of Hopkins, Minnesota (the "City") for the purpose of
financing various public improvements within the City. The $2,680,000 General Obligation Refunding Bonds, Series 2010B (the "Series 2010B Bonds") are
being issued pursuant to Minnesota Statutes, Chapters 429, 444, 469, and 475, for the purpose of effecting (i) a current refunding of the 2012 and 2013
maturities of the $960,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series 2002B, dated December 12, 2002; (ii) a current
refunding of the 2012 through 2023 maturities of the $1,265,000 General Obligation Storm Sewer Revenue Bonds, Series 2003A, dated June 1, 2003; and
(iii) an advance crossover refunding of the 2014 through 2023 maturities of the $2,450,000 General Obligation Tax Increment Bonds, Series 2002A, dated
December 12, 2002. The Series 2010A Bonds and the Series 2010B Bonds will be general obligations of the City for which its full faith, credit and taxing
&owers are pledged. Delivery is subject to receipt of approving legal opinions of Kennedy & Graven, Chartered, Minneapolis, Minnesota.
SERIES 2010A BONDS SERIES 2010B BONDS
DATE OF SERIES 2010A BONDS: November 17, 2010 DATE OF SERIES 2010B BONDS: November 17, 2010
MATURITY: February 1 as follows:
Year Amount* Year Amount*
2012 $140,000 2020 $190,000
2013 165,000 2021 200,000
2014 165,000 2022 180,000
2015 170,000 2023 190,000
2016 175,000 2024 190,000
2017 175,000 2025 200,000
2018 180,000 2026 205,000
2019 185,000
ADJUSTMENT: * See "Adjustment Option" herein.
TERM BONDS: See "Term Bond Option" herein.
INTEREST: August 1, 2011 and semiannually thereafter.
REDEMPTION: Series 2010A Bonds maturing February 1, 2019 and
thereafter are subject to call for prior redemption on February 1, 2018
and any date thereafter, at par.
MINIMUM PROPOSAL: $2,676,125.
GOOD FAITH DEPOSIT: $54,200.
PAYING AGENT: Bankers Trust Company, Des Moines, Iowa.
ESCROW AGENT: Not applicable.
BOOK -ENTRY -ONLY: See "Book -Entry -Only System" herein.
MATURITY:
February 1 as follows:
Year
Amount**
Year
Amount**
2012
$180,000
2020
$240,000
2013
170,000
2021
250,000
2014
210,000
2022
255,000
2015
210,000
2023
270,000
2016
220,000
2017
220,000
2018
220,000
2019
235,000
ADJUSTMENT: ** See "Adjustment Option" herein.
TERM BONDS: See "Term Bond Option" herein.
INTEREST: August 1, 2011 and semiannually thereafter.
REDEMPTION: Series 2010B Bonds maturing February 1, 2019 and
thereafter are subject to call for prior redemption on February 1, 2018
and any date thereafter, at par.
MINIMUM PROPOSAL: $2,653,200.
GOOD FAITH DEPOSIT: $53,600.
PAYING AGENT: Bankers Trust Company, Des Moines, Iowa.
ESCROW AGENT: Bankers Trust Company, Des Moines, Iowa.
BOOK -ENTRY -ONLY: See "Book -Entry -Only System" herein.
This Preliminary 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 Syndicate Manager and Syndicate Members, together with any other information required by law, and, as supplemented, shall constitute
ia 'Final Official Statement" of the City -with respect to the Series 2010A Bonds and Series 2010B Bonds, as defined in S.E.C. Rule 15c2-12.
�
EHLERS
LEADERS IN PUBLIC FINANCE
www.ehiers-inc.com
Minnesota phone 651-697-8500 3060 Centre Pointe Drive
Offices also in Wisconsin and Illinois fax 651-697-8555 Roseville, MN 55113-1122
REPRESENTATIONS C
No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any representation other than
those contained in this Preliminary Official Statement and, if given or made, such other information or representations must not be relied upon
as having been authorized by the City. This Preliminary Official Statement does not constitute an offer to sell or a solicitation of an offer
to buy any of the Series 2010A Bonds and the Series 2010B Bonds in any jurisdiction to any person to whom it is unlawful to make such
an offer or solicitation in such jurisdiction.
This Preliminary Official Statement is not to be construed as a contract with the Syndicate Manager or Syndicate Members. 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. Ehlers prepared this Preliminary Official Statement and any addenda thereto relying on information ofthe City and other sources for which
there is reasonable basis for believing the information is accurate and complete. Bond Counsel has not participated in the preparation of this
Preliminary Official Statement except as described herein and is not expressing any opinion as to the completeness or accuracy of the
information contained therein. Compensation of Ehlers, payable entirely by the City, is contingent upon the sale of the issue.
COMPLIANCE WITH S.E.C. RULE 15c2-12
Certain 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 (the 'Rule").
Preliminary Official Statement: This Preliminary Official Statement was prepared for the City for dissemination to potential customers.
Its primary purpose is to disclose information regarding the Series 2010A Bonds and the Series 2010B Bonds to prospective underwriters in
the interest of receiving competitive proposals in accordance with the sale notice contained herein. Unless an addendum is posted prior to the
sale, this Preliminary Official Statement shall be deemed nearly final for purposes of the Rule subject to completion, revision and amendment
in a Final Official Statement as defined below.
Review Period: This Preliminary Official Statement has been distributed to members of the legislative body and other public officials of
the City as well as to prospective bidders for an objective review of its disclosure. Comments or requests for the correction of omissions or
inaccuracies must be submitted to Ehlers at least two business days prior to the sale. Requests for additional information or corrections in the
Preliminary 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 Preliminary Official Statement, interested bidders will be informed by an addendum
at least one business day prior to the sale.
i
Final Official Statement: Upon award of sale of the Series 2010A Bonds and the Series 2010B Bonds, the Preliminary Official Statement
together with any previous addendum of corrections or additions will be further supplemented by an addendum specifying the offering prices,
interest rates, aggregate principal amount, principal amount per maturity, anticipated delivery date, and Syndicate Manager and Syndicate
Members, together with any other information required by law, and, as supplemented, shall constitute a "Final Official Statement" of the City
with respect to the Series 2010A Bonds and the Series 2010B Bonds, as defined in S.E.C. Rule 15c2-12. 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 Rule which require that underwriters obtain from the issuers of municipal securities (or other obligated party) an agreement
for the benefit of the owners of the securities to provide continuing disclosure with respect to those securities. This Preliminary Official
Statement describes the conditions under which the Series 2010A Bonds and the Series 2010B Bonds are exempt or required to comply with
the Rule.
CLOSING CERTIFICATES
Upon delivery ofthe Series 2010A Bonds and the Series 2010B Bonds, the purchaser (underwriter) will be furnished with the following items:
(1) a certificate ofthe appropriate officials to.the effect that at the time ofthe sale ofthe Series 2010A Bonds and the Series 201013 Bonds and
all times subsequent thereto up to and including the time of the delivery of the Series 2010A Bonds and the Series 2010B Bonds, this
Preliminary 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 Series 2010A Bonds and the Series 2010B Bonds; (3) a certificate evidencing the due execution
ofthe Series 2010A Bonds and the Series 2010B Bonds, 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 Series 2010A Bonds and the Series 2010B Bonds, (b) neither
the corporate existence or boundaries of the City nor the title of the signers to their respective offices is being contested, and (c) no authority
or proceedings for the issuance of the Series 2010A Bonds and the Series 2010B Bonds have been repealed, revoked or rescinded; and (4) a
certificate setting forth facts and expectations of the City which indicates that the City does not expect to use the proceeds of the Series 2010A
Bonds and the Series 2010B Bonds in a manner that would cause them to be arbitrage bonds within the meaning of Section 148 of the Internal
Revenue Code of 1986, as amended, or within the meaning of applicable Treasury Regulations.
TABLE OF CONTENTS
INTRODUCTORY STATEMENT ......................... 1
THE SERIES 2010A BONDS ............................. 1
GENERAL ........................................ 1
OPTIONAL REDEMPTION .......................... 2
AUTHORITY; PURPOSE ............................ 2
ESTIMATED SOURCES AND USES .................. 2
SECURITY.......................................3
TAX EXEMPTION ................................. 3
THE SERIES 2010B BONDS ............................. 4
GENERAL ........................................ 4
OPTIONAL REDEMPTION .......................... 4
AUTHORITY; PURPOSE ............................ 5
SOURCES AND USES .............................. 7
SECURITY....................................... 8
TAX EXEMPTION ................................. 8
PROVISIONS COMMON TO BOTH THE
SERIES 2010A BONDS AND THE
SERIES 2010B BONDS .............................. 9
RATING .......................................... 9
CONTINUING DISCLOSURE ........................ 9
LEGAL OPINION .................................. 9
QUALIFIED TAX-EXEMPT OBLIGATIONS ........... 10
FINANCIAL ADVISOR ............................ 10
RISK FACTORS .................................. 10
VALUATIONS ....................................... 12
CURRENT PROPERTY VALUATIONS ............... 13
2009/10 NET TAX CAPACITY BY CLASSIFICATION ... 14
TREND OF VALUATIONS ......................... 14
LARGER TAXPAYING PARCELS ................... 15
DEBT............................................... 16
DIRECT DEBT ................................... 16
SCHEDULES OF BONDED INDEBTEDNESS .......... 17
DEBT LIMIT ..................................... 26
OVERLAPPING DEBT ............................. 27
DEBT RATIOS ................................... 28
DEBT PAYMENT HISTORY ........................ 28
FUTURE FINANCING ............................. 28
TAX LEVIES AND COLLECTIONS ...................... 29
TAX COLLECTIONS .............................. 29
TAX CAPACITY RATES ........................... 30
LEVY LIMITS .................................... 30
THE ISSUER.........................................31
CITY GOVERNMENT ............................. 31
EMPLOYEES; PENSIONS; UNIONS ................. 31
LITIGATION.....................................31
FUNDS ON HAND ................................ 32
ENTERPRISE FUNDS ............................. 33
SUMMARY GENERAL FUND INFORMATION ........ 34
iii
GENERAL INFORMATION ...........................
35
LOCATION ....................................
35
LARGER EMPLOYERS ..........................
35
U.S. CENSUS DATA .............................
36
EMPLOYMENTIUNEMPLOYMENT DATA .........
36
BUILDING PERMITS ............................
37
FINANCIAL INSTITUTIONS .....................
37
EDUCATION ...................................
38
IN-PATIENT MEDICAL FACILITIES ...............
38
EXCERPTS FROM FINANCIAL STATEMENTS ......... A-1
FORM OF LEGAL OPINIONS ........................ B -I
BOOK -ENTRY -ONLY SYSTEM ...................... C-1
FORM OF CONTINUING DISCLOSURE CERTIFICATES. D-1
TERMS OF PROPOSAL
SERIES 2010A BONDS ......................... E-1
TERMS OF PROPOSAL
SERIES 2010B BONDS .......................... E-6
CITY COUNCIL
Gene Maxwell
Mayor
Rick Brausen
Council Member
Bruce Rowan
Council Member
Kristi Halverson
Council Member
Cheryl Youakim
Council Member
ADMINISTRATION
Rick Getschow, City Manager
Christine Harkess, Finance Director
Terry Obermaier, City Clerk
PROFESSIONAL SERVICES
Kennedy & Graven, Chartered, Bond Counsel, Minneapolis, Minnesota
Ehlers & Associates, Inc., Financial Advisors, Roseville, Minnesota
(Other offices located in Brookfield, Wisconsin and Lisle, Illinois)
iv
INTRODUCTORY STATEMENT
This Preliminary Official Statement contains certain information regarding the City of Hopkins, Minnesota (the
"City") and the issuance of its $2,710,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series
2010A (the "Series 2010A Bonds") and $2,680,000 General Obligation Refunding Bonds, Series 2010B (the "Series
2010B Bonds"), collectively referred to herein as the "Bonds." Any descriptions or summaries ofthe Bonds, statutes,
or documents included herein are not intended to be complete and are qualified in their entirety by reference to such
statutes and documents and the forms of the Series 2010A Bonds and the Series 2010B Bonds to be included in the
resolutions awarding the sale of the Series 2010A Bonds and the Series 2010B Bonds to be adopted by the City
Council on October 19, 2010.
Inquiries may be directed to Ehlers & Associates, Inc. ("Ehlers" or the "Financial Advisor"), Roseville, Minnesota,
(651) 697-8500, the City's Financial Advisor. A copy of this Preliminary Official Statement may be downloaded
from Ehlers' web site at www.ehlers-inc.com by connecting to the link to the Bond Sales and following the directions
at the top of the site.
THE SERIES 2010A BONDS
GENERAL
The Series 2010A Bonds will be issued in fully registered form as to both principal and interest in denominations
of $5,000 each or any integral multiple thereof, and will be dated, as originally issued, as of November 17, 2010.
The Series 2010A Bonds will mature on February 1 in the years and amounts set forth on the cover of this
Preliminary Official Statement. Interest will be payable on February 1 and August 1 of each year, commencing
August 1, 2011, to the registered owners of the Series 2010A Bonds appearing of record in the bond register as of
the close of business on the 15th day (whether or not a business day) prior to the interest payment date. 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 Series 2010A Bonds of the same maturity will bear interest from date of issue until paid at a single,
uniform rate.
The Series 2010A Bonds will be registered in the name of Cede & Co., as nominee for The Depository Trust
Company, New York, New York ("DTC"). (See "Book -Entry -Only System" herein.) As long as the Series 2010A
Bonds are held under the book -entry system, beneficial ownership interests in the Series 2010A Bonds may be
acquired in book -entry form only, and all payments of principal of, premium, if any, and interest on the Series 2010A
Bonds shall be made through the facilities of DTC and its Participants. If the book -entry system is terminated,
principal of, premium, if any, and interest on the Series 2010A Bonds shall be payable as provided in the resolution
awarding the sale of the Series 2010A Bonds.
The City has selected Bankers Trust Company, Des Moines, Iowa, to act as paying agent (the "Paying Agent"). The
City will pay the charges for Paying Agent services. The City reserves the right to remove the Paying Agent and to
appoint a successor.
OPTIONAL REDEMPTION
At the option of the City, Series 2010A Bonds maturing on or after February 1, 2019 shall be subject to prior payment
on February 1, 2018 or on any date thereafter, at a price of par plus accrued interest.
Redemption maybe in whole or in part of the Series 2010A Bonds subject to prepayment. If redemption is in part,
the selection of the amounts and maturities of the Series 2010A Bonds to be prepaid shall be at the discretion of the
City. If only part of the Series 2010A Bonds having a common maturity date are called for redemption, the City or
Paying Agent, if any, will notify DTC of the particular amount of such maturity to be redeemed. 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.
Notice of such call shall be given by mailing a notice not more than 60 days and not fewer than 30 days prior to the
date fixed for redemption to the registered owner of each Series 2010A Bond to be redeemed at the address shown
on the registration books.
AUTHORITY; PURPOSE
The $2,710,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series 2010A (the "Series
2010A Bonds") are being issued pursuant to Minnesota Statutes, Chapters 429 and 475, by the City of Hopkins,
Minnesota (the "City") for the purpose of financing various public improvements within the City, including (i)
funding of approximately $290,000 for the 2008 Street Improvement projects; (ii) funding of approximately
$1,590,000 for the 2009/2010 Street Improvement projects; and (iii) funding of approximately $830,000 for the 5'
Street South Reconstruction projects. r
ESTIMATED SOURCES AND USES
Sources
Uses
Par Amount of Series 2010A Bonds
$2,710,000
Prepaid Special Assessments
72,690
MSA Fund
999,980
Water Fund
883,154
Sewer Fund
845,834
Storm Sewer Fund
156.000
Total Sources
$5,667,658
Deposit to Project Fund
$5,601,321
Discount Allowance
33,875
Finance Related Expenses
32,000
Contingency
462
Total Uses
$5,667,658
2
SECURITY
The Series 2010A Bonds are general obligations of the City for which its full faith, credit and taxing powers are
pledged without limitation as to rate or amount. It is the intent of the City to pay the entire amount of principal and
interest from revenues of the City's Permanent Improvement Revolving Fund established under Minnesota Statutes,
Section 429.091. The City anticipates that all of the debt service will be paid by special assessments levied against
properties benefitted by improvements financed by the Series 2010A Bonds. All revenues from the special
assessments shall be paid into the Permanent Improvement Revolving Fund which will then be used to pay debt
service as needed. Receipt of special assessments and collection of ad valorem taxes, if necessary, will be sufficient
to provide not less than 105% of principal and interest on the Series 2010A Bonds as required by Minnesota law.
TAX EXEMPTION
In the opinion of Bond Counsel, under existing statutes, regulations, rulings and decisions, interest on the Series
2010A Bonds is not includible in the "gross income" of the owners thereof for purposes of federal income taxation
and is not includable in taxable net income of individuals, estates or trusts for purposes of State of Minnesota income
taxation, but is subject to State of Minnesota franchise taxes that are imposed upon corporations (including financial
institutions) measured by income.
Noncompliance following the issuance of the Series 2010A Bonds with certain requirements of the Internal Revenue
Code of 1986, as amended (the "Code") and covenants of the bond resolution may result in the inclusion of interest
on the Series 2010A Bonds in gross income (for federal tax purposes) and taxable net income (for State of Minnesota
tax purposes) of the owners thereof. No provision has been made for redemption of the Series 2010A Bonds, or for
an increase in the interest rate on the Series 2010A Bonds, in the event that interest on the Series 2010A Bonds
becomes subject to United States or State of Minnesota income taxation.
The Code imposes an alternative minimum tax with respect to individuals and corporations on alternative minimum taxable
income. Interest on the Series 2010A Bonds will not be treated as a preference item in calculating alternative minimum
taxable income. Due to changes in the Code made pursuant to the American Recovery and Reinvestment Act of 2009,
interest on the Series 2010A Bonds will not be taken into account in determining adjusted current earnings for purposes
of computing the federal alternative minimum tax imposed on certain corporations.
The Code provides that in the case of an insurance company subject to the tax imposed by Section 831 of the Code,
the amount which otherwise would be taken into account as "losses incurred" under Section 832(b)(5) shall be
reduced by an amount equal to 15% of the interest on the Series 2010A Bonds that is received or accrued during the
taxable year.
Interest on the Series 2010A Bonds may be included in the income of a foreign corporation for purposes ofthe branch
profits tax imposed by Section 884 of the Code. Under certain circumstances, interest on the Series 2010A Bonds
may be subject to the tax on "excess net passive income" of Subchapter S corporations imposed by Section 1375 of
the Code.
The above is not a comprehensive list of all Federal tax consequences which may arise from the receipt of interest
on the Series 2010A Bonds. The receipt of interest on the Series 2010A Bonds may otherwise affect the Federal or
State income tax liability of the recipient based on the particular taxes to which the recipient is subject and the
particular tax status of other items or deductions. Bond Counsel expresses no opinion regarding any such
consequences. All prospective purchasers of the Series 2010A Bonds are advised to consult their own tax advisors
as to the tax consequences of, or tax considerations for, purchasing or holding the Series 2010.A Bonds.
THE SERIES 2010B BONDS
GENERAL
The Series 2010B Bonds will be issued in fully registered form as to both principal and interest in denominations of
$5,000 each or any integral multiple thereof, and will be dated, as originally issued, as of November 17, 2010. The
Series 2010B Bonds will mature on February 1 in the years and amounts set forth on the cover of this Preliminary
Official Statement. Interest will be payable on February 1 and August 1 of each year, commencing August 1, 2011,
to the registered owners of the Series 2010B Bonds appearing of record in the bond register as ofthe close of business
on the 15th 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 Series
2010B Bonds of the same maturity will bear interest from date of issue until paid at a single, uniform rate.
The Series 2010B Bonds will be registered in the name of Cede & Co., as nominee for The Depository Trust
Company, New York, New York ("DTC"). (See "Book -Entry -Only System" herein.) As long as the Series 2010B
Bonds are held under the book -entry system, beneficial ownership interests in the Series 2010B Bonds may be
acquired in book -entry form only, and all payments of principal of, premium, if any, and interest on the Series 2010B
Bonds shall be made through the facilities of DTC and its Participants. If the book -entry system is terminated,
principal of, premium, if any, and interest on the Series 2010B Bonds shall be payable as provided in the resolution
awarding the sale of the Series 2010B Bonds.
The City has selected Bankers Trust Company, Des Moines, Iowa, to act as paying agent (the "Paying Agent") and
Escrow Agent (the "Escrow Agent"). The City will pay the charges for Paying Agent and Escrow Agent services.
The City reserves the right to remove the Paying Agent and Escrow Agent and to appoint successors.
OPTIONAL REDEMPTION
At the option of the City, Series 2010B Bonds maturing on or after February 1, 2019 shall be subj ect to prior payment
on February 1, 2018 or any date thereafter, at a price of par plus accrued interest.
Redemption maybe in whole or in part of the Series 2010B Bonds subject to prepayment. If redemption is in part,
the selection of the amounts and maturities of the Series 2010B Bonds to be prepaid shall be at the discretion of the
City. If only part of the Series 2010B Bonds having a common maturity date are called for prepayment, the City or
Paying Agent, if any, 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.
Notice of such call shall be given by mailing a notice not more than 60 and not fewer than 30 days prior to the date
fixed for redemption to the registered owner of each Series 2010B Bond to be redeemed at the address shown on the
registration books.
4
MR
AUTHORITY; PURPOSE
The $2,680,000 General Obligation Refunding Bonds, Series 2010B (the "Series 2010B Bonds") are being issued
pursuant to Minnesota Statutes, Chapters 429, 444, 469, and 475, for the purpose of effecting (i) a current refunding
ofthe 2012 and 2013 maturities ofthe $960,000 General Obligation Permanent Improvement Revolving Fund Bonds,
Series 2002B (the "Series 2002B Bonds"), dated December 12, 2002; (ii) a current refunding of the 2012 through
2023 maturities ofthe $1,265,000 General Obligation Storm Sewer Revenue Bonds, Series 2003A (the "Series 2003A
Bonds"), dated June 1, 2003; and (iii) an advance crossover refunding of the 2014 through 2023 maturities of the
$2,450,000 General Obligation Tax Increment Bonds, Series 2002A (the "Series 2002A Bonds"), dated December
12, 2002.
Following are the maturities of the Series 2002B Bonds which are being refunded by this issue:
Date of
Maturities
Principal
Refunded Call
Call Being
Interest
to be
Issue Being Refunded Issue Date
Price Refunded
Rates
Refunded
Series 2002B Bonds 12/12/02 2/01/11
Par 2012
3.75%
$115,000
2013
3.875%
100,000
Total Series 2002B Bonds Being Refunded
215 000
A portion of the proceeds of the Series 2010B Bonds will be used to call and prepay the maturities described above
and to pay all or most of the costs of issuance. The City will pay the principal and interest payment due on February
1, 2011 from the Debt Service Fund for the Series 2002B Bonds.
Following are the maturities of the Series 2003A Bonds which are being refunded by this issue:
Issue Being Refunded
Series 2003A Bonds
Date of
Refunded Call Call
Issue Date Price
6/01/03 2/01/11 Par
Total Series 2003A Bonds Being Refunded
5
Maturities
Being
Refunded
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Interest
Rates
3.25%
3.25%
3.25%
3.35%
3.45%
3.60%
3.70%
3.80%
3.90%
4.00%
4.05%
4.10%
Principal
to be
Refunded
$ 55,000
60,000
60,000
65,000
65,000
70,000
70,000
75,000
80,000
80,000
85,000
90,000
$855,000
A portion of the proceeds of the Series 2010B Bonds will be used to call and prepay the maturities described above
and to pay all or most of the costs of issuance. The City will pay the principal and interest payment due on February
1, 2011 from the Debt Service Fund for the Series 2003A Bonds.
Following are the maturities of the Series 2002A Bonds which are being refunded by this issue:
Date of
Maturities
Principal
Refunded
Call Call
Being
Interest
to be
Issue Being Refunded Issue
Date Price
Refunded
Rates
Refunded
Series 2002A Bonds 12/12/02
2/01/13 Par
2014
4.00%
$ 120,000
2015
4.15%
120,000
2016
4.30%
130,000
2017
4.40%
135,000
2018
4.50%
140,000
2019
4.60%
150,000
2020
4.75%
155,000
(Term Bond)
2023
5.00%
540,000
Total Series 2002A Bonds Being Refunded 1 490 000
The Series 2010B Bonds are being sold in advance of the call date of the Series 2002A Bonds and will be invested
in accordance with the Internal Revenue Code of 1986, as amended. Acceptance of a proposal is dependent upon
a satisfactory escrow account being established in an amount sufficient to pay a portion of the interest on the Series
2010B Bonds through February 1, 2013 and to pay the callable principal of the Series 2002A Bonds on the February
1, 2013 call date. The City will establish an escrow account with direct obligations of the U.S. Government.
Actuarial services necessary to insure adequacy ofthe escrow account -to provide timely payment ofthe Series 2002A
Bonds to be refunded on the call date will be performed by a certified public accountant.
The City will continue to pay debt service on the Series 2002A Bonds until the call date. A portion of the interest
on the Series 2010B Bonds due August 1, 2011 through February 1, 2013 will be paid from the escrow account
established with a portion of the proceeds of the Series 2010B Bonds.
541
SOURCES AND USES
VA
2002B
2003A
2002A
Total
Sources
Refunding
Refunding
Refunding
Bond Issue
Portion
Portion
Portion
Par Amount of Series 2010B Bonds
$220,000
$875,000
$1,585,000
$2,680,000
Total Sources
$220,000
$875,000
$1,585,000
$2,680,000
Uses
Deposit to Current Refunding Fund
$212,999
$854,705
$ 0
$1,067,704
Deposit to Crossover Escrow Fund
.0
0
1,546,233
1,546,233
Discount Allowance
2,200
8,750
15,850
26,800
Finance Related Expenses
2,873
11,427
20,700
35,000
Contingency
1,928
118
2,217
4,263
Total Uses
$220,000
$875,000
$1,585,000
$2,680,000
Breakdown of Principal and Interest Payments:
Series 2002B
Series 2003A
Series
2002A
Payment Refunding
Refunding
Refunding
Date Portion
Portion
Portion
Total
2/01/2012 $120,000
$ 60,000
$
0
$ 180,000
2/01/2013 100,000
70,000
0
170,000
2/01/2014
65,000
145,000
210,000
2/01/2015
70,000
140,000
210,000
2/01/2016
70,000
150,000
220,000
2/01/2017
70,000
150,000
220,000
2/01/2018
70,000
150,000
220,000
2/01/2019
75,000
160,000
235,000
2/01/2020
80,000
160,000
240,000
2/01/2021
80,000
170,000
250,000
2/01/2022
80,000
175,000
255,000
2/01/2023
85,000
185,000
270,000
Total $220,000
$875,000
$1,585,000
$2,680,000
VA
SECURITY
v"
The Series 2010B Bonds are general obligations of the City for which its full faith, credit and taxing powers are
pledged without limitation as to rate or amount. The City anticipates that the debt service will be paid from a
combination of (i) special assessments levied against properties benefitted by improvements financed by the Series
2002B Bonds and ad valorem property taxes; (ii) net revenues of the storm sewer system which is owned and
operated by the City; and (iii) tax increment revenues pledged to the payment of the Series 2002A Bonds. Receipt
of special assessments and revenues and collection of ad valorem taxes will.be sufficient to provide not less than
105% of principal and interest on the Series 2010B Bonds as required by Minnesota law.
Should the revenues pledged for payment of the Series 2010B Bonds be insufficient to pay the principal and interest
as the same shall become due, the City is required to pay maturing principal and interest from moneys on hand in any
other fund of the City not pledged for another purpose and/or to levy an additional tax for this purpose upon all the
taxable property in the City, without limitation as to rate or amount.
TAX EXEMPTION
In the opinion of Bond Counsel, under existing statutes, regulations, rulings and decisions, interest on the Series
2010B Bonds is not includible in the "gross income" of the owners thereof for purposes of federal income taxation
and is not includable in taxable net income of individuals, estates or trusts for purposes of State of Minnesota income
taxation, but is subject to State of Minnesota franchise taxes measured by income that are imposed upon corporations,
including financial institutions.
Noncompliance following the issuance of the Series 2010B Bonds with certain requirements ofthe Internal Revenue
Code of 1986, as amended (the "Code") and covenants of the bond resolution may result in the inclusion of interest
on the Series 2010B Bonds in gross income (for federal tax purposes) and taxable net income (for State of Minnesota
tax purposes) of the owners thereof. No provision has been made for redemption of the Series 2010B Bonds, or for
an increase in the interest rate on the Series 2010B Bonds, in the event that interest on the Series 2010B Bonds
becomes subject to United States or State of Minnesota income taxation.
The Code imposes an alternative minimum tax with respect to individuals and corporations on alternative minimum
taxable income. Interest on the Series 2010B Bonds will not be treated as a preference item in calculating alternative
minimum taxable income. The Code provides, however, that a portion of the adjusted current earnings of a
corporation not otherwise included in the minimum tax base would be included for purposes of calculating the
alternative minimum tax that may be imposed with respect to corporations. Adjusted current earnings include income
received that is otherwise exempt from taxation such as interest on the Series 2010B Bonds.
The Code provides that in the case of an insurance company subject to the tax imposed by Section 831 of the Code,
the amount which otherwise would be taken into account as "losses incurred" under Section 832(b)(5) shall be
reduced by an amount equal to 15% of the interest on the Series 2010B Bonds that is received or accrued during the
taxable year.
Interest on the Series 2010B Bonds may be included in the income of a foreign corporation for purposes of the
branch profits tax imposed by Section 884 of the Code. Under certain circumstances, interest on the Series 2010B
Bonds may be subject to the tax on "excess net passive income" of Subchapter S corporations imposed by Section
1375 of the Code.
8
The above is not a comprehensive list of all Federal tax consequences which may arise from the receipt of interest
on the Series 2010B Bonds. The receipt of interest on the Series 2010B Bonds may otherwise affect the Federal or
State income tax liability of the recipient based on the particular taxes to which the recipient is subject and the
particular tax status of other items or deductions. Bond Counsel expresses no opinion regarding any such
consequences. All prospective purchasers of the Series 2010B Bonds are advised to consult their own tax advisors
as to the tax consequences of, or tax considerations for, purchasing or holding the Series 2010B Bonds.
PROVISIONS COMMON TO BOTH THE
SERIES 2010A BONDS AND THE SERIES 201.08 BONDS
The following information pertains to both the Series 2010A Bonds and the Series 2010B Bonds which are
collectively referred to hereinafter as the "Bonds."
1ZT-AIRV
The City has requested a rating on the Bonds from Standard & Poor's, 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 Standard & Poor's. 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.
CONTINUING DISCLOSURE
In order to comply with the provisions of Rule 15c2-12 promulgated by the Securities and Exchange Commission
under the Securities Exchange Act of 1934 (the "Rule") the City has entered into an undertaking (the "Undertaking")
for the benefit of the holders of the Bonds. Through the Undertaking, the City covenants and agrees to provide
certain annual financial information and operating data about the City and to provide notice of the occurrence of
certain material events. This information shall be provided according to the time parameters described in the
Undertaking to the Municipal Securities Rulemaking Board as required by the Rule. The specific provisions of the
Undertaking are set forth in the Continuing Disclosure Certificate in substantially the form attached hereto as
Appendix D. The Continuing Disclosure Certificate will be executed and delivered by the City at the time the Bonds
are delivered. The City is the only "obligated person" with respect to the Bonds within the meaning ofthe Rule. The
City has complied in all material respects with any previous undertaking under the Rule.
LEGAL OPINION
An opinion as to the validity of the Bonds and the exemption from taxation of the interest thereon will be furnished
by Kennedy & Graven, Chartered, Minneapolis, Minnesota, bond counsel to the City, and will accompany the Bonds.
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, insolvency, reorganization, moratorium or creditors' rights generally.
9
QUALIFIED TAX-EXEMPT OBLIGATIONS
Prior to the adoption of the Code, financial institutions were generally permitted to deduct 80% of their interest
expenses allocable to tax-exempt obligations. Under the Code, however, financial institutions are generally not
entitled to such a deduction for tax-exempt obligations purchased after August 7, 1986. However, the City will
designate the Bonds ofthis issue as qualified tax-exempt obligations pursuant to section 265(b)(3) ofthe Code which
would permit financial institutions to deduct interest expenses allocable to the Bonds to the extent permitted under
prior law.
FINANCIAL ADVISOR
Ehlers has served as Financial Advisor to the City in connection with the issuance of the Bonds. The Financial
Advisor will not participate in the underwriting of the Bonds. The financial information included in this Preliminary
Official Statement has been compiled by the Financial Advisor. Such information does not purport to be a review,
audit or certified forecast of future events and may not conform with accounting principles applicable to compilations
of financial information. Ehlers is not a firm of certified public accountants.
RISK FACTORS
Following is a description of possible risks to holders of these Bonds without weighting 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 (special assessments, storm
sewer revenues, and tax increment revenues) be insufficient.
State Actions: Many elements of local government finance, including the issuance of debt and the levy of property
taxes, are controlled by state government. Past and future actions of the State of Minnesota may affect the overall
financial condition of the City, the taxable value of property within the City, and the ability of the City to levy
property taxes.
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, either possibility resulting in a reduction in the value of the Bonds for resale
prior to maturity.
Tax Exemption: If the federal government or the State of Minnesota taxes the interest on municipal obligations,
directly or indirectly, or if there is a change in federal or state tax policy, the value of the Bonds may fall for purposes
of resale. Noncompliance following the issuance of the Bonds with certain requirements of the Code and covenants
of the bond resolution may result in the inclusion of interest on the Bonds in gross income of the recipient for United
States or in taxable net income of individuals, estates or trusts for State of Minnesota income tax purposes. No
provision has been made for redemption of the Bonds, or for an increase in the interest rate on the Bonds, in the event
that interest on the Bonds becomes subject to United States or State of Minnesota income taxation, retroactive to the
date of issuance.
Continuing Disclosure: A failure by the City to comply with the Undertaking for continuing disclosure (as
described herein) will not constitute an event of default on the Bonds. Any such failure must be reported in
accordance with the Rule and must be considered by any broker, dealer, or municipal securities dealer before F
recommending the purchase or sale of the Bonds in the secondary market. Such a failure may adversely affect the
transferability and liquidity of the Bonds and their market price.
10
r
State Economy; State Aids: State of Minnesota 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: A combination of economic, climatic, political or civil disruptions or terrorist actions could affect the
local economy and result in reduced tax collections and/or increased demands upon local government.
11
2009/10 NET TAX CAPACITY BY CLASSIFICATION
Residential homestead
Commercial/industrial
Railroad operating property
Non -homestead residential
Commercial & residential seasonal/rec.
Other - non-profit community association
Personal property
Total
TREND OF VALUATIONS
Levy
Year
2005/06
2006/07
2007/08
2008/09
2009/10
Assessor's
Taxable
Market Value
$1,460,671,900
1,590,841,300
1;671,252,600
1,680,859,300
1,695,916,200
Net Tax
Capacity'
$18,416,832
20,164,332
21,369,871
21,687,774
22,300,861
2009/10
Net Tax Capacity
$ 9,878,063
9,007,997
49,168
3,126,044
2,820
70,975
165,794
$22,300,861
Percent of Total
Net Tax Capacity
44.29%
40.39%
0.22%
14.02%
0.01%
0.32%
0.74%
100.00%
Adjusted
Taxable
Net Tax
Percent +/- in Assessor's
Capacity'
Taxable Market Value
$17,458,950
+ 8.99%
19,097,989
+ 8.91%
20,229,068
+ 5.05%
20,306,413
+ 0.57%
20,359,193
+ 0.90%
' Net Tax Capacity is before fiscal disparities adjustments and includes tax increment values.
2 Adjusted Taxable Net Tax Capacity is after fiscal disparities adjustments and does not include tax increment
values.
14
1410
LARGER TAXPAYING PARCELS'
2009/10
2009/10
Assessor's Taxable
Net Tax
Taxpayer
Type of Property
Market Value
Capacity
SuperValu, Inc.
Industrial
$ 55,783,000
$1,114,910
Excelsior Crossings Investments LLC
Commercial
38,278,000
764,810
RE Capital Partners
Commercial
30,000,000
599,250
Greenfield Apartments LLP
Apartment
24,224,000
302,800
Ramsgate Apartments LLC
Apartment
19,360,000
242,000
Southwest Real Estate, Inc.
Apartment
18,883,400
237,223
Duke Realty Corporation
Industrial
11,700,000
233,250
The Luther Co. Ltd. Partnership
Commercial
11,500,000
229,250
Hines Reit Minneapolis Industries LLC
Industrial
10,619,000
211,630
City Center Ventures LLC
Commercial
10,000,000
199,250
Source: Current Property Valuations, Net Tax Capacity by Classification, Trend of Valuations and Larger
Taxpaying Parcels have been furnished by Hennepin County.
' Hennepin County has provided only the ten largest taxpaying parcels which appear on the tax rolls of the County,
and therefore the information stated above may not be reflective of the entire valuation of all parcels and may
not include all classifications of property.
15
DEBT
DIRECT DEBT'
General Obligation Debt (see schedules following)
Total g.o. debt being paid from housing improvement area fees $
2,960,000
Total g.o. debt being paid from revenues
3,350,000
Total g.o. debt being paid from tax increment revenues
1,230,000
Total g.o. debt being paid from taxes
8,515,000
Total g.o. debt being paid from special assessments and taxes
4,450,000
(includes the Series 2010A Bonds of this offering)
Total g.o. debt being paid from housing improvement area fees
1,065,000
and tax increment revenues
Total g.o. debt being paid from revenues, special assessments and taxes
110,000
Total g.o. debt being paid from revenues, special assessments, tax increment revenues
and taxes (includes the Series 2010B Bonds of this offering)
2,680,000
Total General Obligation Debt $24,360,000
Lease Purchase Obligations (see schedule following)
Total lease purchase obligations paid by annual appropriations' $ 2,670,556
I
I�
' Outstanding debt is as of the dated date of the Bonds.
Non -general obligation debt has not been included in the debt ratios.
16
b
d
d
U.N
C
d
E
R 9
L
C
O
Q
C
00
E
m
�
a
w
o 10
a
b
a
7
d
�
�
v o o o v e v o o e
O
IL
E
f- �6
d C
0 0 0 0 0 0 0 0 0 0 0
rn
da
0000 0 0 0 0 0 0
W C
Z m
C_
n 0
d
Zco
m p
ra NtOV � Wc$c%�
d
D 0
z
Z d c
x
Y c C
Fd -
N 0^ 0 W W 0 NN V
N
F a
fb0
Co O) V W 0 N �O Nr f0 V
p M cm.
=o a ti
N
(M0
{L 070
9 C
O 7 ` <
m 'o
•T�+
�
r W
Cl! W
t0 t0 a0 N b h I� !D V 1�
N
N
v co (D
b
A
R 9
0 0 0 0 0 0 0 0 0 0 0
N W
N N N N N N N N N N N
LL
v o o o v e v o o e
IL
vv Ci mo wwmIqU�o
d C
0 0 0 0 0 0 0 0 0 0 0
'g v
0000 0 0 0 0 0 0
a�
ra NtOV � Wc$c%�
0
A pa
N 0^ 0 W W 0 NN V
N
F a
fb0
Co O) V W 0 N �O Nr f0 V
h r tV cD N W i�
M V M M M M M M M M M
N
(M0
M
r W
Cl! W
t0 t0 a0 N b h I� !D V 1�
�fi
N
b
L
d O
a
wm
6
0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 C C 0 0
o
O
d
L
F �
c
a C C o C o O
ori vi uioouiovi �cio
o
�...
ry
•C
0•
N N M V b W W 1� W N
N M N N N N N N N N M
W
N
p C
p t0
N
O aj
4'1 N
W N
V
m �
N
t Wp M
y
C
coO V W
m
N N W W � W b V M N
r
2
b
Il
d Ni
C
O
� N
� N
c
a
000000000
o
NN
•�
0 c c
0 0 0 0 0 0 0 0 0 o
o
o -
C
•C
O O� N O O N O N� O
L6
N
N V
p•
N M M b W W N N
N N N N N N N N N N N N M
W
W
L
L C
mm0
C
«
N
00
0
O
0
E
N O
°J
m
N
« E
of
N
00
O
�
2
dx
O
O
0
L
N
O
'C
W
Obi
d
w 0
'y
CL
F
=S
ro
�
N
N W N N N N N N N N N N N
LL
17
O
O
N
O
A
Y C_
C
O O
c
N N N N N
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
M»
c
41m
m
R
9
0 0 0 0 0 o e e e o 0 0 0 o e
R
IL
Q p1 tp N Of M (O W N Q n 0
�- f0 W tD A o M O
Ap
LL
(M(pp p y N
N M Q (O c9 m A n ro W rn m o
O vim
c+
m
w O
;
O
�u0
am
N
o 0 0 0 0 0 0 0 0 0 0 0 0 0 o
CZ
G 9
€
O N
m
N
Z C
y
0000�ri ori vi o�[io
MQQM�ococ�$�ro o��
o nen
C
IL
d�
N N N
Y c
O
CL o R o
O m rn�
m�
�oo�n u��m�n a0000000
min NnNMAM000�oo
o
t�
= o l .-
e d
F
ll
<"� N M N m 0 O A T Np
LL. doz
aD OtO f�OfV OiOO fGONOi 7 W
T
r0.a ter'
C
Ro
p
�
F L y
Q
`C
U in t9 a
A
Y C_
F N M V N N A a0 01 O N M e} n
N
q a
N N N N N
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
y C
y W
N N N N N N N N N N N N N N N
LL
9
0 0 0 0 0 o e e e o 0 0 0 o e
R
IL
Q p1 tp N Of M (O W N Q n 0
�- f0 W tD A o M O
Ap
(M(pp p y N
N M Q (O c9 m A n ro W rn m o
'y0
-c
am
c
0.
co
A °i
o 0 0 0 0 0 0 0 0 0 0 0 0 0 o
an d
J
Lc
a
o 0 0 0 0 0 0 0 0 0 0 0 0 o
0 0 0 0 0 o 0 0 o 0 0 0 0 o
c m
c c
0000�ri ori vi o�[io
MQQM�ococ�$�ro o��
o nen
�d
IL
d�
N N N
m
O
3�
m c
m�
�oo�n u��m�n a0000000
min NnNMAM000�oo
o
t�
y
Em
e d
F
ll
<"� N M N m 0 O A T Np
aD OtO f�OfV OiOO fGONOi 7 W
O
o
c
�vvv v<°`c��������
p
�
�O
o m
� m
rn y
9
A N
F N
�(1 O O N N to O u7 W 0 0 0 0 0 0
aD W N A N W n W 0 0 0 0 0 0
M N O> O A �-_ W W m
M N CO
O
(�pp
t0
0 O
0
i0 p
W Q 0 n 0 n Q O O b 0 0 M
Q
0
m w
CD V
0-
-qW
W-4
000000000000 O O O
O
O V
o a
000000000000000
0 C 0 0 0 0 0 0 0 0 C 0 0 0 0
0
0
`2 m
O
d
V M V Q Q r .�-
M N
p
�y
U
'c
m
`oE
y
m�
i'v?'•i`"-.''%.,`P.•S�s..s��-'">'Fus^ui`.'-.".,r�=`T,�:'v�rG'�w�u.'--"a""�aa'�
'CN
0
OD N M N OD O O n W
O
E a
C
0
v<d��invo�ri iocom ii
Oi CO A (D 0 Q Q Q M M N N
c6
�
� L
O
N �
�O
� N
m
N
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
O
o
««
a
•�
000000000-0 0 0
0 0 0 C 0 0 0 0 0 0 0 0 00 0
o
0
a
c
c
ui o 0 o vi vi vi o ui vi 'vi vi ui ui ici
ui
o m
IL
0C01 V V V r r
N
N A
OM
a •o
w RrE
d
m
0
�JQ
y II a
" m o
mrno
d
00
00
p N
C
n
u
C m
•L
CL
aN
C .0
a in in
d rn
Y c �NMQ�mm�wo�o NMC�ff
N N N N fV N
q 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
ai W N N N N N N N N N N N N N N N
18
0
CD
R
d�
} C r N M a 0 CO
v
N W N N N N N N
LL
m C 0 0 o 0
05 O M O Cl) .O
d N r N 0 0 0 0
O 00 O NO
N O I- 00 O O
C'C
000000
v a
O O O O O
C
C C
O O O
OCq
C
d.
_O
O M N •-
y E
7
O
C
dO
d%
e�
O O
0S
V
M O
C F-
a
O M
N
V
C
CR
C
r
O
0) N
m
x
r
x
cc
w
~
C N
07 V!W
O M
O
X y
0)
— 0) m M Lo O C CO
O O W O
CO O
(0
00
a LL
r
~ H R
C
co Ln m O C0 N
h
C 0
W d'
N
=a
=
LLJ Ci
m
C
4:.�
Z a
E
c
N O
+ d
Z m
y
V
o O
N O
O
ON
0S 0S
Q
N V
O
O
N
Gq
F V
cj
O
N y
F -
O O O O O
O.
`1C
CL
_O
O W O r
M N r
Cl)
N
O
Occ
m n
= 0
LL 0 0
c
0 3 (sem
o
"G
d d O
p E
7
is
C
to
N O w O M
1- N O O O O
Q
ID
N
Uu�c9a
V7 O CO O O
V
_
R
d�
} C r N M a 0 CO
v
N W N N N N N N
LL
m C 0 0 o 0
05 O M O Cl) .O
d N r N 0 0 0 0
O 00 O NO
N O I- 00 O O
C'C
000000
v a
O O O O O
C C
O O O
OCq
C
d.
_O
O M N •-
y E
7
O
•- N
V% C
e�
O co00 co O
0S
0
mO
coO
am
C F-
a
u, oc v? O O
a0 O W (D N
co
O c
m 0
CR
C
r
O
0) N
m
r
2-0
'o
C N
07 V!W
O M
O
X y
0)
— 0) m M Lo O C CO
O O W O
CO O
(0
00
r
F-
C
co Ln m O C0 N
h
C 0
W d'
N
O O
O
O O
9 O
ON
0S 0S
Q
0 0 0 0 0 0
0 0 0 0 0 0
O
O
N
Gq
F V
Ct 0 0 Ct 0 0
O
N y
C
O O O O O
O.
CL
_O
O W O r
M N r
Cl)
N
O
ow
0
0 0
va ._
y
�ca
ca
E
NO
0)
N O w O M
1- N O O O O
W
ID
N
V7 O CO O O
V
_
CW
c
W� O 0 N
N
M
r
O N
y t
� m
= 3
� O
f6 w
E n ti
ao
0 0 0 0 0
0
(Oorn
Z
0 0 0 0 0 Ct
C -
N �-
C
0 0 0 0 0 0
O
N N
d
O m O O O
N N r
O
O
L:
M-0 L,
7 m
O T
�
w C
<O
= ,,x. -I. a-1finMll. —.21MM-5-m
N m
U)
v n M
W)
N co
Co IR r
Cl!
y �- -p
N O �
O U O
C o
3
N
�
0f
O O O
O
CL
o 0 o
O
v �
'
O O O
O
y
O O O
M
N
ILc
Cl)M
c
�
L O
H 0]
R
N W N N N N N N
IL
19
19
LL
F-
0
0
O
O
N
0
a-
R
d O
<p a 0 0 0 0 0 0 00 0 0 0 0 0
N W N N N N N N N N N N N N N
LL
a C 0 0 0 0 0 0 o 0 0 0 0 0
'R OCO O W co O h O CA 0
Q. CA O M M c0 O M 00 aV O
LO N O LO N O h u) MO O O
p N M Cl) V c0 c0 h 00 CA O
i6 0 0 0 0 0 0 0 0 0 0 0 0 0 0
c.= o 0 0 0 0 0 0 0 0 0 0 0
•Vp o00000000000
C= 0 0 0 0 M u) O Lo M 6 M
O H
at 't W M (hD �- Iq ccM (fl CO
S 00 h O OU� u7 � M M N �-
0
r V V V V OO O r V M O
O N N N N 00 CO w M r N h 0 0 O
H a h C G C N M ch r� wO N V
00 CO O V LO V N V O O r V M M
Lc) O W) O U7 LO CO u7 uY V V N LO 0
00 00 07 00 W W W 00 W 00 co W W O
RN V V V V O O O r V O O
d N N N 00 CO 00 <M r N h M t0 Lo
O �- h C c0 O N cr cri rpll� cct C N V
~ = 00 00 co Vt O V h O Cj O r- V 02 00
V N O 00 O c`M O h r M O r I-
n
M M M N N N N r r U�
N
20
N
d
U
LL
U_
CD
.Q
d
O
O
n
0
N
N
O
= N
L C'
O
co M
A? E
U
3 d
R Q
Ea
M .d.
CD N ca
a
N
M¢
M N
7 O
20
:s W
00 ;N
N U)
c R
C.
O O O O O O O O O O O O O O
- O O O O O O O O O O O O O O
O
F V
O O O O O C O C O O C O O O
M1 (D O WO O -4) u) O O O O Lo
C
O
N c0 h m N V h O M 0 O M
O.
LO u'Y ui ul> U� O CO c0 h h h O W
co
d
cc
R
I --
H
Q
r
N
V V V V O O O r V t0 O
,a
10
N N N T 00 CO 00 M r N h M cD
h 0 40 O N ch M r h aD O N V
y
Co
Y
'c)'
a
o0 00 c0 O v h 0 0 _W h V 00 00
co r
(/� C
C
M M M N N N r r r c0
W a C
d
O
N
Z+O
O
a d
Z0
O
L
o0
m
M
o
N
C
G
aO
R
Q
0 0 0 0 0 0 0 0 0 0 0 0 0 O
Cl 0 0 0 0 0 0 0 0 00 0 0 O
Q�
O
O O O O O O O O O O O O O O
- Q
c
O c0 O O O O u7 L OO O u.)Y u)
O Oc0
ZC
♦+
O.
N c0 h W N V h M O M
� c0 c0 Ul) U� c0 c0 c0 h h h o0 00
00
O
= om
LL d 0
a e
d >s
0 3 R
r =p
•�
C
rN M V c0 c0 h 00 07 O N M
e- r a- e-- N N N N
Nd C
R£
N
a
O O O 0 0 0 0 0 0 0 0 0 0
N
=
0 Q
tRi
W W
N N N N N N N N N N N N
Ut�nC�a
LL
20
N
d
U
LL
U_
CD
.Q
d
O
O
n
0
N
N
O
= N
L C'
O
co M
A? E
U
3 d
R Q
Ea
M .d.
CD N ca
a
N
M¢
M N
7 O
20
:s W
00 ;N
N U)
21
If
O
O
0
O
N
d Of
- -
Y C_
r N M V• u) t0 n oD 01
f0`I fV N N N N N
H IL
N N N N N N N N N N N N N N N N
LL
'R
o 0 o e o o e o o e o o a o o e
a
O O n m W n 0
V' tD 1C) n M O O M ID a0 M M fD O M O
u
O M O M n (D 6 O M w fV 0 0 0 0
N N M V UD 0 <D r-
000 000 0 0 0 0 0 0 0 0 0 0 0 0 0
•V a
C C
0 0 0 0 q4 0 0 0 0 0 0 0 O O
to LL") O l(1 - In In Ifj 1() tD
1�
ID tD fD OD O O O
.- M '•} � n M T I n N
M M M N N
0
zoo
u) u> o �D m rn in o 0 o in o 0 o
n
d
W V' 4') O) M n
(4 M n (D O M M IQ
F
1n 0 0 f`7 n n n tD O M t0 W N A
N
V V' N N N N N N N N
�
N
N
�f) tD In O b M O) lD O O O tD O(O
N V' N O M n GD n Mt 01 M O O
n
M
Hd
N
f0 M n �- O O M n M�r O a-
m � LL) N M n N N 19)O M CD O) N
M
C
�2 �2 O O n <D LO v C M N r
.0
O
N W
fl.
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0O
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
O
F V
- C
O O O O O O O O O O O O O O O O
U) O h U) 0 0 0 In h 0 0 0 0 0 0
O
O
. d
N M M M M t0+1 O V aD W N M O O N N
VV'
a N
r d
n M M O cD O) �D to 0 0 0 LD O O O
M
N d
O N M tD M O M v � O n M O O N m n .- M 0 M t0 00
M LL") �
N_
O O N '7
V'
c-
aD
n
d O
�
O
O^ O
W
N N
Ci
^ O O
N
'V
N
C
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
O
t
� N
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
O O O O O O O O O O O O O O O
O
O
c
oui�rioui�no�n000000Ln
o
vm<Dnnnwaornorornrnoo
F
N
a
c
w
O
`
M N tM0 N (OD
M
_
r
Lo CO 0 7 M N
N
>
C =
rn
N
N
L LL
O
O
E Im
w�
00000000
o0
A
.v
aai G
ty
a
•�
00000000
0
is d
c
vio00ovivivi
o
CL
p,
�'- N N N N N
U)
d
Ic
8
a
:.• '..isr
.m"y,^'u.L'.�d:..��'i:�<R.YCU..+'-.'h'"o'l^h.:ia .. 3a..:-.5.3��...'$nisi.,i*'.Is�T:`...i.`-.-%T_
a L
o
H a
d
0
OM
Ed
U) IL
LLI
o
Z a; a
o.a
co
Z y m
£
N o 0
a
C •7
N O N
R
O
C 'O
N1vO
d O
d
c"
C
c
O
o
O
Z d
A
£
0
Y c 2
d
CL
a o A c
a
p m rn-
= o a
LL dor
c
adi
Q
m
y( a L w
i C
C
Q Q
�5
N N N N N N N
N N H N N N N N N N N N N N N N
r H
N IL
C� fn C7 a
LL
21
If
O
O
0
O
E
O
a LL
N yf
y �a
W C
Z r S
Z y CO
a)
Z�/ d
i = Y
0 m Mo
2 c
LL NO
0
>-ya`)O
Uv�C7a
a C ?+�
O 3
�E
R
C
r N M Y1 t0 h OD
r r r
r r r r
N N N N N N
v C
N N
y W
LL
0 0 0 0 0 0 0 0
w O
O)
C
d
r to O) tl� O N M O
-
'y y
e
0o Go Co O M O
O r -0 W O
N Cl) d•
0 •�_'
SU
c a�
o.r
� o
a�
o00000o
0
0.= y M
a
0 0 0 0 0 0 0
i
O
ter'
= c
•�„
w w LO LO m:i; w
Co O (D M O
N r
me
�
O.
co r O 7
C E r
7
a>
O
Ors
O O O
_
N V
r oiS
LO co
M
M
X O
O a
N ti� d' to M
M N r I-- O CO O r --N
N
H
r
F
d' r ��- r r
N
N
O :s .O
r
ON
CD
m
lzi
y
A N
�O o0 a0 co M W co 'Q
M_
Eq w y
O`
N to ` N v In M M
N
y 'O N
~
M" h O CO 0 r-
O
� a)
f� O L6 O•d• � M
M N N
Cr;
O
fa
(� N
N
a) O) y
L O> "O
_ r C
O
R R
0 0 0 0 C. 0 0 0
O
m
y
C C
a
V
O O O O O O O O
0 0 0 0 0 0 0 0
O
O
M E
f-'
=
OO O N M
ca N
LO
O
C
IL
N r r
co V
x
N
N m l -
L O N
o In x
mm
N
C>d
0
LO 00 co co Go 00 00 IT
0
M N r r, O W O N
N
N a N
r
I- O In O7 v r r M
O)
O
LO+ C
C
IT V CM N N r r
N
:5
m Q
O � R
C Q N
C
R
0 0 0 0 0 0 0 0
0
O
0
a) (�
SD EO
a
0 0 0 0 0 0 0
CL 0 ci C 0 0 0 0
0
C
O Ln O LO 0 0 0 LO
L6
y>
-26
r�2 �2`
O
IL
N r r r
Co
r
EU.
m rn
tRj = N N N N N N N N
y W
LL
22
a)
E
m
0
CL
E
Ti
u
E2
(D
W
a
N
m
Q
2
a`
23
A
0
§
7
k
f
k
CL
IL
ma w
LL
�
y
/
j
°
CLE
. f
.
ILa
2
k
�
-°
00
/IL
C _
2C14
CN
� �
2
�
o�
j j
)
\
«
�
tu
)22-
C
ƒ
-
A
IL
\
�
E
�
E
�
m
.=s_,
.:
a
2§a.
LUco
^
_
2
3
s22
§
§
~
_
E
8
-
2
�2f
.
ao_E
o
= 0 Fz
LLao�
o��-\
�k
)wk
.7§/
Uno_
23
A
0
§
7
k
f
k
CL
IL
N 0CD
0
!O o 0
y H CO N
d
r
L
d
-
1p a
r r r r r r r r r N N N N
O O 0 0 0 0 0 0 0 0 0 0' 0
N W
N N N N N N N N N N N N N
N O
'a
Lj-
O p
0 O
a
o 0 0 0 0 0 0 0 0 0 0 0 0
2 N N
Q
a)
N
C
O N O O M W) co Cl) 00 M O
o�ornnrn M ov00
E;g
U a
ccc
e
O w�2O 00 w u0 M N O O O
N N M IT -0 O r M co O
C N N
X a O
0)w�
F@ U_ U
m o-
c� ?-
E
E u) y
C N y
Q
R O
Q C
0 0 0 0 0 0 0 0 0 0 0 0 0
O O O O O O O O O O O O
_
C w• O
O ^,
a •- a
7; r-
o0000000000o
o0000CDCICD 0
pf6m02'
•RAE
CD
C
N
LOU(
c N n N
N
�Nw
O
d
c09 (Lq 0 (O V: O (N
y
a) d
C
"•'
7
N N N N r- — •- e- r
O O L
N
O O C
0
ALF-
0 Nr tT6
C cL
1� 4o M M W,Lo O O M Lo a0
'V' 0) 'V O cc O
r
O
C O
N O
(D
O p) @ 0
C
F- d
N N V' V•
0) c c
0) W W M �- v " W .- W W N v
O
(V
O ,� N
C T O
(D 00 O V r M V' M r O M
M N (O (n (O LO LO w w (C O r
co
O
O Nr
O r0
-'tQ C i/1
N
N N N N N N N N N N N N
O N =
EA O O O
0
M
C y 3
N T O.
CL
U•2
y a) m
0
n LO M to M (() W O W M (n co
r
N '@O
w CO (D a
O
~
(0 W cc0 M 0 st 0 M N W 000 N�
O
_T
(„) N
.0 y 3
p
+O+
C
(O c0 � O r co M M{ M
M d• v V V Cl) M N N r
M
N O M
N 00
y 2-1
N
�
w
p N
N 9
:�
�
N N
7 CO
AD `
O w
N
N
ELm0
ais
Q
o000000000000
O O O 0 0 0 0 0 0 0 0 O
C)
O
Ey
R O
N~ N M
H'V
0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 ((j 0 0 )D O
O
O
E 0a
O fy �, d
N O C
C
co r N N N M 7 (() O I�
O
C
O
d
L O 7.
N N N N N N N N N N
O
N
_M
O N m
7 N U
N Co 0
7
p M
(U0
0)
w N
3
OO
7 M > r
LOo 0O
O
U�
w O N
N U O
N N N r
O d 7
N -
y
a N
w`
r- � M W) M m (n O 0) M LO m
0) V v '7 6) 7 N O N V 0 0 V
r-
O
(D O 3
w (O E
)
C LL
N M L
(p df
O cc cq M .- VL 0 c r M 00 N 00
O
N O N
COO 01
• E=
M w r- O r- m T M r �- M
V It v R sr oM cM N N .-
M
N
C a LL
CQ
3 N O
_ O
N
L O C O
-Or.L,,,
W
w Oc
y N16
a o
C
N
N N i
O
V) O .- Q
LL
C
N a) ,O
R
C
O O O O O O O O O O O O O
O O O. 0 0 0 0 0 0 C. 0 0
O
O
N 0)Q
7 c_
0) 0) LL O
3 (n
O O O O C O
O
N •� N
N L C
N
• C
0 0 0 0 0 0 0 (n O O M C
co N N N M [C (n )C) I-
O
CO
N.
0
N O a
a 3 C
C
N N N N N N N N N N
O
y r-
L N N
`o.
L O "�'
N
F- � C7
F- IM -
L
d Im
C
r N M a ((f to h CO M O r N M
r r r r r r r r r N N N N
or -
W
0 0 0 0 0 0 0 0 0 0 0 0 0
N N N N N N N N N N N,sN N
N
An
LL
24
c.
OS
d O
r C r
0 CD c.
R� O O O O O O O O O O O O O
V= N N N N N N N N N N N N N N
N W
LL
0 0 0 0 0 0 0 0 0 0 0 0 0 0
07 I� M 1- r It NW r W N u) CO V' O
d N I-- W W I- M r M CO IT Cl) CO .- O
e CO � M CO M M I-, M O n V N O
N M V' V' CO I- r co O O
25
O
Q.
C0 0
C
M O W c0 W 0 0 0 0 0 0 0
'V 'p
5
V' W M CO"N O O O0 O O O
N O M W t0 --N O O O Cl O O
C C
M O r m M r r- O O O CO
a y
O N Lo CO CO W V' I, M O
W M M M h Cfl V' N
a=i
N N N r
Q
O
w
W W 00 O M M M O CO W OU') W C
O W N ti O Cn W ma M M CO
O
N
W
O
0 p,
�
N M N W
Cfl ' O N r M r V' Cn
V
i�
Z
Or V' r V' CO M V'
LO
Z
r n n CO n n CO
N N N N N N N N N N N N N N
V^
M
CC
,C
c
Z
N
`o y
M M N M I-- CO co O U.) N O Cl) co
O M Cl) M f� co M O CO Cl) M co
M
(O
V
i~
O
V'
N M 0 a- O V' M CO N e- I� 0O V' CC7
C
Cl) I-- O V' I- O) N V' I- 0) M V'
O M M W r Cfl CO CC') V' M N N c-
I�
co
a
O
n
Z
LL
O
R
o 00M N N W M Cn 0 0 0 0 0 0
CO
-
o Q
Cn M N LC) W M M O O O O O O
U')F
CC)
M r O r N V' Oct N O C Ct C C 0
O M O O LO CO O O
O
_
C
1� V' co N �-
W M O O T W W M O
I-
V
d
N N N N N
CO
W
O
Z
d
O L m w N W N
<C
O O M I"i M M
M
+�+
C
CO � � W 0 V' r
r
W
f-
LL
N
Ox
MC)
U 00 O
` O
C\V
O
C=
C
N N
otS
C
d O
N
OS
tO co M N N co M to
(fl
O
L �
a
'V
M� O W M M
M O N V: cc N
CC)
lO
LL
LLO
b L
CL
LQ
r Q
✓
a..�,._.�...'...:}�..
W,..w�:.:::�:z'�:...t w. moi:. s. y: .... .:c.. ,»w.x..,,rt�, ...a,.'£'...:�::n
3OAM
Z
.,u�.
N
WC
_ V' M (O,O V') Wz0 W WN„
LO b y Cn n O 1l M M 0
V',
co
CN
C
C'7 N CA C C I- M P- N e- r W R Lt)
C�t
(q C
a,
�
�
+_
C
CO N Il M W N CO O
W W 1� r W w Cc') LO V' m M
Q
W
C6 O O
LL O
O
W a d
0 C Q
N
R
0 0 0 00 0 0 0 O O O O O O
O
_
a
W
M
a
'V
C. 0 0 0 0 0 0 0 0 0 0 0 0 0
O O O O O O O O O O
O
O
W
3
e
O O O O
OCO O 4) CC) L) O Cn O O W Cn O O
CC)
p T
W W- W W M
d d
n.
------
a` N N
M
O �
N
Zm d to
OJ ~
t7
Z d O r'
TV
a O
o
L
R
d 0
� C
r N 0 a N W 1- 00 M O r N M V'
"C (�
- ;3 G
CC
+�+
i0
r r r r N N N N N
0 0 0 0 0 0 0 0 0 0 0 0 0 0
O 0
p Q
W
N N N N N N N N N N N N N N
O U)
N
2 N Z Q
LL
25
O
Q.
DEBT LIMIT
M
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 3% of the Assessor's Taxable 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 (e.g. the Series 2010A Bonds and Series 2010B Bonds of this offering); (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.
Assessor's Taxable Market Value $1,695,916,200
Multiply by 3% 0.03
Statutory Debt Limit $ - 50,877,486
Less: Long -Term Debt Outstanding Being Paid Solely from Taxes` (8,625,000)
Less: Long -Term Debt Outstanding Being Paid Solely from Annual
Appropriations (applies to issues in excess of $1,000,000
originally issued after 6/1/97 which do not have revenues pledged) (2,315,000)
Unused Debt Limit
$ 39,937,486
W_�
' Includes a portion of the $3,735,000 General Obligation Refunding Bonds of 2001 that refunded the,$2,065,000
General Obligation Recreational Facilities Refunding Bonds, Series 1993D that are payable solely from taxes.
26
• OVERLAPPING DEBT'
Taxing District
Hennepin County
I.S.D. No. 270 (Hopkins)
I.S.D. No. 283 (St. Louis Park)
Metropolitan Council
Three Rivers Park District
City's Share of Total Overlapping Debt
2009/10
Adjusted
City's
Taxable Net
% In
Total
Proportionate
Tax Capacity
City
G.O. Debt
Share
$1,600,479,532
1.2721%
2-
$ 755,035,000
$ 9,604,561
107,409,092
18.7201%
128,275,000
24,013,185
57,357,339
0.4396%
55,015,000
241,827
3,553,445,725
0.5729%
3
167,600,000
960,251
1,161,337,991
1.7531%
73,985,000
1,297,017
$36,116,841
' Only those taxing jurisdictions with general obligation debt outstanding are included in this section. Does not
include non -general obligation debt, self-supporting general obligation revenue debt, short-term general
obligation debt, or general obligation tax/aid anticipation certificates of indebtedness.
2 Hennepin County also has General Obligation Solid Waste Revenue Bonds outstanding which are payable
entirely from the County's solid waste enterprise fund; General Obligation Bonds (Century Plaza Debt) which
are expected to be paid from building rental fees from County departments and non -County tenants; and General
Obligation Ice Arena Revenue Bonds which are expected to be paid from building rental payments from
Augsburg College. These issues have not been included in the overlapping debt or debt ratios.
3 The above debt includes all outstanding general obligation debt supported by taxes of the Metropolitan Council.
The Council also has general obligation sewer revenue, wastewater revenue, and radio revenue bonds and lease
obligations outstanding all of which are supported entirely by revenues and have not been included in the
Overlapping Debt or Debt Ratios sections.
27
DEBT RATIOS
Debt/Estimated
Full Value of
Debt/17,290
Taxable Property
Estimated
G.O. Debt
($1,728,599,859)
Population
Direct G.O. Debt Being Paid From:
Housing Improvement Area Fees
$ 2,960,000
Revenues
3,350,000
Tax Increment Revenues
1,230,000
Taxes
8,515,000
Special Assessments & Taxes
4,450,000
Housing Improvement Area Fees & TIF
1,065,000
Revenues, Special Assessments & Taxes
110,000
Revenues, Special Assessments, TIF & Taxes
2,680,000
Total General Obligation Debt
$ 24,360,000
Less: Funds on Hand'
(1,570,031)
Less: G.O. Debt Paid Entirely from Revenues'
(4,225,000)
Net General Obligation Debt
$ 18,564,969
1.07%
$1,073.74
City's Share of Total Overlapping Debt
$ 36,116,841
2.09%
$2,088.89
17=1=312:7_Vj61=1►k9:16-1to] ZVI
The City has never defaulted in the payment of principal and interest on its debt.
FUTURE FINANCING
The City reports no plans for additional financing in the next three months.
' Funds on hand for debt redemption (available for payment of principal and interest) have been deducted from
total general obligation debt to determine net general obligation debt.
' Debt service on the City's general obligation revenue debt is being paid entirely from revenues and therefore is
considered self-supporting debt. Includes the portion of the Series 2010B Bonds payable from storm sewer
revenues ($875,000).
28
TAX LEVIES AND COLLECTIONS
TAX COLLECTIONS
Certified
Total Collected Collected
Tax Year Levy'
Following Year to Date % Collected
2005/06 $ 8,438,078
$8,341,797 $8,430,737 99.91%
2006/07 8,805,758
8,647,150 8,792,584 99.85%
2007/08 9,224,380
9,055,054 9,150,696 99.20%
2008/09 9,603,114
9,448,953 9,506,264 98.99%
2009/10 10,000,685
r-----------------------------------------------------1
i I In process of collection
L------------------- ---------------------------------- J
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.
' This reflects the Final Levy Certification of the City after all adjustments have been made.
2 Collections are through May 31,°2010.
29
TAX CAPACITY RATES'
Hennepin County
City of Hopkins
I.S.D. No. 270 (Hopkins)
I.S.D. No. 283 (St. Louis Park)
Hennepin County HRA
Hennepin County RRA
Metropolitan Council
Metropolitan Mosquito Abatement
Metropolitan Transit
Park Museum
Three Rivers Park District
Referendum Market Value Rates:
I.S.D. No. 270 (Hopkins)
I.S.D. No. 283 (St. Louis Park)
2005/06
2006/07
2007/08
2008/09
2009/10
41.016%
39.110%
38.571%
40.413%
42.056%
48.262%
45.862%
45.570%
47.574%
49.386%
21.565%
19.019%
19.218%
20.080%
23.050%
20.577%
23.485%
19.580%
20.337%
21.098%
0.000%
0.000%
0.000%
0.000%
0.241%
0.559%
0.871%
0.979%
0.380%
1.000%
0.873%
0.877%
0.812%
0.817%
0.793%
0.509%
0.499%
0.486%
0.489%
0.461%
1.542%
1.295%
1.264%
1.273%
1.366%
0.685%
0.700%
0.719%
0.771%
0.778%
2.830%
3.068%
3.137%
3.334%
3.499%
0.15102% 0.14140% 0.13177% 0.12427% 0.13931%
0.17065% 0.14621% 0.13101% 0.14860% 0.15187%
Source: Tax Collections and Tax Capacity Rates have been furnished by Hennepin County.
LEVY LIMITS
The State Legislature has periodically imposed limitations on the ability of municipalities to levy property taxes. In
2008, the Legislature imposed levy limits for all counties and all cities over 2,500 population for budget years 2009,
2010 and 2011. These limitations do not apply to taxes levied to pay debt service on general obligation bonds of the
City or to pay bonds of another governmental unit. For more detailed information about Minnesota levy limits,
contact the Minnesota Department of Revenue or Ehlers & Associates.
' After reduction for state aids. Does not include the statewide general property tax against commercial/industrial, ,
non -homestead resorts and seasonal recreational residential property.
iff
THE ISSUER
CITY GOVERNMENT
The City of Hopkins was organized as a municipality in 1893. 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,
Finance Director and City Clerk are responsible for administrative details and financial records.
EMPLOYEES; PENSIONS; UNIONS
The City currently has 101 full-time, 7 part-time and 41 seasonal employees. 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 ofMinnesota (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.
Recognized and Certified Bargaining Units
Bargaining Unit
Hopkins Municipal Employees Association
International Union of Operating Engineers (Local 49 IUOE)
Hopkins Police Officer Association
Hopkins Police Dispatcher & Public Service Officer Association (LELS #143)
Hopkins Police Sergeants Union (LELS #171)
Status of Contracts
Contracts which expired on December 31, 2009 are currently in negotiations.
LITIGATION
Expiration Date of
Current Contract
December 31, 2011
December 31, 2010
December 31, 2009
December 31, 2009
December 31, 2010
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.
31
FUNDS ON HAND (As of September 13, 2010)
Fund
General
Special Revenue
Tax Increment
Debt Service
Internal Service
Capital Projects
Enterprise Funds
Total Funds on Hand
32
Total Cash
and Investments
$ 2,706,431
1,510,203
946,768
1,570,031
1,997,135
982,463
702,941
$10,415,972
ENTERPRISE FUNDS
Cash flows for the City's enterprise funds have been as follows as of December 31 each year:
Sewer Utility
Total Operating Revenues
2007
2008
2009
Water Utility
(1,784,001)
(1,753,111)
(1,734,957)
Total Operating Revenues
$1,133,248
$1,188,610
$1,339,390
Less: Operating Expenses
(1,173,033)
(1,289,533)
(1,152,321)
Operating Income
$ (39,785)
$ (100,923)
$ 187,069
Plus: Depreciation
206,364
209,441
218,513
Revenues Available for Debt Service
$ 166,579
$ 108,518
$ 405,582
Sewer Utility
Total Operating Revenues
$1,427,675
$1,474,474
$1,598,717
Less: Operating Expenses
(1,784,001)
(1,753,111)
(1,734,957)
Operating Income
$ (356,326)
$ (278,637)
$ (136,240)
Plus: Depreciation
174,858
139,774
140,017
Revenues Available for Debt Service
$ (181,468)
$ (138,863)
$ 3,777
Storm Sewer Utility
Total Operating Revenues
$ 724,778
$ 725,029
$ 800,843
Less: Operating Expenses
(310,159)
(323,639)
(322,594)
Operating Income
$ 414,619
$ 401,390
$ 478,249
Plus: Depreciation
183,245
190,091
190,461
Revenues Available for Debt Service
$ 597,864
$ 591,481
$ 668,710
Pavilion/Ice Arena
Total Operating Revenues
$ 459,003
$ 358,645
$ 368,228
Less: Operating Expenses
(385,062)
(411,134)
(401,598)
Operating Income
$ 73,941
$ (52,489)
$ (33,370)
Plus: Depreciation
61,901
67,980
66,828
Revenues Available for Debt Service
$ 135,842
$ 15,491
$ 33,458
33
SUMMARY GENERAL FUND INFORMATION
Following are summaries of the revenues and expenditures and fund balances for the City's General Fund for the past five fiscal
years. These summaries are not purported to be the complete audited financial statements of the City. Copies of the complete
audited financial statements are available upon request. See Appendix A for excerpts from the City's 2009 audited financial
statement.
COMBINED STATEMENT
REVENUES
Property taxes
Intergovernmental
Fees, licenses and permits
Charges for services
Fines
Interest
Other miscellaneous revenues
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Health and welfare
Highways and streets
Culture and recreation
Capital outlay
Total Expenditures
Excess of revenues over (under) expenditures
Other Financing Sources (Uses)
Transfer in
Transfer out
Total Other Financing Sources (Uses)
FISCAL YEAR ENDING DECEMBER 31
2005 2006 2007 2008 2009
$ 6,947,865 $ 6,883,644 $ 7,209,319 $ 7,497,680 $ 8,014,416
732,468
711,703
694,668
551,586
526,250
492,295
419,513
653,841
541,217
619,123
438,547
199,171
298,335
330,861
363,802
178,785
181,006
196,559
174,020
129,240
72,883
132,007
129,696
92,853
32,026
320.617
308,993
316,321
320,036
315,020
$ 9,183,460 $ 8,836,037 $ 9,498,739 $ 9,508,253 $ 9,999,877
$1,251,717 $1,308,542 $1,504,597 $ 1,502,420 $1,477,722
4,700,413 4,872,897 5,171,472 5,598,958 5,676,184
61,976 67,950 68,205 111,223 147,432
1,773,140 1,792,830 2,055,793 2,187,173 2,108,368
469,140 474,528 498,343 527,738 .502,664
149,683 60,362 40,329 39,136 0
$ 8,406,069 $ 8,577,109 $ 9,338;739 $ 9,966,648 $ 9,912,370
$ 777,391 $ 258,928 $ 160,000 $ (458,395) $ 87,507
$ 0 $ 0 $ 0 $ 0 $ 50,000
(537,492) (250,000) (18,252) (7,361) (5,836)
$ (537,492) $ (250,000) $ (18,252) $ (7,361) $ 44,164
Excess of revenues and other financing sources
over (under) expenditures and other financing $ 239,899 $ 8,928 $ 141,748 $ (465,756) $ 131,671
uses
General Fund Balance January 1
4,071,296
4,311,195
4,320,1.23
4,461,871
3,996,115
Prior Period Adjustment
0
0
0
0
0
Residual Equity Transfer in (out)
0
0
0
0
0
General Fund Balance December 31
$ 4,311,195
$ 4,320,123
$ 4,461,871
$ 3,996,115
$ 4,127,786
DETAILS OF DECEMBER 31 FUND BALANCE
Reserved $ 943,474 $ 974,517 $1,157,142 $ 111,806 $ 196,790
Unreserved 3,367,721 3,345,606 3,304,729 3,884,309 3,930,996
Total $ 4,311,195 $ 4,320,123 $ 4,461,871 $ 3,996,115 $ 4,127,786
34
I
FOP"
�qr
ri
GENERAL INFORMATION
LOCATION
The City of Hopkins, with a current State Demographer's estimated population of 17,290 and comprising an area of
four square miles, is located approximately eight miles southwest of the City of Minneapolis.
LARGER EMPLOYERS
Larger employers in the City include the following:
Firm
Cargill, Inc.
SuperValu, Inc.
I.S.D. No. 270 (Hopkins)
Augustana Chapel View Care Center
Oak Ridge Country Club
No. of
Type of Business/Product Employees'
Salt products and financial services 2,350
Food distributor and grocery stores 1,265
2
Elementary and secondary education 215
Nursing home 210
Private golf course and country club facilities 204
Source: Written and telephone survey (September, 2010), Directories USA, and the Minnesota Department of
Employment and Economic Development.
1 Includes full-time, part-time and seasonal.
2 Number of school district employees that work in the City.
35
U.S. CENSUS DATA
Population Trend: City of Hopkins, Minnesota
1990 U.S. Census 16,534
2000 U.S. Census 17,145
Current State Demographer's Estimate 17,290
Percent of Change 1990 - 2000 + 3.70%
Income and Age Statistics
Housing Statistics
City of Hopkins
1990 2000 Percent of Change
All Housing Units 8,572 8,404 -1.96%
Source: 1990 and 2000 Census of Population and Housing.
EMPLOYMENT/UNEMPLOYMENT DATA
Rates are not compiled for individual communities within counties.
City of
Hennepin
State of
Year
Hopkins
County
Minnesota
1999 per capita income
$26,759
$28,789
$23,198
1999 median household income
$39,203
$51,711
$47,111
1999 median family income
$50,359
$65,985
$56,874
2000 median gross rent
$710
$654
$566
2000 median value owner occupied housing
$132,400
$143,400
$122,400
2000 median age
34.1 yrs.
34.9 yrs.
35.4 yrs. r
Housing Statistics
City of Hopkins
1990 2000 Percent of Change
All Housing Units 8,572 8,404 -1.96%
Source: 1990 and 2000 Census of Population and Housing.
EMPLOYMENT/UNEMPLOYMENT DATA
Rates are not compiled for individual communities within counties.
36
Average Employment
Average Unemployment
Year
Hennepin County
Hennepin County State of Minnesota
2006
626,862
3.6%
4.1%
2007
629,593
4.1%
4.6%
2008
627,744
4.9%
5.4%
2009
612,707
7.4%
8.0%
2010, August
628,082
6.9%
6.9%
Source: Minnesota Department of Employment and Economic Development.
36
BUILDING PERMITS
New Sinyle Family Homes
No. of building permits
Valuation
New Multiple Family Buildings
No. of building permits
Valuation
New Commercial/Industrial
No. of building permits
Valuation
No. of All Buildinj; Permits
(including additions and remodelings)
Valuation of All Building Permits
(including additions and remodelings)
2006 2007 2008 2009 2010'
3 3 2 1 1
$588,000 $829,900 $610,000 $175,000 $170,000
2 0 0 0 0
$10,484,000 $0 $0 $0 $0
4
5
6
3 0
$1,064,800
$34,322,500
$30,579,314
$29,278,000 $0
494
377
406
381 289
$14,242,117
$50,546,510
$39,403,166
$54,688,290 $8,651,784
FINANCIAL INSTITUTIONS
Financial institutions located in the City include the following:
Citizens Independent Bank (Branch of St. Louis Park)
Peoples Community Credit Union
SharePoint Credit Union
U.S. Bank National Association (Branch of Cincinnati, Ohio)
Wells Fargo Bank, National Association (Branch of Sioux Falls, South Dakota)
West Metro Schools Credit Union
Source: American Financial Directory.
' As of September 13, 2010.
37
EDUCATION
Independent School District No. 270 (Hopkins) provides education for 7,132 students in grades K through 12. The
District, with 1,200 employees, owns and/or operates nine schools, two of which are located in the City of Hopkins.
Teachers' contracts in the District are currently settled. A small portion of the City is served by Independent School
District No. 283 (St. Louis Park).
IN-PATIENT MEDICAL FACILITIES IN THE CITY
Name of Facility Type of Facility No. of Beds
Augustana Chapel View. Care Center Nursing Home 118
Golden Living Center Hopkins Nursing Home 138
Source: Minnesota Department of Health and the American Hospital Directory.
NAvlinnsota\HOPKINS\Debt Issuance\OS\BISUM\2010B$2680m.nov (GO refund)\os.mtr.2010A&B.wpd
RK:DC/dll:wl
38
APPENDIX A
EXCERPTS FROM FINANCIAL STATEMENTS
Reproduced on the following pages are excerpts from the City's audited Financial Statements for the fiscal year
ending December 31, 2009. The Financial Statements have been prepared by the City and audited by a certified
public accountant. The Management's Discussion and Analysis and the Notes to Financial Statements are an integral
part of the audit and any judgment of the Financial Statements should be based on the Financial Statements as a
whole.
Copies of the complete audited financial statements for the past three years and the current budget are available upon
request from Ehlers.
A-1
T G Y U ...^_° .- G G 6,w
G
C i•^. L O '� -R
^ v C_ U
W 7 G U = U O 3
E •� .v � W -u x e3 o a
4. u ,� L' E a '` � •� . a° m � N> u '3 N� b R c F— c
a.. v' •p G .� U
R
U v •'- = � 3 0 o a � u y � T N F- v=i E � = a° m Q m =_ E o
u ea c V
0E-2 :� E Ecmcio
°>° 2 R C C i y '- '� y V U W O U C �i Vl
o c := .n . E 'p E a
C W O
!2
npC w� yc>U. •3_ rV >U 9O .
•O sy>E,
A N 2
W V O 9U E
ROO •^ °
t. o 0' UO
>='0=s u u c.o > 9 E
U o 3 a c i )E a ac E E
m F R O j« y; .0 .E w F y Q p 9 G C=J q N V p,•._. p N g
y E p V° p R Q U O '_y'O C 'O O C E O U C .� = C q V W L 9 V a s t U
C> rr .,V1-� F U N U= U V y S R y O G w
EWRr`�_'E �O N = oUGRgVUR a>Oa> yE_URaW DUB W°URU
O O vii h > > H 2 u •.4G CRl p E s. 'B ,� d°D W _. .- O '.>'.. ..+ D 4. CR cCJ G
y s a 9
a u T `o' a E> n. o .y ' `` su' m° 7 '� E x v ,t. g E
tuu `—^ v° = o = m w
- u c
e� ° s c a cu _ Q o o ^p E E ;.• o ''- o a c o .c id •c A p .n w
o"•O u •°• u �� c •`-' �v'u' u E.� R o5 Eco E c'c eF o 'e
R o > 'u L E° c g` p E u c u m m .. 's
y_, r c_ w ` � E R o E � . o.
r E tC 5.2 G !.. F W ._ 4• T W O U ._. Q` ^O C 4.
Ea�coFa �x�o v m�uw 9�°°c� oE2`u c co �•E=O
Ea=- r' cui y W :o a? u E= E
> V— a _. G C¢ r•., C e U° :r °> h
o°o� c a E ° nu ° "u u 3 ° :° 8 ° " `Q.- awm° ^°o G
•O^ d= E W> Y V i V y E i S- C LV.• G U C O •- ° V
o "' oU ° E [i E o u o.E
> E > H£ c v> E v v$ c g a u o R t
ao.o .E . •v E 3 o c ".• E d E E °_ c R V o° v W v
c> e c E °_ > `o W E °p'o Ri o E G u a v> c °>
a ° °� ° asp.. = c u a 'o ti ° .>°.
W f:, V �+- u—. V u m in -_ •a •O u
A-2
h C "�
T
�'^ U ^O 4- «O - '� Tom. C
vI
U ^ U
•p a
O
p W'O
R
H O
V O U B 'O/I y W
.an y C�
�-0
= C .E
W.'•>_ a
u
0O
= G 4 .•pG
Y O U
� "_ O
�. 'ti � G v� a R C �O
H O
•rC
R U
O U p
� p° O
y F 7
�p 7 p R � v W � 3 b
`A
O
W � ,O
o
G G
� •O u
N
e=6 � '/� s
r
C; o. _
h O •�,
p c u E'v B
T.n ° 0 G>_
Yy.'c
E
oU
m
v =E
O C C
E E 'E
U u C R
.g
C
E
a•E $ c d' T'E�
F Q
°
C7V9
V
00oD
..+ u H
T NN G .00 -9.°..p
�4 ssxTa- > R
U
°EEc
•Oc
U>r
sou'
za
?Z
34O
3e
O '•>
F p •O
!z
— 0 .fl
V°
w E tO.E U O O U C a k
G �? .R U
T
.L-'
L XY
ya
•`�j
Vr
z
UV Cq
T U G 'CO •O
U
i. U 'ly vOi
p u
O =,
C t
.yCE
..
NO
� •y � 9
OA-
CIO
E
c3 3
p 'n O E •O 4 U`
O .n �- L
F O
R b
o z
>^.
GO _
vpi tpn C U O Q U C •C .°
X
`E
UO
a C N °
XOa
tl
Lu ._
p G
C
O f+0 -
WU o
U C R y
s �
GC
CcOC xC'
COU
Ev >
G
>
_J 6C —w
VE xa
-o°
.a.
O
.O
G R ep a
z
c;
Q
vp, •.c a
U E =- w. W'- •a Z F s a
E
TU q a v
•u
R u `E
y y
"'= y Y u
y¢
3
c o
o f.E o o u u v E d v' °
c t _ �. y
3
etl o
•>_ E° �i a
_�
c:' p^o ' E c u.4 0 `av _
u
R �Gy c u y c
L.
v" v
T000 tb
cr,
o y w
c �. u
t O- E x•� Q•_... TC
eo E y u -% Z - •o o
u u
M G .° E
o O
G
G O.
v R E v
_� �•_ J
�+'•
L ... s o a o °^._
iaF �UF G u v bq QF�=a
� u. u
£•° u
O
•o T
R
U p •G
E C U a 0
uL
CJ m oy
a u¢
u a R E m
e> u
y•o
E
a E '>
0 u y u
° c.
3 a.E
F E'c u�
A-2
r y
.v O
-a 0 0^ 3
U CLU
_
y
X.
= e --
n v
T
O U
G O
'O •y V
g
C O •>
`•
� ri Q
•.7 J
O
-
UN
C h
�'O O.•C O
C V� •O v
- N
� wr^.
� V C
U
�� U
00
N N
•VO p .yG y y•O
pp,
O LV
.°D
O
CL v
C T •y" v 'p U
O r. n N - .�. c
N �
O C 'y
O
= y
� T
i LF9 �� 'O �
w
K w - C N
N O �j
n� .0
O
d o •O
G
OE '^ C U° E
d
O
P -
U O
O y
o
m o C
.� F .ten-. c c°i V
o c .c >
E 'Q E S y
i 3 V u•
`-
O
`o
V
.y N Q r
N
"' •O
'o m
0
°
coon o f
o _ ac c n c - o=
❑ n co
O
'w � o
E"-
Ems•; co
9 �N V r$ � Cw
oaf
a°>+
_�
ou
..0. 'E
C •O H
tood
F C
C
G d4. L O O .D U ,C
"O .0 T U E
9 V
C9 U R V>
d F y N� w
h •a O
.E n U
E '•
y c
O C O o
'$ n V
-Z ,� - oc. N ry c; �`-, ry
C riO`
. w E
d O
O V
E
V 'Vi.•
O V a
p, _ o� ry b
O
t� [-
O
'SY O ,etl•, q y
w y
vi
ry
(U1
7�
V n�� n
C �N O N h h
C� V
V U C
•i O U
c v n�
a Q O
•O C .O
U •O V G
C
n
O
m,0 H C U
C b E UMO
'y ..U.,
C C .« � ._ a E
•R
V
V v
n E
C C O
y°
c .D � F' f 'J
4 N O r � N C � O ". V
C� u
V
G�
C
s 42
A
C
t�
`
O x 4- h
G y �'-' +� ° t0 4E F
O
V
-si
9
C E '.�.
w
U
•p
•V y U
� C q� O
� �` Q .n wl O. u O N N
4.. T �
t` U U
h� A
C
u E U
•E
o u°
"3itlO
V
t6 c °`
.O
R
c o • 2
i°
y b y
•- c
� U v .2 E
cni
•O
O�OCOi
`o m ��
C
Co.
Ew
E O .
p y 0
O
n
-
d_ c C C O
O O
E
L G 0
'r,
c�
9
O 40, ."jnj C H
O
• C -,E
C7 Q aoou
-20�o'
•` et: V ti
�? U fJ U E ,U U C.0
ro` G R� V C�
iO 'V
G O
'O •y V
g
C O •>
`•
W V .'y' U ^Yn 41 fatl G L.
•U
L, y 3 O O v
'y [:
=• 4
Y 1 •p7
F
O a d
U
bl4 'V6 p U A �O
•VO p .yG y y•O
pp,
O LV
.°D
O
O
" V
G T •b
o
� E °•'- E
m n
OE '^ C U° E
d
O
tr6 U
U O
O y
c`o' 'd
Ix1 u
o
q
.� F .ten-. c c°i V
o c .c >
E 'Q E S y
i 3 V u•
`-
O
`o
o
a o � :°. n°L
r
�� c`o 0 3 ? =
q
V
�•�
F
u
.�E
'w � o
C C a
W
OR C U W? .n..
O n O GI .O..E
V
�
..0. 'E
C •O H
tood
F C
C
G d4. L O O .D U ,C
"O .0 T U E
tit a0..^_ 'n0
. r�
C O
h0 C
C C C
O (.O•
J
C7
•O
yrVi.
- y E '.°y
�' C •E v t•°i U'
a n u E C
G U O o
C
E
C U
•T E
tLyj -
B, d
p
D°L V
'SY O ,etl•, q y
n n
d '.].
q>
0-85
R U n 'OO C0.
C E
a Q O
•O C .O
U •O V G
C
n
O
m,0 H C U
C b E UMO
'y ..U.,
C C .« � ._ a E
6• b C ^U
C v
V
V v
n E
C C O
O• L,
V
C C
E V
V .Y E
V O
`"
s 42
A
C
U
o. O> U F O
x d 0 O E n CL
C C n.4 dE
O x 4- h
G y �'-' +� ° t0 4E F
O
V
-si
9
C E '.�.
w
U
C
"
m. > �• o
y
r E ' c �
L_
C
u E U
•E
o u°
"3itlO
V
t6 c °`
R
c o • 2
i°
y b y
•- c
� U v .2 E
cni
•O
O�OCOi
`o m ��
C
Co.
Ew
n�VQU
d i U
G
�"•
VVF >V>E-
V V �y L •-
V�w�Vi�..�O'00y
• C 09� O>
r.2 0
O
c�
V
O 40, ."jnj C H
O
• C -,E
y
n'
'aouc
E
vNE•
M
EsEyow_'�9 c.V-
�
WeaO Rx>u91-a007
'y
.D4o
^
5
Q c
N
"
10
0
aEy
HU
M1d .axg
v,
'>
o
.�N��a�0s0�
`
c u -r
o>E
o =�•.�
o
m do
i
� s
=E m
,E d aa,
6 u`
o� F�
�ac2 ��a
�_pO- Z�y•G
°
u
$ y' y
°
ca.4
a yo
a?� c°.
'�
E `a �� •�-� a� y � u
v v n v c u- ,:? "D
.o. O v v
a
'... ��
E. a .p v
�cc°o^ov
o
e�v��Evoyo
cvbn'QEcE
a
y0. �>v
=
�'au
o
.0 O'
.0
L F •_ y C U E C
OL h "- 0 0 O •• E er
O q
�- .
•- C O'
`>V•
F- a �... o
I-
0.w 3 n° R1 C v
a. S u u d w o
F
z F c w
O
u c
P c
A-3
v CU �.a C �. C o o vi U U w q Twp _ •� D ,U W C G U .=
V nE G x q c ^ m .E G .y U G-
-' n E F .T+- C U J•- U C ww _
E c o= ° rA
U 'o' o u y
c. o v o E s E c v° n o u y
o h oa^ °F•°° F o �:- E •v3 o
O w y •^ EL, n 4.. n T C `= F _O p G U o V
E -
0'U c�U J U n3 �c..• Yo U« dE '�' �u Fy O �>,^ C V V UEo b°. �F Vc �" '�C ca 4 LLaF¢ hro nc E
a
o EE o F S c ac ° r o V
w
o E o i s c` a s o° h R u V M�9U E._ E
o
cG0.u-_e--o aa[oEE a�`°JY s•_nE°o ao7JU-, r_oEcaiECtio '�"w NWnn ooroM
JhwunUFE>nwu FCCY J� O <owS«o smac-?'
m�>p ;v.Q."2?nuz• v.Lc�.iop�'
`c'c°
D ccni
.oO
w �L.
¢ o o Uv ?>=E 3 !E C.,
`` E OE UG 0.
Fuc o a oJw` is a.� cF" o E
w•O C - -t- E w 88.2
02 S Q - Eo E�ZE p» > F E ° yq>-Pto 6x,
E ern E
> oADA "cc N'5Evrog!2'.
y F o u -- c -• n o " m o u o•`'- u 3 F a e n a v c y .S p E •o
E
F a C COO`-° F E n n L J m w c ''` •p �'� x G `" `� y
F a V y C U is v r� •- vi 9 v ° cE C c v.
too E u ,E ` € m F ,00 �y o,
���as�c rorno ¢JcroEvaE71
��nca ci° c�Dc
Eu.0 'a rocF° >g
Ea
G
w..• p c E F n E M c.- E
vl=Tc°owo EE •.cQ ``c4to.
ox=o yE c°w z E plc cow43
a ? m^
o o� G 5-0
V n O
°'_��m°�� x K.mppYs
w x w e o a-
n E
E
cn > r_ > p u w EE O 'rri E c
t fl• J V U •O � J U U c C cC U J O O T
E cEi o E� a
m g E >
a G oro E o oE_a
4. -°o
0 d p pp > d C
°d to yo U0_ >2 oU Opro>a
A-4
=oo
o �I".s�j
n.��.'
E c•- .0 4 to
ocii °
T
0p-p
�''C O
e!
N
C y
l-•. U
pFp O r-0
E •� = C
U U C
V td
q
n V V
w
`.3 'VO
y? C
E E«O
2
C
C
O
C
G
F >
W
ro F
4 E q.E
a
U
d U
O E
i p U
F O y p
U
O 0 C M� �p•• w` V
y
E-
UE E
Z
- aUt y q �+ E t F U •13- O 7
•E
U .'L
C
.0
v°i
�O.cEpp°pUoovC
ntc� au°.
�•�� E
Eo
U
°y
4. .'C..
c�•o
E!
C ,-,
w E O
U a
v,
a
•Vo ab a �. n O a G b F
� C eJ e.. t� S
>u> 4F-. 4C-. d
L V
o u
U
O G
C
=vi n E 'U'p
'�' •p
E
OD7
c�.-•�
�
�,-:ya T acs? •-oC
�� v
tt-a.
.giros
y
° w H E
x
W•
n y F
V p
u N o o o
C ' ._ U u
U°`
O z
- C U
1 ... U 4-� W C C g 2 CJq p n 0
O C 4 .. G
C'
u
Z
.0 _O
C
C 0 0
`�
�ee�nb
V
()
o
� �Oa_nEe �
.u..'-"•�°
y°
mA'o
Q
zp
E
C C
.' ._
r ._ n U. E
.�� en i3 TJ'
• V E
V 1..O C O C N V V� c+1 X p U
C O b9 0. ++ k.
U .- C
•u a U
C CE
U 04
V U N C
br�,i Q L2 'C•'
G 7 C p
n
•c
y V
p n O
•U O U
U .V. > n u U ti V .�
O
G .° L
L
r> =
'
O
C n
U P
T
0
c o
E F V .^
F c� E n ._ p o. >i,, ❑
y oo
v° -yJ,
C p m F
u o f .c
o u •3 r
'u0 L"
•3 a A
V i
4 u
n W
°$ `J'
(j u- '- ` v E �;; ^ C
x o
cEi
o >,.'�' J
o ,` = o a o o4• -`J" '�^
Ur¢JOJQa¢csL
v nT eon
E a o
yURs
o a '
a
u
°
uNwE
E E'er
Lab
,r
c=4.0
o n r
e • . . . .
9-c
Oro w h c
U 3 a
a
-
s a y a u
E
A-4
•V {� U w
'C V n U C'> U•V
'U 'eJ F"
'U
U °
`= U
U [- E
�O
.r
00
�V`o
40
"
0uG�W0
4'cGOpO
Fav F
'o
p
u
O
°E
op>.
—_COomW?w
.[�ucCi>
oycJ°Co
c.e
• F
0 —-.y
sq.2
ui
FvEo
❑
$
E w
E
0 O
F
E
O C U
E 9 u s
or
>u&
tot
t°a
ocMp"o
�ocaE
.•
o
E
EOt.0
m
Fay
?EEA-._
cGmy
0t w U•=
E10
-
V
:3
'Lf m
Z3
c
x o 0
J cw
o
o
v C J'-Uw
qct y 5.v E'2
_
a v o= E �o
c
3
m y=
o
c is c o:
c 2 y
v
a
N a
c en
12
too `°
C �'p
> .GM
S
y^
o"
u c
°.OC
60•
I
D
V C
'E'
E
C
a_ CV•
G
m V
- •� G
p
6 4 b
U
E�' > O
Q.`C
pV
t0
a��m�
005 m>coy_
p��-�ocq�
a
ago
a
EUp
C E N C
V
0 V q .E o 0 3
q y U 0• J 9 C
y-
q W
y p
.O C C 6
C O t^ C
C
4. w U .y X y a•v
_ •'C.. U� C 4? i
m
.Wya
.y�0e`Jo�o3c
'o
e v
•cj>y
:: o
r, -c., a
w° o
it E!
UE
o
,`
°`�E
ip
=°V.
C.�.a�.
-,r'.0u.-
•��Jou
�rUoC.
cugy 'EEmis
x35.y
=
�EO' `3=
E�
`a
'3
xo
wO�mc'
0
J
o
u-0
E
c2 a
`a�`xuFa'
u
0
00 'V
C00mC
CRm
Q
•p
Ca=L
'O
0 EuaC
�EUe
aSE
J U O E u E
F E 9 .D •- p E
�
C E
L
C I�
V� .�
A-5
Government -wide Financial Analysis 0
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
Position. In the case of the City of Hopkins, assets exceeded liabilities by $61,372,523 at the close
of the most recent fiscal year.
Approximately three quarters (74%) of the City of Hopkins net assets are reflected in its investment
in capital assets (e.g., land, buildings, machinery and equipment); less any related debt used to
acquire those assets that are still outstanding. The City of Hopkins uses these capital assets to
provide services to citizens. The net capital assets are not available for future spending. Although
the City of Hopkins investment in its capital assets is reported net of related debt, it should be noted
that the resources needed to repay this debt must be provided from other sources.
City of Hopkins Net Assets
December 31
Net Assets
Invested in capital
assets, net of related
debt 31,700,690 30,769,922 13,484,942 16,081,209 45,185,632 46,851,131
Restricted 11,9525783 10,074,674 - - 11,952,783 10,074,674
Unrestricted 15068,812 3,663,772 3,165,296 280,214 4,234,108 3,943,986
Total net $ 44,722,285 $ 44,508,368 $ 16,650,238 $ 16,361,423 $ 61,372,523 $ 60,869,791
A portion of the City of Hopkins net assets represent resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets
($4,234,108) may be used to meet the government's ongoing obligations to citizens and editors.
At the end of the current fiscal year, the City of Hopkins is able to report positive balances in all
three categories of net assets, both for the government as a whole, as well as for its governmental
and business -type activities. The City's net assets increased by $502,732 during the current fiscal
year.
Governmental and business -type activities. Governmental activities increased the City of
Hopkins net assets by $2.13,917 and business -type activities increased net assets by $288,815. Key
elements of the increases and decreases are as follows:
f,.
0
A-6
Governmental Activities
Business -Type Activities
Total
2009
2008
2009
2008
2009
2008
Assets
Current and other
$ 27,868,693
$ 26,664,408 $
3,586,315 $
691,934 $
31,455,008 $
27,356,342
assets
Capital assets
46,014,532
46,206,295
19,747,908
19,508,822
65,762,440
65,715,117
Total assets
71883,225
72,870,703
23334,223
20,200,756
97,217,448
93,071,459
Liabilities
Other liabilities
8,975,396
6,358,922
2,373,766
895,484 .
11,349,162
7,254,406
Long-term liabilities
outstanding
20.185,544
22,003,413 `
4.310,219
2,943,849
24,495,763
24,947,262
Total
29,160,940
28,362,335
6,683,985
3,839,333
35,844,925
32,201,668
Net Assets
Invested in capital
assets, net of related
debt 31,700,690 30,769,922 13,484,942 16,081,209 45,185,632 46,851,131
Restricted 11,9525783 10,074,674 - - 11,952,783 10,074,674
Unrestricted 15068,812 3,663,772 3,165,296 280,214 4,234,108 3,943,986
Total net $ 44,722,285 $ 44,508,368 $ 16,650,238 $ 16,361,423 $ 61,372,523 $ 60,869,791
A portion of the City of Hopkins net assets represent resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets
($4,234,108) may be used to meet the government's ongoing obligations to citizens and editors.
At the end of the current fiscal year, the City of Hopkins is able to report positive balances in all
three categories of net assets, both for the government as a whole, as well as for its governmental
and business -type activities. The City's net assets increased by $502,732 during the current fiscal
year.
Governmental and business -type activities. Governmental activities increased the City of
Hopkins net assets by $2.13,917 and business -type activities increased net assets by $288,815. Key
elements of the increases and decreases are as follows:
f,.
0
A-6
A k
•
Revenues:
Program revenues:
Charges for services
Operating grants and
contributions
Capital grants and
contributions
General revenues:
Property taxes
Tax increments
Grants and contributions
not restricted
Investment earnings
Gain on sale of capital assets
Total revenues
Expenses:
General government
Public safety
Health and welfare
Highways and streets
Urban redevelopment and
housing
Culture and recreation
Interest on long-term debt
Water
Sewer
Storm sewer
Refuse
Pavilion/ice arena
Housing and redevelopment
authority
Total expenses
Increase in net assets before transfers
Transfers
Increase in net assets
Net assets - January 1
Net assets - December 31
City of Hopkins Changes in Net Assets
For the Year Ended December 31
Governmental Activities Business -Type Activities
2009 2008 2009 2008
Total
2009 2008
$ 875,470
$ 872,388
$ 5,208,666
$ 4,808,966
S 6,084,136
S 5,681,354
2,441,622
1,949,375
150,814
251,885
2,592,436
2,201,260
745,505
170,393
142,691
394,913
888,196
565,306
9,353,966
9,497,650
-
-
9,353,966
9,497,650
1,636,609
1,186,395
-
1,636,609
1,186,395
309,609
434,163
-
-
309,609
434,163
170,960
387,424
12,841
21,714
183,801
409,138
9,796
16,150
1,367
-
11,163
16.150
15,543,537
14,513,938
5,516,379
5,477.478
21.059,916
19,991.416
I,679,040
1,721,624
-
-
1,679,040
1,721,624
6,249,519
6,171,249
-
-
6,249,519
6,171,249
278,002
236,858
-
-
278,002
236,858
3,069,078
3,154,762
-
-
3,069,078
3,154,762
1,690,861
1,037,927
-
-
1,690,861
1,037,927
1,482,349
1,565,184
-
-
1,482,349
1,565,184
1,025,771
1,090,341
-
-
1,025,771
1,090,341
-
-
1,221,556
1,356,448
1,221,556
1,356,448
-
-
1,741,115
1,756,489
1,741,115
1,756,489
-
-
403,231
417,595
403,231
417,595
-
-
786,522
771,107
786,522
771,107
-
-
401,598
411,134
401,598
411,134
-
-
528,542
679,994
528,542
679,994
15,474,620
14.977,945
5,082,564
5,392,767
20,557,184
20.370,712
68,917
(464,007)
433,815
84,711
502,732
(379,296)
145,000
145,000
(145,000)
(145,000)
-
-
213,917
(319,007)
288,815
(60,289)
502,732
(379,296)
44,508,368
44.827,375
16.361,423
16,421,712
60,869,791
61.249.087
$ 44,722,285
$ 441508,368
$ 16,650,238
$ 16,361,423
$ 61.372,523
$ 60.869,791
A-7
Governmental activities: Property taxes increased in 2009 as a result of debt service levies and
increased operating costs. The City also received a number of program grants for specific programs
in addition to state municipal aid for a major street improvement project. Net assets increased
primarily due to conservative spending and bond refunding for two housing improvement bond
issues.
Revenues by Source - Governmental Activities
Gain on sale of capital
Grants and assets
�% Investment earnings
contributions not 1%
restricted
Charges for services
-- -- 6%
Tax increments
Operating grants and
--- contributions
16%
Property taxes
59%
L\
Capital grants and
contributions
5%
Expenses and Program Revenues - Governmental Activities
A-8
R
Business -type activities. Business -type activities had an increase in net assets due to an ongoing
effort to ensure that rates are adequate to fund all expenditures. A utility master plan was developed
in 2007 with scheduled rate increases that are designed to cover operations, debt and capital needs
over the next 15 years. As a result the utility funds are in a stronger financial position than they
were a couple years ago.
$2,000,000
$1,750,000
$1,500,000
$1,250,000
$1,000,000
$750,000
$500,000
$250,000
$0
Revenues by Source - Business type Activities
Capital grants and
contributions
Operating
and contrit
3%
Charges for
94%
Expenses and Program Revenues - Business -type Activities
Water Sewer Storm Sewer Refuse Pavilion/Ice Housing
Arena Authority
A-9
- , w T
° ... V Si F G F v«
c;a v E a s c>ri '" " E i U o I.E x
c <` u c a .Lu, oo �, S c- x `^ u m o a
fA T = !•1 ° -• u � v r~°5 N L fA .E Q C -C S' V O 'O q ro ^, V O
t°j •rprt� '°.' .L1 69 ` U t
C
p C p •_ ai
> A C
9 U 0 0 U c F N y0—•
a•` u Q u u d U n E F ry u to X G T o m °>
•O 'o c�c N'c ° d « a >, 'a E cu c v o u ao Tc. -- �p
i;o su.. Qw p O c
o w ._
a cn= m V �? e g u� O d� q� o d cui w' -10 y s>
c=c.=o o -O >svau,>,u >'>oc�3u -°Eu ooa w
V w V F w U 1 O U "O �°• U L ° m o
aE 3 Eoc ao «° «Evo°n"u ygo ucucowc
Clc o a> u q c E w E u r? o ° .... u u s o f •nuc u E c o
s u o` 75 a MLn w.E o f o.� 0
� ro E X=.° 3 0 cro ca m
l- h °q Z,+ E 'o �..-. y c 3 w uv. ro a` a '_ '_ q
bcc UZy..=E_o°. m'oE ETr'oaou°• .wO=o a„^n�sqo•v=uO U ._Eo. '�, Lv .°° •u=- Fc>U°V LWC. o :°` c>aacQad°T�.zcU .E'O vZ.Dqc' *$L.ro aJ 0O E u` E Oa q
c_.Q ac o>
'ooiE0
_
o q E
Yu°��dc ado dao �>
U U . C C G C d< T O q y eJ .'� OC N O? O V 3 C O E
> O E 7 °° ro• G O U .0. d Q o- G N ° C C N ro H °O O U G
cGm �ro� y`cY �e aou�-ya 0-°orooE
Eud Fuu G•E q•t°d o= °oro u vi °m'•"� `o°•o > cuo
E° O R v u 'du ro N p o u$ h o v o zu uJ E c o l
Gq q u F u C •° L v.0« q 'o u t6 u a {�> �c�i
5 d° M u o mN-
osu.rz
F ° Q E y$ '= d
q pp F- v y u N N ro o'
v ,o v •`� c G c u- p E w y r�i ��,' 3 �p m N u« c w T v 5 W y
NO' v U> q m N U q _• = o
c Q
v mf6 .- •o i� > o '° R u o m .5 3 y y -0.0
`- xc E s« n u u
e..E c>
N N U V
v m a a m E •3 eC 7 I
C
A-10
0
c.u�
EoyoT
2Z�'n«°V°oa
V-
U o C
V-
t C. v
N
i
V i.c°°' ` U U
ro t
''•' h
ti su. ro °
O
try u
s
U
y�j
•E ,°,
K.-
43
y
-0 to °:c
a� E °c?
'
y
m $ E o
t
«c E c a
_ 3
�s °
mss
O
Uw
3 U.
O
iu
.p
uCq'i
•a
o a
y
h
R� y ti
W
'° •° � U
O '7 �
� - 6
� C
O
°f� C y
q V
c
E R°
.q. C q
GOy
° O 'd C
'mo`YS
« N T
:_yoG
w=
0 0
V° q
-
L •C
CCG
H
>a
O .
Eu3
od o
'aq�
.o F o eNo
q>
°K
ho =y
mE
_
>°
°
OVw
t
yO
= b_VcU,
'•v=°°
GEo
U
01
cO
aoU
aw
S
D
oof—T
'AOo
°
cs u c
cOCo
r
4
qE
0
qux
0
.
rZ ��
0W:R W U
U� V'O O
U6"o:«
CO > �
AM
to
c^o
to
c u
'3
�C E
a_
n
u . a
ro
X 7
E
�=•
U o G •l�'?`'
a W U
t� 0 0
U O .O LL O
O ;0 .._,
�. i =, O
w v G
O 4 g q-
C L.- d-
to V O 1=4
.q. U
y V c
Oc
C7nu
rUT
Ed`o
o
5c v'°p
g'F
GcE
>
LT.E
Yxwe
°
u-
yL
Ot
ro�m
'Qw
.�E
.�
o
.«�h «
v^
a U ,oc u °
o
sro
o
q2°dm
79ao
.•nuaq
8qc =x°
�uTc
U o ti
su •`O- —�
�,., c U 'o
woPd='
a eo eo
«u Wu
o — ”- E
wo er
u a A ro i
U o '•�
a
° �=
x
a d v
6U0
•C C�
A Oq
e
'D = U
eco
�
° '�
w U
p ° —
Y q
� en N
3 O
u N u �. �...
o OD T
e a T •°
V C `s..
s v ce. r. a
«
- �,,, ._ u .o �
° F
v r�
N N `
sis
ate.
� -
=
-ti
O''S
tytl 'V�
'fl •=� O
.O V Z
y N .� O
O ti U
c` Z N«
ro O q
q 111 u
a t
u of
E T
U ya X
U
ucEu
F v O
U
m ro�
E�q>
E—
uc�ya�
u o _
qwy� oawc
E u
y o�n
olev
n v °ems
ro a >
ea
c ro
u y
Qcxi
o
G O
V U h
F�-
o ey3 V �^ >
G
C=1 ? ` iO V
4� T.°. 6
L•� iJ
V
�_ •y
G .s+
w O a U'
y'O ° s 'O G
a'W ,U = a
u m C E �' a
U V u •�
u
U` O
O V V
G aks-
T co
E
�cO
F- v
v i
3
A-10
C U U
•V �O F
F
3
U w
tom'
pp
L
�^".
H a F
O
� O
O
O
C
h
p N
V R
� F
�
iH
•� U C U
�
� .�
> �
is �
E 3
v v
R
c n.•_
U
O
m 4
v a
� °F
� •c
c�
�
E l s a
V
c z e
'°c
—F°
F
4
yV
..
S R V
pFp
U
� O
•F
p
7 a
�^
E
m _6 .0
G
C
O
a N E
EF
W V
.O
G O .� V
m 'C
O
CVA b
N A
F
C G
' o a 3
OA V°
•o .o
0
6 V
U
p t-0
Q N
R�
F
E> a
Q •p ..U.
c a o�
e
3
e
a s
GO
t q
a g
p•O VV
y
l Rtap
t7
5
C .pO c5
h U V
U V� p
�
� �'�
•p c
U
d
U p m'"'
p
4
c� c�
V] V
a
U 69 F>
� Fi.o
.
to
F p
❑
ao
R
c
m e c G y
V
~O
u
air
� �
A� 3
w o
p u`
[t W
U'
U
Q6
U 2�' Er 2
A-11
City of Hopkins Capital Assets
(net of depreciation)
December 31
Long-term debt. At the end of the current fiscal year, the City of Hopkins had total bonded debt
outstanding of $30,505,000. Of this amount, $2,440,000 comprises housing and redevelopment
authority lease revenue debt, $3,200,000 comprises tax increment redevelopment debt, and
$11,575,000 comprises general obligation and special assessment debt, all of which is backed by the
full faith and credit of the government. Another $7,090,000 is special fees debt for which the
government is liable in the event of default by the property owners subject to the fees, however of
that amount $2,980,000 was refunded in 2009 and will be called February 2010. The remainder of
the City of Hopkins debt, $6,200,000, represents bonds secured solely by specified revenue sources
(i.e., revenue bonds). Of that amount $1,940,000 was refunded and will be called February 2010.
City of Hopkins Outstanding Debt
General Obligation and Revenue Bonds
December 31
Governmental Activities
Business -Type Activities
Total
2009
2008
2009
2008
2009
2008
Land
$ 5,805,711
$ 5,805,711
$ 167,789
8 167,789
$ 5,973,500
$ 5,973,500
Buildings
15,999,077
16,483,405
3,362,224
3,493,908
19,361,301
19,977,313
Infrastructure
-
-
8,718,764
8,820,418
8,718,764
8,820,418
Improvements
18,126,547
15,609,641
4,870,250
4,412,801
22,996,797
20,022,442
Vehicles
1,735,739
2,076,306
346,071
395,738
2,081,810
2,472,044
Equipment
1,588,657
1,585,875
209,463
263,274
1,798,120
1,849,149
Construction in progress
1758.801
4,645,357
2.073.347
1,954,894
4,832,148
6,600,251
S46,014532
146,206.295
$ 19,747,908
S 19.508.822
S 65,762,440
L65,715317
Additional information on the City of Hopkins capital
assets can be found in note 5 on pages 58-59
of this report,
Long-term debt. At the end of the current fiscal year, the City of Hopkins had total bonded debt
outstanding of $30,505,000. Of this amount, $2,440,000 comprises housing and redevelopment
authority lease revenue debt, $3,200,000 comprises tax increment redevelopment debt, and
$11,575,000 comprises general obligation and special assessment debt, all of which is backed by the
full faith and credit of the government. Another $7,090,000 is special fees debt for which the
government is liable in the event of default by the property owners subject to the fees, however of
that amount $2,980,000 was refunded in 2009 and will be called February 2010. The remainder of
the City of Hopkins debt, $6,200,000, represents bonds secured solely by specified revenue sources
(i.e., revenue bonds). Of that amount $1,940,000 was refunded and will be called February 2010.
City of Hopkins Outstanding Debt
General Obligation and Revenue Bonds
December 31
$ 24,305.000 $ 23,245,000 $ 6,200,000 $ 3,410,000 $ 30,505,000 $ 26,655,000
The City of Hopkins total bonded debt increased by $3,850,000 or 14.4% during the current fiscal
year. The increase is due to refunding bonds issued in December 2009 for $4,920,000 in bonds that
will be called February 2010.
A-12
Governmental Activities
Business -Type Activities Total
2009
2008
2009 2008 2009
2008
HRA lease revenue bonds
$ 2,440,000 $
2,565,000 $
- $ - $ 2,440,000 $
2,565,000
G.O. Tax increment bonds
3,200,000
3,575,000
- 3,200,000
3,575,000
G.O. Housing fee bonds
7,090,000
4,560,000
- - 7,090,000
4,560,000
G.O. Redevelopment bonds
245,000
385,000
- - 245,000
385,000
G.O. Capital improvement bonds
9,000,000
9,470,000
- - 9,000,000
9,470,000
G.O. Special assessment bonds
2,330,000
2,690,000
- - 2,330,000
2,690,000
Revenue bonds
-
-
6,200,000 3,410,000 6,200,000
3,410,000
$ 24,305.000 $ 23,245,000 $ 6,200,000 $ 3,410,000 $ 30,505,000 $ 26,655,000
The City of Hopkins total bonded debt increased by $3,850,000 or 14.4% during the current fiscal
year. The increase is due to refunding bonds issued in December 2009 for $4,920,000 in bonds that
will be called February 2010.
A-12
General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are
serviced by General and Tax Increment levies and also by fees assessed against benefited properties.
Revenue Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by
the Water and Storm Sewer Utility Funds 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 and general levies.
Housing and Redevelopment Authority bonds are backed by the full faith, credit and taxing power
of the HRA, and repayment monies are generated by annual lease appropriations from the City.
The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of estimated
property market value within the City during 2009. At December 31, 2009, the debt limit for the
City is $50,734,311. Of the total debt, $10,804,134 of general obligation and revenue bonds is
applicable to the limit. The legal debt margin is $39,930,177.
The City of Hopkins was upgraded to a "AA" rating from Standard & Poor's in December 2009 and
maintains an "A1" rating from Moody's.
Additional information on the City of Hopkins long-term debt can be found in note 9 on pages 61-
64 of this report.
Economic Factors and Next Year's Budgets and Rates
A number of factors were taken into consideration when preparing the City of Hopkins 2010 budget.
Utility charges were reviewed and as a result of the utility master plan, rates for the water and sewer
will be increased by modest amounts annually at least through 2017. The tax capacity rate increased
for the first time in four years as a result of economic conditions. The State of Minnesota's budget
challenges resulted in the unallotment of state aids for the second year. The City's population
would remain constant. As a result of these factors the City prepared a static budget for 2010 with
0% wage increases for most employees, delayed hiring of vacant positions, non-essential capital
items eliminated and small increases across all departments.
During the current fiscal year, unreserved fund balance in the general fund increased to $3,930,996
or 39% of general fund expenditures. The Office of the State Auditor recommends unreserved fund
balances no less than five months of operating expenditures. The City is within that
recommendation for the general fund. The unreserved fund balance is used to pay for the City's
general fund obligations until it receives its property tax levy revenues in June.
Requests for Information
This financial report is designed to provide a general overview of the City of Hopkins finances for
all those with an interest in the government's finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the
Finance Director, City of Hopkins, 1010 First Street South, Hopkins, MN 55343.
A-13
City of Hopkins
Statement of Net Assets
December 31, 2009
A-14
Primary Government
Governmental
Business -type
Activities
Activities
Total
Assets
Cash and investments
$ 15,060,054
$ 3,297,402
$ 18,357,456
Taxes receivable
376,717
-
376,717
Special assessments receivable
6,704,543
-
6,704,543
Accounts receivable
436,076
363,085
799,161
Intergovernmental receivable
2,540,482
34,363
2,574,845
Interest receivable
34,832
7,040
41,872
Internal balances
330,187
(330,187)
-
Inventories
97,291
29,690
126,981
Prepaid items
99,719
17,244
116,963
Deferred charges
356,575
31,440
388,015
Long-term receivables
1,135,119
136,238
1,271,357
Property held for resale
697,098
-
697,098
Capital assets, non depreciable
8,564,512
2,241,136
10,805,648
Capital assets, net of accumulated depreciation
37,450,020
17,506,772
54,956,792
Total assets
73,883,225
23,334,223
97,217,448
Liabilities
Accounts payable
419,657
178,690
598,347
Salaries payable
281,581
27,291
308,872
Due to other governments
2,944
24,608
27,552
Accrued interest payable
415,040
54,649
469,689
Unearned revenue
2,504,792
2,433
2,507,225
Non current liabilities:
Compensated absences due within one year
650,823
91,095
741,918
Compensated absences due in more than one year
195,664
23,389
219,053
Net OPEB liability
112,983
18,864
131,847
Capital lease due within one year
35,559
-
35,559
Capital lease due in more than one year
355,556
-
355,556
Bonds due within one year
4,665,000
1,995,000
6,660,000
Bonds due in more than one year
19,521,341
4,267,966
23,789,307
Total liabilities
29,160,940
6,683,985
35,844,925
Net Assets
Invested in capital assets, net of related debt
31,700,690
13,484,942
45,185,632
' Restricted for:
Economic development
695,209
-
695,209
Debt service
11,257,574
-
11,257,574
Unrestricted
1,068,812
3,165,296
4,234,108
Total net assets
$ 44,722,285
$ 16,650,238
$ 61,372,523
A-14
LLL
MM
Cl) a) to N W sh h
N
amj ' p N
8,
to O O tM0
a; m Com .-
V
O M th ct to t0 r
O
M a) N
M O t71 M
sf
i0
M� v N� O N
N
{ dN, T talj .N.. O
m
cct
M m M m 0
V
r M
d
E
m
F
= `r v
�°
a
°
m
o
r
.. d W E
m
v9
m
ay
to
r r r V C
N
tl�
'oh^
O
O
d d
<
M
N
m tD m C) N
m
(D
M
Cl!
O
V
h N lA Lool CN•, O
OCA
W
d
a E m L' E
S
E° y
l+Tm7
tO
C V
.y
�U)U)
Ll.=
m
'o
08c�a'i
Q
to
c
�
m
o
to to Co to r O
O to
O
m
N
m
e
m
Qm CON VO' h
O> M h Cl to W h
O
N
C
C
d
m LOE
M 1 h N Co O N
N
t0
N
` >
a fV
7
ffl
O Q
0
V9
MM
T
to O O tM0
a; m Com .-
V
M
h
O
n_
N
0
M O t71 M
ttj
N
C
N
mmCnro
vM
cct
m
m
d
E
o
m d
w c o°
�°
a
°
m
co
r
.. d W E
m
C y
d
m
ay
to
r r r V C
N
tl�
CO
CcM
m
d d
<
M
N
0
r `- to
O
Co
m
Cl!
O
V
M
N
CD
a E m L' E
S
E° y
l+Tm7
tO
�v
�U)U)
Ll.=
m
'o
08c�a'i
to
c
�
m
o
to to Co to r O
O to
O
v)
m
M
m
e
N
N
tM (rm7
M m M T
N
r
to
t0
7
ffl
y ' 7 r tD r to r r r r M mOt0
G C L N N N to CO
` O N a) Cl) M O T N C6
m Co to M ? m
r Co
m to .`
tap O
m m tt� of O r N M V CO
y O h T m Co N
= O Cl V to N V m N m V d
5 m' m Cl)hW- O tm0 a CN tD O N 00)
Co N N m � .y C
N N d CCL y
d
O 6 o c o m
y
U
_o E am
75 - U
h O to O r Co + O O h Cl) Co Co 0 m Co a d
` to m Co )t) a) h a) g N N m m < y .� C O
h N C V M h Co tD N m m X N E .° d
w C) O d' a) N to to T m tJ r m to tD V
V M m - O h M T O N to 1� O m y E d m
N to Co M l0 m Co M N N O d OR U y
LO Co
`) p X 1p v
CL
c c
C.
F
V O CIJ O r- m 10 � h Nm to N m v
N •7
y O ifi O O m M h m to M N m V m m
N a) m m m O N O `. N to 47 Iq Iq
C h h m m m N h M m N N Ih
d t0 N N O m- CN tel' N R O Co O N Co to
.- CO M .- .- .- tD N h V' h a' to O Ln
x r m o
W N
e9
A-15
3 N
M
c
c m
y .m E
c Co
L m �
y y
N N
m m
Z Z
T
m
C
O
L
=O
01
Q
d
CU
a
m
d
E
m
m d
w c o°
�°
a
°
a
r
.. d W E
m
C y
d
m
ay
o a d
•> E w
E >
C 'O
_
E m°°
E Q d T d -° > E
E
> Q
d d
<
d
C
ty C m T
C
a E m L' E
S
E° y
F
E
�v
�U)U)
Ll.=
'o
08c�a'i
to
c
�
m
o
A-15
3 N
M
c
c m
y .m E
c Co
L m �
y y
N N
m m
Z Z
A-16
O A M rM�pO N c0 Of W Ql A e0
Y
O
h'R --- 0
m
N n fOY COO O O n'
$ m uni
n
m N
m C
ad ? O) O dg A 6 .5 �O h
m n O N}} N O Oi m A t7 m
M
f0 - v N N
O CO N N A
N
to . G Y N n
fA m i0 O A m N
n 0
N h M O M CD
OO M M N
m �- p
p>
O
M
p
F-
n M n a N O �- �O
CO
V N O� N c
m N
t"l
N ID
Ch v
,p
> LL
tD N N r
N
.-
N
O
N M O n' ' ' •
M V7 (O O t0
N
O
O M M Of A m
N °) O CD O ; M
�O �- O m
N
O
n
' ' .O oD ' '
M O N
M tilm
O N M ' O
R n N O
S O tm A
tq
81
N
O
N
N O O LL'] N n
W W
N
N O
M OI O O
O �. LL7
m
m
N M ID a
w
t0
M
m m H
E E C
J M Ih tO
N 7 n O N
m N N
M
v
<
.-
' �- O v
Of M 0
M
O
N O A
n O
t0 M M
N N
O
Q
R
O
E
n
IL
Z
Ice)
C7
vs
A m
m
n
m
ON
Ncq
N
M
M
n
A y
.E 3
0) p
M
N
y
M
i a
w m
C
qAq11 r N • •^ • r . . .
tO N A
M
O
M , i r
N W
N
N
r i r r • . w
M
• r
M
CO
X V
to
..
F m N
M v
7
a
M
M
r
a`°
r
to
N U O
C O m
t
O
0
to C m {°
tTf M
M
m
O
S
O
r
N E
M
Oni
tO0
V
V'
O)
OOr
F
N
N
N
N
N
i
E '
vi
vs
GO
O
h N • . . , . •
' . r • i m .
N
i • i . . . »
. i . . .
�{
m o
ct a s
n
R y N
= u m `m
FmX-2 ��
•=
E
i+ A m
a
U CD
pm
c c
N ro r rn
V
N
W
rn
M
.
...to
r n
m
to
E
U E°
"y
M
m
V
n
?
n
M
N
C ❑ � ❑
N
�
r
v
F IL
ss
w
O] • W ' ' • r O O '
p 40 N
t° N O O
!�
t0
N
. A t0 O ' O '
O Of N CO
t0 N
N
O
h
• O ' • Cb m •
N m
N O O
, • • r^ '
n
N
N
Y m
N Cp
N V) n
O
h
R CD
n
�fi n
O
tD
N
T
C O
C,j
N
- fV
N
N
W a>i
❑
va
ds
p
N 'R ' .O O] m O) • '
N W ym M e m
CD
to
O • ' 10 t0 '
Y 'N M .O
N_
m ' • • • •
m rn
• • • . • • m
m ao
W
m
LL
L
m
t0 a n [O Cn w O Cl!
m
M .D Oj !� M 1� m
m tN')
a
O n N ID
CG
n Oi
O n
C
C
fq
m
n
10
m
c
m
Y
m C
2
m
y 2
m e n
a E v
to
E `m
.°°�
m `g m m
`o
m o. m m rn c
3 a m m m
E m L m m
D m m y m t
5 m w o> °
m
o L
m c°
m m a_ c c v
c
a y
m a y m
..C3.. d E
d
D
E C m O m
a
D D= - O C
m
m .L..
t m S E a
A °' r
m m
`03
q e m H
N ° m O m a D L m
n
vWW
d 4J C N D O Ot
_m
c v o '° u u c y
>L a m m 6 ".
E c m-
m
m C m m m 0 0
d
cO 'm,
m E E 'C >. .m.
�m �c -'QgD��t
D m 3 m m O O C
.. °'cam �>
- 1° m
W
°
N m L %> a
nm>mmmv2md
w call
N C m m C m A H
°°mmam
m
=
mt y"� °'- m c.am o. to F°-
w m m n v°to °> m D O Q
5 n.
m
to
m m Q N 0 0 0❑
D to i --aa❑
u
wUN C9 v1U
t
¢ o � a❑=❑ a a
_j
A-16
\(
o,
:/
§
2
co
cct\
}
M
\/
/ §
/
/ca
ƒ
A-17
/
/ca
ƒ
§
20c
{
k)k
CL
-__
co
\ \
�0
co
SD
co
L)�\\
.»®a
-
\k§
�
_
cc
s£�
\'ori
§�
/
%,
CD 2
Rk
_
'm§
§k
®�
-
30
_
2 §
2|
_
41
m3
� ��
-
/2
2\\
k\f<�CL
-
)§a
k\
°`
(D
\)
\\0
3e
A-17
A-18
W
O N N O
h
l0
W
r
r• LL] {p W O N O) a)
O m M r• ti [o r-
N
N
O f7
m m 10 m 0
-r. r- ^
g
m
N
°o
r. 'o c) O
m 1�
v
m
P1
m
r-
.n
10
a
m y
r.: w o 0 tri m Ln v
r- l0 f� N N P. N
ai
O
r• r� o
N a0 m M com
O m r- MoD r-
rn
ti a 10
O F] 07 td
rn
to
N
co r
m m W
o
m
n
r
m
rr
N E C
`
M C O N W W O
c'1
10 W N- 1q N
6t o U7
O m .N..
a1
r•
W
° E 7
r LL
01 - .- .-
f0
� N N � -
� �
r
� N
N
N
fV
�
o
0
v�
r- co m m m N W W
O O cD c`9 m r
m
a1
c0 r m ch M'e
I N W W<
m
O r• N O
O r- m
W
m
m^
10 O O^
r` V O
h
1�
m
O
O
O
O C
7 M N Q 01 m O) O v1
o
10
N c0 01 r• Q
O
-,7
O R r:
C N
W
N
m 0 P] O �
I'
N
u1
n
N
w
tD
•(p o y
tf $ r w r cD a w
W O c0
cV t0 cn u'i
r• � c`') 01 r•
r-
V1 W O
no
W
r-
-co n d-
M coW
O
W
O
O
-
E E C
coll
1n a N N iA mm
r.
N c' r-
VI r• N
O v W
O
m
7
E °
LL
<
cc
N
m
a
Z O
y
co t0
N m
n
m e
m`c5
co
m
R
v
v
W
m
0
w
oeq ai
a
ri
Lo
W
d
ri
Vm M
N
N
N
N
N
W
G Q
U C
C O
� V
Gs
v3
N
m0
V' '
, pD ' , ' , 7
N
T •
C1 tf '
O
M
co
cq
T n
C1
Oa/
OWi.
cmD,
cW0_
w
R
m
r N C N
O C
N 1M
a
c'N7
cN7
W
N
N
m
0
m p
y V1 y
7
F C O LL c0
LL
m m
y
e»
C
Of
O
N C
aOD fW0
7
Q
O u7
O
7
m
cm
C
m 01 d. m
r O
N
N
O
o
m
c0
O
v
A
c E m
v
vi
o
ri
N
N
m
?
�
N
N
r
N
r=E�
c�3
E
b) r
O
i m m
GW
O ' ' O '
c1
O
N
' ' ' '
N
O r• '
m
in
N
W
' ' '
N
co
N
7
l0
9 N 01 Q
t
D1
O
c
oci
fO
�7..
O
E
cc)
N
M
tOo r
w
N
04
f V
N
N
V
L C
m w c
m o
tW7
N
N
V
W Q _
r
t0
a/01 £ °
vi
W
_
}
m
m
rn v
r.
W
o
m
..
1.
...
3
M c c
d
Lo r-
o
m
1n
o
O
m
W
C
C
M
N
N
m
O
r
>
LL m C C
_
C
H Lc
cq
by
m
E
aa i O . . . o
47
. .
i
N
. C-
O^
r
O)
LC -4
RU
m
N at r
r•
P
O
o
O
0
N
r.
V1
o n
v n
of
- rn
rn
m
of
m
c o
v
N
W 0
to
a
m O1'1 N O m C,
r•
N v N m 7
O
O
7
c0
L
.O �2 O? N N
V N m N O O
r•
c0
N W m
r: Q cli
O W
W
r -
LL
y t0 O) Cn m N
N
o
A m r- oo NN
O
cV
r-
m
O v
10
v
V
R1
c0
!`
c4
O N W nm7 m
N
V c~O �
O)
W
CD
C
m
al
N N
O)
V'
W
c�
U!
cp
d
O
y
N
�
01
C
•_
C
d
C1
y
O
�
M
q
Qy1
N
L
@
a
yy1dp
c
E
C
T
y y
N 4--1
[
G
N
4i
S C O
C
C
E N N
N
d E i6
c G .�. F y
O N 9
c
C
N
Z an
d
h cm :9 y o v
W
E H° c
o o
.y c c
yy N f6
NE y
o
L
N
ma v
Q' p1 ?�
E g
•W a
_�
X 0L7 E
ti
O o m a W . N a
F= 01 `m c aa1 m
N m.
`� m
M
m
T
@ w o w m
o
c c v
o
y
Z
r R o m E
Z c m` t 3 c y
N a o
r
,C- a12
r
c
a
O1 N m y d m
> X m m d W d y t
o
r
w d c s n G1 a —'
a O N
c a`1 c m
�'C
°' 1 F- � O
a
a
d F m 51i U LL O
w UUaz2�UOLL
Sm U
O
LL
LL
A-18
ui
m y
w C
D
C LL
acb
W m o
E N
E m
O
m E " E
K p < m
m m w
m d c
N C y R
,rm,LL«
o EN
O O! O
= c LL
ccL
'v U
c .p
e
� m
W 0 o
m NS O N NII
c+) Cl) I
r �ci C6
�-
be 160
A-19
N
N
E
U
O N
N
C a) N d
O
U T
'E
N
7 N y
z
y w
v .
c o
m
..N. d
N M a3
y
a) .
a .0 N 'O a)
of C Nay. a)
m
L.E Ua)
m
C N
> @ E
:sm
C 0.2
co
C
- O))i. N O p N
C
a)r
a).�3
caoocNE�
c
yc�co�
v�
m c
oYn
a
c
coi�oaicr
U
o
O C
N
j E N C
`) a)
p 0
C y
V
N.L. (DE a) N
.� a)
fq -O E
N O-
>
O
N
'p
N C a N C
N O Q r- N
C E
..7_ C
16
-O U w
C C
O
C L
a
O
C N o
y W
n
a7 y
)
U NN
N
CD m
�C CL 0
X
p N
U V
C
y
c E y V G N
N. V)
C N NIL— o.
y c
y C
O N 3 c 0 w
` N
y
w co.
c o
or S E o
ca
C >
p
N
y C
O
a) U) '�
N
> N tOJ
O D O a)
7 y
O C
O
O O a) O
O. a3
w
0) « r
76
N cc
�> N
> m 0,-
w
O m N 0, N
N a7
O
O •O�p' tC
N D
N c
C N a)
y m E
U y0 'U O
C
N 'O
p N
m
a) �- N w
'O a a) L y
N C
a) N N
o
EL.. C
C d L aI a)
N
N to
y
N
@ n .a
'O" Z :01
d a)
5,
N d
y d N
O ui
N
O N
C C y E
O
O
'O C '7 d
>
y ly6
y y
O N C c N y of
a3 y .N..
N O N
U 'C
O O
O
O i. w N L
mmm
7 y y
C RS
C
6aa)
O X
'Q
U
� co
n
a) =
c. N c c N of
a)
�- c
aci
o) E r- a)
a) N
a) �
'o a) 0) 0 0
`
`� c
m E E (CO j
C
C O
y w C`
L
a)
> N
m>> a) a3
N c
`m
ZC�a�o
ILy
�`m
H3cmC,3ov
w
U
A-19
City of Hopkins
Intergovernmental
Market value aid credit
250,000
250,000
of 5
(247,304)
Statement of Revenues, Expenditures and Changes in Fund Balance
166,010
166,010
229,884
Budget and Actual
Insurance premium - police
170,000
170,000
General Fund
47,681
Insurance premium - fire
107,000
For the Year Ended December 31, 2009
74,989
(32,011)
Federal grants
1,000
1,000
Variance with
(1,000)
Other grants
4,000
final budget
1,000
Budget
Total Intergovernmental
positive
698,010
Original Final
Actual
(negative)
Revenues
290,000
286,404
(3,596)
Taxes
167,600
167,600
129,240
General property taxes
$ 6,870,187 $ 6,870,187 $
6,929,965
$ 59,778
Fiscal disparities
1,108,927 1,108,927
1,084,451
(24,476)
Total Taxes
7,979,114 7,979,114
8,014,416
35,302
Licenses and permits
Business
145,300 145,300
125,660
(19,640)
Non -business
448,135 448,135
493,463
45,328
Total Licenses and permits
593,435 593,435
619,123
25,688
Intergovernmental
Market value aid credit
250,000
250,000
2,696
(247,304)
State grants
166,010
166,010
229,884
63,874
Insurance premium - police
170,000
170,000
217,681
47,681
Insurance premium - fire
107,000
107,000
74,989
(32,011)
Federal grants
1,000
1,000
-
(1,000)
Other grants
4,000
4,000
1,000
(3,000)
Total Intergovernmental
.698,010
698,010
526,250
(171,760)
Fines and forfeitures
290,000
290,000
286,404
(3,596)
Court fines
167,600
167,600
129,240
(38,360)
Charges for services
General government
19,400
19,400
27,097
7,697
Public safety
149,950
149,950
284,160
134,210
Public works
1,200
1,200
2,776
1,576
Recreation
50,000
50,000
49,769
(231)
Total Charges for services
220,550
220,550
363,802
143.252
Other
Investment earnings
105,783
105,783
32,026
(73,757)
Franchise fees
290,000
290,000
286,404
(3,596)
Miscellaneous
21,000
21,000
28,616
7,616
Total Other
416,783
416,783
347,046
(69,737)
Total Revenues
10,075,492
10,075,492
9,999,877
(75,615)
Expenditures
General Government:
Mayor and council
Salaries and employee benefits
26,497
26,497
26,722
(225)
Materials, supplies and services
51,575
51,575
41,349
10,226
Total
78,072
78,072
68,071
10,001
A-20
City of Hopkins
2 of 5
Statement of Revenues, Expenditures and Changes in Fund Balance
124,065
124,065
117,816
Budget and Actual
Materials, supplies and services
224,744
224.744
178,996
General Fund
Total
348,809
348,809
296,812
For the Year Ended December
31, 2009
(40,000)
(40,000)
(40,000)
-
Net
308,809
Variance with
256,812
51,997
Elections
final budget
Budget
Salaries and employee benefits
27,798
positive
26,284
Original
Final
Actual
(negative)
Expenditures, (continued)
3,931
Total
43,203
43,203
General Government, (continued):
5,445
Administrative services
Salaries and employee benefits
$ 493,226 $
493,226 S
487,889
S 5,337
Materials, supplies and services
58,845
58,845
43,112
15,733
Total
552,071
552,071
531,001
21,070
Less expenditures charged to other activities
(100,000)
(100,000)
(100,000)
-
Net
452,071
452,071
431.001
21,070
Finance
Salaries and employee benefits
332,771
332,771
337,149
(4,378)
Materials, supplies and services
68,161
68,161
63,296
4,865
Total
400,932
400,932
400,445
487
Less expenditures charged to other activities
(211.055)
(211,055)
(211,055)
Net
189,877
189,877
189,390
487
Legal Services
Materials, supplies and services 130.625 130,625 137.221 (6,596)
Municipal Building
Salaries and employee benefits
124,065
124,065
117,816
6,249
Materials, supplies and services
224,744
224.744
178,996
45.748
Total
348,809
348,809
296,812
51,997
Less expenditures charged to other activities
(40,000)
(40,000)
(40,000)
-
Net
308,809
308,809
256,812
51,997
Elections
Salaries and employee benefits
27,798
27,798
26,284
1,514
Materials, supplies and services
15,405
15,405
11,474
3,931
Total
43,203
43,203
37,758
5,445
City Clerk and Reception
Salaries and employee benefits
117,840
117,840
109,583
8,257
Materials, supplies and services
19,669
19,669
20,164
(495)
Total
137,509
137,509
129,747
7,762
Less expenditures charged to other activities
(37,000)
(37,000)
(37,000)
-
Net
100,509
100,509
92,747
7,762
Assessing
Salaries and employee benefits
80,810
80,810
80,207
603
Materials, supplies and services
110,478
110,478
104,138
6,340
Total
191,288
191,288
184,345
6,943
Less expenditures charged to other activities
(24,000)
(24,000)
(24,000)
Net
167,288
167,288
160,345
6,943
A-21
Inspections
Salaries and employee benefits 373,826
373,826
372,113
1,713
Materials, supplies and services 76,025
76,025
61,910
City of Hopkins
Total 449,851
449,851
434,023
15,828
Total Public safety 5.588,217
5,588,217
5,676,184
(87,967)
3 of 5
Statement of Revenues,
Expenditures and Changes in Fund
Balance
Budget and Actual
General Fund
For the Year Ended December
31, 2009
Variance with
final budget
Budget
positive
Original
Final
Actual
(negative)
Expenditures, (continued)
General Government, (continued):
Planning and economic development
Salaries and employee benefits $
103,771 S
103,771
$ 103,900
$ (129)
Materials, supplies and services
18,135
18335
8,388
9,747
Total
121,906
121,906
112,288
9,618
Less expenditures charged to other activities
(20,000)
(20,000)
(20,000)
-
Net
101,906
101,906
92,288
9,618
Total General Government
1,572,360
1,572,360
1,465,633
106,727
Public Safety:
Police
Police Administration
Salaries and employee benefits
376,009
376,009
383,376
(7,367)
Materials, supplies and services
102,156
102,156
78.983
23,173
Net
478,165
478,165
462,359
15,806
Police Patrol and Investigation
Salaries and employee benefits
2,419,783
2,419,783
2,509,872
(90,089)
Materials, supplies and services
351,794
351,794
393,295
(41,501)
Total
2,771,577
2,771,577
2.903,167
(131.590)
Police Services
Salaries and employee benefits
887,658
887,658
891,514
(3,856)
Materials, supplies and services
190,045
190,045
171,912
18,133
Total
1,077,703
1,077,703
1,063,426
14,277
Total Police
4,327,445
4,327,445
4,428,952
(101,507)
Fire
Salaries and employee benefits
521,279
521,279
516,496
4,783
Materials, supplies and services
289,642
289,642
296,713
(7,071)
Total
810,921
810,921
813,209
(2,288)
Inspections
Salaries and employee benefits 373,826
373,826
372,113
1,713
Materials, supplies and services 76,025
76,025
61,910
14,115
Total 449,851
449,851
434,023
15,828
Total Public safety 5.588,217
5,588,217
5,676,184
(87,967)
c
A-22
City of Hopkins
Public Works Administration and Engineering
Salaries and employee benefits
330,930
330,930
323,634
4of5
43,585
Statement of Revenues, Expenditures and Changes in Fund Balance
43,569
Total
Budget and Actual
374,515
367,203
Less expenditures charged to other activities
(213,000)
General Fund
(174,273)
Net
161,515
161,515
For the Year Ended December
31, 2009
892,619
892,619
903,248
Snow and Ice Removal
Variance with
Salaries and employee benefits
116,043
116,043
108,467
final budget
64,645
Budget
86,340
Capital outlay
positive
1,000
Original
Final
Actual
(negative)
Expenditures, (continued)
Municipal parks and tree service:
Health and Welfare:
499,814
499,814
499,871
Materials, supplies and services
Inspections
289.918
228,054
Total
789,732
Salaries and employee benefits
$ 116,618 $
116,618
S 121,648
$ (5,030)
Materials, supplies and services
26,448
26,448
25,784
664
Total
143,066
143.066
147,432
(4,366)
Total Health and welfare
143,066
143,066
147,432
(4,366)
Highways and Streets:
Public works buildings and equipment services
Salaries and employee benefits
223,167
223,167
219,080
4,087
Materials, supplies and services
98,226
98,861
72,616
26,245
Capital outlay
6,000
5,365
-
5,365
Total
327,393
327,393
291,696
35,697
Less expenditures charged to other activities (213,000)
(213,000)
(202,238)
(10,762)
Net
114393
114,393
89,458
24,935
Public Works Administration and Engineering
Salaries and employee benefits
330,930
330,930
323,634
Materials, supplies and services
43,585
43,585
43,569
Total
374,515
374,515
367,203
Less expenditures charged to other activities
(213,000)
(213,000)
(174,273)
Net
161,515
161,515
192,930
Streets and Alleys
Salaries and employee benefits
384,610
384,610
441,150
Materials, supplies and services
616,509
616,509
572,098
Capital outlay
1,500
1,500
Total
1,002,619
1,002,619
1,013,248
Less expenditures charged to other activities
(110,000)
(110,000)
(110,000)
Net
892,619
892,619
903,248
Snow and Ice Removal
Salaries and employee benefits
116,043
116,043
108,467
Materials, supplies and services
64,645
64,645
86,340
Capital outlay
1,000
1,000
Total
181,688
181,688
194,807
Municipal parks and tree service:
Salaries and employee benefits
499,814
499,814
499,871
Materials, supplies and services
289.918
289.918
228,054
Total
789,732
789,732
727,925
Total Highways and Streets
7,296
16
7,312
(38,727)
(31,415)
(56,540)
44,411
1,500
(10,629)
(10,629)
7,576
(21,695)
1,000
(13,119)
(57)
61,864
61,807
2,139,947 2,1391947 2,108,368 31,579
A-23
R
A-24
City of Hopkins
5 of 5
Statement of Revenues,. Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended December
31, 2009
Variance with
final budget
Budget
positive
Original
Final
Actual
(negative)
Expenditures, (continued)
Culture and Recreation:
Activity center
Salaries and employee benefits
S 223,079 $
223,079 S
218,607
S 4,472
Materials, supplies and services
105,330
105.330
81,949
23,381
Total
328,409
328,409
300,556
27,853
Park and Recreation
Salaries and employee benefits
52,703
52,703
40,831
11,872
Materials, supplies and services
162,270
162,270
161,277
993
Total
214,973
214,973
201108
12,865
Total Culture and Recreation
543,382
543,382
502,664
40,718
Unallocated
Materials, supplies and services
73,520
73,520
12,089
61,431
Total Expenditures
10,060,492
10,060,492
9,912.370
148,122
Other Financing Sources (Uses):
Transfers in:
-
-
50,000
50,000
Transfers out:
(15,000)
(15,000)
(5,836)
9,164
Total Other Financing Sources (Uses) (15,000)
(15,000)
44,164
59,164
Net change in fund balance
-
-
131,671
131,671
Fund Balance - January 1
3,996,115
3,996,115
3,996,115
-
Fund Balance - December 31
S 3,996,175 $
3,996,115 S
4.127,786
S 131,671
R
A-24
City of Hopkins
Economic Development Special Revenue Fund
Statement of Revenues, Expenditures , and
Changes in Fund Balance - Budget and Actual
Year Ended December 31, 2009
Variance with
Expenditures:
Salaries and employee benefits
Original and
166,334
final budget
Materials, supplies and services
final
61,878
positive
Total
budget
Actual
(negative)
Revenues:
(37,500)
(37,500)
General property taxes
$ 50,000 $
48,254
$ (1,746)
Intergovernmental revenue:
County grant
-
5,000
5,000
Investment earnings
33,000
14,121
(18,879)
Other
-
15,160
15,160
Total Revenues
83,000
82,535
(465)
Expenditures:
Salaries and employee benefits
168,960
166,334
2,626
Materials, supplies and services
84,603
61,878
22.725
Total
253,563
228,212
25,351
Less expenditures charged to other activities
(37,500)
(37,500)
Net
216,063
190,712
25,351
Other Financing Sources (Uses):
Transfer to Art Center Fund
Net change in fund balance
Fund Balance - January 1
Fund Balance - December 31
(61.000) (61,000) -
(194,063) (169,177) 24,886
2,909,929 2,909,929 -
$ 2,715,866 $ 2,740,752 $ 24,886
A-25
City of Hopkins
Tax Increment District Entertainment District Special Revenue_ Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
Year Ended December 31, 2009
A-26
A
S
Variance with
Original and
final budget
final
positive
budget
Actual
(negative)
Revenues:
Taxes:
Tax increment
$ 50,000
s 52,174
S 2,174
Investment earnings
1,000
3,059
2,059
Miscellaneous revenue
-
74
74
Total Revenues
51.000
55,307
4,307
Expenditures:
Materials,. supplies and services
1,275
1,588
(313)
Capital outlay:
Public improvements
75,000
75,000
-
Total Expenditures
76.275
76,588
(313)
Net change in fund balance
(25,275)
(21,281)
3,994
Fund Balance - January 1
(76,190)
(96,190)
-
Fund Balance - December 31
$ (101,465)
$ (117,471)
S (16,006)
A-26
A
S
y c
00 me 'rn
v
R
N
7
tN'e O 00.
ry
E V
U
rn
CIL
ao
N
N
G �
cV
b9
O—
oo
o+ oho C,
v�
O
7 C C Il
N AV' N O
r M
N r
�tl
O`
M 000
69
Cl of O M '
' ^ V' N
O^
O A
is y •p
m h Cl
O N 7
O IO
N h 10
O O
Q•--
—
z
lD
M
CA
Cl v� ' ' '
00 ' O m
C.
O ct
M V N
N -•
h
O
V
-
_
a
O
V
N IO O
O o^
N N cn
10 N
C
O
Vl
69
N O\ O\
' N N
v
O
C O
O N
•"
co
N
69
69
3
U
y
E b
C U > W y
E R c°o y m
C
F°-
rn tu¢QOQ .O.1,� a
Q U
07 ^ r
r n
� n
O T h tt O O N 7✓
Q � t N N C
r- m M N O T
N O C ^ N O
N ^
ol
n. r N S b
N n
%D O. v
10
r rn r rn
\0 O m M
m a, C M
n N
CD 10 v1 O O ' 00 tO x C
r00 'Q W W [t N
h N T S N -m-� 7
W O h N
Q N r
V^ O V i ' 00 'n -- M
O\ 00
O. N w 00 '7 h O
vO ° trn R O
l0 n m
D\ r V O ct
N V c> O o0 O\ NM rl
U d' to 7 a N O r
7 7 -,t
C
G
U O
V y r V ~
m
,UO � d ° � O •yy y
y
ob y
M m vi O .v3 R C m m
U H U G O U
U ¢ d C ' C
t
o q U U
z
A-27
�Y N C14 r-
10
10 M O
O O^ 00 00 V M T O 7
V' Cl N a� C R� C
V' 00 r M 7— N R 'n N
I (� N N N 0• vi a
en N
N
CO O M o0 N M 1,-2:
17,
h N N O
N
h
00 T O m
h
R
O
b 'I O` W 'I
'tl•
— 10 -00 N N
N
N .-.
N
cV
O—
oo
o+ oho C,
v�
O
�
N
Q•--
�+ N
lD
M
1
r
b N N
- N O r
h
O
O N
N
O
� U
N HE
E T E a
> �v
p t
c ° a d � E actli � 'p• > °
�] U
43
2g)§
\]]]k) w|\]§
\k±§]22a 2Qjg�
co
z
A2
Mw
00
eq
kf})
-
Eee°
- m
;<a/
®
6 z00
_
/
_cc
a}
./7$
_m
2C>/
) §
)
�
i7,�
00
\�\
}\
10
ol
)\
ƒZ/
/m
r4
In
WI
a
�«
-
En ° 5
\
\
r4
L's\
/(00
r-
/)
y¥CD
INCliV3
N
43
2g)§
\]]]k) w|\]§
\k±§]22a 2Qjg�
co
z
A2
Mw
A-29
c
x m
CN
a-
y
y
7
In
O,
It 0\ vv0i
N
h
N N
Cr,
1
h
v7 M O N
—a
7
7
C
O
h O, r-
n
N to O O
Y
T D�
1,
oc
>In
U m
ate+
Q
7
M
�
fA
c9
-' O
N
N N h o0
C
N M C h
m
00
7
v'
N 'D
00 V O m
M
00 7
N
d
n
ol
; c
(71 00
O' r; O kn
06 D
00
m M N
V'
N
[-O O
^
n N
7 'hD 000 o
N
N
N
O� m C N
'D
-,
v
Vl
V1
cel V
v
69
�
O
�'
O
o0 oc
V y v� �'
(D N v)
h
.- O n•.
m
V.
N•p
O b
o0 7
N C O
v)
O
lo
O O O
ono
ol
'['
F oo
N
Nn. N h
m
h M
oo
vl O
M
O
Or,
N
oo N N M
N
fy m
.a
v
N
h
vl
N
f,9
�
�O
N o0N
'cf
o0 oo d..
O
T c,4
•-•
O� M Ct
O
7
C co
M
N
o0 N
00 0o N C
n
N V?
C
[� �0 00
vl
M
-
O
ti O
r- oo
Ou.
N cV O —
M
m
vl n
N
N
O
Q to
m
10
2
U
m
m
N
N
N
N
EA
6s
c> mcq
00 V'
x
N
N
Cl M
M
oc
D\
C O
eVj• 'n
h t O
N
�
c�
ut
c•':
v1
o� O O�
N h n
N
N
7
O h
oo
fN,t
m
'c!'
h
7 N M
O
vn)
ti
vi
h
b9
59
co
ol h
to
^
y
V1
T
N
C O rn
O
h
O oNi
M
v
v:
O M
N O N
V
v)
N
M
!/)t+�l
v rn
n
oc
ooN
s9
00Nlo
O
h -- —
O\
y
r4
a
M
lo
3
O
m O
m
O n h
Mh rn '=
O
noo
O
N
Om0 Om0
v N
v
V)
n
vo
N
00o
vN
v
v n
o
r-
M
N +--•
69
69
N
h
G
N
N
N
`=
G
d m
x
N
h
'�- d
X
>
4.
00
Vbav
lG6
N
x.11
a
G rn cd
O
ti y
o0
'o
ii O
b W
C
C
N .� G O
N o
d
p' y .P. GO00
o
N U �
> '-
^
'O
O
ca
m
y ti
0
N y r^� _� �y
yr•.
g 4= a�i fOi�
>
G
m v m o0
N
0o y
Go W O
oo
.> G G
_75
G
d
v y G
N
. m
F & •
V
UV G
v
N G
U
i
•+�.
o U
0
d A E
o
a
c
5 5 C7
F
o U F=
F
F
o
z
^
A-29
M
A-30
�4
�O P r N h
'Ir'
7
10 Oq N cc
�O h N OG
—
G, M
N,?S q�
,;•,
h 7 oG C�
vi �C O�
�/)
N
vl
N
7 N O oo
Vi O O M
..-
o
N
h-
r h
vi
rN-•
ri
:> U
M
N O
N
N
N
Vi
69
D\ h h O� 1� N—
Cl N
N
y
T N D\ N
r V W Qr Ow V 00
'It V
O O C
•-- V'1 r �O V' D\ O
M 00 �J M O— O
C
N
V
O O
M •-•
O
?
o oc" o
m vi a
oo" 0, r; = N o vi
h
N
10
69
69
h oo N co c 7
O C O
O� �D
N O
M
N 'y0Q
Ci N oo N
M h m
G d 7
`l
v v .�-.
N .N... N
.N-
v
.N-.
z d
69
69
4�l 1 O.
M Cli T lc
v
N
b
10
aFd.
•�
M r N
v
N
N
d
M v v
0. 2
V3
f�i
y
h 1 N M C,
O O
O O ' O
r
O N
N
3
N r N D\ M
O O
h MM O
r N O
--
'V
l^
m •d'
N
y
VI
�O cl N M
O\ N m DO N
N v1
O O N Vl
M
r
7
r
cF O\
N
g
' � a
t-
64 69
va
P N [F sf 0�—
vt N r 0 r N
O O
O O
m
r M
O oG O
N
O
C
d
V'
3 •^_
h
6s
�D N hO - �D
Op
0, N W I� 1 O
N
w
w
Vii
M ooc G N r
pO
VIAL O T O
O�
Oh
w
O N N Yl r •--•
Vl Y1
10 T 4 U O
h
N
69
1A
10
O
M_
C
>
•>
u
4:
-° 40, 'V
�>
•U
'°
F
C
N
Q
C
F
F
e
0. uJ
:4
•o.
>
o ,� � a� p
�
h C
M y y
W
y v
w
v
to
J
U
c h oc •c, ° d
o>
m •a 5 m o °' E
c
y
s v
p o d
z
^
?
U v y
a°i
v_
v
° d
a
.E y d '^
00
OE
0E o
E •� o
E0
E Eu a
°• (y E tE O O U
O N
pop N U
`" V L y d ° `« .°
O F
O 'yj
H C
c
d d N C N
y
1 G ° O C O
L
NT Z
h
m
C z
L
Z
Z U
U
A-30
O
N
0
L.
A-31
Q
p
T
G:.
C
d
G
•p
N
N R
o
u
U
U
> E
> cc
L
'j O
>
•^�
04 O
.0.
d
69
V} V)
N
el'
N �
N M .O
t�] O N M
�.•�
V;
•L .O `� •U �
y G A �
O
C C �
� a)
v
.�. �
O O O
o o
'
O 66
`
p
•�
0�0
Or
N
oo
oNC a v�j
D? N
m m
N o0
N
V
•r
0 o u.
N
z
o U
6e
609
'�• ¢
v
b
v
M
� d
69
69 69
O
ul
�
sv v3
O
I�
T
V1 1
M N V1
N
O
N M
N
69
49 69
o
.n
.c
o 000
opo n v
y
M
6
A-31
Q
p
T
G:.
C
d
G
•p
N R
o
u
U
U
> E
> cc
L
'j O
>
•^�
04 O
.0.
d
•L .O `� •U �
y G A �
O
C C �
� a)
v
.�. �
O O O
o o
b O. O
O 66
,O
•r
u 0 4
o U
z
A-31
S
A-32
c C
Z 2
u
.u.
q a
E F
E
�Eo`
E T
•;
C
u
`C
='
^ n
`
V
p
ts:p :=
j ri
owu8
u
°
p
EY
0E
a v
ER,
a
u
c
m3
= e
^3
C=,=
S
.c . u
m
w V F' V
=
¢ E
6 E
u N -E
= 0
F E4
3
G
v
Fo
W
�gy
°iJ
V(a°
�T6d9
n
OCXZ
u
Eua=
mu
=v
S
u
R
3u
= y
`�G
e�
w•=
`c
o=".'o
tOa �N EEo
`3u
fW
uo E'v',
Q.
OC
�'��
p o Er=
�•_s m-`w.v
�oo„E
s p
w�
3
cx e^i—
85
°T`w'r-wn av
n3
z
°540
i
E
2 nV u
o
E•� 3'v
F
a e w
E— q o o
g
Z
` o=
3u
c
'g�nFs
>•p c'=
ul
cc•o�
a E
�RO�=u
-'
�4vu
J�
uEoc�
12 2
Z U
U
u�
'C
U� b
e°i O•�.
4 F
� L
Q�
J.'O
v> .O
.T._ C=
`d
•'
u. y
Er
U G°p O °�.
?Icb3
u u
F
k=t=
m m
o
im
.?
�:
��
op.
n
U`rp.'
=u`
s�
9 v
ti'o
a
3y-
'=u
3t
oar'_'
acc
_
u
ioc
�•�yrSu
z
.'
U E p
�•
3 C
U �p
=
ZIZ n
y=
U>
O T O.d
V O Z
= C
Z
vL°�.o
^ao
�`o
54.p��
5.... uLIz
u
� =.t Cl
Z
•e .a u `ro
3.uyt
.aFP
�5o
c'a
m �u
z p
ZE
eo
.'�
cmc
^�
c o
.'y'.e
�, j
y5
R`_'
v o cm.
C0 i e��
Si'
9
fy
o
e'
t
E s
w o
,0
_�
w. L
m U
V°'
=
H
u T
.: V O
M1 4
•C1
am!
w=
u
w u
° _me^•
J
it
u L
a
wwe
F
ro g ^q
on_E•
c c
Gnu
o: .e Tw
z
ua]
u`E ey
os3C"
c
V
9a°you
t 9
E °
ina
Emc�
o4
o
—O�'�ti
�nR
RoE
`o Cc
Op
cu
Cuo
qA=
CEu
�=
C ��y
�•9a
H
eVa'
°
a z
UU U V
ti •^
Z
U
r
C7
F-: Gti:
a w
ti` •`
V
O
C R
G "` L1
9
E
f
.- \
T
4;
C
V
O
£
C
T
> Baa t
s>2a
x,mo
Fu
E -a
r
Pat
Fro
F8
F=
l -N-
Fyc
E>
V.EES
e E
w E
P
F
A-32
�Eo`
v
°
C=,=
S
.c . u
w V F' V
=
°iJ
V(a°
�T6d9
OCXZ
V=Emw—
L�,�
Eo •'3
u•=:+o"
•oL3�
o=".'o
tOa �N EEo
`3u
fW
uo E'v',
Q.
OC
�'��
p o Er=
�•_s m-`w.v
�oo„E
c
w�
3
cx e^i—
hg0`
°T`w'r-wn av
n3
z
°540
i
E
2 nV u
o
E•� 3'v
F
a e w
E— q o o
g
Z
` o=
3u
c
'g�nFs
>•p c'=
ul
cc•o�
a E
�RO�=u
-'
�4vu
J�
uEoc�
c:.
ci n
oEo�
c�U
SEE c.>>
E•o
ai='2u
V1 v
:
v> .O
.T._ C=
`d
•'
u. y
Er
U G°p O °�.
00 >> F E
u'a
u u
F
k=t=
m m
�V•o
im
.?
y
op.
Z..T.d
wa no R
.� 6
`�5'y`
o
�•�yrSu
z
o.ay
°O3na
y�oo0w
o•eo
G>
U r=
T a U
O T O.d
>,
Z
vL°�.o
�`o
5.... uLIz
u
� =.t Cl
Z
•e .a u `ro
a -'S
�.�
u 4 =
z p
y
_u
L-5
r
q, '3
F,cv
_c
wwe
F
ro g ^q
on_E•
c c
Gnu
o: .e Tw
z
ua]
u`E ey
os3C"
c
V
9a°you
t 9
E °
C
0
Emc�
o4
zO�S
O
rwd
� ue�
u�.••
L�
•-.�vs >.
d Y
F=a�
C7
F-: Gti:
Fo�'�r�o
ul ww
�
FFo�
h �• o �°
F a�
G
rC
ti
A-32
3 u as u
T UOyaF U�c oTu c E
u "
W ? •� ��'Ljj O _' _ U
'Aa U A E A J9
y 2 O
``o •°o a J
E o. a.a y W m e y u i
aua •oos
y W E W C W U �- y �- C _ W •, v s
=�zLo
E' c E �- o '� y= m 9 L o � F u ti � � 0 9 v w � u � `' v � •o
9 O C W.2 C U `
v U E H
'F� �a c�E= oqG G oa E•o oy A u �n 9e'u f)`._J_-'£ J ��
v � E� � >. > 0 5° T i c v 2 r^.o a 1W' .aa .; z ' �o � E h u y •� � c� E. ��
'S� Z ``gin �•'�c 5a- s u'i7�E �2� � �$ � y 3�oguL €•m qan=
O C W z V •O G C f<-• g H E n q m ~ U C J
A-33
_
�
E
c c c [
o.S'2E!
woo°
3^
".oc
c=
1
y
c?E•E'w
o��ou
0'y.,
�y
c'3�
.cq
o
o
u
9 •p C
E o
E '•-
c
c• 3 0' o
>
.o
s
�-v
enx
ws
Co
O
o.
o,�
W O
FUG
q$
r'°
Ear J e
3 a
f"fJJ m
_>
4
`o_U
S �o
E
�°•
s
cv
vow
k-
� o
o f
�=
... �.c uC
o u
a u
u v
�.q
$
n
_ 0.
c�
Eo
a
4
oG
`�'o
uF
o5•`�%
�o'^'
`°>.�C
E.4
=.-'A
cen�c�':Ec
•ON
N.
0.:
U -
,,
o `
U
8_ v q
•-' q
6q y
1O
¢G V R U9
9
i
`
"'_
ya
m
Uyy
_
5x10 G�U•�•
y=%
cF n
J
>G,
`J
?
ym..
umF Syi>
3a
.•5$n
ayJ W
g9
W
_
�E—
ScE�
ca°a°p
0 o
z
� v
'._
.Q
6 c
9
c 9 g 9
c v G C
N O
-
G
.
.✓a y O �
O
.O u
t
J_ � c
�- :Q G 0 0
JA.�C
SOY
CV
�Gu
�GO
U H V
y
v
U~
Cl •e
6 tU. P.
--_
_E&
�CnC—ai
V v 9
U a
C '�
iV
p` w U
ov.a
=08
`o °v �a
34
FbGu@
O V
u�
q w 0 u E
t�
y N y w
'..C-• u C y
Uf
U O O
L•
J
" tp
_,8
9
3 C
tl
v.
_
_
C
U
•� >
L T
c9i
n•C O
C
O
line
'
~
y
G ulE�a
,EGA=
�ocg"s
W U
o_ -U
n •ccE�
A-33
A-34
r0
T r U u O
� �°, T •d
r .�_ 4
4 m V
H
v=
vc
$c^
`V
E�=�-r.
393 T�cw
c
�
>
_
T
Fo
>= T9 O
muu
C
Su`-�
so`r4.c
mp-G
U•Ea ToZGo
EE °
coy•.-°-°
C
c
3vv
ecu
�`'os
ac=°:cd°�0
e°L'-o
tc
u,G t63
cmE
O'_^�o
Eo
'U m.O
U
C
ry O
U U U 7
r p
�
•j ._�' C r0 .�,
°�
w �L; '.
0
~
J O 0 C
w
-
=
�
� m u� •C
U 6 U
�7i'1
U"-
—5
7 2
c
A
N N rte. N
� U
� Q
C O
u m a•'W
j
i
p
3 v
O
°a E'>,m
'c Ems•$
Vvyi
`t -u13.09
o eG O
u
= � •°
wEE
` p U
w:0>w
� c E`
�' n 9
c_o
m as
'0
�.
-, o
acEs
..EP O
U`r�
a `j� LU' _.
;•- w
G� CU^0
b
Ut�
G> J�'J'�
�CUZ
L=Umy99
r°i•'-
DL
eui _A:o
.�E
-
"m J.99
€u �=
m�
PJ
oE•��
Lo
o�c
E-
0 0
E
U._pV
Kco
.`'E
900 `•c •o
�^' _
C
U O. U '• G
'.�
^.
T
T p
W L -
q
O t
9 0
pis
(� O O L C V u
C°pfl
U 'O
ZZw
u y
y
zS a
uay
0.0 3
O
oL..
° Sw
"mac
�U=
T C
nc
9° G
<
`7
T '^ p C A a 0 .�
Ja`uF.. m o
- y 3
qQ, :o °'
�ZLi
WL1
h m G m
aua`
,u.. .15
q�ucui
qy
ac>.z
•cg -
m
.E�Ot-.pE ?�-
E
Lu m
ap
�uoE
XaF-
W
u U c
w m E
r� -
Ev E u
_
j
O
F
.c.•: ° Ta 3
.
F ._ ` m
F 0 o
O U,
OO
w
`E o
F<" v
g
T`uAu
w
as
0
orlon co` su
F a• -:E
w aca�
-�C
E='^c
T � U
�j
A
9u
uUoyc�"..
E„°, �•�
Z
ao>�
.c�S _
Z
EE>
G L m
5 2 6-
u 9 V U
Iz .L 6< M m
O F e°i e e Ci
W h
F to O u
O
c F
c O D
oE�•�
o �-
A-34
r0
T r U u O
� �°, T •d
r .�_ 4
4 m V
H
^ t 41
>
>= T9 O
!<
yE13`
E
F-
Eo
Z, C z¢
T T i. i.
E
p- m E •�
U� �1 •
v q u
...
O
3
p �
- m o
V 9._
c
9 O C
N N rte. N
� U
� Q
C O
u m a•'W
j
i
p
3 v
.o �,
R 4
v o
02"
N
x�
C
w T g o `u' u
pn y•J
� c E`
�' n 9
9 c •o
y e�• 09
m as
'0
�.
-, o
..EP O
U`r�
a `j� LU' _.
;•- w
G� CU^0
�° O
3-
Ut�
G> J�'J'�
�CUZ
L=Umy99
r°i•'-
DL
-'O 'C
.�E
-
0 0
o E. a y 9
O'
O
C
U O. U '• G
'G L w+
n 9 U a
R p O C
•C m°
a O ^,
.0C E O L
p� 3
q
O t
9 0
2.5
C
3 �y
Lr"
'C 6
L �J `• pR,�
U
�>
tmp
V;
u`o
O
•O U>
V o L
p
> '.� s
q
'v U
w
U
� .•
�j
A
9u
Z
u °
<oEaE>
=
O
c F
c O D
oE�•�
o �-
m 9
O w'= E 'o
c '� .= `u y
,� o °•
F .'o
L
U oho
E o o c m
9y
>�E c
J`n
uwu
P.�E_�,�c
a.. �•�'o-p.�'
a�qo�
F e°n a0o
u
e°pGE�o
°°E of
d
�y2
?'-'yEi
�eun
_u
z
s^v
�W..
ro
N i W C_I
�-• <
W G 6
A-34
2 V O V X T
_ c.o ma
-
a mo o= eWn
csO o c E
-
C
Le ^
v,>E
T u= q 9 ? C E= j U 2.2-S UD
V1 =< S
_ •� F, `o c S F
J u eA 9 G �i U T D q
E y - O
U mSDm
E� = cy �"
z z- ro a a �y
cq= <"1U � 3 " .c 'o " � _m o O p
a, O UL m.'O_'C u T -.L j U -- 'Co V> N E= y u e U
a
u c— �+_U
y c F
A
z w c �o v Q � a,o 5°pL m_3 � �, o F
o
L wnu3i5� ocm usr�.ao �.�ooc •� <...0 cj K,?°
U
cE75,`�
m <en �'. 'S e.., F�.., — r m e vi m tro c? v!-"•�UFF<
ZF'
9 V U
V _ api' C E v > C O E q
rJ V G A W 3 O moi'.
Q �, _ OM �_ •� y �L< �C
{Il F
O aU� r 12 rOn
_ ; ;5 � u
E"'
�c+N ZFp �° a o•o v �' � cu � N ovacnv�iavm
N X121 y9 � '3 y .: N Nro ro E G srou Nvvpp v O
><_EF
s o< s�
U m a E c
E s
F 5 .1 e°n E E� D-' ue U Tyq Vy
E V
V C V
E
` U M U y E u .. = p _ O .c y H
gEeeo y< mR>00O F^^ U.E �yvE�Fy O'roy- ?.�v
Lt7 J � '..D U ` L` 7
0 -2c
s o U A y U s o o h> D q o =s g 3 q c c
�y �z`aF Eom "m 90
ro ._
tit <-.
y O C,_C'_.
ro=
^ua pWp. uvc> :W Com" a3`�uo a y vD.��Ea=
a° Z � > E � ' S ^ y — � = o = `o ._ .r u E c � � -D 'D X ",E u
w'm <• E' u�Ea'� �'? E _`o .^�z av L°vu°p 'c .gy�romy
u u e: E 9 u E u- o `2
TS mDc �Uv, 'o caJ o= �oEEE oo.x^� x�.�-'D
cc [[lm :J,O yo_...�E
L QA o E
cuo�0.c`1 eon _o1 �Uv `gym Dc�icu qct .:icW 000?m�w
9
A zz O?u�,l G �L UO,ZD 3`o c'.- c �BH.go u >omES j _`�. •ca E E•. a�
u E ao«L<z_o
A-35
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2009
Budgets are adopted for some special revenue fund types but not all. Excluded from the budget adoption process
are funds that are completely reimbursable from the federal government and a federal housing contracted program
that ended December 31, 2009. The Section 8 and Community Development Block Grant are non -budgeted funds.
C. FUND BALANCE DEFICITS
At December 31, 2009, the following funds had deficit fund balances or net assets. These deficits will be funded
through future tax levies, contributions, grants, charges for services or developer payments:
State Chemical Assessment Team
$101,947
Paratransit
11,000
Art Center
898,351
Tax Increment 1.2 Entertainment District
117,471
Tax Increment 2.6 Sonoma District
306,961
Tax Increment District 1.3 5t' Avenue Flats
63,954
Tax Increment District 1.4 Marketplace & Main
17,861
Permanent Improvement Revolving
31,817
D. NET ASSETS RESTRICTED BY ENABLING LEGISLATION
The government -wide statement of net assets reports $695,209 in restricted net assets for economic development,
of which $588,337 is restricted by enabling legislation.
4. DEPOSITS AND INVESTMENTS
As of December 31, 2009 the City had the following deposits and investments:
Investment Tyne
Municipal obligations
Negotiable certificates of deposit
Money market
Deposits
Total fair value
Fair Value
$ 1,545,810
3,871,712
12,567,426
372,508
18.357.456
LE
Interest rate risk — Interest rate risk is the risk that the fair value of investments will be adversely affected by a
change in interest rates. In accordance with its investment policy, the city manages its exposure to declines in fair
values by holding long-term government investments to maturity and by investing in commercial paper with
maturity dates of 270 days or less.
At of December 31, 2009 the City had the following investment maturities:
M62
A-36
Credit risk — Credit risk is the risk that an issuer or other counter party to an investment will not fulfill its
obligations. Credit risk is measured using credit quality ratings of investments in debt securities as described by
nationally recognized rating agencies such as Standard & Poor's and Moody's. According to the City's
investment policy commercial paper shall be restricted to issues, which mature in 270 days or less with a rating of
A-1 (Moody's), P -I (Standard & Poor's) or F-1 (Fitch) among at least two of the three rating agencies.
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) Guaranteed investment contracts issued or guaranteed by United States commercial banks or domestic
branches of foreign banks or United States insurance companies or their subsidiaries.
(g) 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.
The following table lists the credit quality ratings per Moody's and/or Standard and Poor's and/or Fitch of the
City's investments at December 31, 2009.
City of Hopkins, Minnesota
Quality Ratings
NOTES TO FINANCIAL STATEMENTS, (CONT.)
Fair
December 31, 2009
FDIC
Investment maturities (in ears)
Value
Fair Less
No
Unrated
Value than one 1_5
maturity
Investment Type:
Muncipal obligations
$ 1,545,810 $ - S 1,545,810
$
Negotiable certificates of
deposit 3,871,712 3,871,712 -
_
Money market accounts
12,567,426 -
12,567,426
Demand deposits
372,508 - -
372,508
- -
$18,357,456 $ 3,871,712 $ 1,545,810
$ 12,939,934
Credit risk — Credit risk is the risk that an issuer or other counter party to an investment will not fulfill its
obligations. Credit risk is measured using credit quality ratings of investments in debt securities as described by
nationally recognized rating agencies such as Standard & Poor's and Moody's. According to the City's
investment policy commercial paper shall be restricted to issues, which mature in 270 days or less with a rating of
A-1 (Moody's), P -I (Standard & Poor's) or F-1 (Fitch) among at least two of the three rating agencies.
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) Guaranteed investment contracts issued or guaranteed by United States commercial banks or domestic
branches of foreign banks or United States insurance companies or their subsidiaries.
(g) 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.
The following table lists the credit quality ratings per Moody's and/or Standard and Poor's and/or Fitch of the
City's investments at December 31, 2009.
Custodial credit risk
Deposits.:-- For deposits, this is the risk that in the event of a bank failure, the City's deposits may not be
returned to it. 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. Authorized collateral includes the legal investments described above, as well as
certain first mortgage notes, and certain other state or local government gbligations. Minnesota Statutes
A-37
Quality Ratings
Fair
FDIC
Value
AAA AA2 AM A2
Insured
Unrated
Investment Type:
Muncipal obligations
$ 1,545,810
$ 401,664 $ 234,812 $ 809,271 $ 100,063
$ -
$ _
Negotiable certificates of deposit
3,871,712
- - - -
3,871,712
-
Money market accounts
12,567,426
- -
-
12,567,426
Demand deposits
372,508
- - - -
-
372,508
$ 18,357,456
$ 401,664 $ 234.812 $ 809,271 $ 100,063
$ 3,871,712
$ 12,939,934
Custodial credit risk
Deposits.:-- For deposits, this is the risk that in the event of a bank failure, the City's deposits may not be
returned to it. 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. Authorized collateral includes the legal investments described above, as well as
certain first mortgage notes, and certain other state or local government gbligations. Minnesota Statutes
A-37
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2009
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. At December 31, 2009 the City had no deposits that
were uninsured or uncollateralized. The deposits were insured or collateralized by securities held by the
City's agent in the City's name.
Investments — For an investment, this is the risk that, in the event of the failure of the counterparty, the
City will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. All investments held by the City are insured or registered or are held by
the City or its agent in the City's name. The City has the ability and intent to bold its investments to
maturity and therefore intends to recover the full carrying value of its investment portfolio upon maturity.
Concentration of credit risk — The City's investment policy does not specifically address the issue of concentration
of investments by issuer.
5. CAPITAL ASSETS
Capital asset activities for the year ended December 31, 2009 were as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated
Land $ 5,805,711 $ - $ - $ $ 5,805,711
Construction in Progress 4,645,357 1,246,709 - (3,133,265) 2,758,801
Total not being depreciated 10,451,068 1,246,709 - (3,133.265) 8,564,512
Capital assets, being depreciated
Buildings
19,759,799
-
- 19,759,799
Other Improvements
26,829,897
66,317
3,133,265 30,029,479
Vehicles
3,983,645
31,419
(79,343) - 3,935,721
Machinery & Equipment
4,619,952
240,268
(29,115) - 4,831,105
Total being depreciated
55,193,293
338,004
(108,458) 3,133,265 58,556,104
Less accumulated depreciation:
Buildings
(3,276,394)
(484,328)
-
- (3,760,722)
Other Improvements
(11,220,256)
(682,676)
-
- (11,902,932)
Vehicles
(1,907,339)
(371,986)
79,343
- (2,199,982)
Machinery & Equipment
(3,034,077)
(236,581)
28,210
- (3,242 448)
Total accumulated depreciation
(19,438,066)
(1,775,571)
107,553
- (21,106,084)
Total capital assets, being
depreciated, net
35,755,227
(1,437,567)
(905)
3,133,265 37,450,020
Governmental activities capital
assets, net
$ 462206,295
$ (190,858)
$ (905) $
- $ 46.014,532
c
A-38
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2009
Beginning Ending
Balance Increases Decreases Transfers Balance
Business -type Activities:
Capital assets, not being depreciated
Land $ 167,789 S - $ S S 167,789
Construction in Progress 1,954,894 875,255 - (756,802) 2,073,347
Total not being depreciated 2,122,683 875,255 (756,802)_. 2,241,136
Capital assets, being depreciated
Buildings
6,805,599
6,434
88,421
6,900,454
Infrastructure
18,302,938,
167,637
127,472
18,598,047
Other Improvements
5,267,462
30,463
538,509
5,836,434
Vehicles
729,552
-
- -
729,552
Machinery & Equipment
817,081
2,939
(19,733) 2,400
802,687
Total being depreciated
31,922,632
207,473
(19,733) 756,802
32,867,174
Less accumulated depreciation:
Buildings
(3,311,691)
(226,539)
(3,538,230)
Infrastructure
(9,482,520)
(396,763)
(9,879,283)
Other Improvements
(854,661)
(111,524)
(966,185)
Vehicles
(333,816)
(49,665)
-
(383,481)
Machinery & Equipment
(553.805)
(44,313)
4,895
(593,223)
Total accumulated depreciation
(14,536,493)
(828,804)
4,895
- (15,360,402)
Total capital assets, being
depreciated, net
17,386,139
(621,331)
(14,838)
756,802 17,506,772
Business -type activities capital
assets, net
S 19.508.822 $
253.924
S (14,838) S
S 19,747,908
Depreciation expense was charged to City functions as follows:
Governmental activities:
General government
Public safety
Highways and streets
Urban redevelopment and housing
Culture and recreation
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets
Total depreciation expense - governmental activities
Business -type activities:
Water
Sewer
Storm Sewer
Refuse
Pavilion/lee arena
Housing and Redevelopment Authority
Total depreciation expense - business -type activities
A-39
$ 39,493
259,927
860,714
1,256
134,194
479,987
1.775.571
$ 218,513
140,017
190,461
47,490
66,828
165,495
�$ 04
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2009
Construction commitments
The City has active construction projects as of December 31, 2009. The projects include street improvements. The
City's commitment with contractors related to these projects is $102,226.
6. 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, 2009:
Due from other funds
General Total
Due to other funds:
Non -major governmental $ 924,101 $ 924,101
Tax Increment District Entertainment District - -
Pavilion 218,490 218,490
Non -major proprietary 20,448 20.448
Total due to other funds $ 1,163,039 $ 1,163,039
Advances from other funds
General
Economic
Intemal
Economic Development
- $ 61,000
Development
Service
Total
Advanced to other funds:
Sewer
- 50,000
50,000
Non -major governmental
$ 616,839
$ -
$ 616,839
Tax Increment District Entertainment District
1,458,179
-
1,458,179
Non -major proprietary
-
91,249
91,249
Total advances to other funds
2,075,018
$ 91,249
$ 2,166,267
The interf rnd receivables and payables are to eliminate negative cash between funds and to allow for development
loans or to facilitate a project or operations of another fund.
7. INTERFUND TRANSFERS
The following is a summary of transfers between funds as of December 31, 2009:
Transfers in
Non -major
General Governmental Total
Transfers out:
General
$ 50,000 $ 5,836 $
55,836
Economic Development
- $ 61,000
61,000
Water
- 45,000
45,000
Sewer
- 50,000
50,000
Storm Sewer
- 25,000
25,000
Non -major governmental
- 827,039
827,039
Non -major business -type
- 25,000
25,000
1,088,875
Total transfers out
$ 50,000 $ 1.038,875 $
A-40
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2009
Interfund transfers allow the City to allocate financial resources to debt service funds that are paying the general
obligation debt.
Non -routine transfers include the following:
1) Annual transfers from water, sewer and storm sewer for lease payments on new public works facility.
2) An annual transfer, within non -major governmental funds, from the Economic Development and
Communication funds to the Art Center Fund totaling $147,920 to pay the original debt for building the
facility.
3) Annual transfers from Tax Increment Special Revenue funds to Debt Service funds for debt payments.
4) Transfer from Capital Projects Fund to the General Fund of $50,000 to balance the budget following state
aid unallotments.
8. LEASES
The city has entered into a lease agreement as a lessee for financing the acquisition of an aerial lift fire truck with a
down payment of $445,427. The lease agreement qualifies as a capital lease for accounting purposes and, therefore,
has been recorded at the present value of their future minimum lease payments as of the inception date.
The asset acquired through the capital lease is as follows:
Governmental Activities
Asset:
Machinery and equipment $870,427
Less: Accumulated depreciation (50,695)
Total
The future minimum lease obligations and the net present value of these minimum lease payments as of December
31, 2009 are as follows:
9. LONG-TERM DEBT
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities. General obligation bonds have been issued for governmental activities.
General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by
General and Tax Increment levies and also by fees assessed against benefited properties. These bonds generally are
issued as 20 -year serial bonds.
A-41
Governmental
Activities
Year Ending December 31.
2010
$ 54,217
2011
54,217
2012
54,217
2013
54,217
2014
54,217
2015-2018
216.868
Total minimum lease payments
487,953
Less: amount representing interest
(96,839)
Present value of minimum lease payments
$ 391,115
9. LONG-TERM DEBT
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities. General obligation bonds have been issued for governmental activities.
General Obligation Bonds are backed by the full faith, credit and taxing power of the City, and are serviced by
General and Tax Increment levies and also by fees assessed against benefited properties. These bonds generally are
issued as 20 -year serial bonds.
A-41
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2009
Refunding:
On December 31, 2009 the City issued $2,865,000 in Taxable General Obligation Housing Improvement Bonds,
Series 2009B for the purpose of refunding $1,035,000 Taxable General Obligation Housing Improvement Bonds,
Series 1999A and $1,830,000 Taxable General Obligation Housing Improvement Bonds, Series 1999B. Future debt
service payments will be reduced by $550,156 with a present value savings of $433,635. The refunded bonds will be
called and paid on February 1, 2010.
General obligation bonds currently outstanding are as follows:
Purpose
Principal
Interest Rates Original Amount Current Amount
Governmental
activities
2.00-8.0% $ 22,335;000 $14,080,000
Governmental
activities — refunding
1.00-8.1% 10,443,543 5,455,000
Annual debt service requirements to
maturity for general obligation bonds are as follows:
Year Ending
Govermnental Activities
December 31
Principal
Interest
2010
$ 4,165,000 S
727,818
2011
1,350,000
610,457
2012
1,360,000
560,737
-2013
1,105,000
514,437
2014
1,145,000
472,655
2015-2019
5,985,000
1,628,287
2020-2024
4,425,000
381,178
S 19,535,000 $ 4,895,569
The City also has special assessment bonds, which are backed by the full faith, credit and taxing power of the City,
and repayment monies are generated by the collection of special assessments and general levies. The bonds have a
stated rate of interest from 1.65% - 4.8% and are payable over the next nine years. The bonds originally issued at
$4,585,000 have a current balance of $2,330,000.
Annual debt service requirements to maturity for special assessment bonds are as follows:
Year Ending Governmental Activities
December 31
Principal
Interest
2010
S 375,000
$ 89,315
2011
285,000
75,751
2012
295,000
64,080
2013
290,000
52,124
2014
200,000
41,863
2015-2018
885,000
77,031
$ 2,330,000
$ 400,164
Revenue bonds
The City also issues bonds where the government pledges income derived from the acquired or constructed assets to
pay debt service. On December 31, 2009 the City issued $3,295,000 General Obligation Bonds, Series 2009A to
finance water, sewer and storm sewer improvements and to refund $1,140,000 Water Revenue Bonds, Series 2000A
and $815,000 Storm Sewer Revenue Bonds, Series 1999C. Future debt service payments will be reduced by
$133,419 with a present value savings of $123,884. The refunded bonds will be called and paid on February 1, 2010.
A-42
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2009
Revenue bonds outstanding at year-end are as follows:
P_umo_se
Storm sewer construction & replacement
Water tower painting, meter system replacement
Storm sewer - refunding
Water refunding
Water construction & replacement
Sanitary sewer construction & replacement
Interest Rates
Original Amount
2.0-5.0%
$ 2,810,000
4.5-5.5%
2,060,000
2.0-4.0%
2,215,000
2.0-4.0%
850,000
2.0-4.0%
820,000
2.0-4.0%
1,020,000
Revenue bond debt service requirements to maturity are as follows:
Year Ending
December 31
Principal
Interest
2010
$ 1,995,000
$ 142,228
2011
420,000
124,145
2012
445,000
114,876
2013
460,000
105,107
2014
470,000
94,033
2015-2019
1,235,000
323,755
2020-2024
1,020,000
129,381
2025
155,000
3,100
$ 6,200.000
$ 1,036,625
Public Facility
Lease Revenue Bonds
Current Amount
$ 1,680,000
1,000,000
830,000
850,000
820,000
1,020,000
The Housing and Redevelopment Authority in and for the City of Hopkins, a blended component unit of the City, has
issued public facility lease revenue bonds for the construction of police station improvements. The Housing and
Redevelopment Authority has entered into ground leases with the City for the lease of the facilities to the City. The
leases will remain in effect until all principal and interest on the bonds have been paid. So long as the leases are in
effect, the City will make semiannual lease payments on each February 1 and August 1, in amounts sufficient to pay
all principal and interest on the bonds due on such payment date. The bonds are special obligations of the Housing
and Redevelopment Authority. The bonds do not constitute a general obligation of the Housing and Redevelopment
Authority or the City. It is the intent of the City to levy ad valorem taxes an amount sufficient to make rental
payments required under the leases. In the event the annual appropriation is not made, the bond trustees are entitled
to repossession and the right to release the buildings and land. Public facility lease revenue bonds currently
outstanding are as follows:
PpMose
Police Station improvements
Interest Rates Original Amount Current Amount
2.0-4.35% $ 3,050,000 $ 2,440,000
Annual debt service requirements to maturity are as follows:
Year Ending
December 31
Principal
Interest
2010
$ 125,000
$ 90,091
2011
130,000
86,391
2012
135,000
82,281
2013
140,000
77,811.
2014
145,000
73,054
2015-2019
795,000
282,741
2020-2024
970,000
106,705
$ 2,440,000 $ 799,074
A-43
City of Hopkins, Minnesota
NOTES TO FINANCIAL STATEMENTS, (CONT.)
December 31, 2009
The City is subject to a statutory limit of bonded indebtedness equaling 3.0 percent of taxable market value. At
December 31, 2009, the debt limit for the City is $50,734,311. Of the total debt, $8,772,279 of general obligation and
revenue bonds is applicable to the limit. The legal debt margin is $41,962,032.
Advance Refunding
On August 14, 2007 the City issued $9,920,000 in General Obligation
Capital Improvement Bonds, Series 2007A for
the purpose of refunding the $10,760,000 HRA Lease Revenue Bonds, Series 2002A. Future debt service payments
will be reduced by $120,340 with a present value
savings, of $89,973.
Changes in long-term liabilities
Long-term liability activity for the year ended December 31, 2009, was as follows:
Beginning
Ending
Due Within
Balance
Additions
Deductions
Balance
One Year
Governmental Activities:
Bonds payable:
G.O. tax increment bonds
S 8,135,000
$ 2,865,000 $
710,000
$ 10,290,000
$ 3,545,000
General obligation bonds
9,855,000
-
610,000
9,245,000
620,000
Total general obligation bonds
17,990,000
2,865,000
1,320,000
19,535,000
4,165,000
Special assessment bonds
2,690,000
-
360,000
2,330,000
375,000
Public facility lease bonds
2,565,000
-
125,000
2,440,000
125,000
Less deferred amounts
For issuance discounts
(105,263)
-
7,110
(98,153)
For issuance premimns
6,635
-
(664)
5,971
On refunding
(2,596)
(24,400)
519
(26,477)
-
Total bonds payable
23,143,776
2,840,600
1,811,965
24,186,341
4,665,000
Compensated absences
802,753
694,557
650,823
846,487
650,823
Net OPEB liability
67,264
201,849
156,130
112,983
-
Capital lease payable
425,000
-
33,885
391,115
35,559
Governmental activity
long-term liabilities
$ 24,438,793
$ 3,737.006 $
2,652,803
S 25,536,926
$ 5,351,382
Business -type activities:
Bonds payable:
Revenue bonds
S 3,410,000
$ 3,295,000 $
505,000
$ 6,200,000
$ 1,995,000
Less deferred amounts
For issuance premiums
-
63,317
(351)
62,966
-
Compensated absences
130,531
86,949
102,996
114,484
91,095
Net OPEB liability
15,522
33,708
30,366
18,864
-
Business -type activity
long -tern liabilities
$ 3,556,053
$ 3,478,974 $
638,011
$ 6,396,314
$ 2,086,095
For the governmental activities compensated absences are generally liquidated by the general and special revenue funds.
C
A-44
s
15
n R V
6 V V O g n g,
E
:�i J E
v p• O• A
U e .n
c r �E
V
V V W
O V T
E' U 9 '^"� J W
` S.
= y >=
C T
E G
.2 .9 .
EL
F o L � .p a L N` v
t, -
� O
r c -T' •_
::
+> F
•o,�IJ o
—u". Ec-�%�wcyy�^-
° c� � L` °v"i� E T
off+
�.3 •° c
o oF" €
^N,a
'� � � La7 E .• �- Ci U Yn
U v
'J° n U V
� ^ u E
V3 Vf
yc�"E
`c'Eo
y1, °�>-.
..E�EE`.E o•��i `off
=`m��.c
y
c
c— 2.zw•n�'x
a > p cui
uja F�Cy TmU
O -U•
�•=m
'^cW
�m �� um
•yF >
o,m�
C r
'3 od$
So
G U
20°y
C n U
��2`
^a
p
'lU
�_^c•E_—¢a��EQ'"
�' C
`ate
zZvCs
T=
_
VO O •ri
•-T=_?
J R
a H,
E•TW—N' CNo
o`
v=tea
c•-�
E u
F°e
=mu`°p'uwta7 g.n�
-oi
-E
OO Rq
mE`
pay
'O _. T—,L0. uU Tm
C=—LE
vUi p•r
o_
�`a
m
•cc>.
mss
„�..� u o
v%
= O V c u
9=
<L F,
E 'm
LCAGm��u
- _e u
Lal �, P.1.
m. T
pCXma
t o=
rW3a
mho
>'N
�Ee
e d R
-
m
b AU
N
�—�_
u an
a
m'a
oEo
T�
a
a
v9��OUN���P
<
UCEEF
< •EU£o
-ODCp,a aU
x
C
`y ,O
`�"�°. �'�m„mo=m
O—
P. E�L'�•-
y
EEE5
p,9
^ C
E
uu p
a�o�s
8.5
O .G O
y
{"
t? c`m
i
m r
u
ru`a o4
gd
q=q•:e o E V
e. -W.
= e c
FO
R ` �ia.
6 V V O g n g,
E
:�i J E
V
V V W
O V T
E' U 9 '^"� J W
` S.
= y >=
C T
E G
.2 .9 .
EL
�N
72
2
yc�"E
`c'Eo
y1, °�>-.
..E�EE`.E o•��i `off
=`m��.c
y
'2�m°_�?
c— 2.zw•n�'x
a > p cui
�•am
=1�
Q2
a 4-
p4 V7. `��.h .L'.�nu
'E L Tj
•yF >
o,m�
C r
'3 od$
So
G U
20°y
O
$4R
��2`
^a
p
'lU
�_^c•E_—¢a��EQ'"
G t� ti
•�}`o
`ate
E r
_ L ,.
ca�meca3uERaoq
m g y E E w 01 •�
•-T=_?
J R
a H,
�p
c •�
_,ary
3 h
�e
co
e C •o
uE E
E u
F°e
=mu`°p'uwta7 g.n�
-oi
-E
OO Rq
mE`
pay
'O _. T—,L0. uU Tm
C=—LE
vUi p•r
o_
�`a
m
•cc>.
mss
„�..� u o
p 9 2.'Z
u
9=
<L F,
E 'm
LCAGm��u
- _e u
Lal �, P.1.
m. T
pCXma
t o=
rW3a
mho
>'N
�Ee
e d R
-
m
b AU
,`o= h•�
�;;� oE.p a
�—�_
u an
a
EYST
R
oEo
T�
a
'O � O
oEm
m S tl
:.n°u
L' p _U � N m V m Q •p� O
`^�Ly'E_
R .�• 3
D
m§•e
p rJ'
�J pn N
3 uuvsm
`�"�°. �'�m„mo=m
O—
e�
•0
EEE5
p,9
^ C
E
e m
'•-^-
F O
O .G O
y
{"
t? c`m
i
m r
u
ru`a o4
12
q=q•:e o E V
e. -W.
= e c
FO
E ��
° m° '? ^O F.
p n
Uo'=^C't
•"p E
mU•m
m a
0 VC.'V �U
•c c p.uc 4' a,a
Gau
o Tc_
Cm.
_ ..`� a
usrJ•y.U.nCp ^
�F'^`oNF m Uavfy
3� c~ 0.0
07 w
TaN
a�g
L
O
m
' =
O
G C eyl
U
V
U
n V U U
V m
A
b UlZ7 6 G
y ii
J U
O. 2.2 D
w$
U •UOQ E 9` .� ^ ti^
E,°n L_'E..gc3�—'oE
E L w U C
�ca�
V .� T
u •n
y
._ -
L �• _ 'E � ^ .c
� y �
r<G 'u � o
° E 7 �• e •n U c°r .. � a `�
� 0 4 5 �'
� c c
€ m
T—
w -o o q
LL
SZ E•�
FE:vza�@a,o E2. ;cE
�F
F=4,$�w
Fca
L<.
a=.moo
A-45
A-46
-' coo
r �
E
ggFuc
q q
•� ° = � �
L'
^ q
Eu
a jro
anc �c onz
o
=^�
'�• c
ops•`�c'�
n:G=.�
.c^c
'O
v N
N
V
Z U:
a .V• 9 9 F .U. ^
r
FF
apc
y
k
,'o
��
E•�p
Z.=�E =-
jE.$cou
V ay
•T
V
v
u
`y U
u G U u 3
•> to
a
Fa
'L
c
o
t
=
`�' oa
y u
�
c
c
^o'uCu o
s 2 U e n
� 6 u
Q�
q q
u a y g
o C
•p ° v
o
v E -
a^
�
o
o
`o
.`�
g
oma
ccE m.p .3�
.=y amu-
: ov
o, F
oU e
c
y
o E-2>
r< $ems m
u-->
E m
C _<
�^_
� t�
�� m i1i55 � •CD'O
_
a C ... - h
> o�
O 4 m C q y
O V L � �-�°
y e a
OCG IV mg,
o
C
yy
o <
p
s
p q q •' L
<
_ rpp u
> a u E
d o
d o n
:J r=
•o'
,w
EO-
'96
Z�°•c�00
0
og
u -"o
e>
c`nv
O
`�`a
o
p 4 U W
aO`2•�Vmm
_.. E
g c u 0 0
'c
s
';
m^aCC
'-
i Y u a
��° ��`�
B _e<
L o q G
d°v°� :A
x`03'= Esq
_
`o�
Z
cuu
>'= o p
c;O^<cc
¢ r G J z` z
U
m EO
�
? o
w$,=oo �•�•�
� t�"
=u nr
E
E y h 2
��
3 h>
� V
�
rUnV6U
pS
N
_.N�
00�0~C��O y
�m?G
N7G0
—
O• C .t
=
g �N
G E
F
C
d U c
_
o<
G=
? a•oE�r- G
._ 'L . U
,u rte.>=
s= U
m> O
m '�
Q 9
<
p n q N
z
a P
ii=iiL
U y
O U O
O
U N N_ F•p
..
•L
F K
N a U E U E T C
U
a
y°e
ger
y�rE@.-E"G
5
s
E�
cq
�
y u
4s
Uq.E
a
>%m�p qrc
a
v u
zG
U �`
T T
o
•v�
U
V
�2
E
G =q q
V
Z
m
vi
m
yQt3
Z
G =
OQ
o"a3C»moE
7c�`
c26
JEE
rnnM
u`�-�'<,buLEz
c
j 3
dl iA N
T
o
j
y
G C. S
U O G
F O. � U E N Z U
fy� 2 E
�
co
r E
a
O
P Q b
v
O
U
y
myy
U r N £ ❑
U'
U O
�
? T
q 1p
N N r. n
Q
ci'
U
cy
y
V
O
• �000
E 3.�SSo
ado
�Q�
�u �$'3 ^oa =.=o
c c
��
C VJ
N Ly
= a
O J
O V
d
Q
0
L
E U °�
L
E q
T u C> v v d W"
\^• yy` R
c �'
•T
O L
U ,p _
U R Q a S U u
'O �_ q �
C U d
O
G
d
-52
-i k- o
C
c°i
A-46
0
A-47
USC
oT •��—o
m
°E°•yEp ;o
Asti 1
ettH
— m O b .O
'3 el P
C 9 g l
•G
aF.LN
.d -•
�'� O e E G O
gX�
1
4'H 3
is
V U 4 T
- T
111
_
o
F
Gy_
c
���Q �•vo3
`°U
a�o�U��g
l�p
... �v Q
'0 6 q U
C
O L V
Q
a O
_
'm a .•.
o ._ y
G
F
"v e 9 � O
•C �.^
:12,5
� :C < .`a
o X00 G
U ` of
m .'
9 _ •o >. o
>' U UM
F N F t `�
E- F"_.
E d 0 0
u'CO�au�a
O 9
U 3
S
c
a
q
6
o
Sol
G f� mac•°
E2V
=E�KRHOao
E9E
uq �`°4NOU
Rio
.p..:pcy�'c�ic
4
p�=98 a
y3 �EET�o
cam'
FO "pa
VIA;6 a==p.Ts
nJ oD
<e�3C°-a of r9
14.2 ou
oyy
_•oa;
F, ;a
m z h h �
.• t� O
6
�<^, V 4 O V
< U O
�C U V K C T G E Y U
S�
� F E w v� � w�
J •G � U
O_ h ` V '• >' V
A-47
APPENDIX B �;
FORM OF LEGAL OPINION
'13""Offices in
ne g
470 U.S. Bank Plaza
200 South Sixth Street
v Minneapolis
Minneapolis MN 55402
rx f Saint Paul
(612) 337-9300 telephone
_
(612) 337-9310 fax
�"St. Cloud
http://www.kennedy-graven.com
tMOW U,0,
Affirmative Action Equal Opportunity
Employer
$
General Obligation Permanent Improvement
Revolving Fund Bonds
Series 2010A
City of Hopkins
Hennepin County, Minnesota
We have acted as bond counsel to the City of Hopkins, Minnesota (the "Issuer"), in connection with the
issuance by the Issuer of its General Obligation Permanent Improvement Revolving Fund Bonds, Series 2010A
(the "Bonds"), originally dated as of November _; 2010, and issued in the original aggregate principal amount
of $ . In such capacity and for the purpose of rendering this opinion we have examined certified copies of
certain proceedings, certifications and other documents, and applicable laws as we have deemed necessary.
Regarding questions of fact material to this opinion, we have relied on certified proceedings and other certifications
of public officials and other documents furnished to us without undertaking to verify the same by independent
investigation. Under existing laws, regulations, rulings and decisions in effect on the date hereof, and based on the
foregoing we are of the opinion that:
1. The Bonds have been duly authorized and executed, and are valid and binding general obligations
of the Issuer, enforceable in accordance with their terms.
2. The principal of and interest on the Bonds are payable from revenues credited to the Issuer's
permanent improvement revolving fund, including special assessments levied or to be levied on property specially
benefited by local improvements and ad valorem taxes, but ifnecessary for the payment thereofadditional 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.
n
FM
3. Interest on the Bonds is excludable from gross income of the recipient for federal income tax
purposes and, to the same extent, is excludable from taxable net income of individuals, trusts, and estates for
Minnesota income tax purposes. Interest on the Bonds is not a preference item nor includable in adjusted current
earnings for purposes of the computation of the federal alternative minimum tax or the computation of the Minnesota
alternative minimum tax imposed on individuals, trusts and estates. However, such interest is subject to Minnesota
franchise taxes on corporations (including financial institutions) measured by income. The opinion set forth in this
paragraph is subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of
1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be,
or continue to be, excludable from gross income for federal income tax purposes and from taxable net income for
Minnesota income tax purposes. The Issuer has covenanted to comply with all such requirements. Failure to comply
with certain of such requirements may cause interest on the Bonds to be included in gross income for federal income
tax purposes and taxable net income for Minnesota income tax purposes retroactively to the date of issuance of the
Bonds. We express no opinion regarding tax consequences arising with respect to the Bonds other than as expressly
set forth herein.
4. The rights of the owners of the Bonds and the enforceability of the Bonds may be limited by
bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditor's rights generally and
by equitable principles, whether considered at law or in equity.
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.
This opinion is given as of the date hereof and we assume no obligation to update, revise, or supplement
this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law
that may hereafter occur.
Dated November _, 2010, at Minneapolis, Minnesota.
WE
FORM OF LEGAL OPINION
i� 11011Offices in
470 U.S. Bank Plaza
r =vii51
200 South Sixth Street
Minneapolis
Minneapolis MN 55402
Saint Paul
(612) 337-9300 telephone
���p
(612) 337-9310 fax
0" St. Cloud
http://www.kennedy-graven.com
Affirmative Action Equal Opportunity
Employer
General Obligation Refunding Bonds
Series 20101
City of Hopkins
Hennepin County, Minnesota
We have acted as bond counsel to the City of Hopkins, Minnesota (the "Issuer"), in connection with the
issuance by the Issuer of its General Obligation Refunding Bonds, Series 2010B (the "Bonds"), originally dated
as of November _, 2010, and issued in the original aggregate principal amount of $ . In such capacity
and for the purpose of rendering this opinion we have examined certified copies of certain proceedings, certifications
and other documents, and applicable laws as we have deemed necessary. Regarding questions of fact material to this
opinion, we have relied on certified proceedings and other certifications of public officials and other documents
furnished to us without undertaking to verify the same by independent investigation. Under existing laws,
regulations, rulings and decisions in effect on the date hereof, and based on the foregoing we are of the opinion that:
1. The Bonds have been duly authorized and executed, and are valid and binding general obligations
of the Issuer, enforceable in accordance with their terms.
2. The principal of and interest on the Bonds are payable primarily from special assessments levied or
to be levied on property specially benefited by local improvements, ad valorem taxes, net revenues ofthe storm sewer
system of the Issuer, and tax increments resulting from increases in the taxable value of real property in a tax
increment financing district of the Issuer, but if necessary for the payment thereof additional ad valorem taxes are
required by law to be levied on all taxable property of the Issuer, which taxes are not subject to any limitation as to
rate or amount.
ME
3. Interest on the Bonds is excludable from gross income of the recipient for federal income tax
purposes and, to the same extent, is excludable from taxable net income of individuals, trusts, and estates for
Minnesota income tax purposes, and is not a preference item for purposes of the computation of the federal
alternative minimum tax, or the computation ofthe Minnesota alternative minimum tax imposed on individuals, trusts
and estates. However, such interest is taken into account in determining adjusted current earnings for the purpose
of computing the federal alternative minimum tax imposed on certain corporations and is subject to Minnesota
franchise taxes on corporations (including financial institutions) measured by income and the alternative minimum
tax base. The opinion set forth in this paragraph is subject to the condition that the Issuer comply with all
requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance
of the Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal income
tax purposes and from taxable net income for Minnesota income tax purposes. The Issuer has covenanted to comply
with all such requirements. Failure to comply with certain of such requirements may cause interest on the Bonds to
be included in gross income for federal income tax purposes and taxable net income for Minnesota income tax
purposes retroactively to the date of issuance of the Bonds. We express no opinion regarding tax consequences
arising with respect to the Bonds other than as expressly set forth herein.
4. The rights of the owners of the Bonds and the enforceability of the Bonds may be limited by
bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditor's rights generally and
by equitable principles, whether considered at law or in equity.
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.
This opinion is given as of the date hereof and we assume no obligation to update, revise, or supplement
this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law
that may hereafter occur.
Dated November _, 2010, at Minneapolis, Minnesota.
IC
APPENDIX C
BOOK -ENTRY -ONLY SYSTEM
The Depository Trust Company ("DTC"), New York, New York, 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) or such other name as may be requested by an authorized representative of DTC.
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 $500 million, one certificate will be issued with respect to each $500 million of principal
amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.]
2. DTC, the world's largest securities depository, 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 ofthe 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 and provides asset servicing for over 3.5 million issues of U.S. and non -U.S. equity issues,
corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's
participants ("Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct
Participants of sales and other securities transactions in deposited securities, through electronic computerized
book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical
movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities brokers and
dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned
subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC,
National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered
clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also
available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and
clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly
or indirectly ("Indirect Participants"). DTC has Standard & Poor's highest rating: AAA. The DTC Rules
applicable to its Participants are on file with the Securities and Exchange Commission. More information about
DTC can be found at www.dtcc.com and www.dtc.org.
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 purchaser 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. Beneficial Owners are, however, expected to
receive written confirmations providing details ofthe transaction, as well as periodic statements oftheir holdings,
from the Director 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 Direct and Indirect
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 Direct Participants with DTC are registered in the
name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized
representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or
such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge ofthe 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 Direct and Indirect
Participants will remain responsible for keeping account of their holdings on behalf of their customers.,
C-1
Conveyance ofnotices 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. [Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of
notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed
amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that
the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners.
In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request
that copies of notices be provided directly to them.]
6. Redemption notices shall be sent to DTC. 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.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless
authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC
mails an Omnibus Proxy to City 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 Securities are credited on the
record date (identified in a listing attached to the Omnibus Proxy).
8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct
Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or Agent,
on payable date in accordance with their respective holdings shown on DTC's records. 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, Agent, or the City, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend
payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is
the responsibility of the City or Agent, disbursement of such payments to Direct Participants will be the
responsibility of DTC, and disbursement of such payments to the Beneficial Owners will 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 [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 [Tender/Remarketing] Agent. The
requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will
be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC's
records and followed by a book -entry credit oftendered Securities to [Tender/Remarketing] Agent's DTC account.
10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving
reasonable notice to the City or Agent. Under such circumstances, in the event that a successor depository is not
obtained, Security certificates are required to be printed and delivered.
11. The City may decide to discontinue use of the system of book -entry -only transfers through DTC (or a successor
securities depository). In that event, Security certificates will be printed and delivered to DTC.
12. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources
that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.
C-2
APPENDIX D
FORM OF CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the City of
Hopkins, Minnesota (the "Issuer") in connection with the issuance of its (i) General Obligation Permanent Improvement
Revolving Fund Bonds, Series 2010A, in the original aggregate principal amount of $ (the "PIR Bonds"), and
(ii) General Obligation Refunding Bonds, Series 2010B (the "Refunding Bonds, and collectively with the PIR Bonds,
the `Bonds"), in the original aggregate principal amount of $ . The PIR Bonds are being issued pursuant to an
authorizing resolution adopted by the City Council of the Issuer on September 7, 2010, and an award resolution adopted
by the City Council of the Issuer on October 19, 2010 (collectively, the "PIR Resolutions") and delivered to
(the "PIR Purchaser") on the date hereof. The Refunding Bonds are being issued pursuant to an
authorizing resolution adopted by the City Council of the Issuer on September 7, 2010, and an award resolution adopted
by the City Council of the Issuer on October 19, 2010 (collectively, the "Refunding Resolutions," and collectively with the
PIR Resolutions, the "Resolutions") and delivered to (the "Refunding Purchaser") on the date hereof.
Pursuant to the Resolutions, the Issuer has covenanted and agreed to provide continuing disclosure of certain financial
information and operating data and timely notices of the occurrence of certain events. In addition, the Issuer hereby
covenants and agrees as follows:
Section 1. Purpose ofthe Disclosure Certificate. This Disclosure Certificate is being executed and delivered
by the Issuer for the benefit of the Holders (defined herein) of the Bonds in order to assist the Participating Underwriters
(defined herein) in complying with SEC Rule 15c2 -12(b)(5). This Disclosure Certificate, together with the Resolutions,
constitutes the written agreement or contract for the benefit of the Holders of the Bonds that is required by the Rule.
Section 2. Definitions. In addition to the defined terms set forth in the Resolutions, which apply to any
capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms
shall have the following meanings:
"Annual Report" means any annual report provided by the Issuer pursuant to, and as described in, Sections 3 and
4 of this Disclosure Certificate.
"Audited Financial Statements" means the Issuer's annual financial statements, prepared in accordance with
generally accepted accounting principles ("GAAP") for Governmental Units as Prescribed by the Governmental Accounting
Standards Board ("GASB").
` EMMA" means the Electronic Municipal Market Access system operated by the MSRB as the primary portal
for complying with the continuing disclosure requirements of the Rule.
"Final Official Statement" means the deemed final official statement dated October _, 2010, plus the addendum
thereto which together constitute the final official statement delivered in connection with the Bonds, which is available from
the MSRB.
"Fiscal Year" means the fiscal year of the Issuer.
"Holder" means the person in whose name a security is registered or a beneficial owner of such a security.
"Issuer" means the City of Hopkins, Minnesota, which is the obligated person with respect to the Bonds.
D-1
"Material Event" means any of the events listed in Section 5(a) of this Disclosure Certificate.
"MSRB" means the Municipal Securities Rulemaking Board located at 1900 Duke Street, Suite 600, Alexandria,
VA 22314.
"Participating Underwriter" means any of the original underwriter(s) of the Bonds (including the Purchaser)
required to comply with the Rule in connection with the offering of the Bonds.
"Repository" means EMMA.
"Rule" means SEC Rule 15c2 -12(b)(5) promulgated by the SEC under the Securities Exchange Act of 1934, as
the same may be amended from time to time, and including written interpretations thereof by the SEC.
"SEC" means the Securities and Exchange Commission.
Section 3. Provision of Annual Financial Information and Audited Financial Statements.
(a) The Issuer shall provide, as soon as available, but not later than 12 months after the end of the Fiscal Year
commencing with the year that ends December 31, 2010, the Repository with an Annual Report which
is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may
be submitted as a single document or as separate documents comprising a package, and may cross-
reference other information as provided in Section 4 of this Disclosure Certificate;Lop vided that the
Audited Financial Statements of the Issuer may be submitted separately from the balance of the Annual
Report and will be submitted as soon as available.
(b) If the Issuer is unable or fails to provide to the Repository an Annual Report by the date required in
subsection (a), the Issuer shall send a notice of that fact to the Repository and the MSRB.
(c) The Issuer shall determine each year prior to the date for providing the Annual Report the name and
address of each Repository.
Section 4. Content ofAnnual Reports. The Issuer's Annual Report shall contain or incorporate by reference
the following sections of the Final Official Statement:
1. Current Property Valuations
2. Direct Debt
3. Tax Levies & Collections
4. Population Trend.
5. Employment/Unemployment
In addition to the items listed above, the Annual Report shall include Audited Financial Statements submitted in
accordance with Section 3 of this Disclosure Certificate.
Any or all of the items listed above may be incorporated by reference from other documents, including official
statements of debt issues of the Issuer or related public entities, which have been submitted to the Repository or the SEC.
Ifthe document incorporated by reference is a final official statement, it must also be available from the MSRB. The Issuer
shall clearly identify each such other document so incorporated by reference.
D-2
Section S. Reporting of Material Events. 0
(a) This Section 5 shall govern the giving of notices of the occurrence of any of the following events if
material with respect to the Bonds:
Principal and interest payment delinquencies;
2. Non-payment related defaults;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions or events affecting the tax-exempt status of the security;
7. Modifications to rights of security holders;
8. Bond calls;
9. Defeasances;
10. Release, substitution or sale of property securing repayment of the securities; and
11. Rating changes.
(b) Whenever the Issuer obtains knowledge of the occurrence of a Material Event, the Issuer shall promptly
file a notice of such occurrence with the Repository or with the MSRB. Notwithstanding the foregoing,
notice of Material Events described in subsections (a)(8) and (9) need not be given under this subsection
any earlier than the notice (if any) of the underlying event is given to Holders of affected Bonds pursuant
to the Resolutions.
(c) Unless otherwise required by law and subject to technical and economic feasibility, the Issuer shall
employ such methods of information transmission as shall be requested or recommended by the
designated recipients of the Issuer's information.
Section 6. EMMA. The SEC has designated EMMA as a nationally recognized municipal securities
information repository and the exclusive portal for complying with the continuing disclosure requirements of the
Rule. Until the EMMA system is amended or altered by the MSRB and the SEC, the Issuer shall make all filings
required under this Disclosure Certificate solely with EMMA.
Section 7. Termination of Reporting Obligation. The Issuer's obligations under the Resolutions and this .
Disclosure Certificate shall terminate upon the legal defeasance, or upon the redemption or payment in full of all the Bonds.
Section 8. Agent. The Issuer may, from time to time, appoint or engage a dissemination agent to assist it
in carrying out its obligations under the Resolutions and this Disclosure Certificate, and may discharge any such agent, with
or without appointing a successor dissemination agent.
Eip
D-3
-- Section 9. Amendment; Waiver. Notwithstanding any other provision of the Resolutions or this Disclosure
Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be
waived, if such amendment or waiver is supported by an opinion of nationally recognized bond counsel to the effect that
such amendment or waiver would not, in and of itself, cause a violation of the Rule. The provisions of the Resolutions
constituting the undertaking and this Disclosure Certificate, or any provision hereof, shall be null and void in the event that
the Issuer delivers to the Repository an opinion of nationally recognized bond counsel to the effect that those portions of
the Rule which require the Resolutions and this Disclosure Certificate are invalid, have been repealed retroactively or
otherwise do not apply to the Bonds. The provisions of the Resolutions and this Disclosure Certificate may be amended
without the consent of the Holders of the Bonds, but only upon the delivery by the Issuer to the Repository of the proposed
amendment and an opinion of nationally recognized bond counsel to the effect that such amendment, and giving effect
thereto, will not adversely affect the compliance of the Resolutions and this Disclosure Certificate and by the Issuer with
the Rule.
Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the
Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate
or any other means of communication, or including any other information in any Annual Report or notice of occurrence
of a Material Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any
information in any Annual Report or notice of occurrence of a Material Event in addition to that which is specifically
required by this Disclosure Certificate, the Issuer shall have no obligation under this Disclosure Certificate to update such
information or include it in any future Annual Report or notice of occurrence of a Material Event.
Section 11. Default. In the event of a failure of the Issuer to comply with any provision of this Disclosure
Certificate any Holder of the Bonds may take such actions as may be necessary and appropriate, including seeking
mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under the Resolutions
and this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an event of default with
respect to the Bonds and the sole remedy under this Disclosure Certificate in the event of any failure ofthe Issuer to comply
with this Disclosure Certificate shall be an action to compel performance.
Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the
Participating Underwriters and Holders from time to time of the Bonds, and shall create no rights in any other person or
entity.
(The remainder of this page is intentionally left blank.)
D-4
IN WITNESS WHEREOF, we have executed this Disclosure Certificate in our official capacities effective as of 0
the date and year first written above.
CITY OF HOPKINS, MINNESOTA
Mayor
City Manager
MW
D-5
APPENDIX E
TERMS OF PROPOSAL
$2,710,000* GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND BONDS,
SERIES 2010A
CITY OF HOPKINS, MINNESOTA
Proposals for the purchase of $2,710,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series
2010A (the "Series 2010A Bonds") of the City of Hopkins, Minnesota (the "City") will be received at the offices of
Ehlers & Associates, Inc. ('Ehlers"), 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, Financial Advisors
to the City, until 11:00 A.M., Central Time, and ELECTRONIC PROPOSALS will be received via PARITY, in
the manner described below, until 11:00 A.M. Central Time, on October 19,20 10, at which time they will be opened,
read and tabulated. The proposals will be presented to the City Council for consideration for award at a meeting to
be held at 7:30 P.M., Central Time, on the same date. The proposal offering to purchase the Series 2010A Bonds
upon the terms specified herein and most favorable to the City will be accepted unless all proposals are rejected.
PURPOSE
The Series 2010A Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475, for the purpose of
financing various public improvements within the City. The Series 2010A Bonds will be general obligations of the
City for which its full faith, credit and taxing powers are pledged.
DATES AND MATURITIES
The Series 2010A Bonds will be dated November 17, 2010, 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 as follows:
Year Amount* Year
Amount* Year Amount*
2012 $140,000 2017
$175,000 2022 $180,000
2013 165,000 2018
180,000 2023 190,000
2014 165,000 2019
185,000 2024 190,000
2015 170,000 2020
190,000 2025 200,000
2016 175,000 2021
200,000 2026 205,000
ADJUSTMENT OPTION
* The City reserves the right to increase or decrease the principal amount of the Series 2010A Bonds on the
day of sale, in increments of $5,000 each.
Increases or decreases may be made in any maturity. If any
principal amounts are adjusted, the purchase
price proposed will be adjusted to maintain the same gross
spread per $1,000.
E-1
TERM BOND OPTION
Proposals for the Series 2010A Bonds may contain a maturity schedule providing for any combination of serial bonds
and term bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject to
mandatory redemption in each year conforms to the maturity schedule set forth above. All dates are inclusive.
INTEREST PAYMENT DATES AND RATES
Interest will be payable on February 1 and August 1 of each year, commencing August 1, 2011, to the registered
owners of the Series 2010A Bonds appearing of record in the bond register as of the close of business on the 15th
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 Series 2010A
Bonds of the same maturity must bear interest from date of issue until paid at a single, uniform rate, not exceeding
the rate specified for Series 2010A Bonds of any subsequent maturity. Each rate must be expressed in an integral
multiple of 5/100 or 1/8 of 1%.
BOOK -ENTRY -ONLY FORMAT
The Series 2010A Bonds will be designated in the name of Cede & Co., as nominee for The Depository Trust
Company, New York, New York ("DTC"). DTC will act as securities depository for the Series 2010A Bonds, and
will be responsible for maintaining a book -entry system for recording the interests 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 Series 2010A Bonds. So long as Cede & Co. is the registered
owner of the Series 2010A 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 Series 2010A Bonds.
PAYING AGENT
The City has selected Bankers Trust Company, Des Moines, Iowa, to act as paying agent (the "Paying Agent"). The
City will pay the charges for Paying Agent services. The City reserves the right to remove the Paying Agent and to
appoint a successor.
OPTIONAL REDEMPTION
At the option of the City, Series 2010A Bonds maturing on or after February 1, 2019 shall be subj ect to prior payment
on February 1, 2018 or on any date thereafter, at a price of par plus accrued interest.
Redemption maybe in whole or in part of the Series 2010A Bonds subject to prepayment. If redemption is in part,
the selection of the amounts and maturities of the Series 2010A Bonds to be prepaid shall be at the discretion of the
City. If only part of the Series 2010A Bonds having a common maturity date are called for redemption, the City or
Paying Agent, if any, will notify DTC of the particular amount of such maturity to be redeemed. 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.
Notice of such call shall be given by mailing a notice not more than 60 days and not fewer than 30 days prior to the
date fixed for redemption to the registered owner of each Series 2010A Bond to be redeemed at the address shown
on the registration books.
E-2
DELIVERY
On or about November 17, 2010, the Series 2010A 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,
an arbitrage certification, and certificates verifying that no litigation in any manner questioning the validity of the
Series 2010A Bonds is then pending or, to the best knowledge of officers of the City, threatened. Payment for the
Series 2010A 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 Series 2010A Bonds and the exemption from taxation of the interest thereon will
be furnished by Kennedy & Graven, Chartered, Minneapolis, Minnesota, bond counsel to the City, and will
accompany the Series 2010A Bonds. The legal opinion will state that the Series 2010A Bonds are valid and binding
general obligations ofthe 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, insolvency, reorganization, moratorium
or creditors' rights generally.
SUBMISSION OF PROPOSALS
Proposals must not be for less than $2,676,125 plus accrued interest on the principal sum of $2,710,000 from date
of original issue of the Series 2010A Bonds to date of delivery. A signed proposal form must be submitted to Ehlers
prior to the time established above for the opening of proposals as follows:
1) In a sealed envelope as described herein; or
2) A facsimile submission to Ehlers, Facsimile Number (651) 697-8555; or
3) Electronically via PARITY in accordance with this Terms of Proposal until 11:00 A.M. Central Time, but
no proposal will be received after the time for receiving proposals specified above. To the extent any
instructions or directions set forth in PARITY conflict with this Terms of Proposal, the terms of this Terms
of Proposal shall control. For further information about PARITY, potential bidders may contact Ehlers or
i -Deal LLC at 1359 Broadway, 2°a Floor, New York, New York 10018, Telephone (212) 849-5021.
Proposals must be submitted to Ehlers via one of the methods 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. Neither
the City nor Ehlers shall be responsible for any failure to receive a facsimile submission.
A good faith deposit (the "Deposit") in the amount of $54,200, complying with the provisions below, must be
submitted with each proposal. The Deposit must be in the form of a certified or cashier's check, or a financial surety
bond or a wire transfer of funds to KleinBank, 1550 Audubon Road, Chaska, Minnesota, ABA No. 091915654
for credit: Ehlers & Associates Good Faith Account No. 3208138. 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 Series 2010A Bonds.
The Deposit, payable to the City, shall be retained in the offices of Ehlers with the same effect as if delivered to the
City. Alternatively, bidders may wire the Deposit to KleinBank,1550 Audubon Road, Chaska, Minnesota, ABA
No. 091915654 for credit: Ehlers & Associates Good Faith Account No. 3208138. The City and any bidder who
chooses to so wire the Deposit hereby agree irrevocably that Ehlers shall be the escrow holder of the Deposit wired
to such account subject only to these conditions and duties: 1) All income earned thereon shall be retained by the
E-3
escrow holder as payment for its expenses; 2) If the proposal is not accepted, Ehlers shall, at its expense, promptly
return the Deposit amount to the losing bidder; 3) If the proposal is accepted, the Deposit shall be returned to the
purchaser at the closing; 4) Ehlers shall bear all costs of maintaining the escrow account and returning the funds to
the bidder; 5) Ehlers shall not be an insurer of the 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 $250,000 per bidder.
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 prior to the opening of the
proposals. Such bond must identify each bidder whose Deposit is guaranteed by such financial surety bond. If the
Series 2010A Bonds are awarded to a bidder using a financial surety bond, then that bidder is required to submit its
Deposit to Ehlers in the form of a certified or cashier's check or wire transfer as instructed by Ehlers 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. The amount securing the
successful proposal will be retained as liquidated damages if the proposal is accepted and the bidder fails to comply
therewith. No proposal can be withdrawn after the time set for receiving proposals unless the meeting of the City
scheduled for award of the Series 2010A Bonds is adjourned, recessed, or continued to another date without award
of the Series 2010A Bonds having been made.
AWARD
The Series 2010A 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 ofthe interest rate of each proposal, in accordance with customary
practice, will be controlling. In the event of a tie, the sale of the Series 2010A Bonds will be awarded by lot. The
City reserves the right to reject any and all proposals and to waive any informality in any proposal.
BONDINSURANCE
If the Series 2010A Bonds are qualified for any bond insurance policy, the purchase of such policy shall be at the sole
option and expense of the purchaser. Any cost for such insurance policy is to be paid by the purchaser, except that,
if the City requested and received a rating on the Series 2010A Bonds from a rating agency, the City will pay that
rating fee. Any rating agency fees not requested by the City are the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after the Series 2010A Bonds are awarded to the purchaser
shall not constitute cause for failure or refusal by the purchaser to accept delivery of the Series 2010A Bonds.
CUSIP NUMBERS
The City will assume no obligation for the assignment or printing of CUSIP numbers on the Series 2010A 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.
QUALIFIED TAX-EXEMPT OBLIGATIONS
The City will designate the Series 2010A Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3)
of the Internal Revenue Code of 1986, as amended.
E-4
n
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with the provisions of Rule 15c2-12 promulgated by the Securities
and Exchange Commission under the Securities Exchange Act of 1934 the City will enter into an undertaking (the
"Undertaking") for the benefit of the holders of the Series 2010A Bonds. A description of the details and terms of
the Undertaking is set forth in the Official Statement. The City has complied in all material respects with any
undertaking previously entered into by it under the Rule.
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 Series 2010A Bonds necessary to compute the yield on the Series 2010A Bonds pursuant to
the provisions of the Internal Revenue Code of 1986, as amended.
PRELIMINARY OFFICIAL STATEMENT
Bidders may obtain a copy of the Preliminary Official Statement relating to the Series 2010A Bonds prior to the
proposal opening by request from Ehlers at www.ehlers-inc.com by connecting to the link to the Bond Sales. The
Syndicate Manager will be provided with an electronic copy and up to 10 printed copies upon request 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 Ehlers at 3060 Centre Pointe Drive, Roseville,
Minnesota 55113-1105, Telephone (651) 697-8500.
By Order of the City Council
City of Hopkins, Minnesota
E-5
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 Series 2010B Bonds necessary to compute the yield on the Series 2010B Bonds pursuant to the
provisions of the Internal Revenue Code of 1986, as amended.
PRELIMINARY OFFICIAL STATEMENT
Underwriters may obtain a copy of the Preliminary Official Statement relating to the Series 2010B Bonds prior to
the proposal opening by request from Ehlers at www.ehlers-ine.com by connecting to the link to the Bond Sales. The
Syndicate Manager will be provided with an electronic copy and up to 10 printed copies of the Final Official
Statement upon request 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 Ehlers at 3060 Centre Pointe Drive, Roseville,
Minnesota 55113-1105, Telephone (651) 697-8500.
By Order of the City Council
City of Hopkins, Minnesota
E-10
H
H
PROPOSALFORM
The City Council
City of Hopkins, Minnesota
October 19, 2010
RE: $2,710,000* General Obligation Permanent Improvement Revolving Fund Bonds, Series 2010A
DATED: November 17, 2010
For all or none of the above Series 2010A Bonds, in accordance with the Terms of Proposal and terms of the Global Book -Entry
System as stated in this Preliminary Official Statement, we will pay you $ (not less than $2,676,125) plus
accrued interest to date of delivery for fully registered bonds bearing interest rates and maturing in the stated years as follows:
% due 2012 % due 2017 % due 2022
% due 2013
% due 2014
% due 2015
% due 2018
% due 2019
% due 2020
% due 2023
% due 2024
% due 2025
% due 2016 % due 2021 % due 2026
* The City reserves the right to increase or decrease the principal amount of the Series 2010A Bonds on the day of sale, in
increments of $5,000 each. Increases or decreases may be made in any maturity. If any principal amounts are adjusted, the
purchase price proposed will be adjusted to maintain the same gross spread per $1,000.
We enclose our good faith deposit in the amount of $54,200, 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 WeinBank,1550 Audubon Road, Chaska,
Minnesota, ABA No: 091915654 for credit: Ehlers & Associates Good Faith Account No. 3208138. 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 & Associates, Inc., as escrow holder of the good faith deposit, pursuant to this Preliminary
Official Statement dated October 7, 2010. This proposal is for prompt acceptance and is conditional upon deposit of said Series
2010A Bonds to The Depository Trust Company, New York, New York, in accordance with the Terms of Proposal. Delivery
is anticipated to be on or about November 17, 2010.
This proposal is subj ectto the City's covenant and agreement to enter into a written undertaking to provide continuing disclosure
under Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 as
described in the Preliminary Official Statement for this Issue.
We have received and reviewed the Preliminary Official Statement and have submitted our requests for additional information
or corrections to the Final Official Statement. As Syndicate Manager, we agree to provide the City with the reoffering price of
the Series 2010A Bonds within 24 hours of the proposal acceptance.
Account Manager: By:
Account Members:
Award will be on a true interest cost basis. According to our computations (the correct computation being controlling in the
award), the total dollar interest cost (including any discount or less any premium) computed from November 17, 2010 of the
above proposal is $ and the true interest cost (TIC) is %.
The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Hopkins, Minnesota, on October 19,
2010.
0
Title:
By:
Title:
PROPOSALFORM
The City Council
City of Hopkins, Minnesota
RE: $2,680,000** General Obligation Refunding Bonds, Series 2010B
DATED: November 17, 2010
October 19, 2010
For all or none of the above Series 201 OB Bonds, in accordance with the Terms of Proposal and terms of the Global Book -Entry
System as stated in this Preliminary Official Statement, we will pay you $ (not less than $2,653,200) plus
accrued interest to date of delivery for fully registered bonds bearing interest rates and maturing in the stated years as follows:
% due 2012
% due 2013
% due 2014
% due 2015
% due 2016
% due 2017
% due 2018
% due 2019
% due 2020
% due 2021
% due 2022
% due 2023
** The City reserves the right to increase or decrease the principal amount of the Series 2010B Bonds on the day of sale, in
increments of $5,000. Increases or decreases maybe made in any maturity. If any principal amounts are adjusted, the
purchase price proposed will be adjusted to maintain the same gross spread per $1,000.
We enclose our good faith deposit in the amount of $53,600, 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 KleinBank,1550 Audubon Road, Chaska,
Minnesota; ABA No. 091915654 for credit: Ehlers & Associates Good Faith Account No. 3208138. 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 & Associates, Inc., as escrow holder of the good faith deposit, pursuant to this Preliminary
Official Statement dated October 7, 2010. This proposal is for prompt acceptance and is conditional upon deposit of said Series
2010B Bonds to The Depository Trust Company, New York, New York, in accordance with the Terms of Proposal. Delivery
is anticipated to be on or about November 17, 2010.
This proposal is subject to the City's covenant and agreement to enter into a written undertaking to provide continuing disclosure
under Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 as
described in the Preliminary Official Statement for this Issue.
We have received and reviewed the Preliminary Official Statement and have submitted our requests for additional information
or corrections to the Final Official Statement. As Syndicate Manager, we agree to provide the City with the reoffering price of
the Series 2010B Bonds within 24 hours of the proposal acceptance.
Account Manager: By:
Account Members:
Award will be on a true interest cost basis. According to our computations (the correct computation being controlling in the
award), the total dollar interest cost (including any discount or less any premium) computed from November 17, 2010 of the
above proposal is $ and the true interest cost (TIC) is %.
The foregoing offer is hereby accepted by and on behalf of the City Council ofthe City of Hopkins, Minnesota, on October 19,
2010.
By:
Title:
By:
Title:
H
0