CR 10-096 Authorize Call of a Serial Bond for TIF District 2-1• September 7, 2010ClLy of 11OJklil Council Report 2010-096
AUTHORIZE CALL OF A SERIAL BOND FOR
TIF DISTRICT 2-1
Proposed Action
Staff recommends approval of the following motion: Adopt Resolution No. 2010-051 authorizing the
redemption of callable General Obligation Tax Increment Refunding Bonds, Series 2005A, in Tax
Increment District 2-1.
Adoption of this motion will result in the bonds being called on February 1, 2011. This is a partial
maturity but will fully retire the TIF 2-1 portion of the bonds.
Overview
The City of Hopkins issued G.O. Tax Increment Refunding Bonds, Series 2005A in 2005. The one remaining
serial bond issued for TIF District 2-1 is callable. The cost of calling the final bond is $205,000. Tax
Increment District 2-1 has the capacity to call this bond in 2011. The savings of interest on this bond is
$7,175. This TIF District has been decertified, all developer obligations paid and this is the final obligation
of this TIF District.
Primary Issues to Consider
• Since TIF District was decertified in 2010 there will be no tax increment collections in 2011. Adequate funds
are available to pay both the 2011 and 2012 maturities. After the bonds are fully matured the TIF 2-1 fund
will have approximately $76,000 remaining. These funds will be distributed pursuant to the 2010 TIF
Legislation.
Staff Recommendation
Finance recommends adopting the resolution redeeming the callable bond described therein.
Supporting Information
• Resolution No. 2010-051
Christine M Harkess, CPA, CGFM
Finance Director
Financial Impact: $ 7,175 savings overall Budgeted: Y X N Source: Tax Increment
Related Documents (CIP, ERP, etc.): Notes:
0
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2010-051
RESOLUTION PROVIDING FOR THE PARTIAL CALL OF $1,125,000 TAXABLE
GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2005A
WHEREAS, the City Council of the City of Hopkins, Minnesota has determined that it is desirable
to redeem the City's $1,125,000 of callable G.O. Tax Increment Refunding Bonds, Series 2005A;
and
WHEREAS, the City has identified the bond as CUSIP #439866 XN9 (185328622) dated issue of
September 1, 1995;
NOW, THEREFORE, BE IT RESOLVED by the City Council of Hopkins, Minnesota, as follows:
1. Authorization; The City Council hereby authorizes Bankers Trust to redeem in part the
callable G.O. Tax Increment Refunding Bond, Series 2005A, dated November 3, 2005, as
described above in the amount of $205,000.
2. Terms of the Bond. The terms and conditions of the Bond allow for the call of the serial
bond described above.
• 3. Intent. It is the intent of the City of Hopkins to call such bond as it deems appropriate and
desirable.
Adopted by the City Council of the City of Hopkins held this 7th day of September 2010.
ATTEST:
Terry Obermaier, City Clerk
CJ
Eugene Maxwell, Mayor