2012-019 Reimburse Expenditures from BondsCITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 2012-019
DECLARING THE OFFICIAL INTENT OF THE
CITY OF ,HOPKINS TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEEDS
OF BONDS TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the
"Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to reimburse
prior expenditures will not be deemed spent unless certain requirements are met; and
WHEREAS, the City of Hopkins, Minnesota (the "City") expects to incur certain
expenditures that may be financed temporarily from sources other than bonds, and reimbursed from
the proceeds of a tax-exempt bond;
WHEREAS, the City has determined to make this declaration of official intent
("Declaration") to reimburse certain costs from proceeds of bonds in accordance with the
Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HOPKINS AS FOLLOWS:
1. The City proposes to purchase various items of capital equipment (the "Project") as
defined in Exhibit A.
2. The City reasonably expects to reimburse the expenditures made for certain costs of
the Project from the proceeds of bonds in an estimated maximum principal amount of $1,215,900.
All reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other
expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement
Regulations.
3. This Declaration has been made not later than 60 days after payment of any
original expenditure to be subject to a reimbursement allocation with respect to the proceeds of
bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount
not in excess of $100,000 or 5 percent of the proceeds of an issue; or (c) "preliminary expenditures"
up to an amount not in excess of 20 percent of the aggregate issue price of the issue or issues that
finance or are reasonably expected by the City to finance the project for which the preliminary
expenditures were incurred. The term "preliminary expenditures" includes architectural,
engineering, surveying, bond issuance, and similar costs that are incurred prior to commencement of
acquisition, construction or rehabilitation of a project, other than land acquisition, site preparation,
and similar costs incident to commencement of construction.
4. This Declaration is an expression of the reasonable expectations of the City based
on the facts and circumstances known to the City as of the date hereof. The anticipated original
expenditures for the Project and the principal amount of the bonds described in paragraph 2 are
consistent with the City's budgetary and financial circumstances. No sources other than
proceeds of bonds to be issued by the City are, or are reasonably expected to be, reserved,
allocated on a long-term basis, or otherwise set aside pursuant to the City's budget or financial
policies to pay such Project expenditures.
Resolution No. 2012-019 -2-
5. This Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
Approved this 3rd day of April, 2012, by the City Council of the City of Hopkins, Minnesota.
CITY OF HOPKINS, MINNESOTA
By_
Eugeee well, Mayor
ATTEST:
A Fj
�L 'A' -Kristine A. Luedke, City Clerk
400649v I SJB HP 110-1 2
Exhibit A
Fire Department
Quick Attack Pumper
Public Works
4x4 3/4 Ton Truck
One Ton Dump Truck
One Ton Traffic Boom Truck
Single Axel Dump Truck
Front End Loader
Sweeper
Backhoe Loader
Pavilion
Ice Resurfacer
Total
400649v SJB HPI 10-1
$250,000
$70,000
$40,000
$82,500
$130,000
$172,000
$156,400
$135,000
$180,000
$1,215,900