Loading...
CR 2012-066 Call for PH on Intention to Issue Go (General Obligation) Capital Improvement Bond and Proposal to Adopt a CIP PlanJune 19, 2012 A:a Council Report 2012-066 City of Hopkins CALL FOR PUBLIC HEARING ON INTENTION TO ISSUE GO CAPITAL IMPROVEMENT BONDS AND PROPOSAL TO ADOPT A CAPITAL IMPROVEMENT PLAN Proposed Action Approve Resolution 2012-040 calling for public hearing on the intention to issue general obligation capital improvement plan bonds and the proposal to adopt a capital improvement plan therefor. With this motion a notice will be placed in the official newspaper announcing the details of the public hearing and the proposal to adopt a capital improvement plan. Overview In reviewing the outstanding bond obligations of the City and HRA it appears that we have an opportunity to advance refund the 2003 HRA Revenue Bonds by issuing Capital Improvement (CIP) Bonds. In order to do this we need to hold a public hearing on our intention to issue CIP Bonds and to present the proposal to adopt a capital improvement plan as it relates to bonding. Due to low bond rates this presents an opportunity for savings over the current bond issue and this is the last bond issue outstanding that we have not either called or refunded. Our bond portfolio is analyzed quarterly by our financial consultants and until now this issue did not present the required savings to allow us to refund the issue. Current analysis shows that we meet the minimum guidelines for savings which will result in a savings on interest for the City. In 2007 we took the opportunity to take this same action on the 2002 HRA Revenue Bonds which resulted in a savings of $120,340 for the City. While do not have the specific savings on the 2003 HRA Revenue Bond refunding at this time we will present an estimate at the public hearing. Primary Issues to Consider • Savings on refunding the 2003 HRA Revenue Bonds Supporting Information • Resolution No. 2012-040 • Hearing notice Christine M. Harkess, CPA, CGFM Finance Director Financial Impact: $ Budgeted: Y/N N Source: Bond Proceeds Related Documents (CIP, ERP, etc.): CIP Notes: EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL CITY OF HOPKINS, MINNESOTA HELD: June 19, 2012 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of City of Hopkins, Minnesota, was duly called and held at the City Hall in the City of Hopkins, Minnesota, on June 19, 2012, at 7:30 p.m. for the purpose, in part, of calling a public hearing on the intention to issue general obligation capital improvement plan bonds and the proposal to adopt a capital improvement plan therefor. The following members were present: and the following were absent: Member introduced the following resolution and moved its adoption: Resolution 2012-040 RESOLUTION CALLING FOR PUBLIC HEARING ON THE INTENTION TO ISSUE GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS AND THE PROPOSAL TO ADOPT A CAPITAL IMPROVEMENT PLAN THEREFOR A. WHEREAS, pursuant to Minnesota Statutes, Section 475.521 the City of Hopkins, Minnesota (the "City") may issue bonds to finance capital improvements under its capital improvement plan (the "Plan") without an election provided that, among other things, prior to issuing general obligation capital improvement plan bonds (the "Bonds") the City adopts the Plan after holding a public hearing thereon and publishing a notice of its intention to issue the Bonds and the date and time of a hearing to obtain public comment on the issuance of the Bonds and adoption of the Plan; and B. WHEREAS, the City Council will hold a public hearing on July 10, 2012, on its intention to issue the Bonds and to adopt the Plan; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hopkins, Minnesota, that the City Council hereby calls for a public hearing on its intent to issue the Bonds and to adopt the Plan, the public hearing to be held on the date and time set forth in Exhibit A attached hereto. The City Clerk is hereby directed to cause the notice of public hearing to be published at least 14 but not more than 28 days before the date of the public hearing in the official newspaper of the City or a newspaper of general circulation in the City and further, the City Clerk may post the notice of public hearing on the City's official website, if any, at least 14 but not more than 28 days before the date of the public hearing. The motion for the adoption of the foregoing resolution was duly seconded by member and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon the resolution was declared duly passed and adopted. STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF HOPKINS I, the undersigned, being duly qualified and Clerk of the City of Hopkins, Minnesota, do hereby certify that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council, duly called and held on the date therein indicated, insofar as such minutes relate to the City Council calling a public hearing on the intention to issue general obligation capital improvement plan bonds and the proposal to adopt a capital improvement plan therefor. WITNESS my hand on June 19, 2012. 2 Kristine A. Luedke, City Clerk EXHIBIT A CITY OF HOPKINS NOTICE OF PUBLIC HEARING ON INTENTION TO ISSUE GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS AND THE PROPOSAL TO ADOPT A CAPITAL IMPROVEMENT PLAN THEREFOR NOTICE IS HEREBY GIVEN, that the City Council of the City of Hopkins, Minnesota, will meet on July 10, 2012, at 7:30 p.m. at the City Hall, 1010 1St Street South, in Hopkins, Minnesota, for the purpose of conducting a public hearing on (a) the intention to issue general obligation capital improvement plan bonds in an amount not to exceed $2,000,000 and (b) the proposal to adopt a capital improvement plan therefor. The proceeds of the bonds will be used to finance the acquisition of the existing Police Station from the Housing and Redevelopment Authority in and for the City of Hopkins, Minnesota (the "HRA"), the lessor of the Police Station under the outstanding lease agreement and refund the HRA's outstanding principal amount of its Public Facility Lease Revenue Bonds, Series 2003A (City of Hopkins, Minnesota Lease Obligation), dated June 1, 2003 in anticipation of reducing debt service costs to the City. All persons interested may appear and be heard at the time and place set forth above. If a petition requesting a vote on the issuance of the bonds is signed by voters equal to five percent of the votes cast in the City in the last general election and is filed with the City within thirty days after the public hearing, the bonds may only be issued upon obtaining the approval of the majority of the voters voting on the question of issuing the bonds. Individuals unable to attend the public hearing can make written comment by writing to the City Clerk, Hopkins City Hall, 1010 Is'Street South, Hopkins, Minnesota 55343-7558. Written comments must be received prior to the date and time of the public hearing. BY ORDER OF THE CITY COUNCIL Kristine A. Luedke, City Clerk A-1