CR 2012-075 Approve Resolution 2012-046 Declaring the Offiicial Intent of the City of Hopkins to Reimburse Certain Expenditures from General Obligation Improvements Bond Proceeds to be Issued by the City of HopkinsJuly 10, 2012lw� Council Report 2012-075
City of Hopkins
APPROVE RESOLUTION 2012-046 DECLARING THE OFFICIAL INTENT
OF THE CITY OF HOPKINS TO REIMBURSE CERTAIN EXPENDITURES
FROM GENERAL OBLIGATION IMPROVEMENT BOND PROCEEDS
TO BE ISSUED BY THE CITY OF HOPKINS
Proposed Action
Staff recommends adoption of the following motion: Move to adopt Resolution 2012-046 Declaring the
official intent of the City of Hopkins to reimburse certain expenditures from general obligation improvement
bond proceeds to be issued by the Cily of Hopkins
Approval of this motion will allow us to include the 2012-2013 water meter replacement project with the
improvement bonds we anticipate selling in August 2012.
Overview
We are currently in year three of a five year project to change out the water meters of all business and
residences in Hopkins. The project has been going well, however we have used cash reserves to fund the
first three years of this project. Cash reserves are now negative due not only to this project but other
scheduled projects. Since we are selling bonds in August to finance street and utility improvements it made
sense to include the final two years of the water meter project in this bond issue. This will allow us to
rebuild cash reserves of the water fund.
In order to include the 2012-2013 water meter project costs with this bond issue we need to pass a resolution
stating our intent to reimburse the City with bond proceeds prior to incurring costs for 2012-2013.
Primary Issues to Consider
• Financial Reserves of the Water Fund
Staff Recommendation
Staff recommends approving Resolution 2012-046 allowing us to include the 2012-2013 water meter project
costs in the upcoming bond issue and replenish the cash reserves of the water fund.
Supporting Information
0 Resolution 2012-046
Christine M. Harkess, CPA, CGFM
Finance Director
Financial Impact: $ 215,000 Budgeted: Y/N N X Source: water revenues
Related Documents (CIP, ERP, etc.): Notes:
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2012-046
DECLARING THE OFFICIAL INTENT OF THE CITY OF HOPKINS
TO REIMBURSE CERTAIN EXPENDITURES FROM
GENERAL OBLIGATION IMPROVEMENT BOND PROCEEDS
TO BE ISSUED BY THE CITY OF HOPKINS
WHEREAS, the Internal Revenue Service has issued Treas. Reg. #1.150-2 providing that
proceeds of tax-exempt bonds used to reimburse prior expenditures shall not be deemed
spent unless certain requirements are met; and
'WHEREAS, the City expects to incur certain expenditures, which may be financed temporarily
from sources other than bonds, and reimbursed from bond proceeds;
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HOPKINS, MINESOTA (THE CITY) AS FOLLOWS:
1. The City intends to incur expenditures for the replacement of water meters for all
businesses and residences in the City of Hopkins. This is five year project covering
2009-2013 of which three years have been done and the remaining two years 2012-
2013 need to be funded.
2. The remaining two years of project costs for 2012-2013 are expected to total
approximately $215,000.
3. This resolution is intended to constitute a declaration of official intent for the purpose
of Treas. Reg. #1.150-2 and any successor law, regulation, ruling or amendment
pertaining thereto.
Adopted by the City Council of the City of Hopkins this 10th day of July 2012.
Eugene J. Maxwell, Mayor
ATTEST:
Kristine A Luedke, City Clerk
7-05-2012 04:14
PM CITY OF
HOPKINS
703-2-00000-202
BALANCE
SHEET
703-2-00000-203
AS OF: JULY
5th, 2012
703 -WATER UTILITY FUND
Retainage payable
ACCOUNT#
TITLE
Hennepin Cc Sales Tax Pybl
ASSETS
703-2-00000-208
Dental
703-1-00000-101
Cash (
643,113.30)
703-1-00000-106
Accrued interest on Investment
0.00
703-1-00000-125
Accounts receivable - customer
158,001.29
703-1-00000-126
Accounts receivable - miscella
0.00
703-1-00000-128
Accounts Receivable Clearing
0.00
703-1-00000-135
Due from Other funds
0.00
703-1-00000-140
Due from other governments
0.00
703-1-00000-149
Unbilled utility service
0.00
703-1-00000-164
INVENTORY - MATERIALS/SUPPLIES
12,983.95
703-1-00000-168
Prepaid Expense
0.00
703-1-00000-170
Land
16,447.00
703-1-00000-171
Buildings and structures
44,486.00
703-1-00000-172
Other improvements
1,990,575.10
703-1-00000-173
Vehicles
46,948.61
703-1-00000-174
Machinery and equipment
310,199.13
703-1-00000-175
Water meters
951,308.95
703-1-00000-176
Wells, mains and tanks
7,396,457.26
703-1-00000-178
Construction in progress
375,142.87
703-1-00000-179
Accumulated depreciation (
5,646,700.26)
703-1-00000-187
Deferred Charges - Issuance
11,648.72
TOTAL ASSETS
LIABILITIES
703-2-00000-201
Accounts payable
0.00
703-2-00000-202
Sales tax payable
3,056.27
703-2-00000-203
Salaries payable
0.00
703-2-00000-205
Retainage payable
0.00
703-2-00000-207
Hennepin Cc Sales Tax Pybl
66.38
703-2-00000-208
Dental
131.24
703-2-00000-209
Life
41.76
703-2-00000-210
Compensated absences payable
42,110.91
703-2-00000-211
Federal tax withholding payabl
1,027.15
703-2-00000-212
State tax withholding payable
446.25
703-2-00000-213
FICA tax payable
482.00
703-2-00000-214
PERA payable
745.10
703-2-00000-215
Medicare payable
166.40
703-2-00000-216
Flexible spending liability (
349.33)
703-2-00000-218
Medical insurance liability
54.54
703-2-00000-219
ROTH 457(b)
0.00
703-2-00000-220
Deferred compensation payable
295.33
703-2-00000-221
MN Benefit Association
0.00
703-2-00000-222
Health savings acct liability
335.14
703-2-00000-223
Union dues - 49ers
48.34
703-2-00000-224
Union dues - Fire
0.00
703-2-00000-226
Long term disability/sick leav
46.05
703-2-00000-227
United Way contributions
0.00
703-2-00000-228
Other withholdings payable
157.94
5,024,385.32
PAGE: 1
5,024,385.32
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7-05-2012 04:14 PM CITY OF HOPKINS
BALANCE SHEET
AS OF: JULY 5th, 2012
703 -WATER UTILITY FUND
ACCOUNT# TITLE
703-2-00000-230
State connection charge payabl
11,410.76
703-2-00000-233
Post Retirement Health Care
44.28
703-2-00000-234
49ers Pension
59.50
703-2-00000-235
Short term disability/sick Iv
36.20
703-2-00000-236
AFLAC
0.00
703-2-00000-237
Limited flex spending (HSA)
473.28
703-2-00000-238
HRA City contribution
0.00
703-2-00000-239
Metro Transit Imp Tax Payable
111.02
703-2-00000-240
Due to other funds
0.00
703-2-00000-242
Net OPEB Liability
7,055.50
703-2-00000-243
Accrued interest payable
17,971.00
703-2-00000-244
Deferred revenue
0.00
703-2-00000-245
Deposits
2,943.92
703-2-00000-256
Bonds payable - noncurrent
1,260,000.00
703-2-00000-258
Unamortized Bond Premium
27,240.59
TOTAL LIABILITIES
EQUITY
703-3-00000-260
Reserved fund balance
0.00
703-3-00000-270
Designated fund balance
0.00
703-3-00000-296
Retained earnings
3,613,422.07
TOTAL BEGINNING EQUITY
3,613,422.07
TOTAL REVENUE
641,876.45
TOTAL EXPENSES
607,120.72
TOTAL REVENUE
OVER/(UNDER) EXPENSES
34,755.73
1,376,207.52
PAGE: 2
TOTAL EQUITY & REV. OVER/(UNDER) EXP. 3,648,177.80
TOTAL LIABILITIES, EQUITY & REV.OVER/(UNDER) EXP. 5,024,385.32
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