2025-029 Resolution Providing for the Issuance and Sale of General Obligation Bonds, Series 2025A, in the Proposed Aggregate Principal Amount of $7,645,000CITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 2025-029
RESOLUTION PROVIDING FOR THE ISSUANCE AND
SALE OF GENERAL OBLIGATION BONDS,
SERIES 2025A, IN THE PROPOSED AGGREGATE
PRINCIPAL AMOUNT OF $7,645,000
BE IT RESOLVED By the City Council ("Council") of the City of Hopkins, Minnesota
(the "City"), as follows:
1. Bonds Authorized.
(a) Improvement Bonds.
(i) The City is authorized by Minnesota Statutes, Chapters 429
and 475, as amended (the "Improvement Act"), to issue obligations in an
amount deemed necessary to defray in whole or in part the expense
incurred and estimated to be incurred in making improvements authorized
by the Improvement Act.
(ii) Certain assessable public street improvements within the City
(the "Assessable Improvements") have been made, duly ordered or
contracts let for the construction thereof pursuant to the provisions of the
Improvement Act.
(iii) The Council finds it necessary and expedient to the sound
financial management of the affairs of the City to issue obligations in the
proposed principal amount of $3,420,000 (the "Improvement Bonds"),
pursuant to the Improvement Act, to provide financing for the Assessable
Improvements and related financing costs.
(b) Utility Revenue Bonds.
(i) The City is authorized by Minnesota Statutes, Chapter 475,
as amended and Minnesota Statutes, Chapter 444, as amended (the "Utility
Revenue Act"), to issue general obligation revenue bonds to finance the
costs of improvements to the City's water utility systems.
(ii) The City engineer has recommended the construction of
various improvements to the City's sewer, water, and storm sewer systems
(the "Utility Improvements").
(iii) The Council finds it is necessary and expedient to the sound
financial management of the affairs of the City to issue general obligation
bonds in the proposed principal amount of $4,225,000 (the "Utility Revenue
Bonds"), pursuant to Utility Revenue Act, to provide financing for the Utility
Improvements and related financing costs. The Assessable Improvements
and the Utility Improvements are hereinafter collectively referred to as the
"Project").
(c) The Council hereby determines that the Improvement Bonds and the
Utility Revenue Bonds shall be issued together in a single series in the proposed
aggregate principal of $7,645,000. The Council designates the bonds as the
"General Obligation Bonds, Series 2025A" (the "Bonds").
2. Sale of Bonds. The City has retained Ehlers and Associates, Inc. (the
"Municipal Advisor"), to serve as the City's independent municipal advisor with respect to
the offer and sale of the Bonds and, therefore, is authorized by Section 475.60,
subdivision 2(g), of the Act to sell the Bonds other than pursuant to a competitive sale.
3. Acceptance of Proposal. The Council shall meet at the time specified in the
Preliminary Official Statement or at such other time designated by the Council to receive
and consider proposals for the purchase of the Bonds and take any other appropriate
action with respect to the Bonds.
4. Authority of Municipal Advisor. The Municipal Advisor is authorized and
directed to assist the City in the preparation and dissemination of a Preliminary Official
Statement to be distributed to potential purchasers of the Bonds and to open, read, and
tabulate the proposals for the purchase of the Bonds for presentation to the Council. The
Municipal Advisor is further authorized and directed to assist the City in the award and
sale of the Bonds on behalf of the City after receipt of written proposals and to assist the
City in the preparation and dissemination of a final Official Statement with respect to the
Bonds.
5. Authority of Bond Counsel. The law firm of Kennedy & Graven, Chartered,
is authorized to act as bond counsel for the City ("Bond Counsel"), and to assist in the
preparation and review of necessary documents, certificates, and instruments related to
the Bonds. The officers, employees, and agents of the City are hereby authorized to
assist Bond Counsel in the preparation of such documents, certificates, and instruments.
6. Reimbursement from Bond Proceeds. The City may incur certain
expenditures that may be financed temporarily from sources other than the Bonds and
reimbursed from the proceeds of the Bonds. Treasury Regulation § 1.150-2 (the
"Reimbursement Regulations") provides that proceeds of tax-exempt bonds allocated to
reimburse expenditures originally paid from a source other than the tax-exempt bonds will
not be deemed expended unless certain requirements are met. In order to preserve its
ability to reimburse -certain costs from proceeds of the Bonds in accordance with the
Reimbursement Regulations, the City hereby makes its declaration of official intent (the
"Declaration") described below to reimburse certain costs
. (a) Declaration of Intent. The City proposes to issue the Bonds to
finance the costs of the Project. The City may reimburse original expenditures
made for certain costs of the Project from the proceeds of the Bonds in an
estimated maximum principal amount of $6,980,000. 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.
(b) Declaration Made Not Later Than 60 Days. This Declaration has
been made not later than sixty (60) days after payment of any original expenditure
to be subject to a reimbursement allocation with respect to the proceeds of the
Bonds, except for the following expenditures: (a) costs of issuance of the Bonds;
(b) costs in an amount not in excess of $100,000 or five percent (5%) of the
proceeds of the Bonds; or (c) "preliminary expenditures" up to an amount not in
excess of twenty (20) percent of the aggregate issue price of the Bonds 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 the Project,. other than land acquisition, site preparation, and
similar costs incident to commencement of construction.
(c) Reasonable Expectations;: Official Intent. 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
Section 6(a), above, are consistent with the City's budgetary and financial
circumstances. No sources other than proceeds of the 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 original expenditures. This Resolution is intended to constitute a
declaration of official intent for purposes of the Reimbursement Regulations.
The motion for the adoption of the foregoing resolution was duly seconded by
Member V _ _ , and upon vote being taken thereon, the following voted
in favor of the motion: \
100, ft
and the following voted against:
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PASSED by the City Council of the City of Hopkins, Minnesota on this 15h day of April
2025.
ATTEST:
r"b�)j J-�A
Amy Domeier, City Clerk
CITY OF HOPKINS, MINNESOTA
P ck Han on, or
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