2025-047 - Resoluton Declaring the Official Intent of the City of Hopkins to Reimburse Certain Expenditures from the Proceeds of Improvement Bonds to be Issued by the CityCITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2025-047
DECLARING THE OFFICIAL INTENT OF THE CITY OF HOPKINS TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEEDS OF IMPROVEMENT 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 obligations used to
reimburse prior expenditures will not be deemed spent unless certain requirements are
met; and,
WHEREAS, City of Hopkins (the "City") expects to incur certain expenditures that may be
financed temporarily from sources other than tax-exempt obligations, and reimbursed
from the proceeds of a tax-exempt obligation; and
WHEREAS, the City has determined to make this declaration of official intent
("Declaration") to reimburse certain costs from proceeds of tax-exempt obligations in
accordance with the Reimbursement Regulations,
NOW THEREFORE LET THE FOLLOWING BE RESOLVED, that the City Council of the
City of Hopkins:
1. The City proposes to undertake the improvements to Central Park (the "Project')
2. The City reasonably expects to reimburse the expenditures made for certain costs
of the Project from the proceeds of tax-exempt obligations in an estimated
maximum principal amount of $1,336,407. All reimbursed expenditures will be
capital expenditures, costs of issuance of the tax-exempt obligations, 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 tax-exempt obligations, except for the following expenditures: (a) costs
of issuance of tax-exempt obligations; (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 twenty percent (20%) 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, tax-
exempt obligation 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
tax-exempt obligations described in paragraph 2 are consistent with the City's
budgetary and financial circumstances. No sources other than proceeds of tax-
exempt obligations 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.
5. This Declaration is intended to constitute a declaration of official intent for purposes
of the Reimbursement Regulations.
Adopted by the City Council of the City of Hopkins this 4th day of
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ATTEST:
A y Domeier, City Clerk
anlon, Mayor