Loading...
VII.1. Resolution Awarding the Sale of General Obligation Bonds, Series, 2026B, in the Original Aggregate Principal Amount of $7,220,000; Bishop CITY OF HOPKINS City Council Report 2026-061 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: June 2, 2026 Subject: Award the Sale of $7,220,000 General Obligation Bonds, Series 2026B _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Adopt Resolution No. 2026-018: Awarding the Sale of General Obligation Bonds, Series 2026B, in the original aggregate principal amount of $7,220,000; fixing their form and specification; directing their execution and delivery; and providing for their payment. OVERVIEW The City of Hopkins has the authority to issue General Obligation bonds to pay for street and utility improvements. The 2026B bond issue is being sold to finance two purposes: • The second phase of the 2025/2026 street and utility reconstruction project in Central Avenues. The bonds for this purpose will be issued with a 16 year term to come from general tax levy, special assessments and utility revenues. Principal payments will be made over 12 years from 2031 to 2042. • 2026 Water & Sewer SCADA Fiber Project. The bonds for this purpose will be issued with a 16 year term to come from utility revenues. Principal payments will be made over 12 years from 2031 to 2042. The bond payments will come from a tax levy, utility revenues and special assessments. On May 14, 2026, Standard & Poor’s reaffirmed the City’s AA+ bond rating with a stable outlook. On May 5, 2026, the City Council authorized the sale of $7,220,000 General Obligation bonds. The bond bids will be accepted until 10:00 AM on June 2, 2026 at which time they will be reviewed and the recommendation incorporated into Resolution 2026-018. SUPPORTING INFORMATION • Resolution 2026-018 (preliminary version, will be updated on June 2nd) • S&P Rating Report Finance Department RESOLUTION NO. 2026-018 RESOLUTION AWARDING THE SALE OF GENERAL OBLIGATION BONDS, SERIES 2026B, IN THE ORIGINAL AGGREGATE PRINCIPAL AMOUNT OF $[7,220,000]; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED by the City Council (the “City Council”) of the City of Hopkins, Hennepin County, Minnesota (the “City”) as follows: Section 1. Findings, Determinations; Sale of Bonds. 1.01. Background. It is hereby determined that: (a) Improvement Bonds. (i) The City is authorized by Minnesota Statutes, Chapter 475, as amended (the “Act”) and Minnesota Statutes, Chapter 429, as amended (“Chapter 429”), to issue obligations in such amount as it deems necessary to defray in whole or in part the expense incurred and estimated to be incurred in making improvements authorized by Chapter 429. (ii) On May 5, 2026, the Council adopted a resolution (the “Intent Resolution”) stating the intention of the City, in part, to issue and sell its general obligation bonds in the proposed principal amount of $3,400,000 (the “Street Improvements Portion”), pursuant to the Act and Chapter 429, to provide financing for certain assessable public street improvements (the “ Street Improvements”), and related financing costs. (b) Utility Revenue Bonds. (i) The City is authorized by the Act and Minnesota Statutes, Chapter 444, as amended (“Chapter 444”), to issue general obligation revenue bonds to finance the costs of improvements to the City’s waterworks facilities. (ii) Within the Intent Resolution, the Council also stated the intention of the City to issue and sell its general obligation bonds in the proposed principal amount of $3,820,000 (the “Utility Portion”), pursuant to the Act and Chapter 444, to provide financing for the construction of various improvements to the City’s sewer, water and storm sewer systems (the “Utility Improvements”), and related financing costs. The Street Improvements and the Utility Improvements are hereinafter collectively referred to as the “Project”). (c) Pursuant to the Intent Resolution, the Council determined that the Street Improvements Portion and the Utility Portion shall be issued together in a single series in the original aggregate principal of $7,220,000 (the “Bonds”). The Council designated the bonds as the “General Obligation Bonds, Series 2026B.” 2 (d) The City is authorized by Section 475.60, subdivision 2(9), of the Act to sell the Bonds other than pursuant to a competitive sale because the City has retained Ehlers and Associates, Inc, (the “Municipal Advisor”) to serve as the City’s independent municipal advisor in connection with the sale of the Bonds. The actions of the City staff and the Municipal Advisor in negotiating the sale of the Bonds are ratified and confirmed in all respects. 1.02. Award to the Purchaser and Interest Rates. The proposal of [Purchaser][, as syndicate manager] (the “Purchaser”), to purchase the Bonds of the City is hereby found and determined to be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $____________ (par amount of $[7,220,000], plus original issue premium of $_______________, less original issue discount of the $______________, less an underwriter’s discount of $____________), plus accrued interest, if any, as set forth in the Purchase Agreement (defined below), to date of delivery for Bonds bearing interest as follows: Year Interest Rate Year Interest Rate 2031 0.000% 2037 0.000% 2032 0.000% 2038 0.000% 2033 0.000% 2039 0.000% 2034 0.000% 2040 0.000% 2035 0.000% 2041 0.000% 2036 0.000% 2042 0.000% [*Term Bond] True interest cost: ______________% 1.03. Purchase Agreement. The execution and delivery of a proposal form, dated as of June 2, 2026 (the “Purchase Agreement”), between the City and the Purchaser, is hereby ratified and confirmed in the form set forth in EXHIBIT A to this resolution (the “Resolution”). The Bonds shall be issued and delivered in accordance with the terms and conditions of the Purchase Agreement and this Resolution. The amount proposed by the Purchaser in excess of the minimum bid, if any, shall be credited to the Debt Service Fund hereinafter created or deposited in the Construction Fund hereinafter created, as determined by the Finance Director in consultation with the Municipal Advisor. The Municipal Advisor is directed to receive and retain the good faith payment of the Purchaser in accordance with the terms of the Purchase Agreement, pending completion of the sale of the Bonds. The Mayor and City Manager are authorized and directed to execute a contract with the Purchaser on behalf of the City. 1.04. Terms and Principal Amounts of the Bonds. The City will forthwith issue and sell the Bonds pursuant to the Act, Chapter 444 and Chapter 429 in the original aggregate principal amount of $[7,220,000], originally dated June 25, 2026, in fully registered form and in denominations of $5,000 each or any integral multiple thereof, numbered No. R-1 upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as follows: 3 Year Amount Year Amount 2031 $0.00 2037 $0.00 2032 $0.00 2038 $0.00 2033 $0.00 2039 $0.00 2034 $0.00 2040 $0.00 2035 $0.00 2041 $0.00 2036 $0.00 2042 $0.00 [*Term Bond] (a) $____________ of the Bonds, constituting the Street Improvements Portion, maturing on February 1 of the years and in the amounts set forth below, will be used to finance the Street Improvements: Year Amount Year Amount 2031 $0.00 2037 $0.00 2032 $0.00 2038 $0.00 2033 $0.00 2039 $0.00 2034 $0.00 2040 $0.00 2035 $0.00 2041 $0.00 2036 $0.00 2042 $0.00 [*Term Bond] (b) $_____________ of the Bonds, constituting the Utility Portion, maturing on February 1 of the years and in the amounts set forth below, will be used to finance the Utility Improvements: Year Amount Year Amount 2031 $0.00 2037 $0.00 2032 $0.00 2038 $0.00 2033 $0.00 2039 $0.00 2034 $0.00 2040 $0.00 2035 $0.00 2041 $0.00 2036 $0.00 2042 $0.00 [*Term Bond] 1.05. Schedule of Maturities. In order to satisfy the requirements of Section 475.54, subdivisions 1 and 2, of the Act, the Finance Director has combined the maturities of the Bonds with the outstanding maturities of one or more designated general obligation bond issues of the District. 1.06. Optional Redemption. The City may elect on February 1, 2036, and on any day thereafter to prepay Bonds due on or after February 1, 2037. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for optional redemption, the City shall notify DTC (as defined in Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC shall determine by lot the amount of each participant’s interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such 4 maturity to be redeemed. Prepayments shall be at a price of par plus accrued interest to the date of optional redemption. [1.07 Mandatory Sinking Fund Redemptions; Term Bonds. The Bonds maturing on February 1, 20__, shall hereinafter be referred to collectively as the “Term Bonds.” The Term Bonds are subject to mandatory sinking fund redemption and shall be redeemed in part at par plus accrued interest on February 1 of the following years and in the principal amounts as follows: Mandatory Sinking Fund Redemptions February 1, 20__Term Bond February 1, 20__Term Bond Year Principal Amount Year Principal Amount ___________________ * Maturity The principal amount of Term Bonds subject to mandatory sinking fund redemption on any date may be reduced through earlier optional redemptions, with any partial redemptions of the Term Bonds credited against future mandatory sinking fund redemptions of such Term Bonds in such order as the City shall determine.] Section 2. Registration and Payment. 2.01. Registered Form. The Bonds shall be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check, draft or wire issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond shall be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond shall be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond shall be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing February 1, 2027, to the registered owners of record thereof as of the close of business on the fifteenth day immediately preceding each interest payment date, whether or not such day is a business day. 2.03. Registration. The City shall appoint a bond registrar (the “Registrar”), authenticating agent (the “Authenticating Agent”), and paying agent (the “Paying Agent”). Except as specifically provided otherwise in Section 7 hereof, the effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register (the “Bond Register”) in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred, or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the 5 registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner or the owner’s attorney in writing. (d) Cancellation. Bonds surrendered upon transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the Bond Register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner’s order shall be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees, and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen, or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen, or lost the Registrar shall deliver a new Bond of like amount, number, maturity date, and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for any Bond destroyed, stolen, or lost upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen, or lost, upon filing with the Registrar evidence satisfactory to it that the Bond was destroyed, stolen, or lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in form, substance, and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar shall be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen, or lost Bond has already matured or been called for redemption in whole in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed shall be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the Bond Register and, if publication of the notice of redemption is required by law, by publishing the notice of redemption as required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, shall not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption shall cease to bear interest 6 after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar, Paying Agent, and Authenticating Agent. The City appoints Bond Trust Services Corporation, Minneapolis, Minnesota, as the initial Registrar, Paying Agent, and Authenticating Agent with respect to the Bonds. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with Bond Trust Services Corporation, as the initial Registrar, Paying Agent, and Authenticating Agent with respect to the Bonds. Upon merger or consolidation of the Registrar, Paying Agent, and Authenticating Agent with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar, Paying Agent, and Authenticating Agent. The City agrees to pay the reasonable and customary charges of the Registrar, Paying Agent, and Authenticating Agent for the services performed. The City reserves the right to remove the Registrar, Paying Agent, or Authenticating Agent upon thirty (30) days’ notice and upon the appointment of a successor Registrar, Paying Agent, or Authenticating Agent, in which event the predecessor Registrar, Paying Agent, or Authenticating Agent must deliver all cash and Bonds in its possession to the successor Registrar, Paying Agent, or Authenticating Agent and the Registrar must deliver the Bond Register to the successor Registrar. On or before three (3) business days prior to each principal or interest due date, without further order of the Council, the Finance Director must transmit to the Paying Agent money sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication, and Delivery. The Bonds shall be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that those signatures may be printed, engraved, or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of a Bond, that signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond shall not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Authenticating Agent. Certificates of authentication on different Bonds need not be signed by the same representative of the Authenticating Agent. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed, and authenticated the City Manager shall deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. Section 3. Form of Bond. 3.01. Execution of the Bonds. The Bonds will be printed or typewritten in substantially the form set forth in EXHIBIT B. 3.02. Approving Legal Opinion. The City Manager is authorized and directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, and cause the opinion to be printed on or accompany each Bond. Section 4. Payment; Security; Funds; Pledges and Covenants. 4.01. Debt Service Fund. The Bonds shall be payable from the General Obligation Bonds, Series 2026B Debt Service Fund (the “Debt Service Fund”) hereby created. The City will maintain the following accounts in the Debt Service Fund: the “Street Improvements Account” and the “Utility Account” (collectively, the “Accounts”). Amounts in the Street Improvements Account are irrevocably pledged to the 7 Street Improvements Portion of the Bonds and amounts in the Utilities Account are irrevocably pledged to the Utility Portion of the Bonds. (a) Street Improvements Account. Proceeds of ad valorem taxes hereinafter levied (the “Improvement Taxes”) and special assessments levied or to be levied against the property specially benefited by the Street Improvements (the “Assessments”) for the payment of debt service on the Street Improvements Portion of the Bonds are hereby pledged to the Street Improvements Account of the Debt Service Fund. The amounts to be applied to pay the principal of and interest on the Street Improvements Portion of the Bonds shall be deposited in the Street Improvements Account of the Debt Service Fund at least three (3) business days prior to each respective interest payment date and principal payment date. There is appropriated to the Street Improvements Account of the Debt Service Fund a pro rata portion of amounts over the minimum purchase price of the Bonds paid by the Purchaser to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.03 hereof. (b) Utility Account. The City will continue to maintain and operate its Utility Fund to which will be credited all gross revenues from the City’s sewer, water and storm sewer utility systems (the “Utility Systems”) and out of which will be paid all normal and reasonable expenses of current operations of such systems. Any balances remaining after payment of all normal and reasonable expenses of current operations of the Utility Systems are deemed net revenues (the “Net Revenues”). Net Revenues from the Utility Systems are hereby pledged to the Utility Account of the Debt Service Fund. The amounts to be applied to pay the principal and interest on the Utility Portion of the Bonds shall be deposited in the Utility Account of the Debt Service Fund at least three (3) business days prior to each respective interest payment date and principal payment date. There will always be retained in the Utility Account of the Debt Service Fund a sufficient amount of Net Revenues to pay principal of and interest on the Utility Portion of the Bonds, and the Finance Director must report any current or anticipated deficiency in the Utility Account of the Debt Service Fund to the Council. There is appropriated to the Utility Account of the Debt Service Fund a pro rata portion of amounts over the minimum purchase price of the Bonds paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.03 hereof. 4.02. Construction Fund. The City hereby creates the General Obligation Bonds, Series 2026B Construction Fund (the “Construction Fund”). The City will maintain the following accounts in the Construction Fund: the “Street Improvements Account” and the “Utility Account.” (a) Street Improvements Account. Proceeds of the Street Improvements Portion of the Bonds (reduced by the appropriation made in accordance with Section 5.04 to pay costs of issuance and the appropriation, if any, of any portion of the Street Improvements Portion of the Bonds made in accordance with Section 4.01 hereof) shall be deposited in the Street Improvements Account of the Construction Fund and used solely to pay costs of the Street Improvements. Any balance remaining in the Street Improvements Account of the Construction Fund after completion of the Street Improvements may be used for any other public use authorized by law and approved by resolution adopted or vote taken in the manner required to authorize the application of the proceeds of the Street Improvements Portion of the Bonds for such new use and purpose, or credited to the Street Improvements Account of the Debt Service Fund or other City debt service fund, all in accordance with Section 475.65 of the Act. (b) Utility Account. Proceeds of the Utility Portion of the Bonds (reduced by the appropriation made in accordance with Section 5.04 to pay costs of issuance and the appropriation, if any, of any portion of the Utility Portion of the Bonds made in accordance with Section 4.01 hereof), shall be deposited in the Utility Account of the Construction Fund to be used solely to pay costs of the Utility Improvements. Any balance remaining in the Utility Account of the Construction Fund after 8 completion of the Utility Improvements may be used for any other public use authorized by law and approved by resolution adopted or vote taken in the manner required to authorize the application of the proceeds of the Utility Portion of the Bonds for such new use and purpose, or credited to the Utility Account of the Debt Service Fund or other City debt service fund, all in accordance with Section 475.65 of the Act. 4.03. General Obligation Pledge. For the prompt and full payment of the principal of and interest on the Bonds, as the same respectively become due, the full faith and credit and taxing powers of the City are hereby irrevocably pledged. If a payment of principal of or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the Finance Director must pay such principal or interest from the general fund of the City, and the general fund shall be reimbursed for those advances out of the proceeds of the taxes levied herein, when collected. 4.04. Pledge of Taxes. (a) Street Improvements Portion. For the purpose of paying a portion of the principal of and interest on the Improvements Portion of the Bonds, there are levied direct annual irrepealable ad valorem taxes (the “Improvement Taxes”) upon all of the taxable property in the City, to be spread upon the tax rolls and collected with and as part of other general taxes of the City. The Improvement Taxes shall be credited to the Improvements Account of the Debt Service Fund above provided and shall be levied in the years and amounts attached hereto as EXHIBIT C to this Resolution, and, in the event the Improvement Taxes so levied are ever insufficient to pay the principal of and interest on the Improvements Portion, additional taxes are hereby authorized to be levied without limitation as to rate or amount. Said tax levies shall be irrevocable as long as any of these Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by the Act (specifically, Section 475.61 of the Act). (b) Utility Portion. It is determined that the Net Revenues from the Utility Systems shall produce at least five percent (5%) in excess of the amount needed to meet when due the principal and interest on the Utility Portion of the Bonds and that no ad valorem tax levy is needed at this time. In the event of any deficiency of Net Revenues pledged, additional taxes shall be levied on all taxable property in the District, which taxes may be levied without limitation as to rate or amount. Said tax levies shall be irrevocable as long as any of the Utility Portion of the Bonds are outstanding and unpaid, provided that the District reserves the right and power to reduce the levies in the manner and to the extent permitted by the Act (specifically, Section 475.61 of the Act). 4.05. City Covenants with Respect to the Street Improvement Portion of the Bonds. It is hereby determined that the Street Improvements will directly and indirectly benefit certain abutting and other benefited property in the City, and the City hereby covenants with the holders from time to time of the Improvement Portion of the Bonds as follows: (a) The City has caused or will cause the Assessments for the Improvements to be promptly levied so that the first installment will be collectible not later than 2026 and will take all steps necessary to assure prompt collection, and the levy of the Assessments is hereby authorized. The Council will cause to be taken with due diligence all further actions that are required for the construction of each Improvement financed wholly or partly from the proceeds of the Improvement Portion of the Bonds, and will take all further actions necessary for the final and valid levy of the Assessments and the appropriation of any other funds needed to pay the Improvement Portion of the Bonds and interest thereon when due. 9 (b) In the event of any current or anticipated deficiency in the Assessments or the Improvement Taxes, the Council will levy additional ad valorem taxes in the amount of the current or anticipated deficiency. (c) The City will keep complete and accurate books and records showing: receipts and disbursements in connection with the Street Improvements, Assessments and the ad valorem taxes levied therefor and other funds appropriated for their payment, collections thereof and disbursements therefrom, monies on hand and, the balance of unpaid Assessments. (d) The City will cause its books and records to be audited at least annually and will furnish copies of such audit reports to any interested person upon request. (e) At least 20% of the cost to the City of the Street Improvements described herein has been or will be specially assessed against benefited properties. 4.06. City Covenants with Respect to the Utility Portion of the Bonds. The Council covenants and agrees with the holders of the Bonds that so long as any of the Bonds remain outstanding and unpaid, it will keep and enforce the following covenants and agreements: (a) The City will continue to maintain and efficiently operate the Utility Systems as public utilities and conveniences free from competition of other like municipal utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the Utility Fund, as hereinabove provided, and will make no expenditures from those accounts except for a duly authorized purpose and in accordance with this Resolution. (b) The City will also maintain the Utility Account of the Debt Service Fund as a separate account and will cause money to be credited thereto from time to time, out of Net Revenues from the Utility Systems in sums sufficient to pay principal of and interest on the Utility Portion of the Bonds when due. (c) The City will keep and maintain proper and adequate books of records and accounts separate from all other records of the City in which will be complete and correct entries as to all transactions relating to the Utility Systems and which will be open to inspection and copying by any Bondholder, or the Bondholder’s agent or attorney, at any reasonable time, and it will furnish certified transcripts therefrom upon request and upon payment of a reasonable fee therefor, and said account will be audited at least annually by a qualified public accountant and statements of such audit and report will be furnished to all Bondholders upon request. (d) The Council will cause persons handling revenues of the Utility Systems to be bonded in reasonable amounts for the protection of the City and the Bondholders and will cause the funds collected on account of the operations of such systems to be deposited in a bank whose deposits are guaranteed under the Federal Deposit Insurance Law. (e) The Council will keep the Utility Systems insured at all times against loss by fire, tornado and other risks customarily insured against with an insurer or insurers in good standing, in such amounts as are customary for like plants, to protect the holders, from time to time, of the Bonds and the City from any loss due to any such casualty and will apply the proceeds of such insurance to make good any such loss. (f) The City and each and all of its officers will punctually perform all duties with reference to the Utility Systems as required by law. 10 (g) The City will impose and collect charges of the nature authorized by Chapter 444, specifically Minnesota Statutes, Section 444.075, at the times and in the amounts required to produce Net Revenues adequate to pay all principal and interest when due on the Utility Portion of the Bonds and to create and maintain such reserves securing said payments as may be provided herein. (h) The Council will levy general ad valorem taxes on all taxable property in the City when required to meet any deficiency in Net Revenues. 4.07. Debt Service Coverage. It is determined that the estimated collection of Improvement Taxes, Assessments and Net Revenues herein pledged shall produce at least five percent (5%) in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The tax levies herein provided shall be irrepealable until all of the Bonds are paid, provided that at the time the City makes its annual tax levies the Finance Director may certify to the County Auditor-Treasurer of Hennepin County, Minnesota (the “County Auditor”) that the City made an irrevocable appropriation of a specified amount to the Debt Service Fund of money actually on hand or if there is on hand any excess amount in the Debt Service Fund and the County Auditor shall thereupon reduce the levy collectible during such year by the amount so certified. 4.07. Registration of Resolution. The Finance Director is authorized and directed to file a certified copy of this Resolution with the County Auditor and to obtain the certificate required by Section 475.63 of the Act. Section 5. Authentication of Transcript. 5.01. City Proceedings and Records. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits, and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, shall be deemed representations of the City as to the facts stated therein. 5.02. Certification as to Official Statement. The Mayor, the City Manager and the Finance Director, or any of their authorized designees, are authorized and directed to certify that they have examined the final Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the final Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the final Official Statement and further that said final Official Statement did not (as of the date of the final Official Statement) and does not contain any untrue statement of a material fact or omit to state a material fact which should be included therein for the purpose for which the final Official Statement is to be used, or which is necessary in order to make the statements made therein, in light of the circumstances under which they are made, not misleading. 5.03. Other Certificates. The Mayor, the City Manager and the Finance Director, or any of their authorized designees, are hereby authorized and directed to furnish to the Purchaser at the closing such certificates as are required as a condition of sale. Unless litigation shall have been commenced and be pending questioning the Bonds or the organization of the City or incumbency of its officers, at the closing the Mayor, the City Manager and the Finance Director shall also execute and deliver to the Purchaser a suitable certificate as to absence of material litigation, and the Finance Director shall also execute and deliver a certificate as to payment for and delivery of the Bonds. 11 5.04. Payment of Costs of Issuance. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to Wells Fargo Bank, National Association on the closing date for further distribution as directed by the Municipal Advisor. 5.05. Electronic Signatures. The electronic signatures of the Mayor, the City Manager and the Finance Director, or any of their authorized designees, to this Resolution and any document or certificate authorized to be executed hereunder shall be as valid as an original signature of such party and shall be effective to bind the City thereto. For purposes hereof, (i) “electronic signature” means: (a) a manually signed original signature that is then transmitted by electronic means or (b) a signature obtained through DocuSign or Adobe or a similarly digitally auditable signature gathering process; and (ii) “transmitted by electronic means” means sent in the form of a facsimile or sent via the internet as a portable document format (“pdf”) or other replicating image attached to an electronic mail or internet message. Section 6. Tax Covenants. 6.01. Tax -Exempt Bonds. The City shall comply with all the necessary requirements and take all necessary actions (or decline to take prohibited actions) to ensure that interest on the Bonds shall not be includable in gross income for federal income tax purposes under Section 103 and Sections 141 through 150 of the Internal Revenue Code of 1986, as amended (the “Code”), and applicable Treasury Regulations promulgated thereunder (the “Regulations”). The City covenants and agrees with the holders from time to time of the Bonds that it shall not take or permit to be taken by any of its officers, employees, or agents any action which would cause the interest on the Bonds to become subject to federal income taxation under the Code and the Regulations, in effect at the time of such actions, and that it shall take or cause its officers, employees, or agents to take all affirmative action within their powers that may be necessary to ensure that such interest shall not become includable in gross income for federal income tax purposes under the Code and applicable Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 6.02. Continuing Requirements. The City shall comply with all requirements necessary under the Code and Regulations to establish and maintain the exclusion from gross income of the interest on the Bonds under Sections 103 and 141-150 of the Code and applicable Regulations including, without limitation, requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States. The Mayor and the City Manager, being officers of the City charged with the responsibility for issuing the Bonds pursuant to this Resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code and applicable Regulations stating the facts, estimates, and circumstances in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the “gross proceeds” of the Bonds will not be used in a manner that would cause the Bonds to be “arbitrage bonds” within the meaning of the Code and the Regulations. The City covenants and agrees to retain such records, make such determinations, file such reports and documents, and pay such amounts at such times as are required under Section 148(f) and applicable Regulations to preserve the exclusion of interest on the Bonds from gross income for federal income tax purposes, unless the Bonds qualify for an exception from the rebate requirement in accordance with one of the spending exceptions set forth in Section 1.148-7 or Section 1.148-8 of the Regulations. The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations and covenants made by this section. 6.03. Rebate. The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States unless the Bonds qualify for an exception to the rebate requirement under the Code and Regulations. 12 6.04. Not Private Activity Bonds. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be determined to constitute “private activity bonds,” within the meaning of Sections 103 and 141 through 150 of the Code and the applicable Regulations promulgated thereunder. 6.05. Qualified Tax-Exempt Obligations. In order to qualify the Bonds as “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not “private activity bonds” as defined in Section 141 of the Code; (b) the City designates the Bonds as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2026 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 2026 have been designated for purposes of Section 265(b)(3) of the Code. Section 7. Book-Entry System; Limited Obligation of City. 7.01. DTC. The Bonds shall be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.04 hereof. Upon initial issuance, the ownership of each Bond shall be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns (“DTC”). Except as provided in this section, all of the outstanding Bonds shall be registered in the Bond Register in the name of Cede & Co., as nominee of DTC. 7.02. Participants. With respect to Bonds registered in the Bond Register in the name of Cede & Co., as nominee of DTC, the City, the Registrar, and the Paying Agent shall have no responsibility or obligation to any broker-dealers, banks, and other financial institutions from time to time for which DTC holds Bonds as securities depository (the “Participants”) or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds; (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Registrar), of any notice with respect to the Bonds, including any notice of redemption; or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Registrar, and the Paying Agent may treat and consider the person in whose name each Bond is registered in the Bond Register as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Agent shall pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Registrar, and all such payments shall be valid and effectual to fully satisfy and discharge the City’s obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the Bond Register, shall receive a certificated Bond evidencing the obligation of this Resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the 13 words “Cede & Co.” shall refer to such new nominee of DTC; and upon receipt of such a notice, the City Manager shall promptly deliver a copy of the same to the Registrar and Paying Agent. 7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the “Representation Letter”) which shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Registrar subsequently appointed by the City with respect to the Bonds shall agree to take all action necessary for all representations of the City in the Representation Letter with respect to the Registrar and Paying Agent, respectively, to be complied with at all times. 7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City shall notify DTC, whereupon DTC shall notify the Participants, of the availability through DTC of Bond certificates. In such event the City shall issue, transfer, and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City shall issue and the Registrar shall authenticate Bond certificates in accordance with this resolution and the provisions hereof shall apply to the transfer, exchange, and method of payment thereof. 7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and all notices with respect to the Bond shall be made and given, respectively in the manner provided in DTC’s Operational Arrangements, as set forth in the Representation Letter. Section 8. Continuing Disclosure. 8.01. Execution of Continuing Disclosure Certificate. For purposes of this Section, “Continuing Disclosure Certificate” means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. 8.02. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby covenants and agrees to comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. Section 9. Defeasance. When all of the Bonds and all interest thereon have been discharged as provided in this section, all pledges, covenants, and other rights granted by this resolution to the holders of the Bonds shall cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds shall remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. 14 The motion for the adoption of the foregoing resolution was duly seconded by Member ___________________________, and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. A-1 EXHIBIT A PURCHASE AGREEMENT B-1 EXHIBIT B FORM OF BOND UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF HOPKINS GENERAL OBLIGATION BONDS SERIES 2026B No. R-___ $_______ Interest Rate Maturity Date Date of Original Issue CUSIP 0.000% February 1, 20__ June 25, 2026 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: _____________ THOUSAND DOLLARS The City of Hopkins, a duly organized and existing municipal corporation in Hennepin County, Minnesota (the “City”), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the Principal Amount specified above, on the Maturity Date specified above, with interest thereon from the date hereof at the annual rate specified above (calculated on the basis of a 360 day year of twelve 30 day months), payable February 1 and August 1 in each year, commencing February 1, 2027, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check, draft or wire by Bond Trust Services Corporation, Minneapolis, Minnesota, as Bond Registrar, Paying Agent, and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2036, and on any day thereafter to prepay Bonds due on or after February 1, 2037. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City shall notify The Depository Trust Company (“DTC”) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant’s interest in such maturity to be redeemed and each participant shall then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments shall be at a price of par plus accrued interest to the date of optional redemption. B-2 [The Bonds maturing on February 1, 20__, shall hereinafter be referred to collectively as the “Term Bonds.” The Term Bonds are subject to mandatory sinking fund redemption and shall be redeemed in part at par plus accrued interest on February 1 of the following years and in the principal amounts as follows: Mandatory Sinking Fund Redemptions February 1, 20__Term Bond February 1, 20__Term Bond Year Principal Amount Year Principal Amount ___________________ * Maturity The principal amount of Term Bonds subject to mandatory sinking fund redemption on any date may be reduced through earlier optional redemptions, with any partial redemptions of the Term Bonds credited against future mandatory sinking fund redemptions of such Term Bonds in such order as the City shall determine.] This Bond is one of an issue in the aggregate principal amount of $[7,220,000] all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on June 2, 2026 (the “Resolution”), for the purpose of providing money to aid in financing street improvements and improvements to the City’s water and sewer systems, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapters 475, 444 and 429, as amended. The principal hereof and interest hereon are payable in part from special assessments levied against property specially benefited by local improvements, from net revenues of the sewer and water systems of the City, and from ad valorem taxes, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy additional ad valorem taxes on all taxable property in the City in the event of any deficiency in special assessments, net revenues, and ad valorem taxes pledged, which additional taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. The City has designated the issue of Bonds of which this Bond forms a part as “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), relating to the disallowance of interest expense for financial institutions and within the $10 million limit allowed by the Code for the calendar year of issue. IT IS HEREBY CERTIFIED AND RECITED that in and by the Resolution, the City has covenanted and agreed that it will continue to own and operate the sewer system, water system, and storm sewer system free from competition by other like municipal utilities; that adequate insurance on said systems and suitable fidelity bonds on employees will be carried; that proper and adequate books of account will be kept showing all receipts and disbursements relating to the Sewer Fund, the Water Fund, and the Storm Sewer Fund, into which it will pay all of the gross revenues from the sewer system, water system, and storm sewer system, respectively; that it will also create and maintain a Utility Improvements Account within the General Obligation Bonds, Series 2026B Debt Service Fund, into which it will pay, out of the net revenues from the sewer system, water system, and storm sewer system, a sum sufficient to pay principal B-3 of the Utility Revenue Bonds (as defined in the Resolution) and interest on the Utility Revenue Bonds when due; and that it will provide, by ad valorem tax levies, for any deficiency in required net revenues of the sewer system, water system, and storm sewer system. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner’s attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner’s attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, charter, or statutory limitation of indebtedness. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. B-4 IN WITNESS WHEREOF, the City of Hopkins, Hennepin County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated: June 25, 2026 CITY OF HOPKINS, MINNESOTA (Facsimile) (Facsimile) Mayor City Manager ________________________ CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. BOND TRUST SERVICES CORPORATION By Authorized Representative ________________________ B-5 ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ________________________________________ the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint _________________________________ attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor’s signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”), the New York Stock Exchange, Inc. Medallion Signatures Program (“MSP”) or other such “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STEMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Registrar will not transfer this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert federal identification or other identifying number of assignee B-6 PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration Registered Owner Signature of Officer of Registrar June 25, 2026 Cede & Co. Federal ID #13-2555119 C-1 EXHIBIT C TAX LEVY SCHEDULES STATE OF MINNESOTA ) ) COUNTY OF HENNEPIN ) ss. ) CITY OF HOPKINS ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Hopkins, Hennepin County, Minnesota (the “City”), do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on June 2, 2026 with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of the City’s General Obligation Bonds, Series 2026B, in the original aggregate principal amount of $[7,220,000]. WITNESS My hand officially as such City Clerk this ______ day of May, 2026. City Clerk City of Hopkins, Hennepin County, Minnesota spglobal.com/ratings May 14, 2026 1 S&P Global Ratings. All rights reserved. No reprint or dissemination without S&P Global Ratings permission. See terms of use/disclaimer on last page. Research Update: Hopkins, MN Series 2026B GO Refunding Bonds Assigned 'AA+' Rating May 14, 2026 Overview •S&P Global Ratings assigned its 'AA+' long-term rating to the City of Hopkins, Minnesota's $7.2 million series 2026B general obligation (GO) refunding bonds. •The outlook is stable. Rationale Security Hopkins' proposed and existing GO debt is secured by the city's full-faith-and-credit pledge and ability to levy unlimited ad valorem property taxes. The city anticipates that special assessments and utility revenue will partly support the 2026B bonds, but we rate to the GO pledge. Series 2026B bond proceeds will be used to finance certain assessable public street improvements and various improvements to the sewer, water, and storm sewer systems. The city plans to issue $6.2 million in GO bonds for its 2027 utility reconstruction projects, expecting utility revenue to fully cover the debt service, and $1.8 million in GO bonds for park improvements, expecting franchise fees dedicated to the park system to fully cover the debt service. In addition, the city may issue $7.5 million in GO bonds for road construction and utility improvements in Tax Increment Financing (TIF) District Nos. 1 to 6, possibly issuing a portion in 2026. If the debt is incurred, the related debt service is expected to be fully covered by TIF or special assessment revenue. Credit highlights The rating reflects our view of Hopkins’ consistent tax base growth (despite a modest dip in fiscal 2025), robust gross county product and county-level incomes, solid financial performance and healthy reserves in the past few years, supported by prudent financial policies and practices, and relatively rapid debt amortization. These strengths are partially offset by the city’s elevated per- capita debt burden and debt service carrying charge, as well as its below-average local household income levels. Hopkins is in Hennepin County in the Minneapolis-St. Paul-Bloomington metropolitan statistical area (MSA), which we consider to be broad and diverse. Its proximity to the Twin Cities allows Primary Contact Ying Huang San Francisco 1-415-371-5008 ying.huang @spglobal.com Secondary Contact Alison Kaye Chicago (1) 312-233-7162 alison.kaye @spglobal.com Hopkins, MN Series 2026B GO Refunding Bonds Assigned 'AA+' Rating spglobal.com/ratings May 14, 2026 2 S&P Global Ratings. All rights reserved. No reprint or dissemination without S&P Global Ratings permission. See terms of use/disclaimer on last page. easy access to employment and retail opportunities, which will further improve with the expansion of the Minneapolis light-rail system. Development throughout Hopkins remains strong, including ongoing expansions and redevelopment, as well as steady growth in both multifamily and single-family housing. We view the city's continuous tax base growth, coupled with access to the Twin Cities MSA, as a credit strength. The city has a track record of healthy finances, with recent years’ surpluses due to higher-than- budgeted interest income, as well as increased revenue from licenses, permits, and charges for services. For fiscal 2025 the city budgeted for a $500,000 reserve drawdown to stay close to its reserve policy target of 42% of expenditures, but management projects a $237,000 deficit as a result of higher-than-budgeted intergovernmental revenue from the state and other agencies. We view the city’s reserve levels as solid and sufficient to support the rating despite the planned drawdowns. For fiscal years 2026 and 2027, management anticipates balanced budgets and no further reserve drawdowns. Hopkins is backed by a strong management team that has implemented robust policies and practices. The city's debt profile, while elevated, has been historically managed within its budget and with commensurate increases in tax levies. Even given sizable debt service carrying charges and the city’s additional debt plans in the next few years, we expect structural balance will continue, considering the expected self-supporting nature of the potential $15.5 million additional debt for the road and public parking ramp projects in the new TIF district. The rating reflects our opinion of Hopkins': •Healthy county-level economic metrics and local wealth levels in a Twins Cities suburb, with consistent valuation growth; •Solid financial performance, maintenance of solid reserves, and robust liquidity levels; •Strong financial policies and practices, characterized by quarterly reporting of budget-to- actual results and investment holdings to city council; long-term financial planning and capital plans, updated annually; and formal investment management, debt management, and fund balance policies--the city’s cybersecurity practices align with those of peers; and •Weak debt and liability profile, with sizable debt service carrying charges and an elevated debt burden, partially offset by rapid amortization and manageable other long-term liabilities (pension and other postemployment benefits [OPEB]). •For more information on our institutional framework assessment for Minnesota school districts, see: "Institutional Framework Assessment: Minnesota Local Governments," Sept. 10, 2024. Environmental, social, and governance We view the city's environmental, social, and governance factors as neutral in our credit rating analysis. Outlook The stable outlook reflects our expectation that Hopkins will see consistent economic growth and maintain structural balance (when excluding the deliberate reserve drawdown) and healthy reserves over the two-year outlook horizon. Downside scenario Hopkins, MN Series 2026B GO Refunding Bonds Assigned 'AA+' Rating spglobal.com/ratings May 14, 2026 3 S&P Global Ratings. All rights reserved. No reprint or dissemination without S&P Global Ratings permission. See terms of use/disclaimer on last page. We could take a negative rating action if the city's budgetary performance weakens, leading to a sustained reserve drawdown beyond what is expected, or if debt increases beyond current expectations. Upside scenario We could take a positive rating action if the city experiences material improvements in local incomes and market value per capita to levels commensurate with those of 'AAA' peers, and if its debt burden and debt service costs moderate materially, with all other credit factors remaining equal. Hopkins, Minnesota‑‑credit summary Institutional framework (IF)1 Individual credit profile (ICP)2.42 Economy 2.0 Financial performance 3 Reserves and liquidity 1 Management 1.35 Debt and liabilities 4.75 Hopkins, Minnesota‑‑key credit metrics Most recent 2024 2023 2022 Economy Real GCP per capita as % of U.S. 178 178 180 182 County PCPI as % of U.S. 137 137 138 137 Market value ($000s) 3,130,106 3,016,926 2,839,400 2,661,044 Market value per capita ($) 166,406 160,389 149,852 134,193 Top 10 taxpayers as % of taxable value 17.2 19.3 26.6 ‑‑ County unemployment rate (%) 3.4 2.8 2.2 2.3 Local median household EBI as % of U.S. 88 88 90 91 Local per capita EBI as % of U.S. 105 105 111 116 Local population 18,810 18,810 18,948 19,830 Financial performance Operating fund revenue ($000s) ‑‑ 18,529 18,335 17,081 Operating fund expenditures ($000s) ‑‑ 19,138 17,831 16,562 Net transfers and other adjustments ($000s) ‑‑ (488) (57) (20) Operating result ($000s) ‑‑ (1,097) 447 499 Operating result as % of revenue ‑‑ (5.9) 2.4 2.9 Operating result three‑year average % ‑‑ (0.2) 4.2 6.0 Reserves and liquidity Available reserves as % of operating revenue ‑‑ 44.0 49.8 51.1 Available reserves ($000s) ‑‑ 8,154 9,131 8,720 Debt and liabilities Debt service cost as % of revenue ‑‑ 20.6 22.7 24.5 Hopkins, MN Series 2026B GO Refunding Bonds Assigned 'AA+' Rating spglobal.com/ratings May 14, 2026 4 S&P Global Ratings. All rights reserved. No reprint or dissemination without S&P Global Ratings permission. See terms of use/disclaimer on last page. Hopkins, Minnesota‑‑key credit metrics Most recent 2024 2023 2022 Net direct debt per capita ($) 4,582 4,650 4,774 4,136 Net direct debt ($000s) 86,185 87,460 90,465 82,020 Direct debt 10‑year amortization (%) 77 84 ‑‑ ‑‑ Pension and OPEB cost as % of revenue ‑‑ 5 4 5 NPLs per capita ($) ‑‑ 366 488 954 Combined NPLs ($000s) ‑‑ 6,884 9,255 18,909 Financial data may reflect analytical adjustments and is sourced from issuer audit reports or other annual disclosures. Economic data is generally sourced from S&P Global Market Intelligence, the Bureau of Labor Statistics, Claritas, and issuer audits and other disclosures. Local population is sourced from Claritas. Claritas estimates are point in time and not meant to show year‑over‑year trends. EBI‑‑Effective buying income. GCP‑‑Gross county product. NPL‑‑Net pension liability. OPEB‑‑Other postemployment benefits. PCPI‑‑Per capita personal income. Ratings List New Issue Ratings US$7,220,000 Hopkins, Minnesota, General Obligation Bonds, Series 2026B, dated: Date of Delivery, due: February 1, 2042 Long Term Rating AA+/Stable Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at https://disclosure.spglobal.com/ratings/en/regulatory/ratings-criteria for further information. A description of each of S&P Global Ratings' rating categories is contained in "S&P Global Ratings Definitions" at https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/sourceId/504352. Complete ratings information is available to RatingsDirect subscribers at www.capitaliq.com. All ratings referenced herein can be found on S&P Global Ratings' public website at www.spglobal.com/ratings. Hopkins, MN Series 2026B GO Refunding Bonds Assigned 'AA+' Rating spglobal.com/ratings May 14, 2026 5 S&P Global Ratings. All rights reserved. No reprint or dissemination without S&P Global Ratings permission. See terms of use/disclaimer on last page. Copyright ©2026 by Standard & Poor’s Financial Services LLC. All rights reserved. No content (including ratings, credit-related analyses and data, valuations, model, software, or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced, or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third- party providers, as well as their directors, officers, shareholders, employees, or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness, or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED, OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages. Some of the Content may have been created with the assistance of an artificial intelligence (AI) tool. Published Content created or processed using AI is composed, reviewed, edited, and approved by S&P personnel. Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P's opinions, analyses, and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment, and experience of the user, its management, employees, advisors, and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses. To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw, or suspend such acknowledgement at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal, or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof. S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process. S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.spglobal.com/ratings (free of charge) and www.ratingsdirect.com (subscription) and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.spglobal.com/usratingsfees.