2016-016 Declaring the Official Intent of the City of Hopkins to Reimburse Certain Expenditures CITY OF HOPKINS
HENNEPIN COUNTY,MINNESOTA
RESOLUTION 2016-016
DECLARING THE OFFICIAL INTENT OF THE
CITY OF HOPKINS TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEEDS
OF 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 bonds used to reimburse prior expenditures will not be
deemed spent unless certain requirements are met;and
WHEREAS, the City of Hopkins, Minnesota (the "City") expects to incur certain expenditures that
may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a tax-
exempt bond;
WHEREAS, the City has determined to make this declaration of official intent ("Declaration") to
reimburse certain costs from proceeds of bonds in accordance with the Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HOPKINS AS FOLLOWS:
1. The City proposes to finance an approximately 189 stall public parking ramp located at the
intersection of Eight Avenue S between First Street S and Excelsior Blvd,(the"Project").
2. The City reasonably expects to reimburse the expenditures made for certain costs of the
Project from the proceeds of bonds in an estimated maximum principal amount of $11,000,000. 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.
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 bonds, except for
the following expenditures: (a) costs of issuance of bonds; (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 20
percent 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, bond 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 bonds described in paragraph 2 are consistent with the City's
budgetary and financial circumstances. No sources other than proceeds of 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 Project expenditures.
5. This Declaration is intended to constitute a declaration of official intent for purposes of
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the Reimbursement Regulations.
Approved this 16rh day of February,2016,by the City Council of the City of Hopkins,Minnesota.
CITY OF HOPKINS,MINNESOTA
Molly Cuibmings,Mayor
Attest:
Amy Domeier,City Clerk
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