2017-021 Declaring the Official Intent of the City of Hopkins to Reimburse Certain Expenditures from the Proceeds of Bonds to be Issued by the CityCITY OF HOPKINS, NIINNESOTA
RESOLUTION NO. 2017-021
DECLARING THE OFFICIAL INTENT OF THE
CITY OF HOPHINS TO REIMBURSE
CERTAIN �XPENDITUR�S FROM'IT3E PROCEEDS
OF BONDS TO BE ISSUED BY TIIE CITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the "Reimbursement
Regu]ations") 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 temporuily 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 mtent ("Declaration") to
reimburse certain costs from proceeds of bonds in accordance with the Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY Tf� CITY COUNCIL OF THE CITY OF
HOPKINS AS FOLLOWS:
1. The City proposes to complete a project to rehabilitate sanitary sewer lift station no. 7(the
"ProjecY').
2. The City reasonably expects to rennburse the expenditures made for certain costs of the
Project from the proceeds of bonds. All reunbursed expendihtres 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 fmance or are reasonably expected by the City
to finance the project for which the preliminary expenditures were incurred. The tenn "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 preparatioo, and similaz costs incident to corrunencement 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 are consistent with the City's budgetary and financial circumstances.
5. This Declaration is intended to constitute a declaration of official intent for purposes of
the Reimbursement Regulations.
Approved this 21s` day of February, 2017, by the City Council of the City of Hopkins, Minnesota.
CITY OF HOPKINS, NIIlVNESOTA
, �1��'l� (' �
Molly C ings, Mayor ��
Attest:
�il��,��ec�
Amy Domeier, City Clerk
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