2018-010 Declaring the Official Intent of the CIty of Hopkins to Reimburse Certain Expenditures from the Proceeds of Bonds to be Issued by the City CITY OF HOPKINS,MINNESOTA
RESOLUTION NO.2018-010
DECLARING THE OFFICIAL INTENT OF THE
CITY OF HOPKINS TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEEDS
OF BONDS TO BE ISSUED BY'1'HE 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 owns an ice hockey and multipurpose facility known as the Hopkins Pavilion,located
at 11000 Excelsior Boulevard in the City (the "Facility"), and the Hopkins Youth Hockey Association, a
Minnesota nonprofit corporation(the"Association"),currently uses the ice arena within the Facility(the"Ice
Arena")and rents space in the Ice Arena on an annual basis for its youth hockey activities.
2. The City proposes to fmance the construction of certain improvements to the Facility (the
"Project").
3. 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 approximately$3,800,000.
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.
4. The Association is a nonprofit organization exempt from federal income taxation under
Section 501(a) of the Code, as a result of the application of Section 501(c)(3) of the Code. Because the
Association will be a user of the Ice Arena,the City expects to designate the bonds as qualified 501(c)(3)bonds
pursuant to Section 145 of the Code.
5. 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 bonds, except for
the following expenditures: (a)costs of issuance of bonds; (b)costs in an amount not in excess of$100,000
or five percent(5%)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 fmance or are reasonably
expected by the City to fmance 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.
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6. 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 3 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 fmancial policies to pay such Project expenditures.
7. This Declaration is intended to constitute a declaration of official intent for purposes of the
Reimbursement Regulations.
Approved this 5th day of February,2018,by the City Council of the City of Hopkins,Minnesota.
Mayor
Attest:
� �► � L A
City Clerk
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