2024-030 Resolution Providing for the Issuance and Sale of General Obligation Bonds, Series 2024A, in the Proposed Aggregate Principal Amount of $9,375,000 CITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 2024-030
RESOLUTION PROVIDING FOR THE ISSUANCE AND
SALE OF GENERAL OBLIGATION BONDS,
SERIES 2024A, IN THE PROPOSED AGGREGATE
PRINCIPAL AMOUNT OF $9,375,000
BE IT RESOLVED By the City Council of the City of Hopkins, Minnesota (the
"City"), as follows:
Section 1. Authorization.
1.01. Improvement Bonds.
(a) Certain assessable public improvements within the City (the
"Assessable Improvements") have been made, duly ordered or contracts let for
the construction thereof pursuant to the provisions of Minnesota Statutes,
Chapters 429 and 475, as amended (the "Improvement Act").
(b) It is necessary and expedient to the sound financial management of
the affairs of the City to issue general obligation bonds in the proposed principal
amount of $3,225,000 (the "Improvement Bonds"), pursuant to the Improvement
Act, to provide financing for the Assessable Improvements.
1 .02. Utility Revenue Bonds.
(a) The City engineer has recommended the construction of various
improvements to the City's sewer, water, and storm sewer systems (the "Utility
Improvements").
(b) It is necessary and expedient to the sound financial management of
the affairs of the City to issue general obligation bonds in the proposed principal
amount of $5,505,000 (the "Utility Revenue Bonds"), pursuant to Minnesota
Statutes, Chapters 444 and 475, as amended (the "Utility Revenue Act"), to
provide financing for the Utility Improvements.
1.03. Street Reconstruction Bonds.
(a) Pursuant to Minnesota Statutes, Chapter 475, as amended,
specifically Section 475.58, subdivision 3b (the "Street Reconstruction Act"), the
City is authorized to finance all or a portion of the cost of street reconstruction
projects by the issuance of general obligation bonds of the City payable from ad
valorem taxes.
(b) On March 1, 2022, following a duly noticed public hearing, the City
Council adopted a five (5) year street reconstruction and bituminous overlay plan
for the years 2022 through 2026 (the "Street Reconstruction Plan") describing the
streets to be reconstructed, estimated costs, and any planned reconstruction of
other streets in the City and approved the issuance of obligations by vote of at
least two-thirds of the members thereof, all pursuant to the Street Reconstruction
Act.
(c) Expenditures described in the Street Reconstruction Plan include
10th Avenue North and 1st Street North; 1st Street South and the South Central
Business District; 1st Street North and Lot 700; Robinwood Lane, Highway 7
Service Drive, and 5th Street North; and Washington Avenue North, Jackson
Avenue North, and St. Louis Street (the "Street Reconstruction").
(d) The City Council has determined that, within thirty (30) days after
the hearing, no petition for a referendum on the issuance of bonds to pay costs of
the Street Reconstruction was received by the City in accordance with the Street
Reconstruction Act.
(e) It is necessary and expedient to the sound financial management of
the affairs of the City to issue general obligation bonds in the proposed principal
amount of $645,000 (the "Street Reconstruction Bonds"), pursuant to the Street
Reconstruction Act, to provide financing for a portion of the costs of the Street
Reconstruction.
Section 2. Sale of Bonds.
(a) To provide financing for the Assessable Improvements, the Utility
Improvements, and the Street Reconstruction (collectively, the "Projects"), the
City will therefore issue and sell its General Obligation Bonds, Series 2024A (the
"Bonds"), in the proposed aggregate principal amount of $9,375,000, pursuant to
the Improvement Act, the Utility Revenue Act, and the Street Reconstruction Act
(collectively, the "Act"). The principal amount of the Bonds is subject to
adjustment in accordance with the official Terms of Proposal to be prepared in
connection with the offering and the sale of the Bonds.
(b) The City is authorized by Section 475.60, subdivision 2(9) of the
Act to negotiate the sale of the Bonds, it being determined that the City has
retained an independent municipal advisor in connection with such sale. The
actions of the City staff and the City's municipal advisor in negotiating the sale of
the Bonds are ratified and confirmed in all respects.
Section 3. Authority of Municipal Advisor. Ehlers and Associates, Inc. (the
"Municipal Advisor") is authorized and directed to negotiate the sale of the Bonds. The
City Council will meet on Tuesday, May 21, 2024, or another date selected by City staff, to
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consider proposals on the Bonds and take any other appropriate action with respect to the
Bonds.
Section 4. Authority of Bond Counsel. The law firm of Kennedy & Graven,
Chartered, as bond counsel for the City ("Bond Counsel"), is authorized to act as bond
counsel and to assist in the preparation and review of necessary documents, certificates
and instruments relating to the Bonds. The officers, employees and agents of the City
are hereby authorized to assist Bond Counsel in the preparation of such documents,
certificates, and instruments.
Section 5. Covenants. In the resolution awarding the sale of the Bonds, the
City Council will set forth the covenants and undertakings required by the Act.
Section 6. Official Statement. In connection with the sale of the Bonds, the
officers or employees of the City are authorized and directed to cooperate with the
Municipal Advisor and participate in the preparation of an official statement for the
Bonds and to deliver it on behalf of the City upon its completion.
Section 7. Declaration of Official Intent to Reimburse Expenditures.
(a) 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; the City expects to incur certain expenditures with respect
to projects that may be financed temporarily from sources other than bonds, and
reimbursed from the proceeds of tax-exempt bonds.
(b) The City has determined to make a declaration of official intent (the
"Declaration") to reimburse certain costs with respect to the Projects from
proceeds of the Bonds in accordance with the Reimbursement Regulations.
(c) 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.
(d) 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 the 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 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
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acquisition, construction or rehabilitation of a project, other than land acquisition,
site preparation, and similar costs incident to commencement of construction.
(e) 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 Projects and the principal
amount of the Bonds described herein are consistent with the City's budgetary
and financial circumstances. No sources other than proceeds of the 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 expenditures.
(f) 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 16th day of April, 2024..
By:
Pa) ' k Hanlon, Mayor
Attest:
—e LeA
Amy Domeier, City Clerk
HP110-109 (JAE)
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