1992-043
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 92-43
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 Tres Reg.
providing that proceeds of tax-exempt bonds used to reimburse prior
will not be deemed spent unless certain requirements are met; and
# 1.103-18
expenditures
WHEREAS, the City expects to incur certain expenditures which may be financed
temporarily from sources other than bonds, and reimbursed from the proceeds of a
bond; and
WHEREAS, the reimbursement rules apply to bonds issued after March 2, 1992;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HOPKINS (THE
"CITY") AS FOLLOWS:
1. The City reasonably intends to make expenditures for the project described
in Exhibit A (the "Project"), and reasonably intends to reimburse itself for such
expenditures from the proceeds of debt to be issued by the City in the maximum
principal amount described in Exhibit A.
2. The City Manager is authorized to designate appropriate additions to
Exhibit A in circumstances where time is of the essence, and any such designation
shall be reported to the Council at the earliest practicable date and shall be filed
with the official books and records of the City as provided in Section 3.
3. This resolution shall be maintained as part of the books and records of
the City at the main administrative office of the City, and shall be continuously
available during normal business hours of the City on every business day of the
period beg~nning not more than 30 days after adoption of this resolution and ending
on the last date of issue of any bonds issued to reimburse expenditures described in
Exhibit A.
4. This resolution is an expression of the reasonable expectations of the
City based on the facts and circumstances known to the City as of the date her of.
Th anticipated reimbursements set forth at Exhibit A are consistent with the City's
budgetary and financ~al 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. The City has not adopted any allocation,
budget, or restriction of moneys or adoption of a requirement or policy to reimburse
a fund, the primary purpose of which is to prevent moneys from being available to
pay an expenditure the City intends to reimburse with proceeds of a borrowing.
5. This resolution is intended to constitute a declaration of official intent
for purposes of Tres. Reg. # 1.103-18 and any successor law, regulation, or ruling.
6. The allocation of proceeds of the bonds to be issued to any project
expenditures described in Exhibit A will be made not later than the later of one
year after the expenditure was paid or one year after the property was placed ~n
service.
7. The Project expenditures described in Exhibit A are capital expenditures
as defined in Tres. Reg. # 1.150-1(h), including costs of issuance of the bonds to
be issued in order to reimburse the Project expenditures.
8. Proceeds of the bonds issued to reimburse the Project expenditures
described in Exhibit A will be deemed spent only when (1) an allocation entry is
made on the books or records of the City with respect to the bonds; (2) the entry
identifies an actual expenditure to be reimbursed, or where the Project is described
as a fund or account, the fund or account from which the expenditure was paid; and
(3) the allocation is effective to relieve the bond proceeds from restriction on
unspent proceeds under applicable documents and state laws.
9. No entity of entities possess simultaneously two or more of the following
discretionary and non-ministerial powers with respect to the City: power to (1)
remove without cause a controlling portion of the City Council; (2) select, approve,
or disapprove a controlling portion of the City Council; (3) determine the City's
budget or require the use of the City's funds or assets for the other entity's
purpose; or (4) approve, disapprove, or prevent the issuance of debt obligations of
the City.
10. None of the proceeds of the bonds issued to reimburse the City for the
Project expenditures described in Exhibit A will be used within one year of the
allocation (i) to refund another governmental obligation or (ii) to create or
increase the balance in a sinking fund or replace funds used for such purpose, or
(iii) to create or increase the balance in a reserve or replacement fund or replace
funds used for such purposes; or will be used at any time to reimburse any person or
entity (other than the City) for expenditures originally paid with the proceeds of a
City obligation (excluding a City inter-fund borrowing); unless (i) such amounts are
deposited in a bona fide debt service fund or are used to pay debt service in the
next one-year period on any City obligation other than the reimbursement bond, or
(ii) the original issue was not reasonably expected to be used to finance the
expenditure.
11. No action or inaction by the City with respect to the allocation of bond
proceeds to reimbursement of Project expenditures will be an artifice or device to
avoid, in whole or in part, arbitrage yield restrictions or arbitrage rebate
requirements.
12.
extent not
ruling.
The procedures described in this resolution shall cease to apply to the
required by Tres. Reg. # 1.103-18 or any successor law, regulation, or
c
Approved by the City Council of the City
ATTEST:
nellie, City Clerk
Date of
Declaration
6-2-92
EXHIBIT A
TO OFFICIAL INTENT RESOLUTION
ADOPTED JUNE 2, 1992
Description of proiect
Mainstreet utility Service
Assessments
Knollwood Street Reconstruction
Assessments
City's 30% share
Alleys 1992 and 1993
Assessment
Street Reconstruction 1993-94
Assessment
City's 30% share
Maximum principal
Amount of Debt
to Reimburse
proiect Costs
$ 726,300
380,300
177,600
96,000
233,000
130,000