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PotentiaL funding sources for capital improvement expenditures may inciude: · General Funds ' · Special Assessments · General Obligation Bonds · CIP General Obligation Bonds* · Tax Increment Financing · Economic Development Authority Levy . Developer Fees · Grants & Aids · Utility Funds (Water, Sewer, Street Lights, Storm Water) · SpecialRevenqe Funds (Equipment Revolying, LawfulGambling) · Capital Pi"oject Funds (Facility, MSA, PIR) · Tr.ust Funds (Landfill, Park Improvement) · Stann Water Levy * Only City Hall, Public Works facilities' and Public Safety fac!lities may be financed with, CIP General Obligation bonds under the 'CIP Act (Minnesota Statutes Chapter 475). Other capital improvements described in this plan as being financed under General Obligation Bonds may be financed with special assessment bonds under Minnes~ta Statutes, Chapter 429 and utility revenue' . bonds under Minnesota Statutes, Chapter 444. For a City to use its authority to finance expenditures under the CIP Act, it rimst meet the requirements provided therein. Specifically, 'the City Council must approve the sale of capital improvement bonds by a two-thirds vote of its membership. In addition, it must hold a public hearing for public input.' Notice of such hearing must be publislled in the official newspaper of the City at least fourteen, but not more that twenty-eight days prior to the date of the public hearing. The City Council approves the eIP following the public hearing. The ,bonds 'art:: not subject to referendum unless, within 30 days after the hearing, a petition is filed ,with the City Administrator signed by voters equal to at least five percent of the votes cast in the last general City election. IIi. that event, the bonds are subject to a referendum, and may be issued only if approved by a majority of yot~rs who vote on that question. If the referendum passes, the taxes to pay the debt service on the bonds would be levied on marJcet value rather than tax capacity. However, if no timely petition is filed,the taxes to pay debt service are levied on tax capacity. The CIP Act has established certain criteria that must be met. In accorda~ce with these criteria, the City has considered the following eight points: 1. Condition of the City's infrastructure and need for the project 2. Demand for the improvement 3. Cost of the improvemeIlt 4. . Availability of public resources 5. Level of overlapping debt 6. Const/benefits of alternative uses of funds 7. Operating costs of the proposed improvements 8. Options for shared facilities with other cities or local governments. 4