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Potential funding sources for capital improvement expenditures may include: . 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) . Special Revenue Funds (Equipment Revplving, Lawful Gambling) . Capital Project Funds (Facility, MSA, PIR) . Trust Funds (Landfill, Park hnprovement) . Storm Water Levy . *Only City Hall, Public Works facilities and Public Safety facilities may be financed with ClP General Obligation bonds under the ClP 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 Minnesota Statutes; Chapter 42'9 and utility revenue bonds under Minnesota Statutes, Chapter 444. For a City to use itsauth6rity to finance expenditures under the CIP Act; it must. meet the . requirements provided therein. Specifically, the City Council must approve the sale of capital . improvement bonds by a two-thirds 'vote of its membersliip.' In addition, it must hold a public hearing for pub~ic input. Notice of such hearing must be published in the official newspaper of the City at least fourteen, but nO,t more that twenty-eight days prior to the date of the public hearing. The City Council approves the CIP following the public hearing. The bonds are not subject to referendum unless, within 30 days aftet the hearing, a petition is :tiled with the City. Administrator signed by voters equal to at least five percent of the votes cast in the last general City election. In that event, the bonds are subject toa'referendum, and may be issued only if approved by a maj ority . of voters who vote on that question. If the n~ferendUn1 passes, the taxes to pay the debt service on the bonds would be levied on market 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 accordance with these criteria, the City has considered the following eight points: 1. Condition of the City's infrastructure and need for the proj ect 2. Demand for the improvement ' 3. Cost of the improvement 4. Availability of public resources 5. Level of overlapping debt ' 6. Const/benefits of altemativeuses of funds 7. Operating costs of the proposed improvements 8. . Options for shared facilities with other cities or local governments. . 4