Agenda - Council - 03/13/2012 - Laserfiche WebLink

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The CIP is designed to be updated on an annual basis. In this manner, it becomes an ongoing fiscal planning tool that continually anticipates future capital expenditures and funding sources. III. THE CAPITAL IMPROVEMENT PLANNING PROCESS The capital improvement planning process is as follows: the City Council authorizes the preparation of the CIP. City staff is instructed to assemble the capital expenditures to be undertaken within the next five years. The City Council then reviews the expenditures according to their priority, fiscal impact, and available funding. From this information, a preliminary capital improvement plan is prepared. A public hearing is held to solicit input from citizens and other governmental units. Changes are made based on that input and a final project list is established. The City Council then prepares a plan based on the available funding sources. If general obligation bonding is necessary, the City works with its financial advisor to prepare a bond sale and repayment schedule. Over the life of the CIP, once the funding, including proceeds from the bond sales becomes available, the individual capital expenditures can be made. In subsequent years, the process is repeated as expenditures are completed and new needs arise. Capital improvement planning looks five years into the future. For a City to use its authority to finance expenditures under the Act, it must meet the requirements provided therein. Specifically, the City Council must approve the sale of capital improvement bonds by a three -fifth majority of its membership. In addition, it must hold a public hearing regarding both the CIP and issuance of bonds. Notice of such hearing must be published in the official newspaper of the City at least fourteen, but not more than twenty-eight days prior to the date of the public hearing. The City Council approves the CIP following the public hearing. Although a referendum is not required, issuance of bonds under the Act is subject to a "reverse referendum". If a petition signed by voters equal to at least five percent of the votes cast in the last general election is received by the municipal clerk within thirty days after the public hearing regarding bonds, the bonds may not be issued unless approved by the voters. If the City decides to submit the question to the voters, the question passes if approved by a majority of voters who vote on that question.