Agenda - Council - 04/26/2016 - Laserfiche WebLink

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Potential funding sources for capital improvement expenditures may include: • General Funds • Capital Equipment Certificates • General Obligation Bonds • CIP General Obligation Bonds* • Tax Increment Financing • Economic Development Authority Levy • Developer Fees • Grants & Aids • Utility Funds (Water, Sewer, Street Lights, Recycling, Storm Water) • Special Revenue Funds (Equipment Revolving, Lawful Gambling, Storm Water Management) • Capital Project Funds (Facility, Landfill, MSA, Park Improvement, PIR) • Special Assessments *Only City Hall, Public Works facilities and Public Safety facilities 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 Minnesota 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 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 membership. In addition, it must hold a public hearing for public input. Notice of such hearing must be published 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 CIP following the public hearing. The bonds are 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. In that event, the bonds are subject to a referendum, and may be issued only if approved by a majority of voters who vote on that question. If the referendum 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 project 2. Demand for the improvement 3. Cost of the improvement 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. 10