Agenda - Council Work Session - 11/22/2016

Home

The CIP is not intended to provide for precise budgeting. Capital costs are projected as estimates. Upon each update of the plan, deletions, additions, delays, or other revisions may occur, reflecting changing community needs. These changes allow for budget refinements as a particular project nears actual construction. Capital improvements are improvements to land, streets,parks,utilities and buildings. This plan shows improvements with revenues projected from various funding sources. Improvements from the General Fund are those requiring a tax levy, referendum or similar other authority resulting in listed projects being less than certain. The other funding sources (except for intergovernmental revenue-grant funds) have increased stability over the general fund projects. Specific information on the funding sources for each project is shown under the individual project. Cash flow projections are completed to examine the long-term stability of each fund and its ability to provide for planned expenditures. 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/Outside Sources • Utility Funds (Water, Sewer, Recycling, Street Lights, Storm Water) • Special Revenue Funds (Equipment Revolving, Lawful Gambling, Storm Water Management) • Capital Project Funds (Facility, Landfill, MSA, Park Improvement) • 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. 9