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III. THE STREET RECONSTRUCTION AND OVERLAY PLANNING <br />PROCESS <br />The street reconstruction and overlay planning process is as follows; the City Council <br />authorizes the preparation of the SROP. The City staff is instructed to assemble the capital <br />expenditures to be undertaken within the next five years. The City Council then reviews <br />the expenditures according to their priority, fiscal impact, and available funding. From this <br />information, a preliminary street reconstruction and overlay plan is prepared. A public <br />hearing is held to solicit input from citizens and other governmental units. Changes are <br />made based on that input, and a final project list is established. <br />The City Council then prepares a plan based on the available funding sources. If general <br />obligation bonding is necessary, the City works with its financial advisor to prepare a bond <br />sale and repayment schedule. Over the life of the SROP, once the funding, including <br />proceeds from the bond sales becomes available, the individual capital expenditures can be <br />made. <br />In subsequent years, the process is repeated as expenditures are completed as new needs <br />arise. Street reconstruction planning looks five years into the future. <br />For a city to use its authority to finance expenditures under Chapter 475.58, Subdivision <br />3b, it must meet the requirements provided therein. Specifically, the city council must <br />approve the sale of street reconstruction bonds by a unanimous vote of its membership <br />present. In addition, it must hold a public hearing for public input. Notice of such hearing <br />must be published in the official newspaper of the city at least 10, but not more than 28 <br />days prior to the date of the public hearing. The city council approves the SROP <br />unanimously following the public hearing. <br />Although a referendum is not required, a reverse referendum is allowable. If a petition <br />bearing the signatures of at least 5 percent of the votes cast in the last general election <br />requesting a vote on the issuance of bonds is received by the municipal clerk within 30 <br />days after the public hearing, a referendum vote on the issuance of the bonds shall be called <br />(if a vote is taken and the referendum passes, the taxes would be levied on market value <br />rather than tax capacity). <br />Ehlers & Associates, Inc. Page 2 <br />