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I. INTRODUCTION <br />In 2003, the Minnesota State Legislature adopted a statute (Section <br />475.521, referred to herein as the "CIP Act") that allows cities to issue <br />municipal bonds under a capital improvement plan without a referendum <br />requirement (except for the so-called "reverse referendum" described <br />below). The CIP Act applies to specific capital improvements for the <br />purposes of city halls, public works, and public safety facilities. The 2005 <br />Legislature added towns to the meaning of a municipality, as well as <br />libraries and town halls to the meaning of a capital improvement under <br />the CIP Act. <br />Throughout this plan, the term "Capital Improvement" refers only to <br />those improvements identified in the CIP Act, as summarized above. <br />Capital expenditures for other public improvements in the City will be <br />financed through other means identified in the City's annual budgeting <br />process and are not governed by this plan. <br />II. PURPOSE <br />A Capital Improvement as defined in the CIP Act is a major expenditure <br />of municipal funds for the acquisition or betterment to public lands, <br />buildings, or other improvements used as a city hall, town hall, library, <br />public safety, or public works facility, any of which have a useful life of 5 <br />years or more. For the purposes of the CIP Act, Capital Improvements do <br />not include light rail transit or related activities, parks, road/bridges, <br />administrative buildings other than a city or town hall, or land for those <br />facilities. A Capital Improvement Plan ("CIP"), as identified by the CIP <br />Act is a document designed to anticipate Capital Improvement <br />expenditures over at least a five-year period so that they may be <br />acquired, constructed and/or installed in a cost-effective and efficient <br />manner. The CIP must set forth the estimated schedule, timing, and <br />details of specific Capital Improvements by year, together with the <br />estimated cost, need for improvement, and sources of revenue to pay for <br />the improvement. <br />City of Ramsey, MN <br />Five -Year Capital Improvement Plan for Bond Issuance 2 <br />