12-18-2013 Council Agenda - Laserfiche WebLink

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III. THE CAPITAL IMPROVEMENT PLANNING PROCESS The capital improvement planning process is as follows; the City Council authorizes the preparation of the Capital Improvement Plan (CIP). The 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 becomes available, including proceeds from the bond sales, the individual capital expenditures can be made. In subsequent years, the process is repeated as expenditures are completed and as new needs arise. Capital improvement planning looks five years into the future. For a municipality to use its authority to finance expenditures under Section 475.521, it must meet the requirements provided therein. Specifically, the governing body must approve the sale of capital improvement bonds by a 3 /5ths majority 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 municipality at least 14, but not more than 28 days prior to the date of the public hearing. In addition, the notice may be posted on the City's official web site. The governing body approves the CIP following the public hearing. Although a referendum is not required, a reverse referendum is allowable. If a petition bearing the signatures of at least 5 percent of the votes cast in the last general election requesting a vote on the issuance of bonds is received by the municipal clerk within 30 days after the public hearing, a referendum vote on the issuance of the bonds shall be called (if a vote is taken and the referendum passes, the taxes would be levied on market value rather than tax capacity). Ehlers & Associates, Inc. Page 5 10