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19 <br />City of St. Anthony <br />Five -Year Capital Improvement Plan <br />2011 through 2015 <br />I. INTRODUCTION <br />In 2003, the Minnesota State Legislature adopted a statute (Section 475.521, referred to <br />herein as the "CIP Act") that allows cities to issue municipal bonds under a capital <br />improvement plan without the usual referendum requirement (except for the "reverse <br />referendum" provision described below). The CIP Act applies to capital improvements <br />consisting of city halls, public works, and public safety facilities. The 2005 Legislature <br />added towns to the meaning of a municipality and town halls and libraries to the <br />meaning of a capital improvement under the CIP Act. <br />Throughout this plan, the term "capital improvement" refers only to those improvements <br />identified in the CIP Act, as summarized above. Capital expenditures for other public <br />improvements in the City will be financed through other means, and are not governed <br />by this plan. <br />IL PURPOSE <br />A capital improvement is a major expenditure of municipal funds for the acquisition or <br />betterment to public lands, buildings, or other improvements used as a city hall, town <br />hall, library, public safety, or public works facility, which has a useful life of 5 years or <br />more. For the purposes of the CIP Act, capital improvements do not include light rail <br />transit or related activities, parks, road/bridges, administrative buildings other than city <br />or town hall, or land for those facilities. A Capital Improvement Plan ("CIP") is a <br />document designed to anticipate capital improvement expenditures and schedule them <br />over a five-year period so that they may be purchased in the most efficient and cost <br />effective method possible. A CIP allows the matching of expenditures with anticipated <br />income. As potential expenditures are reviewed, the municipality considers the benefits, <br />costs, alternatives and impact on operating expenditures. <br />The City of St. Anthony, Minnesota (the "City") believes the capital improvement <br />process is an important element of responsible fiscal management. Major capital <br />expenditures can be anticipated and coordinated so as to minimize potentially adverse <br />financial impacts caused by the timing and magnitude of capital outlays. This <br />City of St. Anthony 2011-2015 Capital Improvement Plan Page 2 <br />