2010.06.07 RESO 2010-0022 - Laserfiche WebLink

Home

City of Hugo, MN Capital Improvement Plan Amendment Statutory Authority and Requirements Minnesota Statutes Chapter 475-521 authorizes a Minnesota City to adopt a capital improvement plan ("Plan"). The Plan must cover at least a five-year period and set forth the estimated schedule, timing, cost, payment revenue source(s) and other information for each improvement included in the Plan. The Plan must be approved by the City Council after a public hearing. A City may issue general obligation bonds for certain improvements included in an approved Plan if the following conditions are satisfied: 1. The City must publish notice of and conduct a public hearing on the issuance of the bonds. The bonds are subject to referendum voter approval only if a petition requesting a vote signed by five percent of the votes cast in the last general election is received within 30 days of the hearing. 2. The maximum annual debt service payment on all outstanding CIP bonds does not exceed 0.16 percent of the taxable market value of the City. 3. The issuance of bonds must be approved by at least three-fifths of the members of the City Council. Capital improvements to be financed with capital improvement bonds may include land acquisition and building construction or improvements for the purpose of a city hall, library, public safety facility and public works facility. Excluded improvements include light rail transit facilities, parks, roads, bridges or land for those types of facilities. History and Existing CIP Bonds The City of Hugo previously adopted a capital improvement plan under authority of Minnesota Statutes Chapter 475.521. In 2004 the City of Hugo issued its $2,560,000 General Obligation Capital Improvement Bonds, Series 2004A. The proceeds of that issue were used to construct a public works facility. At the time of the drafting of this amendment to the Plan, the City has outstanding CIP Bonds of $1,840,000. The maximum annual debt service of these outstanding CIP bonds is $227,118. In 1998 the City of Hugo Economic Development Authority ("EDA") issued its $1,165,000 Public Project Revenue Bonds, Series 1998. The proceeds of that issue were used to construct a Public Safety Facility within the corporate boundaries of the city. The City of Hugo ("City") currently leases that facility from the EDA. The City intends to formally acquire ownership of the Public Safety Facility via the issuance of new Capital Improvement Plan bonds. In 2001 the City of Hugo EDA issued its $1,870,000 Public Facility Lease Revenue Bonds, Series 2001. The proceeds of that issue were used to construct a City Hall Facility within the corporate boundaries of the city. The City currently leases that facility from the EDA. The City intends to formally acquire ownership of the City Hall Facility via the issuance of new Capital Improvement Plan bonds.