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described below). The Council may either approve the CIP immediately <br />after the hearing, or based on input may make revisions and approve the CIP <br />at a later meeting. <br />If the CIP calls for general obligation bonds to finance certain <br />improvements, the City Council must follow an additional set of procedures. <br />The Council must hold a public hearing regarding issuance of the bonds. <br />Notice of such hearing must be published in the official newspaper of the <br />municipality at least 14, but not more than 28 days prior to the date of the <br />public hearing. In addition, the notice may be posted on the City's official <br />web site. (The public hearings on the CIP and the bonds may be combined <br />into a single hearing, in which case the notice requirements for bonds must <br />be followed.) <br />The Council must approve the sale of CIP bonds by a 3/Sths vote of its <br />membership. However, the bonds are subject to reverse referendum. <br />Reverse referendum requires a petition signed by voters equal to at least five <br />percent of the votes cast in the City in the last general election. The petition <br />must be filed with the City Clerk within 30 days after the public hearing. <br />Following a successful petition, bonds may be issued with a majority <br />approval of the question. <br />The maximum debt service in any year on all outstanding CIP Bonds is <br />.16% of the taxable market value of property in the city, using the market <br />value for the taxes-payable year in which the bonds are issued. <br />After the CIP has been approved and bonds have been authorized, the City <br />works with its financial advisor to prepare a bond sale and repayment <br />schedule. Assuming no petition for a referendum is filed, the bonds are sold, <br />and when proceeds from the sale of the bonds (and any other identified <br />revenue sources) become available, the expenditures for specified capital <br />improvements can be made. <br />In subsequent years, the process is repeated as expenditures are completed <br />and as new needs arise. Capital improvement planning looks five or more <br />years into the future from the date of the CIP. <br />City of Elk River CIP for Financing Purposes Page 5 <br />