7.7. SR 12-21-2009 - Laserfiche WebLink

Home Browse Search

into a single hearing, in which case the notice requirements for bonds must be followed.) The Council must approve the sale of CIP bonds by a 3/Sths vote of its membership. However, the bonds are subject to a so-called "reverse referendum:" if a petition signed by voters equal to at least five percent of the votes cast in the City in the last general election is filed with the City Clerk within 30 days after the public hearing regarding the bonds, the bonds may not be issued unless approved by the voters (by a majority of those voting on the question). Further, the maximum debt service in any year on all outstanding CIP Bonds is .16% of the taxable market value of property in the city, using the market value for the taxes-payable year in which the bonds are issued. After the CIP has been approved and bonds have been authorized, the City works with its financial advisor to prepare a bond sale and repayment schedule. Assuming no petition for a referendum is filed, the bonds are sold, and when proceeds from the sale of the bonds (and any other identified revenue sources) become available, the expenditures for specified capital improvements can be made. In subsequent years, the process is repeated as expenditures are completed and as new needs arise. Capital improvement planning looks five or more years into the future from the date of the CIP. IV. PROJECT SUMMARY The only two capital improvements contemplated in the five-year period of this plan (2010 through 2015) are the acquisition of the City's existing public safety building and the expansion of the City Hall, both constructed in 2002 (the "Buildings"). The acquisition will occur through issuance of refunding bonds (referred to as the "CIP Bonds"). The Elk River Economic Development Authority ("EDA") issued its $8,000,000 Public Safety Building Lease Revenue Bonds, Series 2002A (the "Series 2002A Bonds") to finance construction of the public safety building. The Elk River Economic Development Authority ("EDA") issued its $1,695,000 City Hall Expansion Lease Revenue Bonds, Series 2002B (the "Series 2002B Bonds") to finance construction of an expansion to its City Hall, including office for the Elk River Municipal Utilities. The Elk River Municipal Utilities ("ERMU) is responsible for the water and electric enterprise operations of the City. The City leases the Buildings from the EDA, paying lease City of Elk River CIP for Financing Purposes Page 5