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Page 2 of 3 Capital Improvement Plan Bonding In 2003, the Minnesota State Legislature adopted Minnesota Statutes, Section 475.521 (the “CIP Act”), which allows municipalities to issue bonds under a Capital Improvement Plan (the “CIP”) without a referendum requirement (except for the “reverse referendum” as described below). The CIP Act applies to specific capital improvements, including city halls, public works, and public safety facilities. To issue bonds under the CIP Act, the City Council must follow an additional set of procedures, which includes a public hearing on a Five-Year (2025-2029) Capital Improvement Plan and the plan of finance. The public hearing notice was to issue CIP bonds in an amount not to exceed $4,680,000, even though staff anticipates this amount will be reduced based upon the construction bids received. Below is the bonding schedule of events, with the public hearing on the CIP held today. After consideration and approval of the CIP and plan of finance by at least a 3/5th vote of the Council, the issuance of the bonds is subject to a 30-day reverse referendum period. During this time, if the City receives a petition requesting a vote on the issuance of the bonds from at least 5% of the voters in the last general election, then a question regarding the issuance would need to be presented at a special election. It should be noted that the question on the ballot would be if the city should issue this type of bond (CIP bond) to finance the project or use cash, not on the project itself. If this occurs, the City could choose to: 1. Place the issue on a special election (likely wouldn’t work with timing needed for the funds) 2. Issue another type of bond which isn’t subject to reverse referendum; or 3. Use cash Action Date Purpose Public Hearing on CIP March 10, 2025 Allows voters the ability to comment and ask questions related to the bond issuance. Reverse Referendum Period Ends April 11, 2025 Allows voters to contest via petition (5% of votes). Official Statement Mid-April Ehlers provides to City Council the formal disclosure document which describes the terms and features of the bonds to be sold to investors. Rating Call with S&P Week of April 21st Rating agency assigns a bond rating to the sale and provide judgement of the City’s overall credit. Sale of Bonds April 28, 2025 Ehlers solicits bids and proposals for the sale of City’s bonds. Closing on Bond Proceeds May 20, 2025 Ehlers coordinates with the City and K&G on closing documents and wiring of funds.