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Manager's Report of the Cl? <br /> Last years CIP, which included both school expenses, was based on a success: <br /> 20 million dollar bond referendum. Since that was not successful, our current ply <br /> must be modified to reflect the referendum defeat. We are looking to the Board fc <br /> direction on the criteria to rank proposed projects in order of priorty. We also <br /> require guidance in formulating the_proposed_ CIP far 1901786. <br /> The first question that arises is what sources of revenue the Board wishes t4 <br /> consider. The-typcal methods of-finance are-as- follows: <br /> 1.) Current Revenue: Financing improvements from current revenues such as <br /> general taxation, fees, service charges, or special <br /> assessments. <br /> 2.) Reserve Funds: In reserve fund financing, funds are accumulated in <br /> advance for capital construction or purchase. These <br /> can be from surplus operational revenues, or the sale <br /> of capital assets. <br /> 3.) General Obligation Bonds: The taxing power of the jurisdiction is <br /> pledged to pay interest upon, and retire the debt. <br /> - These bonds can be sold to finance permanent types of <br /> improvements such as schools, municipal building, park <br /> and recreational facilities. Voter approval may be <br /> required. <br /> 4.) Revenue Bonds: Revenue bonds frequently are sold for projects, such a <br /> water and sewer systems, that produce revenues. The <br /> interest rates are almost always higher than are genera <br /> obligation bonds' interest rates, and voter approval i! <br /> seldom required. <br /> 5.) Special Assessments: Public works that benefit particular properties ma5 <br /> be financed more equitably by special assessment, i.e., <br /> paid by those who directly benefit. Local improvanentf, <br /> often financed by this method include street paving, <br /> sewer and water. <br /> 6.) Grants: State and Federal grant-in aid programs may be availabl <br /> to fund programs such as streets, parks, etc. <br /> 7.) Net Debt Reduction: 2/3 of principle paid on debt retirement can be <br /> incurred ($3]] ,520.) . <br /> Other financing available would be creation of special districts, lease-purcha <br /> arrangements or tax increment financing. <br /> Next, a definition of the scope of the plan needs to be established. That is <br /> what do you wish to include in the projects? Will the plan inolbde the major <br />