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yy <br />*i <br />A RESOLUTION GOVERNING BUILDING MONIES <br />WHEREAS, the City of Orono has a need to build nev/ city <br />facilities to house its public Works, Police and Administration <br />staff, and <br />WHEREAS, it desires to do so in the most effective <br />matter for its taxpayers, and <br />WHEREAS, the City has established a Building Fund of <br />million dollars, and <br />WHEREAS, the City is doing the initial financing through <br />a lease purchase with its own Housing and Redevelopment <br />Authority, and <br />WHEREAS, the cash set aside in the Building Fund is used <br />for helping defray the cost of the building, and <br />WHEREAS, the Council determines it appropriate to have a <br />$2 million prinicpal balance in the fund upon completior of the <br />lease purchase, and <br />WHEREAS, there is a need for certain interests from <br />these moneys to support the General Fund, and <br />WHEREAS, the City Council does not want the principal <br />used in any manner except listed help. <br />HOW, THEREFORE BE IT RESOLVED, that the Orono City <br />Council establishes the Building Fund Trust for a pledge of <br />monies to pay the lease payments to the HRA under the following <br />restrictions: <br />The principal reduction from year to year can not be <br />greater than $1 million - by number of years of the <br />bonds. <br />B That part of the annual interest can be diverted to <br />the general fund but not more than $____ annually, <br />escalated at a rate of no more than the local CPI,