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A- <br />A RBSOLOTION RESTRICTING THE OSB OF THE <br />BUILDING CAPITAL OUTLAY FUND <br />WHBRBASf as part of a longterm plan the City has established a <br />substantial Building Fund for construction of new city facilities to house <br />Its Public Works, Police and Administration staff, and <br />WHBRBAS, because of low interest rates in the bond market the <br />city has decided to bond for the majority of the cost of the city <br />facilities rather than use the total building fund to finance the city <br />facilities, and <br />WHEREAS, the financing is being done through a lease-purchase <br />agreement with the City’s Housing and Redevelopment Authority, and <br />r WHEREAS, the Building Fund will be used to provide for the lease <br />~ payments used to pay the debt service on the facilities bonds, and <br />WHEREAS, a portion of the interest earnings from the Building <br />Fund has been used to support the General Fund, and <br />WHEREAS, the City Council has determined that the Building Fund <br />should not be used for any purpose other than those indicated above. <br />I hereby <br />MOW, THEREFORE, BE IT RESOLVED, that the Orono City Council <br />restricts the use of the Building Capital Outlay Fund as follows: <br />K-' <br />1. <br />f <br />» V <br />The principal and interest earnings will be used to reduce <br />the lease payments to minimize tax levies required for the <br />lease payments. <br />2. The portion of the Building Fund interest earnings used to <br />support the General Fund will be reduced over time. <br />3. The Building Fund will not be used for any purpose other than <br />those indicated above. <br />Adopted by the City Council on <br />; ATTEST:b.'^rbara A. Peterson, Mayor <br />Dorothy M. Hallin, City Clerk