06-25-2001 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING October June 25, 2001 0 (Long Lake /Orono Fire Station, Continued) Flint inquired whether Orono could borrow the $680,000 out of their reserves. Moorse stated if the City does not bond for the money, they could get a loan from the Community Investment Fund and pay that money back over a period of time. Moorse indicated currently the interest on the money in the Community Investment Fund goes to pay the debt service on the Public Utilities Fund, with the City lacking the money to make up that difference. Sansevere reiterated he would prefer not to bond for this money. Moorse stated if the Council wishes to wait to pay the $680,000, the City would be able to plan for this money in their 2002 budget and just add the interest that would be due. White commented he would be willing to wait until February 2, 2002, to deposit the money into the joint escrow account and then add whatever interest would be due from the time Mn/DOT deposits their money into this escrow account. Moorse reiterated the City currently uses the interest earned from the Community Investment Fund to pay off the debt service on the Public Utilities revenue bond. Flint moved, Nygard seconded, to deposit the $680,000 at or approximately the same time that Mn/DOT deposits their money into the joint escrow account. is Sansevere requested that Flint define what he means by approximately. Moorse indicated the City will need to hold a public hearing if funds are used from the Community Investment Fund. Moorse stated the City would lose the interest money the Community Investment Fund earns at the present time if they withdraw the money before the end of the year. Bash stated what Long Lake is proposing would allow Orono some flexibility as to when they deposit the $680,000. Flint amended his motion, Nygard seconded, to accept the following language for inclusion in the Settlement Agreement: "Orono agrees that upon receipt of evidence that the Mn/DOT check has been deposited into the joint escrow account that it shall forthwith deposit an additional S680,000.00 into the same joint escrow account. In lieu thereof, Orono may defer depositing its 5680,000.00 to a subsequent date which is on or before February 2, 2002, so long as it also deposits the additional interest that would have accrued on that amount had it been deposited on the same date as the Mn/DOT check. VOTE: Ayes 3, Nays 2, Peterson and Sansevere Opposed. Sansevere stated he is opposed to paying the interest on the $680,000. • PAGE 20