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MINUTES OF THE <br />ORONO CITY COUNCIL MEETING <br />Monday, May 29, 2012 <br />7:00 o'clock p.m. <br />(10. FUND BALANCE DISCUSSION, Continued) <br />Bremer stated from a budgeting perspective, if there is typically a surplus at the end of the year, it is a <br />lesson to be learned" going forward. Bremer stated in her view it is a front -end problem with how the <br />budget is created..' <br />Franchot indicated he is in agreement with that but that he is attempting to identify some resources to <br />supplement those items that were not increased or cut. <br />Bremer stated the City prepares its budget based on what it anticipates for revenues and expenses and that <br />in her view she does not feel the City can reinstate something knowing that the budget is not as tight as <br />what they originally thought. Bremer stated they can reinstate items in future budgets if there is typically <br />a surplus at the end of the year. <br />Loftus noted the Debt Service Funds could perhaps fit that objective raised by Council Member Franchot <br />P without increasing the City's total levy. Loftus commented it is difficult to get it exactly right on <br />expenses and revenues and that the City tries to be more conservative in budgeting, but that they are <br />generally pretty accurate with their budget projections. <br />McMillan pointed out the building permit revenue is variable and difficult to predict. McMillan stated <br />given the fact that the City has received some favorable bids on a number of projects, perhaps the City <br />could go forward with a couple of additional projects and that it might be worthwhile to take $100,000 of <br />this money and attempt to obtain bids on other road projects throughout the City. McMillan noted the <br />City's 2011 CIP identifies a number of roads for mill and overlay that this money could perhaps be <br />allocated to this year. <br />Struve stated he can put that money to good use on street projects and that they are in the process of <br />looking at roadways for seal coating. The City does have some money in the budget for the next two <br />years to prep those streets for seal coating, and if some of the money is allocated towards those projects, <br />that would allow the City to get a step ahead in that process. <br />Printup stated he would be in favor of allocating some of the money towards road improvements. Printup <br />stated he is also comfortable with the $39,000 allocation to the PIR fund for capital purchases. <br />Printup moved to transfer $39,000 to the PIR Fund for future police capital purchases. <br />McMillan asked if a specific amount needs to be identified now that would be transferred. <br />Olson indicated it is not necessary to identify a specific amount at this time. <br />Franchot stated he would like Staff to spend some time researching various road projects. Franchot <br />indicated he has a concern that if all of the money is allocated towards road projects, that once the City's <br />budgeting cycle starts, they will not have the money available for other things. Franchot stated he would <br />be opposed to the majority of it going towards roads and that he would like to see Staff's <br />recommendations. <br />McMillan stated she would like Council Member Printup to finish his motion. <br />Page 8 of 10 <br />• <br />