05-29-2012 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, May 29, 2012 7:00 o'clock p.m. (10. FUND BALANCE DISCUSSION, Continued) Printup stated the way he reads the recommendation, if it is transferred to the Community Investment Construction Fund, it can be allocated for roads or other projects at a later time. Bremer asked if there is any deadline for the transfers. Olson indicated it would have to happen in the 2012 budget year. Printup moved, McMillan seconded, that $39,000 be transferred to the PIR fund for future police capital purchases and to transfer $592,044 to the Community Investment Fund. Mattick stated the Council could direct Staff to come up with their recommendations for future road projects. F�anchot asked if it can also be directed to debt service if it is transferred to the Community Investment- Furid. Olson indicated it can be. McMillan noted the City's debt service starts to decrease next year. Bremer stated that would be another question to look at, which is how that money would impact the City's debt service. Olson indicated it would be spread out over the life of the bonds and that it would amount to approximately $50,000 per year that the debt service levy would be decreased. McMillan asked why the City would want to be paying that off early if the City has received a low interest rate on the money. Olson noted the money would just be set aside to pay off the debt service. The sole reason to do that would be to decrease the tax levy or to free up money from the levy to pay other obligations. McMillan commented she does not see any additional debt being added next year and that perhaps the City could look at adding another project once the debt service gets down to half a million dollars. Franchot stated he would like to see some future discussion on this. VOTE: Ayes 4, Nays 0. Loftus reported she will be attending the first Technical Advisory Committee meeting for the tumback of County Road 112 and that she will be providing them with the list of the other individuals on the Project Advisory Committee as reviewed by the City Council. She also noted the installation of the new Voice over Internet Protocol (VoIP) phone system went smoothly with the help of Finance, IT and the City Clerk. Loftus noted June marks the start of the official budget cycle for the City and that she will be attending a budget meeting at the LMCD on June 7. The LMCD has proposed an overall budget increase of 2.6 percent, which amounts to 0.9 percent increase for Orono based on market values. Loftus stated she would welcome the City Council's comments on that proposed increase and that she would relay those comments to the LMCD on June 7. Page 9 of 10