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MINUTES OF THE <br />ORONO CITY COUNCIL MEETING <br />Monday, April 28, 2014 <br />7:00 o’clock p.m. <br />_____________________________________________________________________________________ <br /> <br />    Page 9 of 13   <br />(12. FIRST QUARTER FINANCIAL REPORT, Continued) <br /> <br />McMillan asked if this is money that is considered available. <br /> <br />Olson indicated it would not be and that they would only be sold if something catastrophic happens. <br /> <br />Olson stated with all the City’s investments, the City currently has four brokers and that he is currently <br />phasing out UBS. The City currently has $1.6 million in money market, which is high compared to <br />historical amounts but it is money the City may need sooner depending on upcoming projects. Olson <br />indicated the City can sell money markets without any risk or penalty but that commercial paper tends to <br />involve a higher risk. Olson noted the money market account was $3 million at the end of 2013 but has <br />been brought down to $1 million due to various investments that have been made. Olson indicated the <br />money market account provides the City with some flexibility to obtain money if necessary. <br /> <br />Dennis Walsh, 1354 Rest Point, asked what the $400,000 cash transfer involves. <br /> <br />Olson stated the $400,000 transfer is a transfer from the General Fund and $240,000 of that transfer went <br />into the Equipment and Improvement Construction Fund, which is typically used to purchase city vehicles <br />or major building repairs. Olson stated it is basically a capital fund and is designed to allow the City to <br />save money so when things need to be replaced, the City does not have to sell bonds or take a loan out. <br />Olson indicated use of that fund is outlined in the Capital Improvement Plan, which is available on the <br />City website. <br /> <br />Loftus asked if that was a budgeted transfer. <br /> <br />Olson indicated it was. <br /> <br />Walsh asked what the other $160,000 out of that total amount is for. <br /> <br />Olson stated that $160,000 is being transferred into the Capital Improvement Fund for the police garage <br />project. <br /> <br />Walsh stated in order to have better transparency the transfers should detail what it is being allocated for. <br /> <br />Olson stated to his knowledge the budget that is on the website should contain that information. <br /> <br />Walsh stated it is not identified in the materials presented tonight. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />