05-23-2016 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, May 9, 2016 7:00 o’clock p.m. _____________________________________________________________________________________ Page 25 of 28 16. FUND TRANSFER Walsh asked if this is an additional $500,000 that the City had not planned on. McMillan stated it is money that it is in the General Fund and the City is required to keep 50 percent in reserves. Walsh noted these are funds that were not planned on being in the Pavement Fund a year ago. Walsh stated when the Council talked about having other funds go into the Pavement Management Fund, this would be over and above that. Walsh asked if this will be dedicated towards the non-MSA streets. McMillan stated the MSA funds stay in the MSA fund. McMillan stated this money is just going into the pavement management fund and will not be earmarked to a specific project. Walsh stated during the work session there was a discussion about having the extra money going towards the non-MSA streets. McMillan stated this is a fund balance transfer and is not being earmarked toward any specific project at this time. Loftus stated this action follows up on the Council’s work session and would allow the City to move forward with the Hunter and Tamarack overlay projects. McMillan stated the City is only supposed to have 45 to 50 percent of the City’s expenditures in the General Fund as reserves. McMillan stated the City Council may want to think about the intersection of County Roads 15 and 19, which would be a larger project, and that they may want some money transferred into the Community Investment Fund at some point. Levang asked where the money would come from for the trail connection. Olson stated that would come out of the Park Fund. Olson stated the City had a $600,000 surplus, and as the budget goes up, the 50 percent will increase as the fund balance goes up. Loftus noted the exact amount of the excess is $544,000 but that the City will only be transferring $500,000 of that into the Pavement Management Fund. Walsh moved, Printup seconded, to approve the transfer of $500,000 from the General Fund to the Pavement Management Fund for use on approved road projects. VOTE: Ayes 5, Nays 0. *17. HACKBERRY PROPERTY PURCHASE Levang moved, Cornick seconded, to approve the Purchase Agreement between the City of Orono and Lawrence E. and Rosemary C. Gleason for the property located at 140 Hackberry Hill. VOTE: Ayes 5, Nays 0.