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Council approves $1 million transfer to long-term development fund after transparency discussion
Summary
The Maple Grove City Council adopted Resolution No. 25-143 to transfer about $1 million in utility interest to the long-term development fund, a long-standing practice Councilmember Mike Ostaffe said helps keep property taxes lower but reduces utility fund balances and will require future discussion as infrastructure needs grow.
The Maple Grove City Council on Oct. 20 adopted Resolution No. 25-143 to transfer approximately $1 million in interest earnings from utility funds into the city’s long-term development fund.
Councilmember Mike Ostaffe, who removed the item from the consent agenda for discussion, said the transfers have been a decades-long practice and that moving the interest this year will reduce utility fund balances while helping keep property taxes down. "I just wanted to be transparent about why $1M is being taken from one fund and moved to another," Ostaffe said, adding that the long-term development fund is expected to return to its normal position by 2029.
Ostaffe told the council that as the city plans new water and sewer infrastructure, leaders may need to reconsider the practice of transferring utility interest to other funds. City staff did not provide an immediate change to the policy; Ostaffe’s comments signaled a future review and discussion of fund policy.
Motion by Councilmember Mike Ostaffe, seconded by Councilmember Rachelle Johnson, to adopt Resolution No. 25-143 passed unanimously, with Mayor Mark Steffenson and Councilmembers Rachelle Johnson, Kristy Janigo, Mike Ostaffe and Jon McCullough voting yes.
The council recorded no amendments to the resolution at the Oct. 20 meeting. The next procedural step is for staff and councilmembers to discuss long-term policy and potential alternatives for funding major utility-related capital needs, a topic Ostaffe indicated will require follow-up as projects progress.
