TO:                  Mayor and Town Council


FROM:            W. Calvin Horton, Town Manager


SUBJECT:      Budget Ordinance to Account for the Sale of a One-Acre Parcel of Town Open Space


DATE:            June 12, 2006





The attached budget ordinance would increase the budget within the Open Space Bond Fund by $12,000 to recognize revenue from the sale of Town property.




In May 2005, the Council authorized the purchase of six lots of open space, totaling 22.759 acres, for $1,050,000. The purchase included four parcels in the Northside neighborhood that totaled about 9.459 acres. In addition, the purchase included a 12.3-acre tract and a one-acre tract south of the Town limits.


On February 13, 2006, Peter Slomianyj petitioned the Council and asked that the Council consider selling him the one-acre tract of Town open space for $12,000.


On March 27, 2006, the Council authorized the sale of the property. Subsequently, the property was sold.




Our bond counsel has given us his opinion that all funds derived from sale of land purchased with Open Space Bond funds must be used to reimburse the Open Space Bond fund. In addition, the Council’s past practice has been to reimburse bond funds if property acquired through those funds was sold or used for some other purpose. Recent examples include a sale of a portion of the Bolin Creek greenway corridor to the owner of the Café Driade and the use of a portion of Homestead Park for public housing.




Town Manager’s Recommendation: That the Council adopt the attached budget ordinance which would increase the budget within the Open Space Bond fund by $12,000.