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Paul Harrington November 29, 1995 Page 2 • ANALYSIS Section 203.08, subd. 3b of the City Code states that the Special Projects Fund (the "Fund") may be used "to make permanent transfers for the purchase of equipment and/or to finance capital improvement projects, which have been included in the Long Term Financial Plan" required by Section 7.05 of the City Charter. According to the documents supplied to us by Acting Finance Director, Mary Tatarek, the City's 1994 Long Term Financial Plan includes a itemized breakdown of capital expenditures for each City department as Appendix A, which includes the projected five-year capital expenses for the City's Parks Department. That document specifically states for the 1996 projected capital expenses: Pedestrian Bridge Over Highway 10 - an ISTEA grant has been indicated for funding in 1996 for installation for pedestrian bridge across Highway 10. The match requires the City of Mounds View to provide 20 percent share or approximately $100,000. Continued maintenance of the bridge is required and will be provided by the City of Mounds View Parks, Recreation and Forestry Department. Highway Based on the fact that the City had included the pedestrian bridge over 10 as a capital improvement in the capital improvement plan portion of the City's Long Term Financial Plan, as required by Section 7.05, subd. 3 of the City Charter, the use of$41,558 from Special Projects Fund No. 590-3850 for the pedestrian bridge was appropriate under Section 203.08, subd. 3b of the City Code. The requirement of Section 203.08, subd. 5a of the Code that a resolution to expend moneys of the Special Projects Fund be adopted by a 4/5ths vote of the entire Council is invalid and unenforceable because it directly conflicts with Section 3.04, subd. 1 and Section 7.08 of the City Charter which states that only a three vote majority of the City Council is required to adopt a budget amendment resolution such as Resolution No. 4843. Section 3.04, subd. 1 of the City Charter states as follows: Except as otherwise provided in this Charter or state law, an affirmative vote of three or more members of the Council shall be required for the adoption of all ordinances, resolutions and motions. The votes of Councilmembers on any action taken shall be recorded in accordance with state law. Section 7.08 of the City Charter states in part as follows: At any time, the Council may, by resolution approved by a majority of its members (emphasis added), reduce the sums appropriated for any purpose by the RCL97279 MU125-11