Q How much money has the city received from the sale of Lake Kahola? Where has the money been spent, if it has been spent?
A “To date the City has received $1,690,533 from the sale of the lake and surrounding lots,” said City Manager Matt Zimmerman. “There are still 6 lots left to be sold.”
Zimmerman said that none of the sale proceeds have been used because they were not available when the 2008 budget was prepared in the summer of 2007.
“The 2009 budget, which starts Jan. 1, includes $75,000 (of Kahola proceeds),” he said.
The resolution that set up use of the money says that no more than 85 percent of the earnings, or interest income, from the previous year can be used in the budget, unless two-thirds of the city commission votes to approve using additional funds.
The monies can only be used for improvements to the city’s park system, Zimmerman said.
“It may not be used for operating expenses,” he added.