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HomeMy WebLinkAbout1997-12-08 98-44 ORDER98-44 COUNCIL ACTION mete: 12-8-97 Its NO Ita/Babject: asentuB appropriating $1,000,000 free the general £:end's uMeaignatea/unreserved fund balance to its aesignsted fund balance for the purpose of reservi:y for certain interfund loans due the general fund Responsible Department: Finance CaN¢Gry: The attached Resolve authorizes the Finance Director to transfer $1,000,000 from the general fund's Mirsiguatea/unreserved fund balance to its de6ignated fund balance. xhis issue, which Me been around for some ties now, Me on again arisen a result of the fiscal 1997 audit. Staff believesthat, while it impairs the general fund's -free- reserve position (reducing it to 6.72% of last year's general fund expenditures, or $3.7 willing), this is the prudent and correct action for us to take at this point. whereas last year's reserve position allowed ue to purchase a new fire pumper ruck, repair the &enduskeng retaining wall and undertake seem energy conservation eery projects at city facilities, the reduction in free reserves will mean that certain other projects way not be accomplished this year. Further, since it is express city policy to target undesignated/unreserved fund balanced at 7.5% of the previous year's expenditures, our goal for the next year or so will be to once again attain this level of reserves. DdPAR]NNN'lDFPARINNN'l N summer's Casemate, FMN�N,yra,rynep �} C= CZTy NANAC&R ei.t.a xnformaCim: Resolve Budget Approval: FNSmv.c V+rS �m¢uu o.e4 aQ�t1WQ ����f PZNANC& DZ Legal Approval CZTY BpLZCISOR Introduced For _ Passage First • Reading Page_e[ • Referral _ _ Relmiral too Finance Committee 98-44 Assigned Co Councilor Tyler December 8, 1991 CITY OF BANGOR APPROPRIATING $1,000,000 FROM THE GENERAL (iITIEJ¢SOIU¢r...........Ecmw+.s..wDrs:troturea/.cwarsexvan..Rlmm_aALnnice_.._ TO ITS DESIGNATED FUND EAIANCE FOR THE PURPOSE OF RESERVING FOR CERTAIN INTERFUND LOANS DUE THE GENERAL FUND Bh Ns City CaunaB of tAe L\h OiBOag%: R&30LVfiD, Whereas Nemare,as oflure30, 1991,$1,944,572 in iMafund loans due the city's general fond from the Bass Park and rhe City Nursing Facility enterprise funds; and Whereas $900,000 of this smowt has been resrned for within the general fund's desigreted fwd balance; and Whereas More is little likelihood that Ne unreserved balance of $1,044,512 will ever be repaid Ne Jerome] fund; and Whereas the city's auditors have opined, and staff concurs, Net current reserves are inadequre; and. Whereas suffioieM Dahners exist to reserve for Nese amounts without imposing an addrawral property tax or drawing the general fwd's uMesigreted/unreservM find balances down m levels below Nose $pacified in Ne City Cbaner; Nov, Therefore, Be It Reaolved By Ne City Council of the City of Reogor Nat effeMive lune 30, 1997, $I,M,M of the general fund's previously undesigtmaNwresrned fiord bahowe is to be appropriated to its designated fwd balance fun Ne pryow of reserving against amounts due fi an the Bass Park and City Nursing Facility cmuprise funds. Be It Further Resolved Nat Ne Finance Director is authorisd to rake Ne steps necessary ro accomplish this transfer. IN CITY COUNCIL December 8, 1997 First Reading Referred to Finance Committee r' CLERK IN CITY COUNCIL December 22, 1997 Passed CITY ERR 98-44 8 E S 0 L V E Aovrouriatine $1.000.000 from the General Fund's Undesignated/Unreserved Fund Balance for the Purpose of Raserving for Certain interfuud Loans Due to the General Fund T�