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.
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Resolve
Budget Approval:
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Legal Approval
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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
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