HomeMy WebLinkAbout1996-11-25 97-38 ORDERCOUNCIL ACTION
Date: I1-25-96 Item No. 97-38
Item/SubjeCt: ORDER, Transferring Funds from the General Fund's
Undesignated Fund Balance and Workers'
Coapensation Reserve to the General Fund's
Improvement Reserve and Fire Equipment Reserve
Responsible Department: City Manager
Commentary: In aegordance with the City's Designated and Undesignated
Fund Balance Policy, we attempt to maintain an undesignated fund balance
of approximately 7.55 of operating expenditures. The Finance Department
has recently completed o annual fund balance sufficiency calculation,
copy of which is attached. Based on this analysis, undesignated fund
balance as of the fiscal year ended June 30, 1996, will be 8.271 o
approximately $405,492 in excess
of the 7.58 goal. Far our policy,
these funds may be used fora variety of purposes including increasing
the designated reserve for improvements, and increasing other
established capital reserves where such reserves may be insufficient to
meet their purposes.
In anticipation of this situation, the various department directors were
requested to provide information o various projects o as to which
these funds eight be applied. The Directors Were asked to identify
potential expenditures which would either address an immediate o
pressing capital need or which would result in operating budget savings.
Overall, potential expenditures in
excess of $2.7M w requested.
After analyzing these requests, thefollowing funding recommendations
were made to the Finance Committee:
Replace Fire Pamper $200,000
Kenduskeag Stream Retaining Wall Repair 190,000
Energy Conservation Projects 108,913
Traffic Signal Maier Plan n.zjp
Total $503,163
-ManageYe casements:
r
Aaeoeiatetl In:
Order,der, Expenditure Details, Sufficiency Calculation
Budget Approval:
F
Legal Approval:
IntasaFor
Passage
_ First Reatling Page_of
Referral
These recommendations; represent approximately $100,000 more than the
amount which is available from our undesignated fund balance. As a
result, I would also recommend that a additional approximately 99],6]1
be moved from our Reserve for Workers', compensation for these projects.
Based an r last actuarial report, a reserve of approximately 92.2M i
required as of June 30, 1996. Preliminary figures indicate that our
reserve has now reached more than $2.5M and that these additional funds
should be available. As you can see, there is also a potential that
additional Workers' compensation Reserves may exist. However, I would
recommend that we limit Our e to this amount until our ext actuarial
report is received in February or march at which time we can reevaluate
the Reserve status.
These recommendations were
wed and a ended by the Finance
Committee. The attached Order would transfer funds from our Undesignated
Reserve and Workers' Compensation Reserve to our Improvement Reserve and
Fire Equipment Replacement Reserve. Separate Council Resolves will be
required to actually appropriate these funds.
97-36
Anip:ed to C ilor Sullivan Navembev 25, 1996
_ CITY OF BANGOR
(TITLE.) (®rUr, ............ Trsnsferrrng Funds from the General Pmud's
Undesignated Fund Balance and Workers' Compensation Reserve to
the General Fund's Improvement Reserve arta Fire Equipment Reserve
By the ORF Ce awU of Ne City afBargoe:
ORDERED,
THAT
WHEREAS, the City of Bangor's Designated and Undesignated Fund
Balance Policy calls for maintaining an undesignated
fund balance approximating 7.5E of operating
expenditures; and
WHEREA6, the annual undesignated food balance sufficiency,
calculation for the fiscal year ending June 30, 1996
indicates that our undesignated fund balance has
reached 8.27% of operating expenditures; and
WHEREAS, our financial policies further outline the purposes to
Which am unts in excess of 7.58 may be used which
include increasing our designated improvement reserve
and other established capital reserves which may be
insufficient to meet their purpose; and
WHEREAS, the City faces certain capital expenditures which are
either of a pressing nature or which Will allow for
reductions in operating expenses;
HOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF
BANGOR, THAT: the amount of $200,000 is hereby transferred
from the City's Undesignated Fund Balance to the Fire
Equipment Reserve.
AND, BE IT FURTHER ORDERED, THATr the amount of $205,492 is
hereby transferred from our Undesignated Fund Balance to our
Improvement Reserve.
AND, BE IT FURTHER ORDERED, THAT: the amount of 5971671 is hereby
transferred from the Workers' Compensation Reserve to the
Improvement Reserve;
AND, BE IT FURTHER ORDERED; THAT: these funds are intended to be
used for purchase of a replacement pumper for the Fire
Department, repairs to the xenduskeag stream Retaining Wall,
energy conservation projects at various City facilities, and
for the development of a traffic signal master plan.
IN CITY COUNCIL
November 25, 1996
I
CLTY CLERK
9]-38
O R OER
Title, Transferring Funds from the
General Fund's Undesignated Fond Balance
d Workers' Compensation Reserve to the
F,eneie$@uud'cImpio en[ Reserve and
Fire Equipment Reservem
/0� �
.....
Couneflman