HomeMy WebLinkAbout2018-04-23 18-182 Order
04/23/201818-182
04/23/2018
18-182
Finance
Order
N/A
Title, Order
Authorizing Transfer of $1,520,000 from Unassigned Fund Balance
This Order will authorize the transfer of $1,520,000 from the unassigned fund balance to capital
reserves. The Charter specifies that the City will maintain a fund balance between 8.33% and 16%
of the prior years operating expenditures. That amount represents roughly one to two months of
expenditures. The audit for fiscal year ending 2017 indicates that the City has an unassigned fund
balance of approximately $12.2 million which represents 12.75% of the prior year expenditures.
While it would be appropriate to maintain the full amount in the unassigned fund balance, over the
past budget cycles, the City has not budgeted sufficient funds to maintain capital replacement funds.
This transfer allows the City to fund some of its current capital needs without impacting the
upcoming FY2019 tax rate. As a result, it is recommended by staff that $1,520,000 be transferred
tot he following reserves; $1,100,000 to the Improvement Reserve, $370,000 to the Fire Equipment
Reserve and $50,000 to the Demolition Reserve.
If approved the unassigned fund balance would drop to approximately $10.7 million which
represents 11.17% of the operating budget.
Finance Committee
04/18/2018
Recommend for passage
50
New Business
04/23/201818-182
CITY OF BANGOR ORDER
04/23/2018
18-182
Weston
Authorizing Transfer of $1,520,000 from Unassigned Fund Balance
WHEREAS, The Charter requires that the City Council shall target an unassigned fund balance of no more than
16.66% of the General Fund operating budget.
WHEREAS, The unassigned fund balance at the end of the prior fiscal year was approximately 12.75%;
WHEREAS, The transfer of $1,320,000 from the unassigned fund balance will result in the balance being
11.37% of the prior year operating budget, well within the Charter established limits.
Be it Ordered by the City Council of the City of Bangor that, the Finance Director is hereby authorized to
transfer $1,320,000 from the unassigned fund balance for the following purposes; $1,100,000 to the
Improvement Reserve, $370,000 to the Fire Equipment Reserve and $50,000 to the Demolition Reserve.
IN CITY COUNCIL
APRIL 23, 2018
CO 18-182
MOTION MADE AND SECONDED TO AMEND BY SUBSTITUTION
PASSED
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
' O,23a4C,
PUTY CI CLERK