HomeMy WebLinkAbout2018-05-30 18-215 Order
05/30/201818-215
05/30/2018
18-215
Finance
Order
N/A
Title, Order
Amending Fund Balance Policy by Adding an Energy Efficiency Reserve to Section 5.1 General Fund Assigned
Fund Balances
This Order will amend Council Order 11-228, the City's Fund Balance Policy, by adding a new
General Fund Assigned Fund Balance entitled Energy Efficiency Reserve. This reserve is being
proposed in response to funds the City received as a result of the dissolution of partnership between
the City of Bangor, Municipal Review Committee (MRC) and Penobscot Energy Recovery Company
(PERC). Specifically, the City received distributions for its share of the PERC Limited Partnership in
the amount of $254,149.36 and $237,082.54 from the Municipal Trust account for debt service.
A critical piece of funding for PERC's operation was the lucrative electricity supply contracts from
Emera, which were paid by Emera ratepayers. For that reason, the creation of reserve to fund
energy improvements throughout General Fund Operations could help control increases in future
energy costs. If approved, the reserve would be used to fund energy efficient investments within
the General Fund operations, thereby reducing future energy costs.
Finance Committee
05/21/2018
Recommend for passage
50
New Business
05/30/201818-215
CITY OF BANGOR ORDER
05/30/2018
18-215
Weston
Amending Fund Balance Policy by Adding an Energy Efficiency Reserve to Section 5.1 General Fund Assigned
Fund Balances
Whereas; on June 27, 2011 by Council Order 11-228, the City Council approved a Fund Balance Policy;
Whereas; Section 5.1 General Fund Assigned Fund Balances identifies the City's assigned fund balances, as
well as the funding mechanism if any, and allowable uses;
Whereas; as part of the dissolution of partnership between the City, the Municipal Review Committee
members and PERC; the City received funds in exchange for it's share in the PERC limited partnership as well
as the release of debt service reserve funds;
Whereas; funds paid to PERC included fees from all residents;
Whereas; during the term of the partnership, PERC and the City received financial benefits as a result of
lucrative power supply contracts with Emera;
Be it Ordered by the City Council of the City of Bangor that, that the Fund Balance Policy is amended as
follows: The Energy Efficiency Reserve provides funding for investing in energy efficient improvements within
General Fund operations. The reserve was funded with proceeds received when the Municipal Review
Committee, which the City was an Equity Charter Community in, and PERC terminated their agreement.
IN CITY COUNCIL
MAY 30, 2018
CO 18-215
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
CITY CLERK