HomeMy WebLinkAbout2019-01-28 19-080 Order
01/28/201919-080
01/28/2019
19-080
Finance
Order
N/A
Title, Order
Amending City of Bangor Fund Balance Policy and Establishing a School Debt Service Committed Fund Balance
This order will Amend the City's Fund Balance Policy and establish a School Debt Service committed
fund balance account to accumulate sinking fund deposits associated with the issuance of Qualified
School Construction Bonds (QSCB).
QSCB, is a federally sponsored/funded program, where the City receives reimbursement for the
majority of the interest costs and is able to establish it's principal repayment terms. In 2011 and
2012, the City took advantage of the QSCB program. The financing documents include depositing
funds into a sinking fund annually beginning in FY 2019, to ensure funding is available for the final
balloon payment due for each issue. By utilizing QSCB funding, the City reduced it's interest costs
and set its repayment and sinking funding deposit schedule to match the annual reduction in our
current debt.
Finance Committee
01/23/2019
Recommend for passage
50
Consent
01/28/201919-080
CITY OF BANGOR ORDER
01/28/2019
19-080
Sprague
Amending City of Bangor Fund Balance Policy and Establishing a School Debt Service Committed Fund Balance
Be it Ordered by the City Council of the City of Bangor that, the City of Bangor Fund Balance Policy is hereby
amended by adding the following section:
6.2 School Debt Service
The School Debt Service committed fund balance is hereby established to accumulate sinking fund
contributions from the School Department annual budget to pay future principal payments on its’ Qualified
School Construction Bonds.
IN CITY COUNCIL
JANUARY 28, 2019
CO 19-080
PASSED
1/44;0 Q1:10,4,-;:.,-)
CITY CLERK