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Home My WebLink About1986-04-14 86-162 ORDERW Introduced by Councilor Tilley, April 14, 1986 _ CITY OF BANGOR (DILE.) (OrDPYt ..._.Ar2epcirg �gprc of the a kbosseenn aoa__ Review Group - Cash Reserves By t city Cmm4i1 at w City ofaanwr, ORDERED, THAT the Report of the Council Research and Review Getup, a copy of which is on file in the office of the City Clerk, is hereby gratefully accepted; ARD BE TT FUfCDQ'.R CRI*nF.D, THAT the followit transfers be made to a "Capital improvesent Fund" in accordance with Article V1, Section 16 of the City Charter: From: Feserve-Bue Equipment $282,823.77 Reserve -Fire equfiment 170,000.00 Reserna- for Inol Balance in excess of $300,000 at 6/30/86 Stat nt of Fact: The Research and Ieview Gm bas o leted its' signed task and, with the above transfers, the eewnnemla[iona of the Group will have been met. 86-162 0RDEH IN CITL COUNCIL Ap'il 14, 1986 Title, - Passe,l Rr 8rG9M?^9.g9p°it °f,tfiy,Fog pi},ggvF ch TtCMK aM Review Grouperves ..... - Cash .. ..... Introduced and filed by `. .. ... L....... .. Cou�nc�llp- . 86-162 (Cllarter) Article VI -VII employee Or agent receiving the same into the city treasury, and shall then be deposited by the city treasurer with a'responsible banking institution o institutions to be chosen by said City Council. All interest from all deposits of money belonging to the city shall accrue to the benefit of the city. SEC. 14. Purchasing of supplies. The purchasing agent shallpurchase all supplies for the city and for the several officers and boards thereof, axcepting educational supplies for the city schools, which may be purchased by him upon requisition by the superintending school committee. The purchasing agent shall see to the delivery of supplies to each officer and department to whom they belong and take and file receipts therefor. Ile shall conduct allsales of property belonging to the city which are unfit Or unnecessary for the city's use but only after such sale has been authorized by the City Council., and au Lied to such restrictions as the City Council nay by Ordinance provide. The city manager shall act as purchasing agent until and unless the City Council by ordinance shall provide for the appointment Of a purchasing agent. SEC. 15. Emergency appropriation. The Council shall have the power to appropriate in any one year, without reference to other provisions of this charter, an amount not to exceed four percent of the current a ual budget, for the purpose of meeting a public emergency threatening the lives, health or pro- perty of citizens; provided such appropriation shall require at least seven affir- mative votes in the Council. In the absence of available general fund cash aurplu sufficient to meet such emergency appropriation, the Council may, in accordance with the prucedure set forth in section 8 0£ this article, authorise the issuance of notes to fund such emergency appropriation, SEC. ib. Capital improvement reserve. The Council my appropriate annually an unt not i.n excess of the equivalent of a tax of $2.00 per $1000 of assessed valuations to a fund to be known as the "Capital Improvement Fund" established for the purpose of paying the coat of capital improvements for which the city is authorized to issue bonds and for no other purpose. The Council shallalso have the power to transfer to this fund any portion of the general fund push surplus not otherwise appropriated. It shall not be necessary essary to specify at the time the appropriation or transfer to this fund is mile, the -- specific improvement or type of improvement for which the funds are intended. Appropriation from this fund shall be made by appropriation resolve which shall be read on two separate days in accordance with the provisions of section 8 of article 11 of this charter. ARTICLE VII MISCELIANC00S PRWISIONS *SEC. 1. Members of the City Council ineligible for certain offices. No ember of the City Council shall be appointed to any other office the salary of which is payable by the city. NO member of the City Council shall, during the term for which he was chosen, be appointed to any salaried city office which shell. have been created during such term. SEC. 2. Referendum; date of meeting; form of Rhaetian; procedure. This act shall be submitted for approval or rejection to the qualified voters of the City of Bangor at an election to be held the second Monday in September in the year A.O. nineteen hundred thirty-one, and warrants shell be issued for such * Amended -Chapter 212 P. & S. L. of 1970 304th Legislature Cau of �Ra r, Airim EXECUTIVE DEPARTMENT J n W. Flynn On, Manager Memo To: PO65 McKenna eubMa: research aW F iew 2t $ IMPort Attached phase firA oc (1) m of tic Camcil ssnseeroh aM F%Eviese, Gneup rtp t which is to remain m file in the office of tic City Clerk -in ccordsnce wiN the Council Order, whicin accepts the report, m tic Ppril 14th ageMa. J.W.P. jr AttacNrent app- /6 2 neprt to the Bangor City Council by the Council Research end Feview Group This report is submitted by the Council Research mA Review Gtoup which was appointed pursuant to Council Older 06-54 (Extdbit A) on January 13, 1986. A copy of the Ordinance which establishes the Feaearch and Feview Group and specifies its mastership and prOO JUtes is attached as Mibit R. According to Council Order 86-54, this Review Grw was given instructions to review Ne increase in General Fund cash occurring in recent years and to study the City's requirements for cash balances thmughwt the year for operating reserve, charter and ordinance purposes. For purposes of our review, the baler a sheets for the General Fund as of June 30, 1982 were compared with Jure 30, 1985. These dates were chosen because Cbay representee the fitst full year on our new fiscal year basis. In order to accurately study the City's cash requirements, it sea also necessary for the Getup to review the City's leSeLVe ACCOMta. The levies Group used Council Order 85-219 as the b sis for this analysis (Wabit C. ). m the Council is aware, the cash surplus/deficit requirement as it relates to Oct annual budgeting procedures is contained in the City Charter (Mibit D). Nod the related definition for determining the calculation of this cash surplus/deficit is contained in our City .Ordinances (Entabit E). 'floe definition provides that sufficient cash should be available in the General Fund and Enterprise Funds to cover ancunts payable for current purposes including the current portion of longterm debt and amounts set up in Reserve Accounts which require a cash payment to satisfy. the coo a isou revealed the tollwing charges in cash and cash requirements as required] in tare Charter and related Ordinances, as follows. (Crnparative Fund Balance Street Comparison - Exhibit F.) -2 - Increase in General FUM Cash securities, 6-30-85 over 6-30-82 $6,022,000 Changes resulting in Nis increase: Reduction in tares receivable $ 630,000 fncwibrance Reserve - increase 160,000 Self -Insurance Reserve - increase aB4O00 Fire Fquiprent Reserve - increase 497,000 Ctadit Reserve - increase n5,000 Motor Pool Reserve - decrease (348,000) Golf phase Reserve - new account 21,000 undesignated Reserve - increase 1,035,000 Cash Surplus Calculations, 6-30-85: Mded to Credit Reserve 642,000 Carried Farward w 85-86 Budget 1,972,000 All Other Am>tmt Changes 150,000 Total of all changes $6,022,000 The Cnanittee discussed and reviewed these changes in detail. 1fie general camrents pertinent to each change are as follows: A. Reduction in Taxes Receivable: M iaprev8l t in cur collection o£ tares at year and, w ieg dollate ftom receivable to cash. - B. Encuobranre Reserve: M increase in amounts connitted for purchase of goods or services, but not yet received. C. Ralf-IMUMnCa Reserve: .Reviewed and discussed in detail with additional ine®nation attached. D. Fire Fquipuent Reserve: Reviewed aM discussed in detail with additional information attachmd. E. Credit Reserve: Recently established by the City WU it and reviewed witIn additional information attached. F. Motor Axl Reserve: Reviewed aM discussed in detail with additic al information attached. G. Golf Course Reserve: Reviewed an disc seed with additional information attested. H. Unlesionated Reserve: A elation of revenue/expenditures in excess of or below budget projections over the period. the desirability of maintaining such reserves, in any amounts, was carefully reviewed. Although the anaunts contained within eacb Reserve Fund created va ying points ofview, the Review Group cncu� with the current concept of placing conies in these Reserve Fins for the purpose as established by the City W ncil. In light of Federal legislation under the Grmw-Rudman proposal with reduced revenues coning to the City as well as the Tax Reform Act, the Review Gras felt the City should maintain these reserves in over that Ne City Nuncil have the flexibility to deal with the loss of Nderal revenue. Also, Bangor International Airport is a unique enterprise in the City an is subject to business fluctuations which affect its cash flow and subsequently the cash influx by the City necessary to 0.VRlme its operations. The Review Grafi revievied a cash activity sum e y for all funds for the 1985 fiscal year to Compare the revenue by amths with expenditures which Project cash requirerzents. In view of the expected reductims in Federal funding further refinement in cash prejeetlene sinuld be cvnsideted. A Copy of this brelvev th summary is attached as Exhibit G. SELF-IwupANCE EESEE4E-61JER , CfM1PF TIm Its City is self-insured for wrrkars' eempensation up to [he limit of $250,000 (per incident) with an excess coverage policy assuming all claims above that limit. Costs of workers' cxpensation cases (indannity, medical, legal, etc.) are treated as operating costs in the annual budget. The RaweVe was established W provide for settlement of cases and/or excess annual costs of workers' oue anestion oases. In the spring of 1985 the City Council agreed W set a maxfeum licit of $500,000 for municipal eaPlOyees and $250,000 for School repartaent emplo/eas in this fund. The Review Group discussed alternatives which included: A. Harkens' compensation 5 yments can he maintained on a current Operating basis without benefit of Iu sup alternatives which would reduce One AWWt neaded In one reserve. B. In the event one City would benefit fr settlement of a case by a lunp sun payment, an appropriation would be necessary in the operating budget. C. If the City wants W maintain the flexibility of settling workers' ooaVensation cases On a lmP am basis, the Reserve should he maintained. Recommendation: The present policy should remain in effect with a reduction in the limit to $250,000 for the City portion of the at nunt W to accomplished through attrition. The School Department level should ranain at $250,000. Ile Reserve Fund is W be used for: 1. leap am settlements approved by the City Council. Self-insurance seservei rkers' Ca nation - Con['d. 2. Excess vests of x kers' w enation costs beyond that appropriated annually. An analysis of this Peserve for t last Nree fiscal years and 1986 to date is sham on I hibit H. sere-INSUMIt:£ DESERVE - CMUALW AND LIABILITY the City carries a $25,000 t Uctible in its prcyerty insurance (fire) and is self-insured for vehicle collision. the deductible u er the property insurance aM the full cost of collision repairs are charged to this 8nsoms. Past practice has been to annually appropriate $30,000 W this Reserve against which charges were made. In the spring of 1985, the City Council agreed to set a maxivuh in this account of $150,000 and that amount has now been attained. Amming the City Council maintains this account at its present level, there will be ,o appropriation in the PYRY budget, unless u nown daoands appear in the meantime. the maxinm limit is to provide ooverage as follows: Property deductible - City $50,000 Property deductible - $olnol 50,000 Vehicle collision 50,000 The Review Group discusmd alternatives which included: A. No lffimtve with annual anounts appropriated to cover mntirgencies. B. A reduction of the total limit with the balance to be appmpriated on an annual basis. C. Leaving the limit as approved by the City Council in 1985. Ieo®eMat' 1 Review Group ra m s the current limits be retained aM funding level (C.) An analysis of this Peseve too the last three fiscal years and 1986 to date am sham on Exhibit I. -7- CReoxr aeseave Flwo this Reserve was established by the City Council in the fiscal 1985 budget year with an additional appw iaticn in Ne fiscal 1986 budget year as shown below. Addition Reductions Balance, FY 85 $115,000 Balance 6-30-85 $ 775,000 FY 86 641,996 Balance 1-31-86 $1,416,996 Lemonade on Account: Unkrrnm amount likely to be usetl for stabilising the 1987 tax rate. Rro�emdatim The Review 0=oW had an specific recemrendaticns on this Reserve Account except they felt the Council had acted prudently in past years by the establishsent of this fund. -8 - BOB E(UIimfwr insEm This �serve originated when the City purchased and operated a school bus fleet. In subs¢ cent years, the City purchased ad3itional vehicles for transit use. Appropriations to this Reserve terve cele through an equipment replacement formula repreaenting the local share of vehicle replacement costs. Additional conies were credited to this Reserve at the time tle school hus fleet was sold. All replacerent transit buses and related equilaent have been purchased from the FeseL . Present plana to replace the existing transit bus and related capital equip ent in conjunction win state ani federal funis will require approximately $250,000 of the fund balance. the I iew Gra@ discussed the following alternatives: A. R duce halanre of Reserve to $250,000 which represents the local share of replacing transit capital equipment. B. Leave current fuM balance to be used for future capital needs or to subsidise the operation should the federal and/or state assistance be withdrawn. C. Reduce balance of Peserve to $250,000 and continue to provide an annual appropriation to the FLM based upon the equipment replacement formula to be used in future years for capital requirements. FYNation: The Paview Gra@ recomends that the funds in excess of $250,000 be raroved from the Reserve ELM and used for the purposes (A.). M analysis of Nis l serve for the last ores fiscal years ani 1986 to date are shorn on Exhibit J. _9_ FIRE Fein MFNf RESERVE The City has eight major pieces of firefighting equipment plus seven additional support vehicles with an average life of t enty-five years for major eq,iprent. If it were possible W evenly distribute the replacements, a major piece of equipment would need to be replaced every two and a half years. The present annual appropriation for replacement of fire equipment amounts W $70,836. This replacement figure represents only four of the eight major pieces of equipment hot does include all seven support vehicles. Ina Reserve balance at January 31, 1986 was $671,974 and is projected W be $703,497 by June 30, 1986. Based on this data and the replacement schedule on Exhibit K the balances at the end of each fiscal year would be: Fiscal Year Beg. Bal. Additions Charges 0tl. Bal. 1986 632,261 71,236 703,497 1987 703,497 71,236 160,000 614,733 1988 614,733 71,236 81000 677,969 1989 M,969 71,236 362,000 387,205 1990 387,205 71,236 150,000 308,441 Since the Self-Inwranon Reserve for collision damage is funded only at a $25,000 level, one of the Fire Department units inwlved in a fire or otter accident might necessitate the early use of a portion of the yeserve Fool W replace that equipment. Toe Review Group discussed the following alternatives: A. In anticipation of a replacement, provide an annual appropriation over a specified period of tine W accu elate sufficient replacrosent monies. B. Ruud equiprent replacements as part of the annual band issue which a ld spread the cost over subsequent years as opposed W accu latirg m nes in anticipation of the replacement as doe through the Reserve. -10 - Fire Equipment Reserve - Cmt'd. C. Cmtinue to annually appropriate an m t sufficient to replace Ne vehicles based upon an equip nt replacement £orwea. �tlam• The eeview Qa recrnmerAs mntinuit the present method of an annual app priatim based upon an equipaent replac®oent £Douala but removiN $170,000 fran the Reserve and used for other purposes. M analysis of the Reserve for the last Nree fiscal years aM 1986 to date m sho n on exhibit L. M uM uD �' a The City las approximately 184 pieces of rolling stock that are included in an equipment replacement formula with an annual appropriation to the Reserve Fund based upon that formula. Additima to the reserve Fund are Iron the annual appropriation based upon said formula (usually on an hourly or per mile basis) while reductions represent the replacement costs of new equipmnt. Past practice has been M fund the replacement cast of hew equipment from this Reserve to the extent the unit being replaced has been reserved for and the balance of the cost as a charge to the annual operating budget of the Motor Pool. In the spring of 1985, the City Council established a maximum limit in this account of $300,000 and the full funding of future equipment replacements from this Reserve Account. no balance of the Reserve as of January 31, 1986 is $440,823, however, this does not reflect the $381,000 appropriation for replacement vehicles contained in the FY86 operating budget of the Motor Fool nor does this reflect additions to the Reserve Fu' based upon equipment usage during FY86. The Group discussed the following alternatives: A. Replacement of major pieces of equipment (graders, bulldozers, etc.) as part of the City's annual bond issue. B. Fund equipment replacement entirely through the annual operating budget thereby eliminating the Reserve Fund. C. Continue present practice of funding an annual appropriation reflecting vehicle usage and utilizing the Reserve for purchase of replacement equipment while maintaining a usurious limit of $300,000 in the fund. -12 - ti= The Review b up recrnmends Ne wntinuance of present practice IC.). M analysis of Nis Fe^ eve for past Nree fiscal yews a 1986 to date are skxan on a ibis M. -1} l RESERVE - FUWRE NtA4WICTIGN - AIRPORT PARA RESERVE - PNNIU.' QX3TN11 lm - cmE 1fie Peviev Gaoup aeview a discussed the City Councils definition aed purpose Ea these Eeaeave Eunda and remnnerded the continuance of the passant policy. Exhibit A 86-54 Introduced by CouncilorTilley. December 22, 1965 CITY OF BANGOR (TITLE.) (009ri ,, Clty_Cow El 9eseaach d earl¢. croup _ _. I- . _... .._..... By W City Coumil of W My ef)l M.. ORDERED, THAT the City Council Convene a Council Research and Review Croup W study the City's requirevents for cash balances throughout the year for operating, reserve, charter and ordinance purposes. That Croup will report its findings to the Council no later than the first meeting In Hatch, 1986. Statement of Pact: The general fund cash balance ac October 31, 1980 was approximately $1,679,000 and has gradually increased to 59,515,000 at October 31, 1985, a period of five years. Part of the balance is supported by reserves set aside for various purposes. In view of the projected reduction in funding from outside sources, it is essential that the Council he aware of what balances -ace available or n be aside available to support a stable tax rate, Participate inforvard projects (such as the riverfront, parking garage, etc.) or for whatever other purpose the Council may decide 1s in the beat interest of the city as a whole. Exhibit B - Ch. 1; Art. 9 Sec. 1 - 2 CHAPTER I ARTICLE 9 - THE COUNCIL RESEARCH A REVIEW GROUP *Sec. I The Council Research A Review Group Established. There is hereby created and established a committee to be known as T Council Research A Barlow Group (herelnafter referred to as the "Group") consisting of at least five (5) members appointed by a majority of the City Council. The City Manager and the Chairman of the City Council Finance Committee shall be permitted to participate in proceedings of the Group, and shall serve in an ex officio capacity. + 1.1 Terms. No members shall be appointed until a project is referred to the Group in accordance with Sec. 2 of this Ordinance. At such time, the members shall be appointed for that particular project, and their terms shall expire upon submission of their report to the Council pursuant to said Sec. 2, 1.2 Qualifications for Membership. At all times after its creation, the Group shall consist of one (1) attorney. one (1) certified public accountant (CPA), one (1) banker, and two (2) citlzats at large who shall be neither an attorney, CPA or a banker. Bankers who are also attorneys or CPA's may only serve in the "banker" category. In determining the membership of the Group, the City Council shall encourage the participation of women and minorities, but shall not unlaw- fully discriminate on the grounds of race, color,- creed, sex, disability or national origin, or in any other manner prohibited by law. * 1.3 Chairperson, The Group shall select by lot one (1) of its members to serve as chairperson. Sec. 2 Duties The Group shall function in an advisory capacity and shall upon request of the City Council, research, revieworsurvey any matter involving t he affairs of the City of Bangor, In t he performance of its duties, the Group shall limit Its activities only to those projects referred to It by majority vote of the City Council. For each so referred the Group may appoint by majority vote of its members three (3) additional residents of the City of Bangor to serve as non-voting associates. The terms of such associates shall automatically expire upon the submission of the Group's report to the Council. Whenever pos or ble the Group shall appoint associates having backgrounds or experience with the issues or matters being researched, reviewed or surveyed. Unless additional time may be granted by order of the City Council the Group shall perform its assigned duties and make a written report of its findings and recommendations to the City Counci 1 withi n ninety (90) days after any such referral. *Amended February 11, 1985 - Effective February 21, 1985 C.O. 85-99 Exhibit C 85-219 Introduced by Councilor Cox, June 10, 1985 CITY OF BANGOR (TITLE.) (Orterf... ...... Eexablishlasna(xprcinu„ eprpgaes apd Ezpgxdp ea fxp ............. Reserve Accounts BY tAa City Cassel of tie aly of Banger: ORDERED, TEAT the attached pages of Reserve Account Oeffnitions, Purposes, and Procedures is hereby approved. Statesent of Fact: This order will formalise the uses of and the concept for the many Cenral and Capital Fund reserve accounts. RESERVE - SLLF INSURANCE (91-2220) Definition and Purpose: The Reserve - Self insurance account is hereby established for the purpose of providing a source of funds to allow the City to mein[a1n A $25,000 deductible for property coverage and to continue fully Self -funding auto- mobile collision. Procedures and limits: The Reserve - Self Insurance will only be used for one of both of the above stated Purposes with the concurrence of the City Council. In addition, a limit of $150,000 is hereby established to be broken down as follows: Property Deductible - City $ 50,000 Property Deductible - School 50,000 Auto Collision Self -Funded 50,000 RESERVE - SELF INSumcE - WORKERS' C019'ENSATION (91-2221) Definition and Purpose: Me Reserve - Self Insurance - Workers' Compensation account Is hereby established for the purpose of providing a source of funds to allow the City to continue self -funding workers' compensation claims with a liability of $250,W0 per occurrence and an aggregate retention of approximately $865,000. Procedures and Limits: lire Reserve - Self Insurance - Workers' Compensation will only be used in the event of a major settlement of one or more workers' compensa- tion cases with the concurrence of the City Council. In addition, a limit Of $500,000 is hereby established for the Municipal portion of this reserve account. It is anticipated, the School Department will continue to add to their portion of the reserve until a $250,000 level is reached. CREDIT RESERVE FUND (91-2222) Definition and Purpose: The Credit Reserve Fwd account is hereby established far the purpose of providing a source of foods Mich may be applied in periods of financial emergency to assist in continuing normal operatlow without increasing the tax rate. procedures and Limits: The Credit Reserve Food can only be used if the City Council has determined that a time of financial emergency exists. The annual appropriation for this purpose may not exceed 5% of the current tax commitment. For purposes of the credit reserve account, a 'financial emergency" shall constitute an unforeseen occurrence or combination of circumstances, as determined in the sole discretion of a majority of the City Council and in accordance vitt 30 M.e.S.A. , 5201(3)(A), which results in an wbudgeted increase In expenses or an unbudgeted decrease in revenues. RESERVE - BUS EQUIPMENT (91-2225) Defl%tion and Purpose: The Reserve - Bus Equipment account is hereby established for the purpose of providing a source of Ends for the local share of transit capital , replacements (Including busses and bus related equipment). In addition, at the discretion of the City Council, reserve monies could be made available to provide deficit operations funding should the Federal subsidy be reduced. Procedures and Limits: the Reserve - Bus Equipment will only be used at the direction of the CIty Council far capital acquisition Or operating subsidy pur- poses. M amount equal to the local share of capital replacemurt (busses) casts will be added annually to the reserve based on the usage of vehicles and adjusted for the increased cost of such vehicles. RESERVE - FIRE EQUIPMENT (91-3227) Definition and Purpose: The Reserve - Fire Equipment account is hereby established for the purpose of providing a source of funds for the replacement of fire department apparatus (Engines, ladder trucks, etc.). Procedures and Limits: The Reserve - Fire Equipment will only be used at the direction Of the City Council for the replacement of scheduled fire apparatus. Certain older Pieces will require a different funding source at replacement, however, all new acquisitions will be placed on the schedule. M amount equal to the cost of replacement (based on estimated years of service) will be added to the reserve annually and will further be adjusted annually for anticipated cost increases. RESERVE - MtlMR POOL gpIRPHENT (91-2230) Definition and Purpose: The Reserve - Notor Pool Equipment account is hereby established for the purpose of providing a source of funds for the replacement of the City's rolling stock. Procedures and Limits: The Reserve - Hotor Pool Equipment will only be used at the direction of the City Council to fwd the annual vehicle replacements .... Calved In the motor Pool operating budget. M amount equal to the cost of replacement (based on estimated years of service and annual usage) will be added to the reserve annually and will further be adjusted annually for anticipated cast increases. This reserve account will be maintained with a limit of $300,000 at year-end adjusted for additions and reductions. RESERVE - GOLF COURSE (91-2232) Definition and Purpose: The Reserve - Golf Course account is hereby established for the purpose of providing a source of funds for the replacement of major pieces of equipment 015,000.00or higher). and/or major improvements or expansion of the Procedures and Limirs: The Reserve - full Course will only be used at the direction of the City Council for owe or more of the proposed uses stated above. The Reserve will be funded annually by taking 50% of the net profit of the Golf course and crediting same to the account. RESERVE - FUTURE CONSTRUCTION - AIRPORT (92-2217) Definition and Purpose: The Reserve - Future Construction - Airport account is hereby established for the purpose of holding excess airport capital pro- jects funding and providing a source for nee capital projects. Procedures and Limits: The Reserve - Future Construction - Airport will only be used for projects for which the City Council has given approval. RESERVE - FUTURE CONSTRUCTION - AIRPORT PARK (92-2215) Definition and Purpose: The Reserve - Future Construction - Airport Park account is hereby established for the purpose of accumulating =nice received for the rental income of certain airport properties. Me monies are to provide a source of fundiun for improvements to the so called, industrial park area. Procedures and Limits: The Reserve - Future Construction - Airport Perk x111 only be sued for the above stated purpose with the approval of the City Council. RESERVE - FUTURE CONSTRUCTION - GENERAL (92-2233) Definition and Purpose! The Reserve - Future Construction - General account is hereby established for the purpose of holding excess general capital. pro - jeers funding and providing a source for new capital projects. Procedures and Limits: The Reserve - Future Construction - General will only be used for projects for which the City Cowell has given approval. RESERVE - FUTURE CONSTRUCTION - SEWER (92-2236) Definition of purpose: The reserve - Future Construction - Sewer account is hereby established for the purpose of holding excess sever capital projects funding and providing a source for new capital projects. Procedures and Units: The Reserve - Future Construction - Sever will only be used for projects for which the City Council has given approval. Exhibit D SEC. 4. Budget. Artice VI •(a) There shall be an interim six-month fiscal year commencing January 1, 1962 and ending June 30, 1982. Thereafter, the fiscal year of the city government shall commence on the first day of July and shall end on the 30th day of June of each calendar year. •(b) Not later than the first Monday in December, 1981, the city manager shall submit to the Council a current expense budget which shall be a complete financial plan for the interim six-month fiscal year. Thereafter, the city manager shall, not later than the third Monday in March, submit to the Council an annual current expense budget, which shall be a complete financial plan for the ensuing fiscal year. (c) The annual budget shall contain: (1) an estimate of all revenue rash receipts anticipated from sources other than the tax levy for the ensuing fiscal year; (2) an estimate of the general fund cash surplus or cash deficit at the end of the current fiscal year, (3) the estimated expenditures necessary for the operation of the several depart- ments, offices and agencies of the city; (4) debt service requirements for the ensuing fiscal year; (5) an estimate of the sum required to be raised by the tax levy for the en- suing fiscal year; and (6) a balanced relationship between the total estimated expend- itures and the total anticipated revenue cash receipts taking into account the estimated general fund cash surplus or cash deficit at the end of the current fiscal year. All estimates shall be in detail showing revenues by sources and expenditures by organi- sailon units, functions and objects of expenditure. The budget shall be so arranged as to show comparative figures for receipts and expenditures for the current and next preceding fiscal years. (d) The budget shall be accompanied by a budget message which shall contain the recommendations of the city manager concerning the fiscal policy of the city, a description of the important features and major increases or decreases in the pro- posed budget and summary statements of the budget according to principal sources of revenue and the main headings of expenditure. (e) The city manager shall have printed sufficient copies of the budget and the budget message for the use of the Council and the public. The budget and the budget message shall be a public record. *SEC. S. Budget changes. The Council may Insert new items of expenditures or may increase, decrease, or strike out Items of expenditure, except that no Item of appropriation for debt service shall be reduced. The Council shall not alter the city manager's estimate of receipt except that any increases or decreases In expenditure items shall be fully reflected by increasing or decreasing the amount required to be raised by tax levy in the ensuing year. In the event the City Council shall fail to adopt a budget by the beginning date of the fiscal year, the proposed budget as presented by the city manager shall automatically became the city budget for the fiscal year. SEC. 6. Transfers. The city manager may at any time transfer any unencumbered appropriation balance or portion thereof from one classification of expenditure to another within the same department, office or agency. At the request of the city manager, the Council may by order transfer any unencumbered appropriation balance or portion there- of from one department, office or agency to another. *Amended October 13, 1981 - Effective October 23, 1981 -16- Lxnlblt E Ch II; Art. 2 See. 1 - Sec. 3 CHAPTER 11 'ARTICLE 2 - FINANCE DEPARTMENT San. 1 Finance Department Established. There is hereby established a Finance Depart- [ for the City of Bangor. This department shall consist of the Director of Finance, the Treasury Division, the Tax Collection Division, the purchasing Division and the AuditLy Division. Sec. 2 Finance Director. Mere is hereby authorised and established the position of Finance Director to be appointed by the City Manager, subject to confirmation by the City Council, in accordance with Article v, Sec. 2 (b) of the City Charter. The Finance Director shall have Control aha supervision eall employees assigned to the department, subject to the general supervision of the City Manager. 112.1 Charter Responsibilities. Me Finance Director SM11 perform Such duties and assuame responsibilities as axe imposed on the Finance Director by virtue of the provisions of the City Charter of the City Of Bangor. Io the performance of such duties, the Finance Director shall made the following calculation from the annual audit report to determine the existence of a General Furl Cash Surplus or General Fund Cash Deficit; Combine the Cash balances Final the General Fiand Enterprise Funds; deduct the current liabilities of each of the above referenced funds (including Encumbrances and current portion of Enterprise Facts long-term debt), but excluding any amounts ave between funds. In addition, deduct the reserves of the General Fund designated far a specific purpose, excluding non-cash related amounts. A positive result will be a cash surplus and negative result x111 be a cash deficit. 2.2 Reswnslbillties for Financial Transactions. primary responsibility for the recording and management of all financial transactions, r and disburs ments of the City shall be vested with the Finance Director. Me Finance Director, subject to the direction of the City Manager, shall perform all nesassary analyses, pro- jections and planning as to the financial needs of the City; shall take all necsary action for the borrowing of foods as may be authorized by the City Council; and shall be responsible for the prudent investment of City funds. The Finance Director may delegate the duties of his office to other divisions of the Finance Department; provided, however, that responsibility to the Council and the City Manager fee the faithful and competent performer of such duties shell always remain with Ne Finance Director. 2.3 Other Duties and Responsibilities. Me Flounce Director shall perform such ether duties and a such other responsibilities a may be required by the City manager, thCity Council, or as my be imposed by law. Sec. 3 Treasvry Division. More is hereby established 8 division of the Finance Depart- ment to be known as the Treasury Division which shall per- form all functions imposed by law on municipal treasurers as my be delegated by the Finance Director. "Amended May 14, 1984 - Effective May 24, 1989 - Councilor Order 84-149 -4- Exhibit F City of Bangor Comparative Food Balance Sheet General Fwd Cash Petry Cash Travel Expense -.Advance Securities Dun From Airport Fund Due From hospital fund Prepaid Insurance Prepaid Payroll Prepaid Expenses Accounts Receivable Taxes Receivable Tax Liens Inventory Accounts Payable Accrued Teacher Payroll Accrued Vacation Wages Private Services Prepaid Estimated Revenue Recreation District Tax Balances Carried Encumbrance - Reserve Self Insurance - Reserve Bus Equipment - Reserve Fire Equipment - Reserve Credit Reserve Paid Rotor Pool Equipment - Reserve Golf Course - Reserve Accounts Receivable - Reserve Non Current Receivable - Reserve Advance to Enterprise Fwd - Reserve Overlayings Pond Balance June 30, 1982 June 30. 1985 $ 547,057.25 $( 830,767.81) 1,900.00 1,900.00 1,559.30 688.05 660,000.00 8,0501000.00 500,000.00 500,000.00 313,000.00 125,896.73 296,924.21 5,330.54 3,652.11 699,590.86 130.00 895,461.75 960,439.62 839,899.22 205,686.37 953,795.23 857,580.84 484.601.41 505.234.93 5.318.507.49 10.254.544.77 $ 35,536.20 $ 68,836.00 600,113.65 443,394.37 649.01 25,703.85 16,684.21 f 1,260.00) 286,020.54 296,924.21 170,212.75 211,831.67 699,590.86 534,217.78 525,987.90 135,029.80 632,260.93 115,000.00 788,530.14 440,823.67 21,261.42 23,306.36 26,361.93 684, 324. NO 500,000.00 30,983.87 91,266.88 3,237,054.60 4,272.405.06 5,318.507.49 10 254 544.11 city E 0 G.h Alt Jz cel 1985 Jay . Me May Jme 1984 1984 1906 1984 1984 1985 1985 1985 1985 1985 1985 1905 4032.658,202) 0.986.033 5.241.785 3642.533 2.642.574 1,409.OW 1,737.W3 3,109,424 5,150,897 1.555.234 1,054,996 1.510.958 1.409.685 ($N,608,135) 2585.130 1,989,340 2.823,661 3.399.832 2,181.464 2,539.399 2668.810 2.210,233 2,631,571 2.409.228 2,238,039 3.032.984 3 r P.„6 m($51433p046) 358,364 396,033 408603 456.862 569.255 451,619 499,021 414,118 456.1M 464.764 561.480 396638 Otebunomtl (85.5 )S. l9p 439,691 316,425 486.184 444.713 433,933 410.206 436.406 493.203 514,340 492,764 368,889 222.353 $t N($n4 381) 84.903 W,938 32,198 26.352 64535 42.151 58.483 52.347 49,652 55.622 65.206- 53.064 Ote ($833,323) 65,392 55.011 65.064 59,011 22,140 63,381 48,251 102.452 81,224 63.836 64,954 86,460 M0(5),BSO.W6) 352.639 440,664 342,782 355,205 236604 220.502 283.113 221,629 63,431 324.186 282,082 283,630 03,434,864) 248,345 20,238 432.083 226.233 250.790 261.sM 282,233 241.849 422.349 236.538 221,554 96.09B city, aclltry u($11532,M) 112,932 120,061 98.803 192.312 102519 120,484 116,183 110.861 521088 109.651 110.420 199.028 owmetmmtte ($1.490.010) 92,524 110.469 143,102 .131,280 98.038 108,089 140.100 116.620 128.483 119.100 108.429 182,396 ellplmt ($1,601,310) 192.320 182.901 95.286 262.542 396633 125.294 8.941 50,030 80,830 29,716 50.534 25.689 0($1552.521) 36.319 124.828 194,238 410.504 ,196.216 49.015 50.868 94.302 33.031 41.019 29,024 158.003 All n 41 ($45,299,968) 4692.322 6.463,413 4,022,19 3.986,342 2.B10,M6 2.392.063 4.085,215 6,049,839 3.506.330 2,968.94 2.588.223 2.421.133 (843,499.098) 3.512,892 2.826.361 4,140}73 4.672685 3.233.363 3.439.715 3.431.669 3,285.650 3.850.998 3.362,486 3.120.940 4,563,359 rtebe (Negative) Flw/Xo. 529,410 1.586,653 ( 122.981) f 685,244) ( 418.93) ( 642,653) 653.546 2.364531 < A4 628) ( 393,546) ( 532.212) (2,142.."35) 2sve i(Neea[be) FSed Mt. - 4.166,083 4.043.102 3,357,358 2,938,361 2.295,708 2.949.254 5,313.485 5.368,89 4.925.311 4.443,094 2,DO.869 Exhibit H City of Bangor Self Insurance - Reserve Workers' :I Co4ensation Additions Reductions _ Balance Balance, 6/30/82 Fiscal 1983 165,881.65 Fiscal 1984 197,136.31 Fiscal 1985 79,081.76 Balance, Jane 30, 1985 Balance, January 31, 1986 School Department $ 90,000.00 All other City Depts. 459,590.86 Demands on Account Lump -sum settlement in February $ 80,000.00 Potential lump -swan settlements prior to end of fiscal year 120,000.00 10),491.14 549,590.861/ 550,63294 Exhibit I City of Bangor Self Insurance - Reserve Casualty and Liability Additl0ns Reductions Balance Balance, June 30, 1982 104,340.53 Fiscal 1983 22,26201 Fiscal 1984 18,177.98 Fiscal 1985 5,219.48 Balance, lune 30, 1985 150,000.00 Balance, January 31, 1986 Same Demands on Account No specific demands known at this time. Exhibit J City of Bangor Bus Equipment - Reserve Additions. Reductions Balance Balance, June 30, 1982 Fiscal 1983 28,321.01 (50,276.25) Fit cal 1984 13,234.60 ( 4,200.00) Fiscal 1985 13,929.00 ( 9,238.24) Balance, June 30, 1985 Balance, January 31, 1986 Demands on Account Between $200,000 and $250,000 needed to cover local snare of capital requirements. 534,21].]8 525,98).90 530,]80.03 b h'bit K Fire Equip ent Replec t 6chedule Veh. Year Year t0 Be F26eCve Vehicle Wscription Mo. purchased emplaced Monies Ladder 45 (851) 931 1954 1989 m @gine (Spare) 921 1960 1987 Po Ladder 41 (1001) 932 1963 1993 Na ttgine 45 922 1966 1990 No ©gine #6 923 1967 1991 Np Eng 44 924 1970 1995 Yes Tanker (used) 909 1970 1991 (used) Yes Rescue 908 1973 1991 Yes Engine 41 925 1977 2002 Yes B kel 933 1977 2007 Y Chief's Car 902 1979 1987 Yes Inspection Car 903 1979 1988 Yes Picky 906 1981 1989 Yes LTgine 42 926 1982' 2007 Yes Inspectim Caz 911 1984 1993 Yes FmLnilance 914 1985 1995 Yes Exhibit L City of Bangor Fire Equipment - Reserve Additions Reductions Balance Balance, June 30, 1982 135,029.80 Fiscal 1983 34,112.04 Fiscal 1984 35,367.09 ( 6,000.00) Fiscal 1985 455,067.001/ ( 21,315.00) Balance. June 30, 1985 632,260.93 Balance, January 31, 1986 671,974.87 11 Includes $420,000 transfer from the Motor Pool Equipment - Reserve. Demands on Account Fire Engine replacement in 1987 $150,000.00 Ladder Truck replacement in 1989 350,000.00 Fire Begins replacement in 1990 150,000.00 Exhibit M City of Bangor Motor Pool Equipment - Reserve 1/ Includes $420,000 transferred to Fire Equipment - Reserve and $194,000 included as additional funding in 1986 operating budget. Demands on Account Replacement of $300,000 to $400,000 worth of equipment annually. Additions Reductions Balance Balance, Jane 30, 1982 788,530.14 Fiscal 1983 220,967.99 (146,717.17) Fiscal 1984 253,636.83 (157,443.02) Fiscal 1985 248,267.79 (766,418.89)1/ Balance, June 30, 1985 440,823.67 Balance, January 31, 1986 Sam 1/ Includes $420,000 transferred to Fire Equipment - Reserve and $194,000 included as additional funding in 1986 operating budget. Demands on Account Replacement of $300,000 to $400,000 worth of equipment annually.