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Home My WebLink About1985-06-10 85-219 ORDER85-R9 Introduced by Councilor Cox, dune 10, 1985 _ CITY OF BANGOR (TITLE.) (Orber,'......... %taD33shing_Definition, Purposes and Prpsedpxes Lac ................ Reserve Accounts By the City Ooarvelo Oft WBawgor: ORDERED, TH&T the attached pages of Reserve Account Definitions, Purposes, and Procedures is hereby approved. Statement of Pact This order will formalize the uses of and the concept for the many General and Capital good reserve accounts. IN CITY COIRCII, Suns 10, 1985 Referred t0 Finance and any relevant c Ceneider next oieetm 05-219 ORDER Title, .e§S?57ieD#^g.-4e€iniF{9^i. SYFgo@??.... and Procedures for Reserve Accounts ...................................... IN CITY COONCxL June 24 1905 s d A nded:by the following Introduced le by yesT yes and no votes.Councilors Ting N yes;'Brown, Cox, Iue,Ga$S,-vcCa[Ni.°. f.... ..... Wheeler. C ilor l3 9 CO lorann Frankel Tilley and W Amended by adding "515,000,000 t0 the Golf Res -f on Y CIEIix dx } AESERVB - SELF_INSI NCE (91,2=) Definition and Purpose: Abe Reserve - Self Insurance account is hereby established for the purpose of providing a source of funds to allow the City to maintain 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 or 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 IRductible - School 50,W0 Auto Collision Self -Funded 50,000 RESERVE -, SRW INSURANCE WORKERS' C@ffENSATION (91-2221) Definition and purpose: the Reserve - Self Insurance - Workers' C;mpenaation account is hereby established for the purpose of providing a source of foods to allow the City to continue self -funding workers' compensation claim with a liability of $250,000 per occurrence and an aggregate retention Of approximately $865,000.,; procedures and Limits: The Reserve - Self Insurance - Workers' Compensation will only be usedin the event of a major settlement of one or mare workers' counensa- 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 $250,000 level is reached. CREDIT RESERVE FORD (91-2222) Definition and purpose: The Credit Reserve Fund account is hereby established for the purpose of providing a source of foods Mich may be applied in periods of financial emergency to assist fn continuing normal operations without increasing the tax rate. procedures and Limits: The Credit waserve Ford can only be used if the City Council has determined that a time of financial emergency exists. The annual appropriation for this purpose may not exceed 5% of the current tax commitment. For purposes of the credit reserve account, a "financial emergency" shall constitute an unforeseen occurrence or combination of circumstances, as determined in the sole discretion of a majority of the City Council and in accordance with 30 M.R.S.A. . 5201(3)(A). which results in an unbudgeted - increase In expenses or an unbudgeted decrease in revenues. RESERVE - BUS EQUIPMENT (91-2225) Definition and Purpose: The Reserve - Be$ EquBpmenb account is hereby established for the purpose of providing a source of foods for the local share of transit capital replacements (including busses and bus related equ{pment). In addition, at the discretion of the City. Council, reserve mares 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 for capital acquisition or operating subsidy pur- poses. M amount equal to the local share of capital replacement (busses) casts will be added annually tothereserve based on the usage of vehicles and adjusted for the increased cost of such vehicles. RESERVE - EIRE EQUIPMENT (91-2227) Definition and Purpose: no 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 cracks, etc.). Procedures and Limits: The Reserve - Fire Equipment will only be used at the direction of cbe City Council for the replacement of scheduled fire apparatus. Certain older pieces will require a different fundingsource at replacement, however, all new acquisitions will be placed on the schedule. an 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 - MOTOR POOL EQOiRffiNT (41-2230) Definition and Purpose: The Reserve - Motor Pool Equipment account is hereby established for the purpose of providing a source of foods for the replacement of the City's rolling stock. Procedures and Limits: The Reserve - Motor Pool Equipment will only be used at the direction of the City Council to fund the annual vehicle replacements con.-. tafned in the Motor Pool operating budget. M aununt 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 cost increases. Thie reserve account will be maintained with a limit of $30D,000 at year-end adjusted for additions and reductions. RESERVE - GOLF COURSE (91-2232) Definition and Purpose:, The Reserve - Golf Course account is hereby established for the purpose of providing a source of funds for the replacement of major pieces of equipment ($ISoO4 or higher)', and/or major improvements or expansion of the procedures and Limits: The Reserve - Golf Course x111 only, be need at the direction of the City Council for one or. were of the proposed uses stated above. The Reserve will be funded an(:ually by taking 50% of the net profit of the golf course and crediting area to the account. RESERVE - FUTURE CONSTRUCTION - AIRPORT (92-2217) Definition and Purposef 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 new capital projects. Procedures and Limits: The Reserve - Future Construction - Airport will only be need for projects for which the City Council has given approval. RESERVE - FUTURE CONSTRUCTION - AIRPORT PARR 192-2218) Definition and Putpase: The Reserve - Future Construction - Airport Park account is hereby established for the purpose of accumulating males received for the rental income of certain airport properties. The monies are to provide a source of funding for improvements to the so called, industrial park area. Procedures and Limits: The Reserve'- Future Construction - Airport Park will only be used for the above stated purpose with the approval of the City Council. RESERVE - MU(E CONSTRUCTION - GENERA. (92-2235) Definition and Purpose: Me Reserve - Future Construction - General account is hereby established for the purpose of holding excess general capital pro- jects funding and providing a source for new capital projects. Procedures and Limits: The Reserve - Future Construction - General will only be need for projects for which the City Council has given approval. RESERVE - MUM CONSTRUCTION - SEFER (92-2236) jefinition 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 nee capital projects. Procedures and Limits: The Reserve - Future Construction - Sewer will only be used for projects for which the City Council has given approval.