HomeMy WebLinkAbout2019-04-08 19-148 Order
04/08/201919-148
04/08/2019
19-148
Finance
Order
N/A
Title, Order
Authorizing Transfer of $1,625,000 from Unassigned Fund Balance
This Order will authorize the transfer of $1,625,000 from the unassigned fund balance to capital
reserves. The Charter specifies that the City will maintain a fund balance of no less than 8.33% of
the prior years operating expenditures. The audit for fiscal year ending 2018 indicates that the City
has an unassigned fund balance of approximately $14.1 million which represents 14.41% of the prior
year expenditures.
Over the past several budget cycles, the City has not budgeted sufficient funds to maintain capital
replacement funds. This transfer allows the City to funds it current capital needs without impacting
the upcoming FY2020 tax rate. As a result, it is recommended by staff that $1,625,000 be
transferred to the following reserves; $900,000 to the Improvement Reserve, $275,000 to the Fire
Equipment Reserve, $50,000 to the Bus Equipment Reserve and $400,000 to the Parks & Recreation
Reserve.
If approved the unassigned fund balance would drop to approximately $12.4 million which
represents 12.74% of the operating budget. An addition Resolve, will request to appropriate an
additional $1,000,000 from the unassigned fund balance to fund street work.
Finance Committee
04/01/2019
Recommend for passage
50
New Business
04/08/201919-148
CITY OF BANGOR ORDER
04/08/2019
19-148
Weston
Authorizing Transfer of $1,625,000 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 14.41%;
WHEREAS, The transfer of $1,625,000 from the unassigned fund balance will result in the balance being
12.74% of the prior year operating budget;
WHEREAS, An additional item to fund street improvements from the unassigned fund balance; Now Therefore
Be it Ordered by the City Council of the City of Bangor that, the Finance Director is hereby authorized to
transfer $1,625,000 from the unassigned fund balance for the following purposes; $900,000 to the
Improvement Reserve, $275,000 to the Fire Equipment Reserve, $50,000 to the Bus Equipment Reserve and
$400,000 to the Parks & Recreation Reserve.
H 1-d0 o ro H
rn H
t�r1 0 o r~+ H
r� dz cx)
tri
I t� o
c
z H
d r
0
d
d
J
o
c)
r21