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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