HomeMy WebLinkAbout2021-04-26 21-169 Order
04/26/202121-169
04/26/2021
21-169
Finance
Order
N/A
Title, Order
Authorizing Transfer of $2,500,000 from Unassigned Fund Balance to Various Assigned Fund Balances.
This Order will authorize the transfer of $2,500,000 from the unassigned fund balance to various
capital reserve assigned fund balances. 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 2020 indicates that the City has an unassigned fund balance of approximately $14.5 million
which represents 14.07% of the prior year expenditures.
Funding of capital replacement reserves has not been part of the City's annual budget process for
nearly a decade. The ability to fund capital needs without impacting the tax rate, has been part of
the City's overall financial management. Due to the financial uncertainty surrounding the pandemic,
no funds were transferred to capital reserve fund balances at the end of the prior fiscal year.
Staff recommendation is that $2,500,000 be transferred to the following reserves; $1,360,000 to the
Improvement Reserve, $435,000 to the Fire Equipment Reserve, $200,000 to the Pooled Equipment
Reserve, $325,000 to the Energy Efficiency Reserve and $180,000 to the Parks & Recreation
Reserve.
If approved the unassigned fund balance would drop to approximately $12.0 million which
represents 11.65% of the operating budget.
Finance Committee
04/21/2021
Recommend for passage
40
New Business
04/26/202121-169
CITY OF BANGOR ORDER
04/26/2021
21-169
Hawes
Authorizing Transfer of $2,500,000 from Unassigned Fund Balance to Various Assigned Fund Balances.
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 14.07%;
WHEREAS, Due to the financial uncertainty related to the pandemic, no funding was added to capital assigned
fund balances; and
WHEREAS, Ensuring adequate funding is available to fund near term capital needs, minimizes the impact on
the tax rate; and
WHEREAS, The transfer of $2,500,000 from the unassigned fund balance will result in the balance being
11.65% of the prior year operating budget, well within the Charter requirements;
Now Therefore Be it Ordered by the City Council of the City of Bangor that, the Finance Director is hereby
authorized to transfer $2,500,000 from the unassigned fund balance for the following purposes; $1,360,000 to
the Improvement Reserve, $435,000 to the Fire Equipment Reserve, $200,000 to the Pooled Equipment
Reserve, $325,000 to the Energy Efficiency Reserve and $180,000 to the Parks & Recreation Reserve.
IN CITY COUNCIL
APRIL 26,2021
CO 21-169
Motion made and seconded for Passage
Vote: 9—0
Councilors Voting Yes: Davitt,Dubay,Fournier,Hawes,Nichols, Okafor, Schaefer, Sprague,Tremble
Councilors Voting No: None
Passed
y-1( )
CITY CLE