HomeMy WebLinkAbout2016-04-25 16-170 ORDERCOUNCIL ACTION
Item No, 16-170
Date: April 25, 2016
Item/Subject: Order, Authorizing the transfer $1,100,000 from the Unassigned Fund Balance
Responsible Department: Finance
Commentary: This Order will authorize the transfer $1,100,000 from the unassigned fund
balance to replenish capital reserve funds. The Charter specifies that the City will maintain a
fund balance of no less that 8.33% of the prior years operating expenditures. The audit for
fiscal year ending 2015 indicates that the City has an unassisgned balance of approximately
$10.0 million which represents 10.86% of the prior year expenditures. Over the past several
budget cycles, the City has not budgeted sufficient funds to maintain capital replacement funds.
As a result, it is recommended by staff that $1,100,000 be transferred to the capital funds as
follows; $700,000 to the Capital Improvement Fund, $275,000 to the Bus Replacement Fund
and $125,000 to the Fire Equipment Replacement Fund. If approved, this transfer would
ensure adequate funds within the Improvement Fund to cover the cost of items proposed for
funding in the proposed FY 2017 budget, to fund Bangor's share of bus rehabiliation and
replacement as anticipated in the 5 year capital plan and to fund the purchase of two
ambulances in future years. If approved the unassigned fund balance will drop to
approximatley $8.9 million which represents 9.7% of the 2015 operating budget.
This item was reveiwed and recommended for approval by the Finance Committee on April 11,
2016.
Debbie Cyr
Department Head
Manager's Comments:
C -42V
City Manager
Associated Information:
Budget Approval:
Finance Director
Legal Approval:
city So dtor
Introduced for
X_Passage
First Reading
Referral
Page of —1-
16-170
APRIL 25, 2016
Assigned to Councilor Durgin
CITY OF BANGOR
(TITLE) Order, Authorizing the Transfer of $1,10,000 from the 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 operating budget for the General Fund. The target
balance shall be established at 8.33% of the last year's General Fund operating
budget.
WHEREAS, The unassigned fund balance at the end of the prior fiscal year was approximately
10.86%
WHEREAS, The transfer of $1,100,000 from the unassigned fund balance will leave the balance
at 9.67% of the previous years operating budget, well within the Charter
established limits; and
WHEREAS, The transfer to unassigned fund balance has been proposed to replenish capital
funds including $700,000 to the Improvement Reserve; $275,000 to the Bus
Replacement Fund; and $125,000 to the Fire Equipment Replacement Fund.
HEIT ORDERED BY THE CITY COUNCIL OF 7HECITYOFBAN6 0 R, THAT
The Finance Director is hereby authorized to transfer $1,100,000 from the unassigned fund
balance for the following purposes; $800,000 to the Improvement Reserve, $275,000 to the Bus
Replacement Fund and $125,000 to the Fire Equipment Replacement Fund.
IN CITY COUNCIL
APRIL 25, 2016
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
CITY CLE