HomeMy WebLinkAbout2015-06-08 15-213 ORDERCOUNCIL ACTION
Item No. 15-213
Date: June 8, 2015.
Item/Subject: Order, Authorizing the transfer 1,000,000 from the Unassigned Fund Balance
Responsible Department: Finance
Commentary: This Order will authorize the transfer $1,000,000 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 2014 indicates that the City has an unassisgned balance of approximately
$9.6 million which represents 9.92% 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 $1,000,000 be transferred to the capital funds as
follows; $800,000 to the Capital Improvement Fund and $200,000 to the Bus Replacement
Fund. If approved, the unassigned fund balance will drop to approximatley $8.6 million which
represents 8.9% of the 2014 operating budget. This item was reveiwed by the Council at a
budget meeting on May 27, 2015 and recommended for approval.
Debbie Cyr
Department Head
Manager's Comments:
Associated Information: Resolve
Budget Approval:
Finance Director
Legal Approval:
City Solicitor
Introduced for
_X—Passage
First Reading
Referral
Page —1— of —1—
Assigned to Councilor Sprague
CITY OF BANGOR
15-213
JUNE 8, 2015
(TITLE) Order, Authorizing the Transfer of $1,000,000 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
9.92%
WHEREAS, The transfer of $1,000,000 from the unassigned fund balance will leave the balance
at 8.9% 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 $800,000 to the Improvement Reserve; and $200,000 to the Bus
Replacement Fund.
BE 1T ORDERED BY THE MY COMM OF THE CITY OF BANGOR, THAT
The Finance Director is hereby authorized to transfer $1,000,000 from the unassigned fund
balance for the following purposes; $800,000 to the Improvement Reserve and $200,000 to the
Bus Replacement Fund
IN CITY COUNCIL
JUNE 8, 2015
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
CITY CLERK