HomeMy WebLinkAbout2014-02-24 14-098 RESOLVECOUNCIL ACTION
Item No. 14-098
Date: 2-24-2014
Item/Subject: Resolve, Appropriating $50,000 from the General Fund's
Uassigned Fund Balance for the Purpose of Funding the City's Share of the
Local Match for the Small Community Air Service Development Grant
Responsible Department: Finance
Commentary: This Resolve will appropriate $50,000 from the General Fund's Unassigned
Fund Balance to fund the City's share of the local match for the Small Community Air Service
Development Grant awarded to Bangor International Airport in December 2010.
This grant award was to improve air service to the region by increasing competition and capacity
in the market. The application specifically focused on air service to either Washington DC or
Chicago. Under the provisions provided in the grant award, this Small Community Air Service
Development Program grant may be used to reduce an airline's risk in entering a new market.
The grant requires a 50% local/community match. The City's portion of the match was $50,000
and the funds had to come from the general funds of the City and not funds from the Airport
Enterprise Fund. Other contributors towards the match include MDOT, MDECD and Mobilize
Maine.
As of June 30, 2013 the City's Unassigned Fund Balance of $7,727,014 exceeded the Council
target of 8.33% of operating expenditures by $491,364. In general, the City's Fund Balance
policy indicates that unassigned fund balance should be used primarily to insure adequate
designated reserves, to respond to unforeseen emergencies and to provide overall financial
stability. Based on the unforeseen, unique and non-recurring nature of this appropriation, this
Resolve appears to meet the intent of the City's Fund Balance policy.
Department Head
Manager's Comments: This was reviewed and recommended for approval by the Finance
Committee on February 17, 2014. �. r
City Manager
Associated Information: Resolve
Budget Approval:
Legal Approval:
Introduced for
Passage
X First Reading
Referral
Finance Director
Page _ of _
Solicitor
14-098
FEBRUARY 24, 2014
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IN CITY COUNCIL
February 24, 2014
F' t Rea
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CI CLERK
IN CITY COUNCIL
March 10, 2014
Motion made and seconded for Passage
CITY CLERK