HomeMy WebLinkAbout2012-08-27 12-279 ORDERCOUNCIL ACTION
Item No. 12-279
Date: August 27, 2012
Item/Subject: ORDER, "Proposing an Amendment to the Bangor City Charter, Article VII,
Section 16, Business and Financial Provisions, Undesignated Fund Balance" to be included on the
November 6, 2012 Municipal Ballot
Responsible Department: Legal
Commentary:
PRIOR TO MOVING THIS ORDER, A PUBLIC HEARING MUST BE HELD.
This Order will place a proposed amendment to Article VIII, Section 16 of the Bangor City
Charter on the November 6, 2012 regular municipal election ballot. Currently, the Charter
provides that the City Council shall target no more than 10% of the City's operating budget,
excluding debt for the General Fund as its undesignated fund balance. It also provides that the
target balance for the undesignated fund balance shall be 5% of last year's expenditures. This
proposed amendment will: change the name of the undesignated fund balance to the
unassigned fund balance; provide for an increase in the target amount to no more than 16.66%;
change the target balance to 8.33%; and remove the provision to exclude debt service in
determining the amount.
Manager's Comments:
Associated Information: Order
Budget Approval:
Legal Approval:
Introduced for
x Passage
First Reading
Referral
Department Head
1 City Manager
Finance Director
Page _of_
12-279
AUGUST 27, 2012
�.J. Assigned to Councilor Sprague
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(TITLE.) ORDER, "Proposing an Amendment to the Bangor City Charter, Article VII, Section
16, Business and Financial Provisions, Undesignated Fund Balance" to be included on the
November 6, 2012 Municipal Ballot
WHEREAS, the Bangor City Charter currently provides that the City Council "shall target an
undesignated fund balance of no more than 10% of the operating budget, excluding debt for
the General Fund. The target balance shall be established at 5% of the last year's expenditure
less debt service"; and
WHEREAS, it is in the best interest of the City of Bangor to increase the percentages for the
minimum and maximum targets for the undesignated fund balance; and
WHEREAS, an amendment to the Bangor City Charter requires a vote of the citizens of Bangor;
and
By the City Council of the City of Bangor.
ORDERED,
That the following amendment to Article VIII, section 16 of the Bangor City Charter be placed
on the ballot at the 2012 regular municipal election to be held November 6, 2012 for approval
by the qualified voters of the City of Bangor in accordance with Title 30-A M.R.S.A. §§2104 (1)
and 2105.
Art. VIII. Sec. 16. Undesignated Unassigned Fund Balance.
The City Council shall target an undesignated unassigned fund balance of no more than 19%
16.66% of the operating budget, efeluding debt for the General Fund. The target balance shall
be established at X8.33% of the last year's General Fund operating budget.e penditum less
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Statement of Fact: Deletions of the exisiting Charter provisions are st Ck thle1:10. Additions
are underlined.
Summary:
Currently the Charter provides that the City Council shall target no more than 10% of the City's
operating budget, excluding debt for the General Fund. It also provides that the target balance
for the undesignated fund balance shall be 5.0% of the last year's expenditure. This change
will change the name of the undesignated fund balance to the unassigned fund balance; will
provide for an increase in the target amount to 16.66%; will change the target balance to
8.33% and will remove the provision to exclude debt service in determining the amount.
IN CITY COUNCIL
August 27, 2012
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