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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 r,�S� �e'ONso ac _\ CITY OF BANGOR 9q ytC ,ry� 4iED,F (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 �t 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 Pa ed EPUTY CITYF CLERk aoliauno3 o; poUBISSd (`3-1111)