HomeMy WebLinkAbout2012-09-24 12-322 RESOLVECOUNCIL ACTION
Item No. 12-322
Date: September 24, 2012
Item/Subject: Resolve, Supporting the Amendment of the City Charter — Undesignated Fund
Balance
Responsible Department: Legal
Commentary: This resolve will support a proposed amendment to the City Charter increasing
the undesignated fund balance. Currently, the Charter of the City of Bangor provides that the
City Council shall target an undesignated fund balance of no more than 10% or less than 5% of
the City's General Fund operating budget, less existing debt. After lengthy discussion with the
City's financial advisors, the Council determined that it would be fiscally prudent to increase the
amount of the City's undesignated fund balance through increasing the targeted maximums and
minimums for the City's undesignated fund balance. One of the primary reasons is that the City
would obtain more favorable long-term borrowing rates that could have significant reduction in
the cost of debt.
In August, the City Council voted to refer to the voters of the City of Bangor a proposed
amendment to the City Charter to increase the targeted percentages to an amount of no more
than 16.66% or less than 8.33% of the City's General Fund operating budget.
The vote on this proposed Charter amendment is scheduled for November 6, 2012.
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
Passage
First Reading
Referral
Department Head
City Manager
Finance Director
Page _ of _
City Solicitor
12-322
SEPTEMBER 24, 2012
Assigned to Sprague
CI'T'Y OF BANGOR
(TITLE.) Resolve, Supporting the Amendment of the City Charter — Undesignated Fund Balance
WHEREAS, the Charter of the City of Bangor provides that the City Council shall target an undesignated
fund balance of no more than 10% nor less than 5% of the City's General Fund operating budget, less
existing debt; and
WHEREAS, the City of Bangor has historically been conservative with the City finances; and
WHEREAS, it is fiscally prudent to increase the targeted amount of the City's undesignated fund balance;
and
WHEREAS, it is reasonable to increase the targeted maximums and minimums for the City's
undesignated fund balance; and
WHEREAS, the City Council has voted to refer to the voters of the City of Bangor a proposed
amendment to the City Charter to increase the targeted percentages to an amount of no more than
16.66% or less than 8.330/ot of the City's General Fund operating budget; and
WHEREAS, the election for the proposed Charter amendment is scheduled for November 6, 2012; and
WHEREAS, it is in the best interest of the City of Bangor to amend the undesignated fund balance
provision of the City Charter.
BY THE CITY COUNCIL OF THE CITY OF BANGOR:
BE IT RESOLVED, that the City of Bangor supports the passage of the ballot question to
amend the Undesignated Fund Balance provision of the City Charter.
IN CITY COUNCIL
September 24, 2012
Motion made and seconded for Passage
Roll Call Requested
Vote: 9-0
Councilors Voting Yes: Baldacci, Blanchette,
Durgin, Gallant, Gratwick, Longo, (TITLE,
Hawes, Sprague, Weston
Councilors Voting No: None
P ss
CITY CLERK
Assigned to Councilor