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HomeMy WebLinkAbout2012-09-24 12-323 RESOLVECOUNCIL ACTION Item No—.112--3-2-3 Date: September 24, 2012 Item/Subject: Resolve, Opposing the Referendum to Amend the Charter of the City of Bangor to Place Conditions on the City Council's Authority to Borrow Responsible Department: Legal Commentary: This resolve if adopted, will state the Bangor City Council's opposition to a November Referendum to amend the Charter of the City of Bangor to place conditions on the City's authority to borrow. Under the Bangor City Charter, the City Council has the authority to borrow money for the public benefit without seeking voter approval. Recently, a group of citizens formed a Petitioners' Committee to place limits on the ability of the City Council to borrow without voter approval. The Petitioners have secured the necessary 2,236 signatures from registered Bangor voters, as required by the City of Bangor's Initiative/Referendum Ordinance, to send the question to the voters in November, of whether to amend the City Charter to require, under certain conditions, voter approval of borrowing authorized by the City Council. The proposed Charter amendment requires that all projects in excess of $1,228,325 would require a vote with certain exceptions such as borrowing for projects where the debt service is supported by an enterprise fund. Projects that do not meet the exceptions described in the proposed Charter amendment, would require voter approval. In addition to new construction projects such as the arena, fire station #6, and police station, this Charter amendment would require voter approval for maintenance and replacement items such as replacement of the downtown parking deck and the new roof at Bangor High School, all of which exceeded the threshold borrowing limit proposed in the Charter Amendment. The vote on this proposed Charter amendment is scheduled for November 6, 2012. Introduced for Passage First Reading Referral Page _ of Department Head Manager's Comments: cagL )— City Manager Associated Information: Budget Approval: -� ya��� Finance Director Legal Approval: City Solicitor Introduced for Passage First Reading Referral Page _ of 12-323 SEPTEMBER 24, 2012 Assigned to Councilor Durgin CITY OF BANGOR (TITLE.) Resolve, Opposing the Referendum to Amend the Charter of the City of Bangor to Place Conditions on the City Council's Authority to Borrow WHEREAS, the City Council of the City of Bangor has the authority to borrow money for the public benefit; and WHEREAS, a group of citizens formed a Petitioners' Committee and secured the signatures of at least 2,236 registered Bangor voters as required by the City of Bangor's Initiative/Referendum Ordinance for the purpose of sending the question of whether to amend the City Charter to require, under certain conditions, voter approval of borrowing authorized by the City Council; and WHEREAS, if in effect in 2012 the proposed amendment to the City Charter would require voter approval for borrowing authorized by the City Council in excess of $1,228,325 for those projects that do not meet the exceptions described in the proposed Charter amendment; and WHEREAS, in the last several years the City has constructed the arena, a new police station, fire department substation, replaced a downtown parking deck and the roof at Bangor High School, each requiring borrowing in excess of the proposed threshold and all needed for the public's benefit; and WHEREAS, the election for the referendum is scheduled for November 6, 2012; and WHEREAS, it is not in the best interest of the City of Bangor to amend the City Charter to place limitations upon the City Council for certain borrowings. BY THE CITY COUNCIL OF THE CITY OF BANGOR: BE IT RESOLVED, THAT the City of Bangor opposes the passage of the referendum seeking to amend the City Charter to place limits and conditions on the City Council's authority to approve borrowing for the public benefit. IN CITY COUNCIL September 24, 2012 Motion made and seconded for Passage Roll Call Requested Vote: 7-2 Councilors Voting Yes: Baldacci, Gratwick, Longo, Hawes, Sprague Blanchette, Durgin, (TITLE,) Councilors Voting No: Gallant, Weston Pass d CITY IMERK Assigned to Councilor