HomeMy WebLinkAbout2017-02-15 17-085 ORDERCOUNCIL ACTION
Item No. 17-085
Date: February 13, 2017
Item/Subject: Order, Authorizing the transfercf1,600,000 from the Unassigned Fund Balance
Responsible Department: Finance
Commentary: This Order will authorize the transfer $1,600,000 from the unassigned fund balance to
capital reserve funds. The Charter specifies that the City will maintain a fund balance of no less that
8.33% of the prior years operating expenditures. The audit for fiscal year ending 2016 indicates that
the City has an unassisgned balance of approximately $11.3 million which represents 12.17% of the
prior year expenditures.
Over the past several budget cycles, the City has not budgeted sufficient funds to maintain capital
replacement funds. This transfer allows the City to fund its current capital needs without impacting the
upcoming FY 2018 tax rate. As a result, it is recommended by staff that $1,600,000 be transferred to
the following reserves; $663,386 to the Capital Improvement Fund to fund anticipated capital needs for
FY 2018; $300,000 to the Bus Replacement Fund to fund the local share of the recently award FAST
grant that provided funding for 4 new busses; and $636,614 to a Building reserve to fund the final costs
anticipated under the Master Transaction agreement related to the facility at 103 Texas Avenue.
If approved the unassigned fund balance will drop to approximatley $9.7 million which represents
10.45% of the 2016 operating budget.
This item was reviewed and recommended for adoption by the Finance Committee on February 6, 2017.
DebWe Cyr
Department Head
Manager's Comments:
City Manager
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
—X—Passage
First Reading
Referral
LQ-�"W —
mance Director
Page _1_ of _1_
17-085
FEBURARY 13, 2017
Assigned to Councilor Perry
CITY OF BANGOR
(TITLE) Order, Authorizing the Transfer of $1,600,000 from the Unassigned Fund Balance
WHEREAS, The Charter requires that the City Council shall target an unassigned fund balance of
no more than 16.66% of the operating budget for the General Fund. The target
balance shall be established at 8.33% of the last year's General Fund operating
budget.
WHEREAS, The unassigned fund balance at the end of the prior fiscal year was approximately
12.17%
WHEREAS, The transfer of $1,600,000 from the unassigned fund balance will leave the balance
at 10.45% of the previous years operating budget, well within the Charter
established limits.
BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OFBANGOR, THAT
The Finance Director is hereby authorized to transfer $1,600,000 from the unassigned fund
balance for the following purposes; $663,386 to the Improvement Reserve, $300,000 to the Bus
Replacement Fund and $636,614 to a capital project for 103 Texas Avenue.
IN CITY COUNCIL
FEBRUARY 15, 2017
CO 17-085
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
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