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HomeMy WebLinkAbout2002-08-12 02-310 ORDERItem No. on -3:o Date: August 12, 2002 Item/ Subject; ORDER -Establishing a Designated Fund Balance Reserve Entitled: Master Transaction Agreement" Responsible Department: Finance Commentaryr As you are aware, the City executed a Master Trareaction Agreement (WA), as amended, with Bangor Nursing & Rehab Center (BNRC). This agreement spun -off a City department and created BNRC as a separate entity. This order would establish a designated fund balance to provide a source of funds for items addressed Within the MTA such as; amounts owed for cast report settlements up to the period ended December 31, 2000, reimbursement to BNRC for non -grant funded Health B Welfare division utilities and the reimbursement of sick time used during the first year of BNRCls opeation that was transferred from the City. The reserve would be funded by the receipt of cost report settlements received after January 1, 2001 that are related to periods prior to that date. Department Head Manager's Comments: Recommend approval City Manager Associated Information: Order, Amendment 5 Budget Approval: This order has been reviewed and recommended far passage by the Finance Committee. _ .FinanceeDirector Legal Approval: ty Solicitor X Passage _ First Ring Page _ of Referral 02-310 Assigned to Councilor Palmer August 12, 2002 CITY OF BANGOR (TIRE.) Order, Establishing a Designated Fend Balance Reserve Entitled: "Master Transaction Agreement^ ORDERED, 1MIIT In accordance War Article W, Section 19 of the Ory Garter ars! the guidelines set fodh in Council Order 94297, "Designated and! tlntlgignated Fund Balar e , the M[adied amendment to the afolementi polky for Me estatlishmeM of a Designated Master Transaction Agreement Reserve is hereby adopted. 02-310 IN CITY C006CIL nugesa 12, 2002 ORDER Notion Made 6 Seconded for Passage Ttle Establisbieg a 0esigoated Fled Passed Nelan[e Reserve entitled: "Master Transaction Agreement" CLNHR Assigned to Councilor 02-310 AMENDMENTS DESIGNATED AND UNDESIGNATED FUND BALANCE 13. Master Transaction Agreement Reserve 13.1 Purpose. The Master Transaction Agreement Reserve is established to provide a source of funding for a number of issues related to the City's and Bangor Nursing & Rehabilitation Center's (BNRC) Master Transaction Agreement, as amended. The Reserve will provide a source of funding for the following: reimbursement of non -grant funded Health & Welfare division utilities, liabilities resulting from cost report settlements through the period ended December 31, 2000, and the cost of sick time used by employees transferred to BNRC for the period January 1, 2000 to December 31, 2000. 13.2 Funding. The Master Transaction Agreement Reserve will be funded by the cost report settlements received after January 1, 2001 relating to operations prior to that date. 13.3 Authority to Use and Withdraw. The City Council must authorize the expenditure/transfer/release of these funds either as an element of the annual operating budget or through a separate appropriation resolve, except for the items specifically identified under section 13.1. 13.4 Amounts and Limits. No limitations are placed on the amount which may be carried in this reserve.