HomeMy WebLinkAbout2000-12-11 01-59 RESOLVEItan No 01-59
Date: 12-11-00
Item/Subject: RESOLVE Appropriating Four Hundred! Thousand Dollars from the General
Fund's Undesignated/Unreserved Fund Balance for Use as a Revolving line of Credit
to the Bangor Nursing and Rehabilitation Center.
Responsible Department: Finance
Commentary: The attached resolve appropriates $900,000 of the existing General Fund's unreserved/
undesignated reserve to cover operating cash shortfalls A Me Bangor Nursing and Rehabilitation Center
during ils first four years of operation. mans disbursed under these provisions are not mears to be
permanent, but rather to cover periodic cash needs.
This provision was discussed at the November 16, 1000 City Council/BNRC Board of Direcmrs Workshop
meeting as one of the requests W be Included in the Master Tmmac0on Agreement between the parties.
Given the requirement that Appropriation Resolves have two readings, this component of the Master
Tansacdon Agreement must appear prior to consideration of the complete agreement which is scheduled
for December 27°. City staff working on the Ory Nursing Facility transition to a non-profit organization
(Bob Farrar, Norm Heitman and Connie Pingley) recommend approval of this Resolve.
4imager's Comments:
City Manager
Associated Information:
kfok
Finance Director
Passage
First Readi9g //� Page _of_
- Referral ;Zrrrahellk 12 -,ab 'Ri
D1—s9
Assigmecim Councilor Palmer December 11, 200D
CITY OF BANGOR
(MILE.) Resolve, Appropriating Hundred Thousand Dollars
GeneralUnclesignated/UnumixtriDed Fund Balance for Use as a
Revolving Line of Credit to the Barmor Nursing and Rehabilitation
Center
By Me CRY Coun of Oe Ory ofBargw:
WHEREAS, the Bangor City Council has demmuned that it is in the best interests of
the citizens of the City of Bangor to maintain the operations at the Bangor
City Nursing Facility; and
WHEREAS, the Council has further determined that the best way to assure continued
viability of the CNF is to create an Independent, not for profit corporation
to operate it, such corporation being currently named the Bangor Nursing
and Rehabilitation Center, and
WHEREAS, once operation of the new corporation commences, normal lags between
revenue recognition and Patel may create temporary operating cash flow
deficits, and
WHEREAS, such temporary deficits, having occurred at the Bangor City Nursing
Facility, have historically been funded with a loan from the C4% General
Fund; and
WHEREAS, R is anticipated that the Bangor Nursing and Rehabilitation Center will
effectively have no access to conventional lines of credit to are these
deficits,
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
BANGOR, THAT $900,000 is hereby appropriated from the City§ Unreserved/
Undesignated General Fund balance to provide a revolving line of credit, the purpose of
which wilt be to assure the facill" liquidity; and
BE IT FURTHER RESOLVED, THAT the maximum amount permitted to be
outstanding at any one Itme under this line of credit shall never exceed $900,000; and
BE IT FURTHER RESOLVED, THAT for a continuous one month period each flscal
year, there must be no outstanding balance under this line of credit; and
01-59
BE XT FURTHER RESOLVED, THAT the amounts available under the line will be
reduced such that at the end of each fiscal year, the facillws net cash Bow will reduce,
on a dollar for dollar basis, the amounts available under the line, and
BE IT FURTHER RESOLVED, THAT at the eadier of (1) the end of the facilWs fourth
fiscal year or (ii) the point at which accumulated cash surpluses reach $400,000, no
amounts will be available under the line; and
BE IT FURTHER RESOLVED, THAT at the Finance Director is Instructed to create a
reserve fund balance account in the General Fund consistent with this Resolve.
IN CITY COUNCIL
Decenber 11, 2000
First Heading
Referred to finance
Committee
1Y CLHBH
IN CITY COUNCIL
December 27. 2000
Mound for Passage Made
and Seconded
Passed
I CLERK
p 01-59
RESOLVE
(TITLE,)Aunrooriatine four Hundred Boilers
from the general Nna•s Undesignated/Unreserved
Fund Balance for Use as a Revolving Line of
Credit to the Bangor Hotel" and Rehabilitation
Cen
1 It",