HomeMy WebLinkAbout2000-06-12 00-243 ORDER___..�_.._.._.. Item NC 00-243
Date: lune 12, 2000
Item/Subject Order, Adopting Amendment to the Designated and Andesignated Fund Balance
Policy
Responsible Department: City Manager
Commentary:
The attached Order would establish a new designated reserve to provide a potential source of
funding for various improvements and expansions W the Ow s Parks and Recreational fadlities. This
reserve would be funded, at least in part, by designating 50% of the net proceeds athe golf course
for this purpose.
When the golf mum fund was initially established, the City's policy was to designate 50% of the
net proceeds of the mum to a capital reserve for one golf mum with the remainder returned to
the General Fund. At the time the Course was expanded te IS holes, this approach was changed
given the reality that the Golf Course was unable to produce sufficient revenue to meet debt service
requirements. In addition, a series of other capital needs were identified for the mum that
required a funding. Once the course again achieved progtabi0ty, net proceeds were set aside for
these improvements.
We have now reached a position where the Course has undertaken the majority of its capital
projects and continues to produce suf0cient revenues to meet anticipated future needs. The Council
may now wish to consider returning ro the prior poctice of using a portion of net proceeds for other
Purposes.
Over the past ten years, the City has also upgraded most of Hs parks and recreation facilites.
Today, we have one of the finest municipal park systems in the State. At the same time, we are
faced with demands to expand or upgrade this system and will be challenged m maintain the quality
of our facilities as the improvements of the last ten years age. To address at least some of these
needs, it seems appropriate to designate a portion of golf proceeds to api[al improvements in the
Park and Recreation Department.
During the anent budget process, we have discussed several projects which might be funded in
this manner, in particular, replacing the creative playground and site preparation per the proposed
skateboard park. These projects would require either a tax increase or borrowing if this Proposed
source of funds is not available.
I would recommend your approval of the attached Order. This will allow us to include these two
projects in the FY01 budget wll affecting taxes. Further, this will also movies a potential source
of revenue for other park and recreation projects in future years.
Devilment Head
Managers Comments:
City Manager
Asmda0.N Information: Order
Budget Approval:
Finance Director
Legal Approval:
Cult schl
Introduced Fm Passage Page_ of
00-243
- _ - Assigned M Councilor BLv tte June 12, 2000
CITY OF BANGOR
(TITLE.) Order, Adopting Amendment to the Designated and Undesignated Fund Balance Miry
By Bre DO, Coundl of the Ory of&wW.
ORDERED, THAT
The following section is hereby added to the Ditty of Bangor's Designated and Undesignated
-Fund Balance Polley:
11.0 Parks and Recreation Facilities Improvement Reserve
11.1 Purpose. The Parks and Recreation Facilities Improvement Reserve is designed to
allow for funding capital improvements to the a" park system and recreational
facilities to include replacement or upgrade of existing facilities or equipment and
the construction of new or expanded facilities.
11.2 Funding. The Parks and Recreation Fadlities Improvement Reserve may be
funded by direct annual appropriation in the pry's operating budget and through
transfers from undesignated fund balance or other designated reserves. In
addition, on an annual basis 50% of the net proceeds of the Golf Course Fund
shall be placed In this reserve.
11,3 Authority to Use. The pty Counil must authorize the expenditure of these funds
either as an element of the annual operating budget or through a separate
appropriation resolve. Funds may be transferred from this reserve to other
designated reserves or released to undesignated fund balance by Council Order.
11.4 Amounts and Limits. No limitations are placed on the amount which may be
carried in this reserve.
IA un C(MOgCIL
date 12. 2000
Motion for Passage Node and
Seconded Motion Doubted
Motion to Amend in Section 11.2
by changing the figure 50S to
25% made and seconded
Vote! 4 yes. 4 no, 1 absent
Councilors voting yes. Beldacci.
Crowley, yarnLam 6 Tremble
Councilaravoting no: Aube.
Blanchette, Palmer 6 vatdamis
Councilor absent: Holmen
Motion to Amend failed Passage
Vote on Motion for Passage:
8 yea. 1 absent
Comcilors voting yeg: "be.
Baldaccl. Blanchette. Crowley,
Parnham, Palmer. Tremble E
varda®a
Councilor ahcesc: Rebase
00-243
ORDER
1Me, Adapting Amendment to the Desiogated
and Undersigned Pard Bslance Policy
Assigned
Ra CoundRM
gu)tla.Q G. I