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HomeMy WebLinkAbout2017-05-08 17-169 RESOLVECOUNCIL ACTION Item No: 17-169 Date: May 8, 2017 Item/Subject: RESOLVE, Making an Adjustment to the Local Education Appropriation Amount if Additional State Funding Becomes Available Due to the Passage of the State of Maine Biennial Budget Responsible Department: School Department Commentary: State Statute requires the school budget be approved by the School Committee, City Council and the Bangor voters, which is scheduled for June 13, 2017. It is possible that the School Department could receive funding in excess of what is projected in the proposed budget, however at this time it is not clear whether the State of Maine will complete its biennial budget process prior to the required vote on the school budget. If approved, the attached Resolve will dedicate any additional State funding that may become available with the passage of the State of Maine budget to reduce the local share of education funding up to $765,444. If the additional State of Maine funding exceeds $765,444, the excess local funds shall be allocated to a capital reserve fund for the purposes of funding minor capital improvement projects, facility upgrades and emergency repairs. The existence of such a fund could reduce future mil rate impacts as a result of declining revenues. The School Committee will be reviewing additional language at its May 10th meeting that would limit the amount of additional funds allocated to a capital reserve to $500,000. This item may need to be amended by substitution depending upon any additional action by the School Committee. Department Head Manager's Comments: This resolve would allow any additional State funding to decrease the current local appropriation for education to its FY 2017 level and establish a reserve should a potential increase in State funding exceed the currently proposed budgetary increase. This would ensure that any increase in State Funding would not require another budget validation referendum. Associated Information: Resolve Budget Approval: Legal Approval: Introduced for Passage X First Reading Referral City Manager Finance Director / City 4licitor Page _ of _ Assigned to Councilor Sprague CITY OF BANGOR 17-169 MAY 8, 2017 (TITLE.) Resolve, Making an Adjustment to the Local Education Appropriation Amount if Additional State Funding Becomes Available Due to the Passage of the State of Maine Biennial Budget BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT Article 14; To see if the City of Bangor will reduce the amount raised and assessed as the City of Bangor's contribution to the total cost of funding public education from kindergarten to grade 12 as described in the Essential Programs and Services Funding Act in accordance with the Maine Revised Statutes, Title 20-A, section 15688, by the amount of any unanticipated increase in the adjusted state contribution under the Essential Programs and Services funding model, up to $765,444 Article 15; To see if the City of Bangor will establish and allocate funds to a Bangor School Department Capital Reserve Fund, for the purposes of funding minor capital improvement projects, facility upgrades and emergency repairs, to the extent that any amount of unanticipated increase in the adjusted state contribution under the Essential Programs and Services funding model exceeds $765,444 IN CITY COUNCIL MAY 8, 2017 CR 17-169 FIRST READING aJ �v'a0 CITY CLERK IN CITY COUNCIL MAY 22, 2017 CR 17-169 MOTION MADE AND SECONDED FOR PASSAGE MOTION MADE AND SECONDED TO AMEND BY SUBSTITUTION AMENDMENT PASSED MOTION MADE AND SECONDED FOR PASSAGE AS AMENDED PASSED AS AMENDED D UTY CITY CLERK