09-17-13-Resolution-Establish a Fund Balance Policies and Commitments required by GASB 54-09/16/2013Resolution #R094743
RESOLUTION TO ESTABLISH FUND BALANCE POLICIES AND COMMITMENTS
AS REQUIRED BY GASB 54,
WHEREAS, The City has implemented GOvermnental Accouulting Standards Board
Statement 54, Fund Balance Reporting and Go>>ernmental Fund Type Definitions (GASB 54)
and
WHEREAS, Fui1d balance categories under GASB 54 are Nonspendable and Spendable
and classifications under the Spendable category are Restricted, Committed, Assigned, and
Unassigned and these classifications reflect not only the nature of funds, but also provide clarity
to the level of restriction placed upon fiend balance; and
WHEREAS, Non -spendable Fund Balance includes fiend balance amounts that cannot be
spent either because they are not in spendable form or because of legal or contractual
requirements and include inventories, long-term receivables, endowment principal, and/or
prepaid/deferred items; and
WHEREAS, Restricted Fluid Balance inchides amounts include fiords that can only be
spent for specific purposes imposed by law, creditors, grantors, contributors, or other
govermnents' including federal and state grant programs, retirement of long term debt, and
construction of capital projects; and
WHEREAS, Committed Fund Balance inchides amounts that can be used only for the
specific purposes as determined by the governing body by formal action prior to the end of the
I
iscal year and may be changed or lifted only by the governing body taking the same formal
action including construction, capital expenditures, claims and ju
dgments, udgments, and retirement of
loans or notes payable; and
WHEREAS, Assigned Fumd Balance includes amounts intended to be used by the City
for specific purposes as deternned by the City Manager including those items listed under
Committed Fund Balance as well as the appropriation of existing fund balance to eliminate a
deficit in next year's budget; and
WHEREAS, Unassigned Fund Balance includes the residual classification of the
General Fuind and all amounts not contained i11 other classifications•
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Sanger;
In circumstances where an expenditure is to be made for a purpose for which amounts are
available in multiple fiord balance classifications, the order in which resources will be expended
is as follows: restricted fiend balance, followed by coimnitted fiend balance, assigned fund
balance, and lastly unassigned fund balance.
When it is appropriate for fund balance to be assigned, the City Council hereby delegates the
authority to .the City Manager.
The following find balances are committed:
Equipment Replacement Funds
Library Building Expansion Funds
Beautification Board Funds
All Donated Funds
Capital Projects Funds
PASSED AND APPROVED this day of September 2013.
ATTEST:
aC)F.�
Tani Taber, City Secretary
Thomas Muir, Mayor