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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