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HomeMy WebLinkAboutCouncil Resolution 1349RESOLUTION NO. A RESOLUTION TO ADOPT GASB 54 FUND BALANCE REPORTING FOR THE CITY OF CENTRAL POINT RECITALS: A. Prior to GASB 54, ending fund balances were specified as reserved, designated, or unreserved; and GASB 54, a statement by the Government Accounting and Standards requires fund balances to be reported in classifications that "comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent;" and C. The ending balance for all funds must be designated per the following categories set forth by GASB 54: o Non -spendable— Funds which cannot be spent. • Restricted—Amounts subject to externally enforceable legal restrictions (imposed by grantors, contributors, governmental regulations, etc.). • Committed—Amounts whose use is constrained by limitations that a government imposes upon itself. o Assigned— Intended use of resources established by the governing body itself, or by an official or officers to which authority is delegated by the governing body. • Unassigned —Available for any purpose (reported only in the General Fund). D. The City Council wishes to establish guidelines for assigning balances; and E. The City Council wishes to clarify the spending as it relates to ending fund balance policy. THE CITY OF CENTRAL POINT RESOLVES: Section is Authority to classify portions of ending fund balance as assigned will be delegated to the City Manager and/or Finance Director. Section z: The order of spending as it relates to fund balance policy shall be: spending of restricted fund balances on purposes for which such funds can be used to occur first when funds are spent for restricted and unrestricted purposes. When restricted classifications of fund balance are spent, the Council will consider that committed amounts will be reduced first, followed by assigned amounts and then unassigned amounts. Passed by the Council and signed by me in authentication of its passage this December 13, zoiz. Hank Williams, Mayor U Deanna Casey, City