AgdaPkt 2011-06-27 - Laserfiche WebLink

Browse Search

6.2.D. - Page 2 unexpended capital project appropriations into the subsequent fiscal year. The "designated" fund balance category no longer exists under GASB 54. • Assigned fund balance represents amounts intended to be used for specific purposes, but are neither restricted nor committed. The intent for use of assigned fund balance may be established by an official designated by the City Council to make the determination for assignment. The recommendation is that the City Council delegate this authority to the City Manager to enable assigned fund balance amounts to be determined during the budget process and fiscal year -end close. It is anticipated that the intent of the City Council will be known by the City Manager, and the intended uses will be reflected through the use of assigned fund balance. This recommendation documents current practice of the City Manager currently determining the designated fund balance amounts, which will now be reflected as assigned fund balance amounts under GASB 54. Examples of assigned fund balance are encumbrances of unassigned amounts, and residual balances of governmental funds, other than the general fund. • Unassigned fund balance represents the amounts that have not been included in the four categories above (previously reported as undesignated fund balance). Unassigned fund balance only exists in the general fund, as other governmental funds are only used for restricted, committed and assigned amounts. Within the unassigned fund balance of the general fund are the following classifications: City Council directed minimum balance, which represents 20% of estimated General Fund revenues in any given fiscal year, and the residual amount to be used at Council discretion. Above recommendations have been discussed with and approved by Mayor Ira, Chair of the Council's Finance Committee. ALTERNATIVES The City Council may elect not to commit fund balance, in which case the fund balance recommended for commitment will be reflected in the less restrictive "assigned" fund balance category. The City Council may elect to retain authority over classifying fund balance amounts as assigned rather than delegating this authority to the City Manager. Doing so would require annual staff reports to City Council to determine these assignments prior to the fiscal year -end close period. FISCAL IMPACT The fiscal impact to implement this recommendation will be minimal and absorbed within existing Finance Department budgeted staff hours.