HomeMy WebLinkAboutR11-252RESOLUTION R11 -252
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLAINVIEW,
TEXAS ADOPTING A FUND BALANCE POLICY IN COMPLIANCE WITH
THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD'S
ADOPTION OF STATEMENT 54 AND AUTHORIZING THE CITY
MANAGER TO ASSIGN FUND BALANCES IN ACCORDANCE WITH
SUCH STATEMENT
WHEREAS, the Governmental Accounting Standards Board "GASB has
adopted Statement 54 "GASB 54 a new standard for governmental fund balance
reporting and governmental fund type definitions; and
WHEREAS, this statement establishes a constraint -based approach in reporting
fund balances as well as revising governmental fund type definitions and clarifications
required for reporting stabilization of funds; and
WHEREAS, this statement applies to fund balance presentations as displayed on
the governmental fund balance sheet and does not impact the reporting of proprietary
and fiduciary fund balances; and
WHEREAS, GASB 54 is effective for the State of Texas fiscal 2011 annual
financial reports; and
WHEREAS, in accordance with GASB 54, the City of Plainview elects to
implement and apply such requirements to its financial statements beginning with the
current fiscal year; and
WHEREAS, the City Council designates Greg Ingham and /or his designee as the
City's authorized official and gives him and /or his designee the power to assign funds as
needed to comply with GASB 54.
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL FOR THE
CITY OF PLAINVIEW THAT:
The City Council hereby adopts the attached Fund Balance Policy marked as
"Exhibit A" which is attached and incorporated into this Resolution.
Further, the City Council designates Greg Ingham and /or his designee as the
City's authorized official and gives him and /or his designee the power to assign such
funds as needed to comply with GASB 54.
Resolution R11 -252
Fund Balance Policy Page 1 of 3
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PASSED, ADOPTED AND APPROVED by the City Council of the City of Plainview this
the 27 day of September, 2011.
ATTEST:
Belinda inojosa, City Secr
APPROVED AS TO CONTENT:
Sarianne Beversdorf, Director o /Finance
APPROVED AS TO FORM:
Leslie Spear Pea e, City Attorney
Resolution R11 -252
VA)
ohn C. Anderson, ayor
Fund Balance Policy Page 2 of 3
Exhibit A
City of Plainview
Fund Balance Policy
The City of Plainview (the City) reports fund balances for governmental funds in classifications
based primarily on the extent to which the City is bound to honor constraints on the specific
purposes for which amounts in thole funds can be spent. The nonspendable classification
represents assets that will not be consumed or must be maintained intact, and therefore will never
convert to cash. Provisions of laws, contracts, and grants specify how fund resources can be
used in the restricted classification. The nature of these two classifications precludes a need for a
policy from the City Council (the Council). However, the Council has adopted the following
fund balance policies for the three unrestricted classifications committed, assigned, and
unassigned.
From time to time, the Council may commit fund balance by a majority vote in a scheduled
meeting. The Council's commitment may be modified or rescinded by a majority vote in a
scheduled meeting. Council commitments cannot exceed the amount of fund balance that is in
excess of the sum of nonspendable and restricted fund balances, since that practice would
commit funds that the City does not have. Commitments may be for capital improvements,
operating contingencies, and other purposes determined by the Council.
The Council may delegate authority to specified persons to make assignments of certain
fund balances by a majority vote in a scheduled meeting. The authority to make assignments
shall be in effect until modified or rescinded by the Council by a majority vote in a scheduled
meeting. Greg Ingham and /or his designee is the City's authorized official and gives him and /or
his designee the power to assign such funds as needed to comply with GASB 54.
When the City incurs expenditures that can be made from either restricted or unrestricted
fund balances, the expenditures should be charged to restricted fund balances. When the City
incurs expenditures that can be made from either committed, assigned, or unassigned balances,
the expenditures should be charged first to committed fund balances, second to assigned fund
balances, and third to unassigned fund balances.
The City's goal is to have a sufficient balance in the general fund balance to address local and
regional emergencies without borrowing. In addition the city will strive to maintain a minimum
3 months of operating expenditures in the general fund unassigned fund balance.
Resolution R11 -252
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