HomeMy WebLinkAboutR15-335RESOLUTION R15-335
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLAINVIEW,
TEXAS UPDATING THE ADOPTED 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 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 displayed on the
governmental fund balance sheet and does not impact the reporting of proprietary and
fiduciary fund balances; and
WHEREAS, the City of Plainview ("City") elected to implement GASB 54
requirements in 2011 and apply such requirements to its financial statements; and
WHEREAS the City Council designates the City Manager 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.
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," incorporated and attached herein as a part of this Resolution.
Further, the City Council designates the City Manager 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 R15-335
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PASSED, ADOPTED AND APPROVED by the City Council of the City of Plainview this
the 14th day of April, 2015.
Wendell Dunlap, Mayor
ATT
Belinda Hinojosa, Cicretary
APPROVED AS TO CONTENT:
Sarianne Beversdorf, Director ofnance
APPROVED AS TO FORM:
Le ie Spear,City A orney
Resolution R15-335
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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 those 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 available. 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.
The City Manager and/or his designee is the 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.
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