ITEM: 12.1B ADMINISTRATION - Joe Huss, Finance Director
Title
ADOPTING A FUND BALANCE POLICY FOR THE GENERAL FUND
Background
The Governmental Accounting Standards Board (GASB) has issued Standard No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, a new reporting standard regarding fund balance. GASB 54, as it is commonly known, requires implementation for the City's 2011 financial statements, and involves two distinct Council actions: (1) Adoption of a fund balance policy for the General fund; and (2) Adoption of a resolution that properly categorizes fund balance, establishes flow assumptions, and delegates authority to assign fund balances to the proper category in the City's special revenue funds.
The attached policy was reviewed with Council at the December 8, 2011 Workshop and reflects Council direction provided at the Workshop.
Schedule of Actions
12/08/2011 Workshop - GASB 54 and policy review
12/15/2011 Council Meeting - Adopt Fund Balance Policy for General Fund
Recommendation
By motion, adopt the Fund Balance Policy attached hereto.