ITEM: 12.1A ADMINISTRATION - Joe Huss, Finance Director
Title
GASB 54 IMPLEMENTATION - COMMITTING SPECIFIC REVENUE SOURCES IN SPECIAL REVENUE FUNDS
Background
The Governmental Accounting Standards Board (GASB) has issued Standard No. 54, a new reporting standard regarding fund balance. GASB 54, as it is commonly known, requires implementation for the City's 2011 financial statements.
Current reporting standards require the City to categorize fund balance as either Reserved, or Unreserved. If unreserved, the fund balance is required to be categorized as either designated or undesignated. Implementation of GASB 54 requires fund balances to be categorized as Non-spendable, Restricted, or Unrestricted. If unrestricted, fund balances would be further classified as Committed, Assigned, or Unassigned.
The resolution below ensures that GASB 54 requirements are met and allows staff to assign fund balances to their proper category under GASB 54.
Schedule of Actions
12/08/2011 Workshop - Review GASB 54 requirements and recommended actions
12/15/2011 Council Meeting - Adopt resolution committing revenue sources in special revenue funds
Body
WHEREAS, the Governmental Accounting Standards Board's Statement #54 definition of special revenue funds states that special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects; and
WHEREAS, the term "proceeds of specific revenue sources" establishes that one or more specific restricted or committed revenues should be the foundation for a special revenue fund and comprise a substantial portion of the fund's revenues; and
WHEREAS, investment earnings and transfers from other funds do not meet the definition of a specific revenue source; and
WHEREAS, council action is required to formalize the commitment of fund balance; and
WHEREAS, council action is required to formalize the commitment of the specific revenue sources to specified purposes.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine that effective January 1, 2011 the specific revenue source of each special revenue fund and the specific purposes for which they are restricted or committed are as follows:
Fund |
Specific Revenue Sources |
Committed For |
EDA Fund |
Tax Levy |
Activities to promote |
|
|
economic development |
EDA Fund |
TIF Bond Funds (1996B) |
Revolving loan program |
Cable Television |
Cable Franchise Fees |
To support |
Fund |
|
communications and to |
|
|
provide for the operation |
|
|
and maintenance of the |
|
|
public broadcasting |
|
|
system |
Reimbursed Police |
Billed police services |
Additional special police |
Overtime Fund |
|
overtime services |
Fund |
Specific Revenue Sources |
Restricted For |
EDA Fund |
Lodging Taxes |
Activities to promote |
|
|
economic development |
Charitable |
Gambling fee (10% of net |
Lawful purposes under |
Gambling Fund |
profits) |
MN Statute ยง349.12 |
Police Grant Fund |
Police grants (federal |
Police grant programs |
|
and state) |
|
Forfeited Property |
Forfeited property |
Law enforcement |
Fund |
|
programs and activities |
Energy Efficiency |
Federal Department of |
Energy Efficiency |
Block Grant Fund |
Energy Block Grant |
Programs |
THEREFORE, BE IT FURTHER RESOLVED that the unrestricted fund balance of the EDA Fund, Cable Television Fund, and the Reimbursed Police Overtime Fund be committed by City Council for the specified purposes stated above.
Recommendation
By motion, adopt the resolution included herein.