14-01 GASB
Resolution #14-01
Resolutions Adopting Governmental Accounting Standards City Council Statement 54 - GASB 54
WHEREAS, financial management is necessary for the control of the affairs of the (Entity Name).
WHEREAS, sound accounting practices and policies are necessary for ensuring the integrity of financial records and the District funds.
WHEREAS, the Governmental Accounting Standards City Council (GASB) has issued GASB Statement 54.
THEREFORE BE IT RESOLVED by the City of Sodaville City Council, meeting in regular session at 30723 Sodaville Road, Lebanon, Oregon 97355 on the 16th day of January 2014, that the City of Sodaville City Council hereby adopts the following GASB 54 policies:
Minimum Fund Balance (General Fund) Policy
The City of Sodaville considers that it is prudent to establish a reserve for economic uncertainties to safeguard the District's financial stability. We have determined that a prudent reserve for a district of our size is a minimum of three percent of budgeted General Fund expenditures and other financing uses.
The City of Sodaville City Council may appropriate unassigned fund balance purposes for emergency purposes, as deemed necessary, even if such use decreases the fund balance below the designated percentage. Emergency purposes do not include the offsetting of property taxes or mismanagement of funds.
Policy Granting Authorization for Specific Members of Management to Assign Fund Balances
The City Administrator shall be responsible for monitoring and reporting the City of Sodaville’s various reserves and fund balance categories. The City Administrator is directed to make recommendations to the City Council on the use of reserve funds both as an element of the annual operating budget submission and from time to time throughout the year as needs may arise. Annually, the budget officer for the District shall be responsible for identification of resource assignments within the proposed budget document. The assignments contained within the adopted budget shall be considered approved by the City of Sodaville City Council and any changes in assignment shall be reported to the City Council at each regular meeting.
Policy Stating the Process for Committing Funds
Commitment of fund balance shall be done through adoption of a resolution or ordinance by the City of Sodaville City Council. Further, commitments of fund balance may be modified or rescinded only through approval of the City Council via resolution or ordinance.
Flow Assumption (Spending Priority) Policy (i.e., restricted before unrestricted)
When both restricted and unrestricted fund balances are available for use, it is the City of Sodaville City Councils’ policy to use restricted fund balance first, then unrestricted fund balance. Furthermore, committed fund balances are reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used. Additionally, all spendable, unrestricted revenue amounts in the special revenue funds, debt service funds, and capital projects funds are committed/assigned to be used for the purpose for which the fund was established.
Policy Formalizing Fund Types in Order to be in Compliance with GASB Statement 54
The City of Sodaville City Council has analyzed the governmental funds of the City, and has determined the appropriate classification for financial reporting for each fund under GASB Statement 54 and that the following governmental funds shall be reported in the financial statements of the District as follows:
i. General Fund
ii. Special Revenue Funds: Street Fund
iii, Debt Service Funds: Water Fund
This resolution shall be effective upon its passage and approval.