HomeMy WebLinkAbout2011-186RESOLUTION 2011
Establishing Fund Balance Policies as required by GASB 54
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 that became effective in governmental fiscal years starting after June 15,20 10, and
WHEREAS, the City of Stillwater elects to implement GASB 54 requirements, and to apply such
requirements to its financial statements beginning with the current (January 1, 2011 — December 31, 2011)
fiscal year; and
NOW THEREFORE BE IT RESOLVED THAT the City of Stillwater hereby adopts the following
policy:
FUND BALANCE POLICY
Fund balance measures the net financial resources available to finance expenditures of future periods.
The City's Unassigned General Fund Balance will be maintained to provide the City with sufficient
working capital and a margin of safety to address local and regional emergencies without borrowing. The
Unassigned General Fund Balance may only be appropriated by resolution of the City Council.
Fund Balance of the City may be committed for a specific source by formal action of the City Council.
Amendments or modifications of the committed fund balance must also be approved by formal action of
the City Council.
When it is appropriate for fund balance (e.g. compensated absences) to be assigned, the City Council
delegates authority to the City Administrator or the Finance Director.
BE IT RESOLVED that any unrestricted fund balance in any special revenue fund is committed by the
council to the specific purpose of that fund.
AND BE IT RESOLVED that the City of Stillwater's financial goal is to have a sufficient balance in the
operating fund with sufficient working capital and a margin of safety to address local and regional
emergencies without borrowing. The City shall strive to maintain a yearly fund balance in the gene 1
operating fund in which the total fund balance is 35 -50 percent of the total operating expendit -
The above Resolution is adopted this 20` day of December, 2011.
Harycki, Mayor
ATTEST:
Diane F. Ward, City Clerk