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HomeMy WebLinkAbout2016-06-28 - RESOLUTIONS - AMEND RESO 11-54 (2)RESOLUTION NO. 16-47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING RESOLUTION NO. 11-54 CLASSIFYING THE VARIOUS COMPONENTS OF FUND BALANCE AS DEFINED IN GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT NO. 54 WHEREAS, Resolution No. 11-54 is rescinded in order to make revisions to Section 5, adding the City Treasurer in place of the Deputy City Manager; and WHEREAS, in February 2009, the Governmental Accounting Standards Board (GASB) issued Statement No. 54 entitled "Fund Balance Reporting and Governmental Fund Type Definitions." This Statement establishes fund balance classifications that comprise a hierarchy, based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds; and WHEREAS, this new standard does not change the total amount of a given fund balance, but it would substantially alter the categories and terminology used to describe the components that make up the fund balance. The new categories and terminology reflect an approach that focuses, not in financial resources available for appropriation within a fund, but on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the fund can be spent; and WHEREAS, GASB Statement No. 54 defines five new components of fund balance that will replace the current existing three components: Reserved, Designated, and Undesignated. The term fund balance refers to the difference between assets (what is owned) and liabilities (what is owed) in the governmental funds balance sheet. Statement 54 established the following five new classifications depicting the relative strength of the constraints that control how specific amounts can be spent: (See Attachment A) Non -spendable Fund Balance. That portion of a fund balance that includes amounts that cannot be spent because they are either (a) not in a spendable form, such as inventories of supplies, prepaid items, or loans and notes receivable; or (b) legally or contractually required to be maintained intact, such as the principal portion of an endowment. This category was traditionally reported as a "reserved" fund balance under the old standard. Restricted Fund Balance. That portion of a fund balance that reflects constraints placed on the use of resources (other than non -spendable items) that are either (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. This category was traditionally reported as a "reserved" fund balance under the old standard. Committed Fund Balance. That portion of a fund balance that includes amounts that can only be used for specific purpose pursuant to constraints imposed by formal action of the government's highest level of decision making authority, and remain binding unless removed in the same manner. This category was traditionally reported as a "designated" fund balance under the old standard. I M Assigned Fund Balance. That portion of a fund balance that includes amounts that are constrained by the government's intent to be used for specific purposes, but that are neither restricted nor committed. Such intent needs to be established at either the highest level of decision making, or by an official designated for that purpose. This category was traditionally reported as a "designated" fund balance under the old standard. Unassigned Fund Balance. That portion of a fund balance that includes amounts that do not fall into one of the above four categories. Unassigned amounts are technically available for any purpose. The General Fund is the only fund that should report this category of fund balance. This category was traditionally reported as an "undesignated" fund balance under the old standard. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. The foregoing recitals are true and correct, and the City Council hereby so finds and determines. SECTION 2. The City Council hereby classifies the beginning fund balance at July 1, 2016, and its revenue resources as described on Attachment A. SECTION 3. Effective July 1, 2016, the City Council hereby commits the GASB 45 Compliance Fund to provide for current and future retiree post employment benefits. SECTION 4. The classification and reporting of fund balance components as required by the Governmental Accounting Standards Board Statement No. 54 is effective July 1, 2016. SECTION 5. The City Council hereby delegates the authority to assign amounts to be used for specific purposes to the City Treasurer for the purpose of reporting these amounts in the annual financial statements. SECTION 6. The City Clerk shall certify to the adoption of this Resolution. L 1 u 1 PASSED, APPROVED AND ADOPTED this 28" day of June 2016. YOR ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Kevin Tonoian, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 28th day of June 2016, by the following vote: AYES: COUNCILMEMBERS: McLean, Boydston, Weste, Acosta, Kellar NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None A ATTACHMENT A VARIOUS COMPONENTS OF FUND BALANCE AS DEFINED BY GOVERNMENT ACCOUNTING STANDARD BOARD STATEMENT NO. 54 Non -spendable Fund Balance: Prepaid Expenditures: The portion of fund balance that represents the asset amount of prepaid expenditures, held by a given fund. Advances to Other Funds: The portion of fund balance that represents the asset amount of cash advanced to other funds, held by a given fund. Loans Receivable: The portion of fund balance that represents the asset amount of loans receivable, held by a given fund. Land Held For Resale: The portion of fund balance that represents the asset amount of land inventory that is being held for resale, held by a given fund. Restricted Fund Balance: Home Program: The portion of fund balance derived from Home Program collections. CDBG: The portion of fund balance derived from the Department of Housing and Urban Development to revitalize low and moderate income areas. Justice Assistance Grant: The portion of fund balance derived from the Bureau of Justice Assistance to be used to support various law enforcement programs. Federal Grants: The portion of fund balance derived from federal agencies to be used for future planning, design, improvements and maintenance of streets, roads and bridges, facility construction and improvements, transit operations and other transit related expenditures. Revenue from Other Agencies: The portion of fund balance derived from other agencies to be used for the development and improvement of local bikeways, streets, roads and bridges, air quality, public transit, paratransit and related transportation infrastructure. Proposition A Park Bonds: That portion of fund balance derived from the County of Los Angeles to be used for park maintenance. Bridge and Thoroughfare Fees: The portion of fund balance derived from fees collected to be used for future roadway improvements or projects specified in the Engineer's Reports that established the districts. Park in Lieu Fees: The portion of fund balance derived from fees collected for future park construction and improvements. Developer Fees: The portion of fund balance derived from fees collected to provide improvements that mitigate the impacts of the development on existing infrastructure as well as for providing future infrastructure projects. Public Education & Government: The portion of fund balance derived from fees collected from cable television operators for the purpose of providing Public, Educational, and Government cable program access. Drainage Benefit Assessments: The portion of fund balance derived from fees collected to be used for funding drainage planning and projects and for the maintenance of existing drainage areas. Streetlight Maintenance: The portion of fund balance derived from assessment collected to be used for funding future projects and for the maintenance of the existing streetlights and traffic signals. Stormwater Utility User Fees: The portion of fund balance derived from fees collected to be used for the maintenance and construction of future storm drains, and stormwater requirements under the 1972 Clean Water Act. Landscape Maintenance: The portion of fund balance derived from fees collected to provide improvements and maintenance of landscape medians, parkways, slopes and appurtenant facilities within the districts. Tourism Marketing: The portion of fund balance derived from fees collected to be used for tourism marketing. Tourism Bureau: The portion of fund balance derived from membership fees collected from hospitality partners to be used for promoting businesses to Santa Clarita visitors. Open Space Preservation: The portion of fund balance derived from taxes collected to be used for open space purchases. Public Library: The portion of fund balance derived from taxes collected to be used for operations of the Santa Clarita Public Library. City Housing Successor: The portion of fund balance derived from the Housing Bonds of the former Redevelopment Agency. Fund Balance -Restricted: The portion of fund balance that is in any non -general fund governmental fund that is restricted under the "Restricted Fund Balance" definition as prescribed by Government Accounting Standards Board Statement No. 54 and not otherwise defined in this category above. Committed Fund Balance: GASB 45 Contribution: The portion of fund balance that has been committed to provide for current and future retiree post employment benefits. Fund Balance -Committed: The portion of fund balance that is in any non -general fund governmental fund that is committed under the "Committed Fund Balance" definition as prescribed by Government Accounting Standards Board Statement No. 54 and not otherwise defined in this category above. Assigned Fund Balance: Encumbrances: Used to account for that portion of fund balance that will be used to fund appropriations being carried over from the prior fiscal year into the current fiscal year. Continued Appropriations: Used to account for that portion of fund balance that will be used to fund appropriations being continued from the current fiscal year into the next fiscal year. Debt Service: Used to account for that portion of fund balance to provide for future debt service obligations. Next Year's Budget: Used to account for that portion of fund balance that has been set aside to tentatively fund future year's budgets. Fund Balance -Assigned: The portion of -fund balance that is in any non -general fund governmental fund that is assigned under the "Assigned Fund Balance" definition as prescribed by Government Accounting Standards Board Statement No. 54 and not otherwise defined in this category above. _U_nassianed Fund Balance (General Fund Only): Prior Year Available Fund Balance: The portion of fund balance that is brought forward from the prior fiscal year and is available for appropriation to fund current fiscal year activities. Fund Balance: Any portion of General Fund balance that does not fall under any of the fund balance definitions presented above. 1