The URL can be used to link to this page

Home My Public Portal About2011.148 (06-21-11) RESOLUTION NO. 2011.148 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD CLASSIFYING THE VARIOUS COMPONENTS OF THE FUND BALANCE AS DEFINED IN GOVERNMENTAL ACCOUNTING STANDARD BOARDS STATEMENT NUMBER 54 WHEREAS, the Governmental Accounting Standard Board (GASB) has issued its Statement No. 54, entitled "Fund Balance Reporting and Governmental Fund Type Definitions"; and WHEREAS, the City of Lynwood desires to classify the various components of fund balance as defined in Governmental Accounting Standards Board Statement No. 54. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY RESOLVE AND DETERMINE AS FOLLOWS: Section 1. The City Council approves and defines the various components of fund balance as reported by the City as presented on Attachment 1 to this Resolution. Section 2. The classification and reporting of fund balance components as required by Governmental Accounting Standards Board Statement No. 54 shall become effective starting with FY 2010-2011. Section 3. The City Council of the City of Lynwood designates the City Manager or his designee to determine and define the amounts of those components of fund balance that are classified as "Assigned Fund Balance". Section 4. The policy shall remain in effect until further amended. PASSED, APPROVED and ADOPTED this 21 day of June, 2011. , � � � Ai e Castro, Mayor ATTEST: APPROVED AS TO CONTENT: � �_ , Maria Quinonez, City Clerk Roger L. a e, � y Manager APPROVED AS TO FORM: � � � Fred Galante, City Attorney Robert S. Torrez, is nt City Manager STATE OF CALIFORNIA ) ) SS. COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a regular meeting held on the 21 day of June, 2011. AYES: COUNCIL MEMBERS FLORES, RODRIGUEZ, SANTILLAN, MORTON AND CASTRO NOES: NONE ABSENT: NONE ABSTAIN: NONE � / Maria Quinonez, ity Clerk STATE OF CALIFORNIA ) ) SS. COUNTY OF LOS ANGELES ) I, the undersigned City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. 2011.148 on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 21 day of June, 2011. �— Maria Quinonez, i C er Attachment 1 VARIOUS COMPONENTS OF FUND BALANCE AS DEFINED BY GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT NO. 54 Nonspendable Fund Balance (Inherently nonspendable) Nonspendable fund balance includes amounts that cannot be spent because they are either (a) not in a spendable form or (b) legally or contractually required to be maintained intact. This fund balance includes but not limited to: Petty Cash: The asset amount of petty cash, held by a given fund. Inventories: The asset amount of supply inventories, held by a given fund. Prepaid Expenditures: The asset amount of prepaid expenditures, held by a given fund. Notes/Loan Receivables: The long-term amount of notes and loans receivables, that is not restricted, committed or assigned. Advances to Other Funds: The asset amount of cash advanced to other funds. Land Held for Resa/e: The asset amount of land inventory that is being held for resale. Restricted Fund Balance (Externally enforceable limitations on use) Restricted fund balance includes amounts constrained for specific purpose by external parties such as debt service, capital projects, State and Federal Grant funds. This fund balance includes but not limited to: Asset Forfeiture: The portion of fund balance derived from monies received from asset forfeitures related to law enforcement activities and efforts, that can only be used for law enforcement related activities. Housing Set-Aside: Fund balance derived from 20% of revenues from tax increment to be used for future development and provision of low and moderate income housing. Debt Redemption: Fund ba/ance that has been set aside for debt redemption. Bond Reserve Requirement: Fund balance that has been set aside from debt proceeds and maintained as security for holders of debt. Impact Fees Fund: Fund balance from fees collected from new developments, which will be used to construct public infrastructure. Public Art Fund: Fund balance from fees collected from new developments in lieu of the developer placing an art piece, which will be used for the placement of public art. Retirement Fund.� Fund ba/ance received from property tax levy to cover retirement costs. Lighting Assessmenf Fund: Fund balance derived from assessments charged against property owners' front footage to pay the cost of maintenance and operation of citywide streetlights. Landscape Maintenance Fund: Fund balance derived from special assessments charged against property owners' from footage to pay for services such as tree maintenance, park maintenance and capital improvements. Business Improvement District Fund: Fund balance from assessments imposed on businesses in the District to promote various activities within the District. Fund Balance — Restricted: The portion of the fund balance that is in any non-general governmental fund that is restricted under the "Restricted Fund Balance" definition as prescribed by Governmental Accounting Standards Board Statement No. 54 and not otherwise defined in this category above. Committed Fund Balance (Self-imposed limitations on use) Committed fund balance includes amounts constrained for a specific purpose by a government using its highest level of decision making authority that remain binding unless removed in the same manner. This fund balance includes but not limited to: Capital Projects: The portion of the fund balance that has been appropriated for specified capital projects and remains unspent. Vehicle Replacement: The portion of fund balance that is set aside each year during budget adoption to be used in future years for City vehicle replacement. Fund Balance - Committed: The portion of fund balance that is in any non-general governmental fund that is committed under the "Committed Fund Balance" definition as prescribed by Governmental Accounting Standards Board Statement No. 54 and not otherwise defined in this category above. Assigned Fund Balance (Limitation resulting from intended use) Assigned fund balance includes amounts that are constrained by the government's intent to be used for a specific purpose, but 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 fund balance includes but not limited to: GASB 31 Adjustment: Fund balance that is a result of unrealized investment gains that have been recorded in accordance with Governmental Accounting Standards Board Statement No. 31. Encumbrances: Portion of the fund balance that is being used to fund appropriations being carried over from the prior fiscal year into the current fiscal year. Next Year's Budget: Portion of the fund balance that has been set-aside to tentatively fund future years' budgets. Donations: Portion of the fund ba/ance that is derived from unrestricted donations made to the City. PERS: Portion of the fund balance that is set aside to address potential future PERS rate increases. Prop 1A: Portion of the fund balance that is set aside to address the potential impacts of City revenue take away due to State budgetary action. Fund Balance - Assigned: The portion of the fund balance that is in any non-general governmental fund that is assigned under the "Assigned Fund Balance" definition as prescribed by Governmental Accounting Standards Board Statement No. 54 and not otherwise defined in this category above. Unassigned Fund Balance (Residual net resources) Unassigned fund balance includes amounts that do not fall into one of the above four categories. The General Fund is the only fund that should report a positive unassigned fund balance amount. In other governmental funds, if expenditures incurred for specific purposes exceeded the amounts restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance. This fund balance includes but not limited to: Prior Year Available Fund Balance: Fund balance that is brought forward from the prior . fiscal year and is available for appropriation to fund current fiscal year activities. Emergency Shortfall Reserve: Fund balance that has been set aside as the City's emergency or "rainy day" fund. Fund Balance: Any portion of General fund balance that does not fall under any of the fund balance definitions presented above.