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HomeMy Public PortalAboutPolicy for Fund BalanceRESOLUTION NO. 011-15 A RESOLUTION OF THE TOWN COMMISSION OF THE TOWN OF GULF STREAM, FLORIDA ESTABLISHING A FUND BALANCE POLICY OFTHE TOWN OF GULF STREAM; PROVIDINGSEVERABILITY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. WHEREAS, the Town Commission of the Town of Gulf Stream, Florida desires to establish a Fund Balance Policy in Accordance with the GASB Statement No. 54; Fund Balance Reporting and Governmental Fund Type Definitions; and WHEREAS, such a policy has been prepared and a copy thereof is attached hereto; NOW, THEREFORE, BE IT RESOLVED BYTHETOWN COMMISSION OFTHETOWN OF GULF STREAM, FLORIDA, THAT: Section 1. The Town Commission of the Town of Gulf Stream, Florida hereby adopts the 'Town of Gulf Stream Fund Balance Policy in Accordance with GASB Statement No.54", attached hereto as "Exhibit A", and hereby directs the Town Manager to implement said policy. Section 2. If any section, subsection, clause or provision of this resolution is held invalid, the remainder shall not be affected by such invalidity. Section 3. All resolutions or parts of resolutions in conflict herewith shall be and hereby are repealed Section 4. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this 15th day of September, 2011. Vice ayor Commissioner (SEAL) Com§ioner Commissioner ATTEST Town Clerk j :tis 'oN luamaluiS gSVD Xq Paptnojd suotltut3ap a p Wutsn sauoRaluo futmollot aql japun spun; Iuluamujano2 ut paijodw aq Iltn+ oouuluq puna •spun; [e;uamuaano ui BUIljo as aauep q pang •sivamman02 jaglo JO `su0peztuu2j0 alunud 'slenptntput 3o lgauaq aql jo3 sgutujuo io ludtauud oql asn of pa gnbai st umoj, aq] gotgm ut suotlunlis uodaj of pasn aq pings gotgm 'spun; lstm asodmd-alunud opntout lou op spun; luauuuuad •ACmozpto sit jo umol, a p 3o lgauaq aql jo3 'st Imp - suiusSojd s,umo,L agl ljoddns lugl sasodmd jo3 pasn aq ,tem `ludtouud lou puu 's2utuiva Sluo luql lualxa aqi of palogisaj aju legl saamosaj uodaj pue jo3 lunoaou of pasn air spun; luoumuocl •sluautujan02 jaglo jo 'su0tleztuu2j0 alunud 'slunptntput lo3 isrui ut plaq aq Iltm lugl slassu jo; jo spun; Siulaudojd Sq paouBug smoTpno polulaj-lultdeo ;o sadil asoql apnloxa spun; sloafojd Ieltdu0 •slasse Iultduo jaglo pug satlgloe3 lultduo 3o uotla"suoo jo uoptstnbau agl Vutpnlout `s tupno Iultduo jo3 samltpuadxa of pau8tssu jo pautunuoo `paloulsaj saomosaj Iutommi Ilu jo; lun000e of pasn am spttrg slootoia p It gO -spun; aotnjas igop ut paltodaj aq pings oslu sjuat amin ut Suunlum lsajalut pue ludtouud jo3 polulmumou gumq am legl saomosaj letouuutd •polupuem AlluSal jt soomosaj ljodaj of pasn aq pings spun; oopaos lgaQ •lsajalut pug ludtouud joj samltpuadxa of paugtssu Jo palltunuoo `palotjlsaj soomosaj Igtomug IIB jo; mnoom of pasn ajg spun; ootnjas lgaQ -puna ag13o osodmd pagtoods atp of pougtssu jo polltuunoo 'paloulsaj aje saomosaj asogl3t pun; oql ut papodaj aq Am oslu (aldun:xa jo3'pun} jaglo moj3 sjajsumi puu s&uujua luaunsanut) soomosaj jaglO *puna agl ut p3ijodaj smoT3ut aql 3o uotljod jut uulsgns u osudmoo of anutlno of poloodxa oq pings saomos anuanaj ogToods 3o spoomid pauttumoo jo palotjlsaj aqy •sluaunuan03 131D0 jo 'su0tlurtuu2j0 alunud `slunptntput jo3 lsnjl ut plaq soomosaj jo; lun000g of pasn oq lou pings spun; anuanaj Iutoads •sasodmd pagtoads xpyA aouupjomu ut popuodxa aq lltn+ ,tagl gotgm ut pun; anuanaj Iutoads agl ut anuanaj su portu2ooaj aq ptnogs smol;ut asogi 'janamog :mage Sutntaaaj Xllutltut pun; agl ut onuanaj sr pomBooaj aq lou pings slunoum osotLL •pun; anuanaj Iutaads u of paingtjlstp Alluanbosgns pug puna jagiouu ut pantaoaj AIlutltut aq Xum sanuanaj palltunuoo jo palotilsaj ogiaads osotLL -pun onuanaj Iutoads u jo3 uotlupuno3 otp aq pings sanuanaj polltuttuoo jo paloulsaj olpoods ojom jo auo lugl sagstiqulsa saamos anuma.t offioads fo spaaootd uual otLL •sloofojd lultdua JO aotnjas lgop uugl jotpo sasodmd org!oads jo3 sojnitpuadxo of palltmmoo jo palotrlsaj on lugl saomos onuanaj olpoods;o spaaoojd agl ljodaj pug lunomu of pasn ajg spun] onuanaj lutoa S •puna jagloue ut poljodaj pue jo3 polun000u lou soomosaj Iutoueug llu joj lunoaau of pasn st putt•I Igjouzz agy •/iltnpoe pug saouulsmnjro lunlou uo pasuq 'pouad 8ugiodaj uantS ,tug ut sod i purg Ilu podw lou bum jo ,Cum untoy aqZ umoL alp ssojog spun; Igluammano2 ut tltnpaR 21H odaj ut pasn aq QtM suoptugap $utnAollo3 aq.L :suoptu!jap 5cl4 puna satottod anjasaj pug aougp q pun; s,umoZ agl $utpxe2oj suopuln2aj snotnajd Ilu apasjadns it japun p017351nmojd sampaoojd agl pug totlod stgy •suoptugaQ puna luatuujanoO puu Vutljoda-d aouglgg puna 'tiS 'oN luamalulS („gSdJ„) Pjuog spjupuulS $utlun000y Igivaumjano>) 30- suotluotidmt agl ssajppu of japjo ut muollS 3InJ ;o mhos agl Aq poldopu uaaq sag Sotlod Sumollo3 oqy :as—oto ina CIANYO .M bS 'ON ,LNaWEI VJ S 9SVD HUM gONVCrdOD0d NI AOI IOd aDNV'I`dg QNIL3 TDwn of Gulf Stream Fund Balance Policy Approved on 9/15/2011 Page 2 Nonspendable fund balance includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The "not in spendable form" criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts. It also includes the long-term amount of loans and notes receivable, as well as property acquired for resale. However, if the use of the proceeds from the collection of those receivables or from the sale of those properties is restricted, committed, or assigned, then they should be included in the appropriate fund balance classification (restricted, committed, or assigned), rather than nonspendable fund balance. The corpus (or principal) of a permanent fund is an example of an amount that is legally or contractually required to be maintained intact Restricted fund balance includes amounts that are restricted to specific purposes when constraints placed on the use of resources 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. Enabling legislation authorizes the Town to assess, levy, charge, or otherwise mandate payment or resources (from external resource providers) and includes a legally enforceable requirement that those resources be used only for the specific purposes stipulated in the legislation. Legal enforceability means the government can be compelled by an external party — such as citizens, public interest groups, or the judiciary — to use resources created by enabling legislation only for the purposes specified by the legislation. Committed fund balance includes amounts that can be used only for specific purposes pursuant to constraints imposed by an ordinance, the Town's highest level of decision making authority. Those committed amounts cannot be used for any other purpose unless the Town removes or changes the specified use by taking the same type of action (an ordinance) it employed to previously commit those amounts. Committed fund balance should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. Amounts in the committed fund balance classification may be redeployed for other purposes pursuant to an ordinance. Constraints imposed on the use of committed amounts are imposed by the Town, separate from the authorization to raise the underlying revenue. Therefore, compliance with constraints imposed by the Town that commit amounts to specific purposes is not considered to be legally enforceable. An ordinance that commits fund balance to a specific purpose should be adopted prior to the end of the reporting period, but the amount, if any, which will be subject to the constraint, may be determined in the subsequent period. Assigned fund balance includes amounts intended to be used by the Town for specific purposes, but are neither restricted or committed. Intent should be expressed by the Town Commission or the Town Manager to which the Town Commission has delegated authority to assign amounts to be used for specific purposes. The authority for making an assignment is not required to be the Town's highest level of decision-making authority. Constraints imposed on the use of assigned amounts are more easily removed or modified than those imposed on amounts that are classified as committed. In governmental funds other than the general fund, assigned fund balance includes all remaining amounts (except for negative balances) that are not classified as nonspendable and are neither restricted nor committed. In the general fund, assigned fund balance includes all amounts that are intended to be used for specific purposes in accordance with the Town's expressed intent, but are neither restricted or committed. By reporting particular amounts that are not restricted or committed in a special revenue, capital projects, debt service, or permanent fund, the Town has assigned those amounts to the purpose of the respective funds. Assignment within the general fund conveys that the intended use of those amounts is for a specific purpose that is narrower than the general purposes of the Town itself An assignment for an amount to a specific purpose should not be reported if the assignment would result in a deficit in unassigned fund balance. oluQ .102euelnl umoy `.tagsuJq L •H UlullltAel :panoaddd •uotsstumtoD umoy agl of s321ueg3 .mj suotlupuoumt000i ,iuu alum puu ,illunuuu Isual lu 6otlod sttp Matn23 llugs iaguuuW umoy agy •uoilmuamalduut slt .toj ,S.tussaoau aq fotu gotgM samp000id puu sptepuuls ,Cue Matnai pue gstlqulsa of ioSutmW umoy oql sozuoglnu umoy otp Amlod stgl jo uopdopu uodrl :ramal pr: uolleluawal mI •slunomu paufftssuun uogl pure slunoutu pau8tssu ,Cq pamolloj `lsig paonpoi oq pinom slunoutu palummoo lugs umoy oql jo 4otlod aup aq llugs It `pasn aq pinoo uotleogtssulo aauuluq puna palotjlsamn agl jo iCuu ut slunouuu gotgM .uoj sasodmd .mj paunout st atnitpuadxa uu uogM •lsig poonpai uaaq aneq of slunouue poloulsai .taptsuoo of umoy oql jo Sotlod otp aq llugs It `alqultunu On slunotuu (pau2tssuun io 'paugtssu `polltunuoo) paloulsamn puu palopisai gloq gotgm .toj sasodmd .toj paunout st arltpuadxo uu uogAk - asn oouuluq pun; jo uotluzpuoud l,s olsl luautalulS flSVO ut glioj las uualuo pun suot]tugap zip uo posuq `aleudoidde su `paustssu Jo pallttumoo su pagtssula oq.11tm `paugtssu .to pallttutum `paloulsat ilsnotnaud uaaq IOU aneq slunoum gotgm joj sasodmd ogtoads .toj slunomu panquunmg •slunoutn pauaquunoua jo 6uldstp aluzedos ut llnsoi IOU pinogs paugtssu jo palltunuoo `paloulsai uaaq ,Cpnoitu anuq soomosai gotgm .toj sasodind ogtoads .toj slunou m 5uuagtunoug - 9MIjocloi aounaqumaug •lunoum pauStssuun uu apnlout oslu Sum pun; letaua�f aqy •suotlnogtssulo asotg jo uotluutqutoo Suu Jo paalssu Jo palltuumoo `poloulsoi aiu leap slunou m pun soomosoi alqupuadsuou apnlout Smu pun; luluauruanoS lunptntput uy -punj luluamuuan02 u ut poliodoi on luip saomosai lau aqI jo amluu agl lotdap suotleogtsselo aonuluq puna — slurou m aouuleq pun; ut jtssul5 :spur; luluauuunanoS ut aounluq punj jo asn pun uotluogtssnlo aql ssajppu sautloptnii gutmolloj ag,l, :sauilap!nn luuotlMa o •sasodind asogl of paugtssu .m `polltumuoo `palotilsoi slunome aql papaaoxa smodtnd ogtoads .uoj paunout somltpuadxo jt oouuluq punj pauStsseun antleSau a liodoi of 6.uuss000u oq ,Coot It `spun] leluamuuanoS .taglo ul •lunouzu aouuluq punj pou2tssuun antltsod a sltodoi Imp punj ,Cluo agl aq pinogs punj luiauoW aqy punj luuaua2 aup utuPtM sasodmd ooads o1 pau5tsse so `paptumtoo `palouzsai uaaq IOU suq lugl puu spunj laglo of paugtssu uaaq IOU seq Imp aoueluq punj sluasaidoi uotleogtssulo stq,y -punj luiau32 oql Toj uotluogtsselo lunptsat aql sapnlout oouuluq punj pa tssuun •aouuluq punj jo Iuaumigtsse in su pogtssulo aq of uualuo zip sagstlus sanuanat paloadxa fano samltpuodxa paloodxo jo ssooxa paloofoid zip uugl .taluaa2 ou lunoutu uu ut la0pnq s,iva,C luonbasgns oql ut ltogap ,Cnjo2pnq poloofotd u aluututtla of oouuluq punj Butlstxo jo uotluudoiddu ud £ a2ud IIOZ/SI/6 uo panoJddy Sotlod aouulug Pund utuailS jlnD jo umoy