HomeMy Public PortalAbout2010_06_22_R070 GASB54 Governmental Fund balancesThe Town o f
PRESENTED June 22, 2010
RESOLUTION NO. 2010-070 ADOPTED June 22, 2010
A RESOLUTION: IMPLEMENTING GOVERNMENT ACCOUNTING STANDARDS
BOARD STATEMENT 54 FOR GOVERNMENTAL FUND BALANCES
FOR THE TOWN OF LEESBURG
WHEREAS, the Government Accounting Standards Board (GASB) has issued Statement
54 which establishes a standard for accounting and financial reporting of governmental fund
balances for all governments that report governmental funds; and
WHEREAS, GASB Statement 54 requires the Town of Leesburg to classify
governmental fund balances into specifically defined classifications; and
WHEREAS, the Town Council recognizes that to report general fund balances as
"committed" on the financial statements and to properly document Council's intent to set aside
fund balance for specific purposes, the funds must be so designated by formal action of the
government's highest level of decision making authority; and
WHEREAS, the Town Council recognizes that in order to remove or change the
"committed" designation of the fund balance presentation the formal action of the government's
highest level of decision making authority must also be executed.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia:
SECTION I. That pursuant to a fiscal policy that requires a minimum reserve of 15
percent of general fund expenditures each fiscal year, it is the intent of Council to commit this
reserve for use only in emergency situations involving imminent danger to persons or property
within the Town as determined by the Town Manager in consultation with the Council, or when
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A RESOLUTION: IMPLEMENTING GOVERNMENT ACCOUNTING STANDARDS
BOARD STATEMENT 54 FOR GOVERNMENTAL FUND BALANCES FOR
THE TOWN OF LEESBURG
revenue shortages or budgetary imbalances arise caused by conditions beyond the control of the
Town, as determined by the Town Manager in consultation with the Council.
SECTION II. That the $1.4 million of fund balance described as a revenue stabilization
reserve may only be used after a vote by the Council when general revenue is estimated by the
Town Manager to decline in an unexpected and sudden manner from the previous year.
PASSED this 22nd day of June, 2010.
> s en . Ums attd, Mayor
Town of Leesburg
ATTEST:
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Clerk of C c 1
P:\Resolutions\Resolutions 2010\0622 Fund Balance Resolution 6-22-10.doc