RESOLUTION NO. 12-07
Resolution of the City of Monticello City Council
Establishing Fund Balance Policies pursuant to GASB 54
WHERAS, the Governmental Accounting Standards Board (“GASB”) has issued 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, 2010, and
WHEREAS, The City of Monticello City Council is required to implement GASB 54 requirements, and to apply such requirements to its financial statements beginning with the fiscal year 2010-2011; and
NOW THEREFORE BE IT RESOLVED THAT the City of Monticello City Council hereby adopts the following policy:
FUND BALANCE POLICY
Fund balance measures the net financial resources available to finance expenditures of future periods.
The Unassigned General Fund Balance may only be assigned by the City Clerk or their designee, pursuant to authority delegated by the City Council.
Fund Balances of City of Monticello may be committed for a specific source by Resolution of the City of Monticello City Council. Amendments, modifications the discontinuance of the committed fund balance must also be approved by Resolution of the City of Monticello City Council.
In circumstances where an expenditure is to be made for a purpose for which amounts are available in multiple fund balance classifications within the same fund, the order in which resources will be expended is as follows: restricted fund balance, followed by committed fund balance, assigned fund balance, and lastly, unassigned fund balance.
NOW THEREFORE BE IT RESOLVED that City of Monticello’s financial goal is to have a sufficient balance in the General Fund with sufficient working capital and a margin of safety to address local and regional emergencies without borrowing. City of Monticello shall strive to maintain a yearly ending fund balance in the general operating fund in which the total end of year fund balance is 25 percent of the total operating expenditures.
The above Resolution is adopted this16th day of January 2012.
Dena G. Himes, Mayor
Attest:
Sally Hinrichsen, City Clerk