HomeMy WebLinkAboutResolution 2012-0012CITY OF WHEAT RIDGE , COLORADO
RESOLUTION 12
Series of 20 12
TI TL E: A RESOLUTION APPROVING THE ASSIGNMENT, COMMITMENT,
AND RESTRICTION OF FUND BALANCES IN ACCORDANCE WITH
GOVERNMENTA L ACCOUNTING STANDARDS BOARD (GASB)
STATEMENT NO . 54
WH EREAS , the Governmental Accounting Standards Board ("GASB ") has
adopted Statement 54 ("GASB 54") Fund Balance Reporting and Governmental Fund
Type Definitions , a new standard for governmental fund balance reporting and
governmental fund type definitions that became effective in governmental fiscal years
starting June 30 , 2011 ; and
WH EREAS , Fund balance measures the net financial resources available to
finance expenditures for future periods ; and
W HEREAS, Certain City revenue sources have specific limitations on the
purpose fo r which all or a portion of the revenue can be used by the City; and
WH EREAS , the City of Wheat Ridge elects to implement GASB 54
requirements , and to apply such requirements to its financial statements beginning with
the 2011 fisca l year; and
WHEREAS, for financial statement reporting purposes , t he GASB Statement
defines Restricted amounts as those that are constrained to specific purposes by their
providers th rough constitutional provisions or enabling legislation ; and
WHEREAS , for financial statement reporting purposes , the GASB Statement
defines Committed amounts as those constrained to specific purposes by the
government itself; and
WH EREAS , for financial statement reporting purposes , the GASB Statement
defines Assigned amounts as those the government intends to use for a specific
purpose ; and
WHER EAS , for financial statement reporting purposes , the GASB Statement
defines Unassigned amounts as those amounts that are available for any purposes
reported only in the General Fund ; and
WHEREAS, when expenditures are incurred for purposes for which both
restricted and unrestricted (committed, assigned , or unassigned) fund balances are
available , the City's policy is to first apply restricted fund balance . When expenditures
are incurred for purposes for which committed, assigned , or unassigned fund balances
are available , the City 's policy is to first apply committed fund balanced , then assigned
fund balance and finally unassigned fund balance ; and
WHEREAS, this policy delegates to the City Manager, or the City Manager's
Designee, authority to assign unrestricted fund balance amounts where the City 's intent
is for those amounts to be used for specific purposes . This delegation of authority is for
the sole purpose of reporting these amounts in the annual financial statements; and
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Wheat Ridge ,
Colorado, in accordance with the provisions of GASB 54 adopts the following
authorization for fiscal year 2011 to comply with the categorization of fund balance as
prescribed by GASB Statement 54 as recommended by the City Manager or his
designee, as follows :
Section 1. The following Special Funds are acknowledged as assigned funds :
1. Capital Investment Fund 30
2 . Capital Equipment Replacement Fund 57
Section 2. The following Special Funds are acknowledged as committed funds :
3 . Public Art Fund 12
4 . Municipal Court Fund 33
5 . Crime Prevention Fund 63
6 . Recreation Center Fund 64
Section 3. The following Special Funds are acknowledged as restricted funds :
7 . Police Investigation Fund 17
8 . Open Space Fund 32
9 . Conservation Trust Fund 54
Section 4. The City commits Recreation Center Fund revenue sources and the
Recreation Center Fund balance . The City also commits all interest earnings to the
funds listed in Section 1 and Section 2 above . Additionally , in those funds designated in
Section 3 above , as Restricted Fund , the City commits all interest earnings to the
specific fund the interest earnings are recorded in .
DONE AND RESOLVED THIS_ DAY OF February, 2012.
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