HomeMy WebLinkAboutCity Council - 2015-14 RESOLUTION NO. 2015- 14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH APPROVING THE COMMITMENT OF FUND
BALANCES IN ACCORDANCE WITH GOVERNMENTAL
ACCOUNTING STANDARDS BOARD STATEMENT NO. 54
WHEREAS, the Governmental Accounting Standards Board (GASB) has issued Statement No.
54 — Fund Balance Reporting and Governmental Fund Type Definitions, which changes the terminology
used for fund balance reporting on balance sheets of Governmental Funds; and
For financial statement reporting purposes, the GASB Statement defines Nonspendable fund
balance as amounts that are not in spendable form and typically includes inventories, prepaid items, and
other items that, by definition cannot be appropriated; and
For financial statement reporting purposes, the GASB Statement defines Restricted fund balance
as amounts that can be spent only for the specific purposes stipulated by constitution, external resource
providers, or through enabling legislation; and
For financial statement reporting purposes, the GASB Statement defines Committed fund balance
as amounts that can be used only for the specific purposes determined by a formal action of the City
Council. The City Council has authority to establish, modify, or rescind a fund balance commitment by
formal action; and
For financial statement reporting purposes, the GASB Statement defines Assigned fund balance
as amounts that are intended to be used by the City for specific purposes but do not meet the criteria to be
classified as restricted or committed; and
For financial statement reporting purposes, the GASB Statement defines Unassigned fund balance
as the residual classification for the City's funds and includes all spendable amounts not contained in the
other classifications; and
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 balance, then
assigned fund balance, and finally unassigned fund balance; and
This policy delegates to the City Manager or designee the 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,
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as
follows:
The City Council of Huntington Beach hereby approves the attached Fund Balance Policy for
compliance with Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting
and Governmental Fund Type definitions.
15-4583/118116.docx
Resolution No . 2015-14
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular
meeting thereof held on the 16 t hday of March , 2015.
-0
Mayo
APPROVED A FO
ity Attorney M V- 3-LI-js-
REVIE kD APPROVED: INITIATED AND APPROV D:
Ci ger Finance Director
15-4583/118116.docx
Res. No. 2015-14
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a Regular meeting thereof held on March 16, 2015 by the following vote:
AYES: Posey, O'Connell, Katapodis, Hardy, Sullivan, Delgleize, Peterson
NOES: None
ABSENT: None
ABSTAIN: None
Q"W34f.,
City erk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California