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Home My WebLink About06-22-20 City Commission Packet Materials - C19. Res 5187 Amending Res 4319 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brian LaMeres, City Controller Kristin Donald, Finance Director SUBJECT: Adoption of Resolution 5187 amending Resolution 4319, which approved the commitment of Special Revenue Fund Balances to be used only for certain stated purposes in accordance with Governmental Accounting Standards Board Statement 54 (GASB 54). MEETING DATE: June 22, 2020 AGENDA ITEM TYPE: Consent RECOMMENDATION: Adopt Resolution 5187, amending Resolution 4319, which approved the commitment of Special Revenue Fund Balances in accordance with Governmental Accounting Standards Board Statement 54 (GASB 54), by adding the Story Mill Community Park Special Revenue Fund and the Bozeman Sports Park Special Revenue Fund to the list of Committed Special Revenue Fund Balances. BACKGROUND: On June 13, 2011 the City Commission adopted Resolution 4319 which implemented GASB Statement 54 by committing fund balances in the City’s Special Revenue Funds to be used only in accordance with certain stated purposes. “Committed fund balance” is further explained on pages 176 – 177 of the FY 2021 Recommended Budget posted on the City’s website at https://www.bozeman.net/government/finance/budget-and-financial-reports. Similar to fiscal year 2011, in the current fiscal year 2020 there was again financial activity which staff feels is best reported in separate Special Revenue Funds – rather than in the General Fund – in order to provide the highest level of transparency and accountability for these resources. These activities are related to the Story Mill Community Park and the Bozeman Sport Park and include stewardship agreement contributions and user fees collected for park improvements and debt service. Therefore, in order to provide a high level of transparency and accountability to contributors, user fee payers, and to the community as a whole, staff is requesting that the City Commission commit these existing and future resources to be used solely to support each respective park and to be recorded in the Story Mill Community Park Special Revenue Fund #198 and in the Bozeman Sports Park Special Revenue Fund #199. 218 Amounts reported as “committed” cannot be used for any other purpose unless the City Commission takes action to remove or change this constraint. FISCAL EFFECTS: The adoption of this resolution will have no overall fiscal effect, however it will result in the City’s financial statements for fiscal year 2020 reporting an estimated $123,000 for the Story Mill Community Park and an estimated $6,000 for the Bozeman Sports Park as Committed Special Revenue Fund Balances, instead of this combined estimated total of $129,000 being reported in the General Fund. This information is presented to the Commission annually in the audit presentation of the Comprehensive Annual Financial Report (CAFR). This process must be followed in order to comply with the requirements of GASB 54 which is necessary in order to receive a clean unmodified audit opinion on the City’s financial statements. Failure to receive an unmodified audit opinion can adversely affect the City’s credit rating and increase its cost of borrowing. It can also increase the difficulty of qualifying for federal and state grant funds. ALTERNATIVES: As suggested by the City Commission. If the resolution is not adopted, then this activity must be reported in the General Fund where it will be more difficult to track and report this specific financial activity at a high level of transparency and accountability, especially over multiple fiscal years. Attachments: 1) Proposed Resolution 5187 2) Original Resolution 4319, adopted June 13, 2011 Report compiled on: June 11, 2020 219 Page 1 of 2 COMMISSION RESOLUTION NO. 5187 A RESOLUTION OF THE CITY COMMISSION OF BOZEMAN, MONTANA, AMENDING RESOLUTION 4319 WHICH APPROVED THE COMMITMENT OF SPECIAL REVENUE FUND BALANCES IN ACCORDANCE WITH GASB STATEMENT NO. 54, BY ADDING THE STORY MILL COMMUNITY PARK FUND AND THE BOZEMAN SPORTS PARK FUND TO THE LIST OF COMMITTED SPECIAL REVENUE FUND BALANCES WHEREAS, the Governmental Accounting Standards Board (GASB) has issued Statement No. 54 – Fund Balance Reporting and Governmental Fund Type Definitions, which changes the terminology and classifications used for fund balance reporting on balance sheets of Governmental Funds; and WHEREAS, the City Commission did, on the 13th day of June, 2011, after due and proper legal notice, adopt Resolution 4319-APPROVE COMMITMENT OF SPECIAL REVENUE FUND BALANCES IN ACCORDANCE WITH GASB STATEMENT NO. 54; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues of the Story Mill Community Park Special Revenue Fund be formally committed to support the Story Mill Community Park; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues of the Bozeman Sports Park Special Revenue Fund be formally committed to support the Bozeman Sports Park; 220 Resolution No. 5187, Adopting GASB Statement 54 for Special Revenue Funds Page 2 of 2 NOW THEREFORE BE IT RESOLVED that the City Commission of the City of Bozeman hereby accepts the aforementioned recommendations. PASSED AND ADOPTED this 22th day of June, 2020. ______________________________ CHRIS MEHL Mayor ATTEST: ______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ______________________________ GREG SULLIVAN City Attorney 221 COMMISSION RESOLUTION NO. 4319 A RESOLUTION OF THE CITY COMMISSION OF BOZEMAN, MONTANA, TO APPROVE COMMITMENT OF SPECIAL REVENUE FUND BALANCES IN ACCORDANCE WITH GASB 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 and classifications used for fund balance reporting on balance sheets of Governmental Funds; and WHEREAS, the Finance Department has reviewed the new terminology and classifications; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Americans With Disabilities Special Revenue Fund be committed to support Americans With Disabilities; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Community Housing Special Revenue Fund be committed to support Community Housing; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Development Impacts Special Revenue Fund, also known as the Big Box Fund", be committed to support community issues such as affordable housing and economic development; and Page 1 of 4 222 Resolution No, 4319, Adopting GASB Statement 54 for Special Revenue Funds WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Disaster Relief Special Revenue Fund be committed to support disaster relief efforts; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the City of Bozeman - Gallatin County Drug Forfeiture Special Revenue Fund be committed to support joint drug law enforcement efforts; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Fire Department Capital & Equipment Special Revenue Fund be committed to purchase buildings, vehicles, equipment, and property for the Fire Department; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Fish, Wildlife and Parks Management Special Revenue Fund be committed to support parks and recreation areas under joint management by the City of Bozeman and the State of Montana Fish, Wildlife and Parks Department; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Highway Safety Special Revenue Fund be committed to reducing the severity of accidents as well as reducing the number of accidents on all public roads and highways, including intersections; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Insurance Proceeds Special Revenue Fund be committed to the use of insurance claim reimbursements to repair or replace damaged or destroyed City property and equipment; and Page 2 of 4 223 Resolution No. 4319, Adopting GASB Statement 54 for Special Revenue Funds WHEREAS, the Finance Department recommends that the fund balance in the Law and Justice Lease Special Revenue Fund be committed to the allocation of the lease of space in the Gallatin County Law & Justice center for the City's Police Department and Municipal Court; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Parks Master Plan Development Fund be committed to support Park Improvement Grant projects, AND; WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Police D.A.R.E Special Revenue Fund be committed to support Drug Abuse Resistance Education; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Senior Transportation Special Revenue Fund be committed to support public transportation for senior citizens; and WHEREAS, the Finance Department recommends that the fund balance and all future revenues in the Story Mansion Special Revenue Fund be committed to support operating expenses of the Story Mansion; Page 3 of 4 224 Resolution No. 4319, Adopting GASB Statement 54 for Special Revenue Funds NOW THEREFORE BE IT RESOLVED that the City Commission of the City of Bozeman hereby accepts the aforementioned recommendations. PASSED AND APPROVED this 13"' day of June, 201 C If I, 0 a AAT 47'r U"7 L 1) C P SULLIVAN Attorney Page 4 of 4 225 4 1y L L CW M Y CHANGES IN FUND BALANCE/WORKING CAPITAL 12- - - - - -- - - __ - - -- -- - - ---- ------ - - - - -- Projected Beginning Estimated Appropriations Budgeted Ending Fund Balance! Revenues Fund Balance/ Working Capital Working Ca ltal General Fund 010 'General Fund 4,505,743 $ 23,587,268 $ 24,121,974 $ 3,971.037 Special Revenue Fronds 100 (Planning Fund 218,084 !727,260 657,504 287,840 103 iHealth- Medical Insurance 62,113 2,002,219 2,002,269 62,113 104 !Liability Insurance 17,714),17,714) 105 I P. E. R.S. Fund 22,601 _22,601 106 (Police Pension Fund 18,918 18,918 107 Fire Pension Fund _10,808 i 10 _.808 108 :Community Transportation 49,645 22.160 10,51,5 61,290 109 Highway Safety Improvement Projects 21,877 21,877 110 Gas Tax Apportionment 601,684 668,460 656,500 ,,613,644 111 Street Maintenance District 237,219 4,197,972 3,883,679 551,512 112 Tree Maintenance 156,784 !431,500 439,452 148,832 113 Fire Impact Fee 17,500 150,000 167,500 114 Street Impact Fee 7,589,881 700,000 879,400 7,410,481 115 Building Inspection Special Revenue 636,517 869,600 803,136 702,981 116 Dowtown Improvement District 656,312 1,100,158 1,242,878 513,592 118 HUD Projects 119 Economic Development Loan Fund 120 Community Horsing 319,432 50,000 40,000 329,432 121 Housing Revolving Loan Fund 63,219 7,000 14,400 55,819 122 (Blast Clean Up Loans 1-25. Drug Forfeiture 65,832)187,000 166,601 '45,433) 128 Fish Wildlife And Park Management Area:26,635 26,635 129 (Special Projects - Recovery Act, ARRA 130 Americans With Disability Act 4,210 4,210 131 (Beautification Of Bozeman 1,389 1,389 133 !Recreation Department Special Revenue 17,330 1,000 1,000 17,330 135 (Cemetery Department Special Revenue 2,280 2,280 136 ;Park Department Special Revenue 10,270 5,500 12,000 3,770 137 Library Department Special Revenue 11,436 5,200 I 7,900 736 138 Law & Justice Center 445,374 20,000 425,374 139 Police Department Special Revenue11 288,933 104,500:82,322 311,111 140 Police Domestic Violence 1,250 1,250 142 Sustainabi6ity Grant 143 TI N 7th Corridor 23,545 274,000 505,000 207,455) 144 'TIF 'NE Urban Renewal 116,5621i 63,900 75,000 105,462 145 TIF Mandeville Industrial 172,853)!34,000 138,853) 146 Lighting Dist.'s (146-170,181,182,200-224)492,275 315,000 315,000 492,275 174 Victim Witness Advocate 369,091 76,000 113,020 332.071 175. Senior Transportation 31,018 j 82,400 82,400 31,018 176 Business Improvement District 3,588 114,000 114,000 3,588 177 Neighborhood Special Revenue 969 969 179 Diaster Relief Fund 87,560 2,000 89 „560 226 CHANGES IN FUND BALANCE/WORKING CAPITAL FY 12s ---------------------------------------------- Projected Beginning Estimated appropriations Budgeted Ending Fund Balance/Revenues _Fund Balance/ Working Ca ital Working Ca ital 183 'Fire Department Special Revenue 32,569 32,569 184 'Parks Master Plan Develop 146,464 !146 „464 185 Insurance Proceeds 186 iDevelopment Impacts 655,722 8,000 I 663,722 187 'Fire Department Equipment 122,117)1 334,600 212,483 188 (City /County Drug Forfeiture 263,592 ,55,000 !318,592 189 ',Story Mansion Special Revenue 35,515 40,000 !34,675 40,840 191 ,Tourism BID 20,955 I 20,955 850 1 Park Land - Cash in Lieu 190,563 190,563 Total S ecial Revenue Funds 13 12 628 429 12 326 101 13.841 217 Debt Service Funds 300 .Special Improvement District Revolt', Fund 1,228,196 ';20,000 1,248,196 301 ,Library Bonds 192,143 1 314,849 316,132 190,860 302 !Bond P & 11995 Transportation Projects 237,611)!469,088 428,066 196,589) 305 ITIF 2007 Downtown Bonds 3,384)1 424,878 424,878 3,384) 3101SID Funds 2,096,424 1,500,000 1,500,000 2,096,424 Dotal Debt Service Funds 3,275,768 !2,728,815 2,669,076 3,335 „507 Construction Funds Capital Projects Pntergrise_Funds 600 ,Water 10,916 „509 6,127,297 14,542,098 2,501,708 610 Water Impact Fee - Net Assets 7,791,746 !475,000 5,250,000 3,016,746 620 'Waste Water 6,698,497 6,253,452 7,021,864 j 5,930,085 630 Waste Water Impact Fee -Net Assets 404,000 404 „000 640 Solid Waste 752,500 2,496,811 2,587,042 ,662,269 650 ,Parkin Enterprise 22,639 336,35f1 392,690 78,979 Total Enterprise Funds 26,136,613 16,092,910 30,197,694 12,031,829 internal Service Funds 710 - "Vehicle Maintenance Shop 37,240 794,164 748,716 82,688 720 iHealth- M®dicat Self - Insurance Fund 18,055)1 i 3,480,000 ( i 3,490,000 _28,055) Total Internal Service Funds 19,185 (4,274,164 4,238,716 t 54,633 Permanent Funds I 800 (Cemete Per etual Care 581,071 92 „000 673,071 Total Permanent Funds 581,071 92,000 ?;673,071 Total All Funds 48,057,269 59,403,586 73,553,561 1 33,907,294 49 FY12 City Manager's Recommended Budget City of Bozeman, Montana 227 z z Z2DoW0 m f1 ' O O ON 000000000000000000000000000000wW > - W W.w W W W W W w W W W Z Z Z Z Z Z. 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