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HomeMy WebLinkAboutApprove Assignments in General Fund in FY 2013 CAFR Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brian LaMeres, City Controller Anna Rosenberry, Director of Administrative Services SUBJECT: FY13 Financial Audit – “Assignments” in the General Fund MEETING DATE: December 2, 2013 AGENDA ITEM TYPE: Consent RECOMMENDATION: The City Commission approves staff recommendation for Assignments in the General Fund to be reported in the Comprehensive Annual Financial Report (CAFR) for fiscal year 2013. BACKGROUND: Beginning in fiscal year 2012 the City was required by Governmental Accounting Standards Board Statement 54 (GASB 54) to report ending fund balances using new classification terminology. The objective of GASB 54 was to enhance the usefulness of fund balance information by providing clearer fund balance classifications. To that end, the terms “reserved”, “unreserved”, “designated”, and “undesignated” have been replaced with the terms “nonspendable”, “restricted”, “committed”, “assigned”, and “unassigned”. Nonspendable: Nonspendable fund balances are rare for the City but would include items such as inventory and the prepaid rental of the Law & Justice Center. Restricted: The restricted fund balance category includes amounts that can be spent only for the specific purposes stipulated by law or by external resource providers. The City’s Restricted Funds include Impact Fees, Street & Tree Assessments, Gas Tax, and the Tax Increment Financing Districts, among others. Committed: The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. The Committed Fund Balances currently reported in the City’s CAFR were established by the City Commission on June 13, 2011. These fund balances represent financial activity that is not restricted and therefore would be required to be reported in the City’s General Fund unless the Commission chose to set the money aside in separate Special Revenue Funds, generally to facilitate better financial management and transparency. Committed fund balances include the Park Improvement Grants, the Story Mansion operations, and the Fire Department Capital & Equipment Special Revenue Funds, among others. 154 Assigned: Amounts in the assigned fund balance classification do not meet the criteria to be classified as restricted or committed, but nonetheless are intended to be used by the government for specific purposes. This intent can be expressed by the Commission or by an official or body to which the Commission delegates the authority. The City Commission delegates this authority to the City Manager. Unassigned: Unassigned fund balance is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. Although the authority to Assign Fund Balances is delegated to the City Manger, the City Commission requested during last year’s presentation of the annual financial audit that in the future it would like to see a list of the proposed Assignments in the General Fund before the audit of the CAFR was completed. That list is presented here: FY13 ENDING GENERAL FUND BALANCE - TOTAL:7,327,374$ ASSIGNMENTS: 1 CIP / CAPITAL CARRY-OVER BUDGETED IN FY13 BUT NOT SPENT UNTIL FY14: CITY CLERK: AGENDA/MINUTE AUTOMATION SOFTWARE ESTIMATE 14,000$ FACILITIES MGMT: CIP GF103: CITY-WIDE ADA 12,533$ FACILITIES MGMT: CIP GF134 SENIOR CENTER FLOORING 24,810$ FACILITIES MGMT: CIP GF135: SHOPS COMPLEX SIDEWALKS 15,647$ FACILITIES MGMT: CIP GF158 PROFESSIONAL BUILDING MECHANICAL UPGRADES 26,840$ FACILITIES MGMT: CIP GF168 MASONRY REPAIR AT CITY HALL 56,490$ FACILITIES MGMT: GRAFFITI SPRAYER 4,359$ FACILITIES MGMT: SENIOR CENTER DOOR LOCK REPLACEMENTS 2,496$ FIRE DEPT: CIP GF159 FIRE STATION #2 WINDOW REPLACEMENT 18,151$ FIRE DEPT: CIP GF162: LIFE FIRE TRAINING PROP 15,000$ PARKS DEPT: CIP GF084: LINDLEY PARK RESTROOM UPGRADE/REPLACE 134,356$ POLICE DEPT: CIP GF050: FY13 SHARE DESIGN POLICE+COURT FACILITY 664,137$ RECREATION DEPT: CIP GF102 LINDLEY CENTER DECK 33,725$ TOTAL CIP / CAPITAL-CARRY OVER ITEMS:1,022,544$ 2 16.67% MINIMUM RESERVE LEVEL REQUIRED BY CITY CHARTER (2 MONTHS OF REVENUES):3,987,495$ 3 FY14 BUDGET: FY13 YEAR-END FUND BALANCE NEEDED TO BALANCE FY14 BUDGET:2,317,335$ TOTAL GENERAL FUND ASSIGNMENTS:7,327,374$ UNASSIGNED GENERAL FUND BALANCE - FY13:0$ UNRESOLVED ISSUES: None ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: There are no fiscal effects of this approval by the Commission. This is a reporting decision as opposed to a spending or funding decision. This decision will affect how the General Fund Balance is reported in the CAFR for fiscal year 2013 to be presented to the Commission on December 19th, 2013. Report compiled on: November 25, 2013 155